Warrant

Chesapeake Energy Corp. last week curtailed 0.5 Bcf/d, or 8%, of its operated gross natural gas output in the U.S. onshore and said “if conditions warrant” it was prepared to double its curtailment to as much as 1 Bcf/d. The second biggest gas producer in the United States also cut by by half its operated gas drilling activity and slashed dry gas spending by 70% this year.

Even though there is no gas drilling in the state, several New Jersey lawmakers are proceeding with a bill to ban hydraulic fracturing (hydrofracking) and plan to vote next week on a resolution urging neighboring states to enact fracking moratoriums to protect the water supply.

The California Public Utilities Commission (CPUC) Thursday rejected a request from the state’s major private-sector utilities to reduce the burden on businesses that pay a disproportionate amount of the surcharge on monthly natural gas utility bills that goes for public purpose programs, such as those that assist low-income customers with their bills.

A federal warrant was issued Thursday for the arrest of a single suspect identified as being involved in at least one of two incidents of tampering with Western Grid transmission tower footings about 150 miles apart in southeast Oregon and northern California last Monday.

Magnum Hunter Resources received net proceeds of $20.6 millionfrom ONEOK Resources through the voluntary exercise of 100% oftheir public warrant shares (3,174,600 shares) at an exercise priceof $6.50 per share. Through the exercise of these warrants, ONEOKResources increased its current ownership interest from 32% to 38%of Magnum Hunter’s outstanding securities. Additionally, TrustCompany of the West as Investment Manager for General Mills, Inc.exercised 450,000 restricted common purchase warrants and Magnumreceived net proceeds of $2,362,500. “With the combined proceeds ofthis new equity capital totaling approximately $23 million, Magnumcan significantly reduce its current outstandings under its seniorbank credit line, increase our book equity, and at the same timeexpand our market capitalization by approximately $30 million,”said Magnum CEO Gary C. Evans.