Rep. William M. “Mac” Thornberry (R-TX) introduced legislationWednesday aimed at “completely overhauling the current system” usedby the federal government to collect royalties on oil and naturalgas production.
Daily GPI
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One-Call Moves Two Steps Closer to Law
One-call pipeline safety legislation moved much closer tobecoming law this week as the Senate voted to add it to omnibustransportation legislation and representatives Richard Hugh Baker(R-LA) and Frank Pallone (D-NJ) introduced a nearly identicalone-call bill in the House of Representatives. The Senate alreadyhas passed one-call as a stand alone bill (S. 1115) but includingit in the larger transportation package increases its chances ofbecoming law.
MCN Energy, American Central Form Gathering Venture
MCNIC Pipeline & Processing, a subsidiary of MCN EnergyGroup, and American Central Gas Companies, have formed apartnership to own and operate a gas gathering system in theCarthage field of East Texas. MCNIC Pipeline & Processing has a40% interest, and American Central holds 60%.
Mobile Bay-to-Louisiana NGL Line Slated
Six energy companies agreed to form Tri-States NGL Pipeline tobuild a natural gas liquids (NGL) pipeline from Alabama andMississippi to Louisiana fractionators. The line will link threegas processing plants under construction to new and expandedfractionators on the Mississippi River.
Mitchell Replaces 187% of Gas & Oil Reserves
Mitchell Energy & Development replaced 187% percent of thegas and oil reserves it produced in fiscal 1998, even while settinga new high for annual gas sales of 238 MMcf/d.
NEB Approves Export Licenses
Canada’s National Energy Board approved six applications foreight licenses to export some 1.2 Tcf of gas for periods of two toten years:
Voyageur Crosses the Wrong Landowner
Like a grizzly bear accidentally stepping on a porcupine, VikingVoyageur seems to have tread on a Wisconsin landowner whose husbandhappens to be a Noble Prize winning economist with a dislike ofpipeline infrastructure. In testimony filed at FERC on behalf ofhis wife Katherine D. Miller, Merton H. Miller, McCormickDistinguished Service Professor of Finance, Emeritus, of theGraduate School of Business, University of Chicago, warned theCommission if its goal in approving new pipelines is to benefitconsumers then it should toss the Voyageur project.
PNGTS, Maritimes Break Ground for New England Pipes
Marking the start of construction related to projects thatultimately will increase pipeline capacity into New England by morethan 20%, Portland Natural Gas Transmission System (PNGTS) andMaritimes & Northeast Pipeline began a crossing of thePiscataqua River between Newington, NH, and Eliot, ME. The crossingis the first stage in the construction of the PNGTS/Maritimes JointFacilities Project, which represents the southernmost portion ofeach pipeline.
Union Pacific Resources Completes Buy of Norcen Energy
Union Pacific Resources Group (UPR) closed on its acquisition ofNorcen Energy Resources. The companies’ boards approved the dealJan. 26. UPR initiated a tender offer for the 51.5% of Norcen’s stock not owned or controlled by Noranda Inc., a shareholder of49.5% Norcen common stock.
IPAA Sues DOI Over Royalty Rule
The Independent Petroleum Association (IPAA) has filed a lawsuitagainst the Department of the Interior, claiming that through a newnatural gas royalty regulation DOI’s Minerals Management Service iscollecting a larger share of royalties than it is entitled to.