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The problem is not natural gas pipeline capacity going ‘to’California, rather it is a lack of pipelines ‘within’ the state,particularly to power generation plants, that is aggravatingproblems in the state electric power market, according to KevinPetak, director of Energy and Environmental Analysis Inc. (EEA).

The North Baja Pipeline Project moved to within one step of becoming reality late last week as Mexico’s Comision Reguladora de Energia (CRE) issued a natural gas transportation permit to Sempra Energy International for the construction of the 135-mile Mexican segment of the $230 million, 215-mile Arizona-to-Mexico pipeline.

The North Baja Pipeline Project moved to within one step ofbecoming reality yesterday as Mexico’s Comision Reguladora deEnergia (CRE) issued a natural gas transportation permit to SempraEnergy International for the construction of the 135-mile Mexicansegment of the $230 million, 215-mile Arizona to Mexico pipeline.

Asset sales within the energy industry continue to be the nameof the game as the winter heating season begins to set in. Two ofQuestar Corp.’s subsidiaries are the latest participants, as theyhave entered into agreements to sell working interests in oil andgas producing properties in Oklahoma and northern Texas as well asan Oklahoma gas-gathering system. Chesapeake Energy Corp. hasagreed to acquire the assets from Questar Exploration andProduction and Questar Gas Management for $27 million dollars. Thesale includes working interests in 290 properties with a currentcombined net production of about 4.3 MMcf/d and 180 b/d. Theagreement was effective on the first of this month, and thecompanies hope to close the deal by Dec. 31, 2000. The producingproperties do not have long-term strategic importance to Questar,said Gary Nordloh, president of Questar Exploration and Production.The asset sale will help improve operating efficiency and result inan immediate decrease in Questar’s amortization rate, he added.

The Colorado Oil and Gas Conservation Commission has approvedBarrett Resources’ proposal to drill one well per 20 acres withinthe company’s 9,000 acre Rulison, Parachute, and Grand Valleyfields located in the Piceance Basin of western Colorado. With thisruling, Denver-based Barrett expects to add 143 Bcf of proved gasreserves from the allotted 134 well sites by the end of 2000.

The Colorado Oil and Gas Conservation Commission has grantedBarrett Resources’ proposal to drill one well per 20 acres withinthe company’s 9,000 acre Rulison, Parachute, and Grand Valleyfields located in the Piceance Basin of western Colorado. With thisruling, Denver-based Barrett expects to add 143 Bcf of proved gasreserves from the allotted 134 well sites by the end of 2000.

Within hours of a FERC vote yesterday ratifying proposed changesin its interruptible transportation (IT) queue, PG&E GasTransmission Northwest announced new procedures effective today.

West Virginia-based Trans Energy Inc. is creating a wholly-ownedsubsidiary, Trans Energy Acquisition, to aggressively pursueacquisitions and mergers within the oil and natural gas sector,appointing industry veteran Gary Lawyer to the executiveacquisition committee.

West Virginia-based Trans Energy Inc. is creating awholly-owned subsidiary, Trans Energy Acquisition, to aggressivelypursue acquisitions and mergers within the oil and natural gassector, appointing industry veteran Gary Lawyer to the executiveacquisition committee.