Texas

Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, said last week it closed on the purchase of the 1 Bcf/d Val Verde Gathering System from Burlington Resources’ gathering affiliate for $444 million.

Texas Eastern Products Pipeline Co. LLC, the general partner of TEPPCO Partners LP, made its largest purchase ever last Tuesday, paying $444 million for Burlington Resources’ 1 Bcf/d Val Verde gathering system in the San Juan Basin. TEPPCO officials said they expect the addition of the system to be immediately accretive to earnings and cash flow and to show moderate annual growth going forward.

In a move that some might say could only happen in Texas, the City of Fort Worth may adopt an ordinance permitting natural gas drilling within the city limits. Still to be determined is the required distance between a well site and residential property, but under the current plan, wells could be drilled within 1,000 feet of homes. The city council was set to consider the ordinance this week.

In a move that some might say could only happen in Texas, the City of Fort Worth may adopt an ordinance permitting natural gas drilling within the city limits. Still to be determined is the required distance between a well site and residential property, but under the current plan, wells could be drilled within 1,000 feet of homes. The city council was set to consider the ordinance this week.

A leak was confirmed at the Mustang Island 762 platform on the Northern Natural Gas-operated Matagorda Offshore Pipeline System off the Texas coast. The point was taken to zero flow, causing the shut-in of about 8,000 MMBtu/d until further notice. Personnel are evaluating the leak for repairs.

Coming to completion right on schedule, Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, reported that it has finalized its acquisition of the Jonah Gas Gathering Co. from Green River Pipeline LLC and McMurry Oil Co., both wholly owned subsidiaries of Alberta Energy Co. Ltd. (AEC). TEPPCO said the estimated $360 million deal marks its entry into the natural gas gathering business.

Coming to completion right on schedule, Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, reported that it has finalized its acquisition of the Jonah Gas Gathering Co. from Green River Pipeline LLC and McMurry Oil Co., both wholly owned subsidiaries of Alberta Energy Co. Ltd. (AEC). TEPPCO said the estimated $360 million deal marks its entry into the natural gas gathering business.

Clayton Williams Energy Inc., an independent headquartered in Midland, TX, has closed the sale of oil and gas assets in three East Texas fields to Samson Lone Star Ltd. Partnership. The assets were purchased in 1998 from Sonat Exploration Co. for approximately $46.5 million. Clayton Williams owned 10% of the assets and a subsidiary was general partner for a limited partnership with an affiliate of GE Capital Oil & Gas, which owned the remaining 90%. Under the limited partnership agreement, Clayton Williams’ general partnership interest increased to 35% from 1% after the limited partner received a pre-agreed rate of return. Clayton Williams plans to use the net proceeds from the sale, estimated to be $15.8 million, to reduce its outstanding bank debt and for general corporate purposes. The company also expects to report a third quarter gain of about $10.5 million on the transaction.

Transco lifted Monday a restriction on scheduled quantities through Station 40 in East Texas to primary firm transportation only; it had been imposed Thursday (see Daily GPI, Sept. 27). The pipeline also ended Monday a restriction on due-pipeline imbalance make-ups but said it will maintain a limit on positive imbalances at all pooling points.