CIG declared a force majeure Monday evening after experiencing third-party damage to the Big Horn Lateral in northern Wyoming (the bulletin board notice incorrectly identified it as the Wind River Lateral, a spokesman said). The lateral was shut in north of Lost Cabin Station between Block Valves 7 and 8. The outage required that volumes be cut to zero at Elk Basin Station for Tuesday’s gas day. CIG anticipated that line repairs would be completed in time to resume normal operations by Cycle 4 nominations Tuesday (about 8 p.m. MDT).
Articles from Wyoming
The Wyoming Interstate Co. system west of Rawlins will be shut down for 16 hours Aug. 14 to upgrade the pipeline to meet new class code requirements. The Overthrust, Questar-WIC, Red Sand, Wapiti and Lost Creek points must be shut in for the duration of the work. A reduced capacity schedule will be coordinated with affected parties for that day, WIC said. Throughout August, the new Medicine Bow Loop will be connected at various locations to the existing Medicine Bow Lateral. No impact to service is anticipated except when Cheyenne Compressor Station is removed from service for one day for construction work, cutting lateral capacity to about 400 MMcf for the day.
Burlington Resources Inc. has completed and tested the fifthDeep Madison formation well, the Bighorn 6-27 at the Madden Fieldin central Wyoming. Burlington, headquartered in Houston, operatesthe well and holds a 49% working interest. The well reached a totaldepth of 25,855 feet in early January and now, Burlington intendsto move to a two-rig development drilling program in the secondquarter. BR currently operates four wells producing from the deepMadison formation, each capable of gross production in excess of 50MMcf/d. Current gross production is approximately 130 MMcf/d fromthe Madison formation, but production is constrained by processingcapacity at the Lost Cabin Gas Plant in Lysite, WY. The plant’sthird train, now under construction, is scheduled for completion inlate 2002, which will allow gross production to increase to a totalof 310 MMcf/d.
Northern Border Partners, LP, announced it has completed itspreviously announced acquisition of gas gathering facilities in thePowder River and Wind River Basins in Wyoming for $200 million fromEnron North America Corp. The purchase includes ownership positionsin Bighorn Gas Gathering and Fort Union Gas Gathering in the PowderRiver Basin and Lost Creek Gathering in the Wind River Basin. Inconjunction with the acquisition, NBP and ENA have agreed toprovide complementary services in the Basins. NBP will own andoperate physical assets and will provide gathering andtransportation services. ENA will continue to provide gas purchaseand sales, finance, risk management and producer outsourcingservices. The partnership also declared an increase in cashdistribution yesterday to $0.70 from $0.65 per unit. The indicatedannual rate is now $2.80 per unit. The increase becomes effectivewith the third quarter distribution payable on Nov. 14. It is thepartnership’s fourth increase in the last three years. NorthernBorder Partners, LP owns a 70% general partner interest in NorthernBorder Pipeline Co., which owns a 1,214-mile interstate pipelinesystem that transports approximately 23 percent of all Canadiannatural gas imports into the United States.
Pennaco Energy, the largest leaseholder and most active operatorin the Powder River Basin in Wyoming and southeastern Montana,reported that its gross gas production out of the basin has reached46.1 MMcf/d and is expected to increase rapidly now that newpipeline infrastructure is in place. This promising coal-bedmethane play, which took the national spotlight last year, isexpected to be one of the fastest growing areas in the RockyMountain region over the next decade.
Amoco Corp. and Snyder Oil Corp. traded interests in Wyomingproperties to help each company focus its gas operations in theGreen River Basin. Amoco acquired Snyder’s interest in asubstantial portion of the Jonah field in Sublette and Sweetwatercounties. In exchange, Amoco gave Snyder 75% of its interest in theBeaver Creek Unit in Fremont County, WY. Amoco retained 25%interest in Beaver Creek. The deal involved property only.