Texas

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.

Natural Gas Intelligence the weekly gas market newsletterpublished : August 16, 1999

Natural Gas Intelligence the weekly gas market newsletter

The joint request of Texas Eastern Transmission (Tetco) andAlgonquin Gas Transmission (AGT) for FERC to hold a conference toreview alternatives to the proposed Millennium Pipeline and otherprojects is an attempt to block new pipeline competition in theNortheast and should be rejected outright, Millennium said.

Texas Eastern Transmission (Tetco) has asked FERC to schedule aconference to take a “hard look” at “viable alternatives” – notablythose using turned-back capacity – to the controversialIndependence-MarketLink pipeline projects and perhaps the proposedMillennium Pipeline.

KN Energy began an open season for its a 108-mile, 24-inchMonterrey Pipeline that would connect its MidCon Texas intrastatepipeline in Starr County, TX, to Monterrey, Mexico. The open seasonbegan last week and runs through 5 p.m. CDT July 30. KN expects tostart construction of the $50 million pipeline in 1999, withcompletion projected for the second quarter of 2000. Capacity isexpected to be 275 MMcf/d, and the pipe will serve gas-fired powerplants in Monterrey, local distribution companies, large industrialconsumers as well as future market opportunities.

Enogex Inc. completed its acquisition of Transok LLC, a gatherer,processor and transporter of natural gas in Oklahoma andTexas. Enogex, a subsidiary of OGE Energy Corp., announced plans May17 to buy Transok from Houston-based Tejas Gas LLC, an affiliate ofShell Oil Co. for $701 million (See Daily GPI May 18, 1999).

KN Energy began an open season for its a 108-mile, 24-inchMonterrey Pipeline that would connect its MidCon Texas intrastatepipeline in Starr County, TX, to Monterrey, Mexico. The open seasonbegan yesterday and runs through 5 p.m. CDT July 30.