Texas

Sacramento Municipal Utility District (SMUD) has signed a $21 million, 15-year deal to buy landfill gas in Texas from Shell Energy North America to expand its renewable energy supplies. The contract calls for 6 billion Btu/d.

TGT said it reduced capacity Tuesday on the Sharon Carthage Segment in northwest Louisiana and at Texas Eastern (location 2757) to 500,000 MMBtu/d due to unscheduled maintenance at Sharon (LA) Compressor Station. TGT tentatively estimates that the maintenance will be completed by the start of Saturday’s gas day.

Pacific Gas & Electric declared a customer-specific low-inventory OFO for Wednesday.

A coalition of 35 Republican senators led by Kay Bailey Hutchison of Texas, Kit Bond of Missouri and Lisa Murkowski of Alaska has called on the White House to tap new domestic oil and natural gas resources and to expeditiously complete the administration’s five-year plan for developing resources on the Outer Continental Shelf (OCS).

Prior to an explosion and fire around midday at the DCP Midstream East Texas Plant at the Carthage Hub (see related story), Gulf South said it had been notified Wednesday by DCP Midstream that a gas quality issue discovered during maintenance begun Tuesday by Gulf South (see Daily GPI, Feb. 6) would require the continued shut-in of two plant-related points. In a related note, TGT said DCP Midstream had called Wednesday to say their Champlin interconnect was being shut in until further notice “due to operational issues at their plant.”

Three Spectra Energy pipelines — Texas Eastern, Algonquin and Maritimes & Northeast — ended restrictions Saturday on creation of due-pipe imbalances and payback of due-shipper imbalances.

Interior Department’s Minerals Management Service (MMS) has issued a final rule that would allow four Gulf states — Texas, Louisiana, Mississippi and Alabama — to share revenues from oil and natural gas production on leases in certain areas of the Gulf of Mexico (GOM).

Interior Department’s Minerals Management Service (MMS) Tuesday issued a final rule that would allow four Gulf states — Texas, Louisiana, Mississippi and Alabama — to share revenues from oil and natural gas production on leases in certain areas of the Gulf of Mexico (GOM).

Onshore natural gas explorer CDX Gas LLC has filed for bankruptcy protection in U.S. Bankruptcy Court for the Southern District of Texas (No. 08-37922). The filing, which indicated the producer owes $500 million to $1 billion, would allow the Houston-based producer to restructure its finances and operations. Formed in 1991, CDX and its affiliated companies were acquired in March 2006 by investor group TCW and some co-investors. CDX operates across the United States in the Appalachian, Barnett, Arkoma, Black Warrior, Cahaba, Piceance, Uinta and San Juan basins. It extracts coalbed methane using its patented Z-Pinnate Horizontal Drilling and Completion System, which was developed for the Appalachian Basin operations.