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Despite the record natural gas well completions experienced last winter, Canada’s natural gas production — minus Ladyfern — appears to be on the decline, according to research by Lehman Brothers’ Oil & Gas unit. Total Canadian gas production year-to-date through April increased 2% above 2001. However, without the prolific Ladyfern find, year-to-date volumes would have been down about 2% from the same period and western Canadian production would be down 3%.

Two months after it first gave notice that it was reviewing alternatives, Westar Industries Inc., a subsidiary of Topeka, KS-based Western Resources Inc. gave Oneok Inc. notice Thursday of its intention to sell all of its interests — common and preferred stock — in the Tulsa, OK-based gas distributor.

Eager to avoid the stock free fall suffered by El Paso on Wednesday following its announcement that it would lay off half of its trading staff and limit spending on the business, Williams released a statement confirming its commitment to energy trading and risk management despite its plan to find a partner to buy 50% of its operation. Williams CEO Steve Malcolm also said his company is a more conservative energy marketer than the rest of the pack, with an asset-based approach, a focus on term business and no interest in inflating volumes.

Ending a long-running dispute between Florida’s state government and petroleum companies with production interests offshore Florida, President Bush on Wednesday announced that the U.S. government will buy back most of the oil and natural gas leases in the Destin Dome area offshore Pensacola, FL, as well as drilling rights in the Florida Everglades ecosystem. While the agreements will preserve some of Florida’s most significant natural treasures, major gas producers said the decision to remove these areas from exploration and development will be a “major hit to natural gas supply” for the country.

Reiterating that it does not own or want to own an energy trading business, Kinder Morgan Inc. (KMI)and Kinder Morgan Energy Partners LP (KMP) reaffirmed their comfort with consensus earnings estimates for both the second quarter and the year.

Bedminster, NJ-based NUI Corp. said Wednesday that it will launch a non-binding open season for expressions of interest in up to 7 Bcf of firm gas storage to be developed in the Richton Salt Dome storage facility in Perry County, MS. The company said the open season will run through 5:00 p.m. EDT on July 3.

Salt Lake City-based Questar Corp. said Wednesday that the $100 million, 410-mile eastern portion of its converted Southern Trails pipeline is expected to be free-flowing gas supplies by mid-June en route to being fully operation with 80 MMcf/d of compressed supplies flowing in the former oil pipeline by July 1. The pipeline stretches from the Four Corners area of New Mexico to the California border.

Gulf South will conduct an interactive auction at 11 a.m. CDT June 4 through its web site for 5 million dekatherms of Firm Storage Service capacity. The contract term is for one year (April 1, 2004-March 31, 2005). The auction is subject to right of first refusal, in which the existing FSS capacity holder may match winning bids. For more information, see the bulletin board or call Stacy Franz at (713) 544-5228.

Due primarily to unusually warm first quarter weather, increased electric utility power supply costs related to the Palisades nuclear plant outage, and continued weak economic conditions, CMS Energy Corp. posted first quarter operating net income of $96 million ($0.72 per share), compared to first quarter 2001 operating net income of $108 million ($0.84 per share). Despite the fall-off, CMS reaffirmed its earnings per share (EPS) guidance for operating net income for the full year. The company also reported that it has closed on two previously announced asset sales.