Texas

More favorable operating conditions allowed Texas Eastern to cancelMonday the OFO for its M-3 market zone that began a week earlier (seeDaily GPI, Jan. 19). All M-3 OperationalBalancing Agreements that were suspended are back in effect, Tetcosaid, and storage nominations may be restored to pre-OFOlevels. However, a restriction on IT gas sourced upstream of M-3 anddelivered there is still in effect. Due-shipper imbalance gas may betaken in all zones again, Tetco said, as long as it is scheduledproperly and taken evenly through the rest of January. Downstreamaffiliate Algonquin similarly canceled Monday the Critical SystemWarning it had posted Jan. 17 (see Daily GPI, Jan. 19), but left in place restrictions onmainline forward hauls for Authorized Overrun gas, interruptibleservices and due-shipper makeup gas.

Northern Natural Gas said Friday an outage of the Mustang Island757/762 platform offshore Texas, which it operates, was now expectedto extend through the middle of this week; previously it hadanticipated the outage would end Friday night (see Daily GPI, Jan. 5). The associated force majeure isaffecting deliveries into Florida Gas Transmission and Transco.

Coral Energy’s Coral de Mexico LLC plans to build a 104-mile,24-inch gas pipeline from the King Ranch in South Texas, crossingthe Rio Grande River near McAllen, TX, and running south intoMexico in the direction of Arguelles. The FERC approved a bordercrossing and presidential permit for the project last week.

Coral Energy’s Coral de Mexico LLC plans to build a 104-mile,24-inch gas pipeline from the King Ranch in South Texas, crossingthe Rio Grande River near McAllen, TX, and running south intoMexico in the direction of Arguelles. The FERC approved a bordercrossing and presidential permit for the project last week.

Rio Bravo Energy, a joint venture between Tidelands Oil &Gas Corp., a Texas-based producer and Hudson SVD, a natural gasgathering and marketing company, announced the formation of SonoraPipeline yesterday. Sonora will own and operate a 53-mile gatheringsystem located in Dimmit and Zavala counties, TX. This line will beinterconnected with Rio Bravo’s Pena Creek Gathering System, whichservices the Chittim Gas Processing Plant recently acquired by RioBravo from Conoco. The plant is a propane refrigeration plant witha nominal capacity of 5 MMcf/d and a liquid fractionation train.The Pena Creek Gathering System which serves the Plant consists of15 miles of gathering and compression facilities.

Invigorated by a strong second quarter, Texas-based MitchellEnergy said last week it is increasing its capital budget by $31million to total $167 million. Most of the increases will bededicated to escalating the company’s drilling program. With thisstepped-up activity, gas production is expected to reach the 250MMcf/d range by the end of the year. Mitchell said production atthat level would equal its January output, before gas prices felldramatically.

Invigorated by a strong second quarter, Texas-based MitchellEnergy said yesterday it is increasing its capital budget by $31million to total $167 million. Most of the increases will bededicated to escalating the company’s drilling program. With thisstepped-up activity, gas production is expected to reach the 250MMcf/d range by the end of the year. Mitchell said production atthat level would equal the company’s output it had in January,before gas prices fell dramatically.

Just as Tropical Storm Bret was being downgraded to a drenchingrain event for South Texas the natural gas futures market wasundergoing a downgrading of its own yesterday, as traders tookprofits in a mid-morning sell-off. However, by mid-afternoon theNational Hurricane Center had anointed the latest two tropicaldepressions-Dennis and Emily-into tropical storms and that wasenough to convince those sellers to become buyers. That was almostenough to recoup the earlier price decline, leaving the Septembercontract to finish the session with only a half-cent loss to$3.059.

Anadarko Petroleum Corp. announced yesterday it had retainedMadison Energy Advisors to market a package of its oil and gas assetsin Texas. The properties, located in the Hemphill Field area ofHemphill County, TX, include 83 completions from 70 wells with workinginterests ranging from 5% to 100%. Current gross daily production fromthese properties is approximately 82 BOPD and 8.1 MMcf/d. Anadarko isalso looking to sell the surrounding midstream assets including theHemphill Gathering System, which gathers low-pressure wellhead gas anddelivers it to Williams’ Hobart Ranch Plant. This four to eight inchdiameter pipeline is approximately 50 miles long and currently has 112wells connected. The properties will be sold through a negotiatedsale, with a data room scheduled to open in August. For furtherinformation contact Clint Wetmore at Madison Energy Advisors,281-876-2244 or check Madison’s web page atwww.MadisonEnergy.com.