August Newsreel: P&GJ Web Updates, Kitimat LNG-Gas Natural MOU, Dresser Aquires iMeter B.V., CO Last Ranking for Energy Investment

All of Colorado’s neighboring states, with the exception of New Mexico, were rated “most attractive” by investors. Colorado is estimated to have more than 9% of the nation’s supply of natural gas while annual production increased more than 380% between 1992 and 2007. The Colorado School of Mines estimates the industry provides more than 70,000 Coloradans with employment, with an economic benefit to the state of $23 billion each year. However, since January, Colorado's rig count has dropped 54% - the sharpest decline in the nation - compared to a national average reduction of 43%.

 “This study demonstrates the harsh reality of an inconsistent regulatory regime, and these numbers run contrary to the belief of some policy makers that Colorado’s energy industry will grow no matter the constraints placed upon it,” commented Colorado Oil & Gas Association President Meg Collins.

The survey consisted of 16 questions sent out to executives of companies involved in exploration for oil and natural gas reserves, as well as the production of crude oil and both conventional and unconventional supplies of natural gas. More than 275 companies participated.

Gulf Crossing Has Authority To Operate at 72% SMYS, Add Compression

Boardwalk Pipeline Partners, LP reports that its Gulf Crossing Pipeline Company LLC subsidiary has completed remediation of the pipe anomalies on its system and has been authorized by the Pipeline and Hazardous Materials Safety Administration (PHMSA) to operate the pipeline at normal operating pressures of up to 72% of the Specified Minimum Yield Strength (SMYS).

Anticipated peak-day delivery capacity for Gulf Crossing in July was estimated at 1.3 Bcf/d. Boardwalk plans to increase peak-day delivery capacity of the Gulf Crossing pipeline to 1.4 Bcf/d, subject to receiving a special permit from PHMSA to increase operating pressures up to 80% SMYS. Rolf Gafvert, CEO for Boardwalk Pipeline, said, “We have made significant progress on Gulf Crossing and continue to work very closely and cooperatively with PHMSA in order to obtain the authority to operate all of our major pipeline projects at higher operating pressures.”

Boardwalk also announced that the Federal Energy Regulatory Commission has granted Gulf Crossing authority to expand its Mira Compressor Station in Caddo Parish, LA to increase peak-day delivery capacity to 1.7 Bcf/d in 2010, subject to approval by PHMSA. Gulf Crossing consists of 357 miles of 42-inch pipeline originating near Sherman, TX and proceeding to the Perryville, LA area.

KMP Completes First Commercial Shipment of Biodiesel In U.S.

Kinder Morgan Energy Partners, L.P. announced that Plantation Pipe Line Co. is the first pipeline company in the United States to transport biodiesel for commercial purposes. Plantation completed the trans-market commercial shipment of blended 5% biodiesel (B5) on a mainline segment of the pipeline.

The company injected B99 into ultra-low sulfur diesel at Plantation’s Collins, MS pump station and breakout tank farm, creating a 15,000-barrel batch of B5 that it then shipped to marketing terminals in Athens, GA and Roanoke, VA. Upon receipt of the product at both facilities, Kinder Morgan performed testing on samples from the batch and found that the samples arrived on specification.