Saying the cost of buying natural gas has declined “significantly” in recent months, Questar Gas asked the Public Service Commission of Utah (PSC) to reduce natural gas rates by $6.7 million, a move which would lower a typical residential customer’s annual bill by about $3.50 (0.5%). If approved, the rate cut would go into effect Oct. 1. Questar cut natural gas rates by $63 million (5.3%) last November and $157 million (16%) in March. Earlier this year the PSC approved a Questar request for an immediate $50 million one-time rebate to its customers (see Daily GPI, April 22). The rebate, which was also prompted by lower natural gas prices, reduced the typical customer’s May natural gas bill by $40-45, Questar said. Twice a year Questar and the PSC use third-party forecasts of gas prices to estimate how much the utility’s rates should be adjusted to cover anticipated gas procurement costs.
Utah
Articles from Utah
Western Gas: Uinta Basin Midstream Poised for Growth
Western Gas Partners LP’s Chipeta midstream operations in the Uinta Basin of Utah are positioned to become the top processing hub for the region’s natural gas producers, CEO Bob Gwin said last week.
Western Gas Sees Midstream Growth in Uinta Basin
Western Gas Partners LP’s Chipeta midstream operations in the Uinta Basin of Utah are positioned to become the top processing hub for the region’s natural gas producers, CEO Bob Gwin said Wednesday.
Despite Uintah Slowdown, WIC Seeks to Add Capacity
While drilling has slowed in the Uintah Basin in Utah, Wyoming Interstate Co. Ltd.’s (WIC) pipeline says there still is a need for takeaway capacity from the region and has filed an application at FERC for a compression expansion on its Kanda Lateral.
Industry Brief
Lower natural gas prices have prompted Questar Gas to ask the Public Service Commission of Utah (PSC) to approve an immediate $50 million one-time rebate to its customers. If approved, the rebate will reduce the typical customer’s May natural gas bill by $40-45, Questar said. Twice a year Questar and the PSC use third-party forecasts of gas prices to estimate how much the utility’s rates should be adjusted to cover anticipated gas procurement costs. In November Questar cut gas rates by $63 million (5.3%); last month the utility cut rates another $157 million (16%). Citing the recession, Questar said it wanted to pass the lower fuel costs on to its customers ahead of the scheduled autumn rate adjustment.
Industry Briefs
Devon Energy Corp. has acquired a 44% stake in Chevron Corp.’s leasehold in the Drunkard’s Wash coalbed methane natural gas field in east-central Utah. The field, which has about 51,000 net acres, is being developed jointly by Chevron, ConocoPhillips and XTO Energy Corp.; current net output is 40 MMcfe/d. For the stake, Devon transferred back to Chevron around 14.2 million shares of Chevron common stock, which it has held since acquiring PennzEnergy in 1999 (see Daily GPI, Aug. 19, 1999). In exchange, Devon received a stake in the field and $280 million in cash from Chevron. In August Devon retired exchangeable debentures issued by PennzEnergy that were associated with the Chevron shares, which enabled Devon to make the exchange transaction.
Rockies Producers Wait Out Low Gas Prices
Denver-based Gasco Energy Inc., whose natural gas exploration and production (E&P) is centered in the Uinta Basin of Utah, shut in some of its wells and will not finish some recompletions until Rocky Mountain commodity prices edge higher, CEO Mark Erickson said last week.
Rockies Producers Waiting Out Low Gas Prices
Denver-based Gasco Energy Inc., whose natural gas exploration and production (E&P) is centered in the Uinta Basin of Utah, has shut in some of its wells and will not finish some recompletions until Rocky Mountain commodity prices edge higher, CEO Mark Erickson said.
Deep Snow, Severe Cold Hinder Rockies Producers
With 60 inches of snowfall since late December in the Denver area and multiple weeks of sub-zero temperatures in eastern Utah and western Wyoming, Rockies producers and drilling service companies have waged a tough battle against wellhead freeze-offs and snow removal in an effort to maintain production.
Deep Snow, Severe Cold Hinder Rockies Producers
After 60 inches of snowfall so far this winter in the Denver area and sub-zero temperatures in eastern Utah and western Wyoming, Rockies producers have battled wellhead freeze-offs and snow removal in an effort to maintain production.
