Underperforming

El Paso set an imbalance tolerance of 4% in declaring a systemwide Strained Operating Condition Thursday. “Underperforming supplies in combination with takes that exceed scheduled quantities have significantly reduced linepack,” the pipeline said, adding that its Washington Ranch Storage facility is at maximum withdrawal rates. El Paso said it will place performance caps on nonperforming supplies, and will declare a Critical Operating Condition if the situation does not improve.

With its founder and former CEO now back at the helm, Vintage Petroleum Inc. last week sold its underperforming Canadian oil and natural gas properties to Calgary-based Midnight Oil and Gas Ltd. in a cash-for-stock transaction worth C$350 million (US$270 million).

With its founder and former CEO now back at the helm, Vintage Petroleum Inc. on Thursday agreed to sell its underperforming Canadian oil and natural gas properties to Calgary-based Midnight Oil and Gas Ltd. in a cash-for-stock transaction worth C$350 million (US$270 million).

Murphy Oil Corp. is selling off some of its conventional oil and gas properties in western Canada to free up some cash for projects in growth areas outside of North America. The properties for sale have total proved reserves of about 40 MMboe and currently produce 20 Mboe/d.

El Paso declared an Unauthorized Overpull Penalty situationTuesday and said it will limit scheduled volumes at underperforminginterconnects to preserve system integrity. The pipeline alsopostponed pigging of Line 3201 in San Juan Basin (see Daily GPI,Dec. 19) by one more day to Dec. 28.