Alberta Government Charges Plains Midstream Over Oil Spill

TORONTO - The Alberta government has filed charges against Plains Midstream Canada ULC, a unit of U.S. energy pipeline operator Plains All American Pipeline L.P., for an oil spill in 2011 in northern Alberta, according to a notice on the western Canadian province's web site.

The oil spill, which happened in a fairly isolated stretch of boreal forest in northern Alberta, leaked about 28,000 barrels from Plains Midstream's Rainbow pipeline system, making it one of the province's largest in 36 years. The pipeline runs from northern Alberta to Edmonton, the provincial capital.

Plains Midstream faces three charges under the Environmental Protection and Enhancement Act, according to the provincial notice. They include one charge for the release of a substance that causes or could cause an "adverse effect" on the environment; another charge alleging failure "to take all reasonable measures to repair, remedy and confine the effects of the substance" as soon as the company "knew or ought to have become aware of the release;" and a third charge for "failing to take all reasonable measures to remediate, manage, remove or otherwise dispose of the substance...in such a manner as to prevent an adverse effect or further adverse effect," according to the government notice.

A representative for Plains Midstream couldn't be reached. But the company on its web site said that its efforts to clean up the spill are working.

"In the 22 months since the release, ongoing inspections have confirmed that remediation activities are complete (and) third-party remediation and reclamation experts inspect the site and assess the monitoring results to confirm the absence of contamination," the company said on the web site.

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Plains All American To Build New Oil Pipeline in Texas

Plains All American Pipeline LP is building a new pipeline to bring oil from an increasingly fruitful West Texas field to the Corpus Christi and Houston refining markets, the company said Monday.

The pipeline, called the Cactus pipeline, is expected to start shipping up to 200,000 barrels of day of oil in the first quarter of 2015. It would be the latest venture allowing oil producers in West Texas' Permian Basin to send their crude directly to the U.S. Gulf Coast refining belt.

Plains expects the 310-mile pipeline, with an expected cost of up to $375 million, to carry sweet and sour crude to Texas coast. By avoiding the oil transport hub in Cushing, Okla., producers hope to avoid the glut there that has helped depress prices on oil from Cushing.

Plains said it has entered into a letter of intent with a third party regarding a long-term commitment for a majority of the Cactus pipeline's capacity and is in discussions with several potential shippers for the remaining capacity. The pipeline company did not identify the company which has made the commitment or the companies with which Plains has had negotiations.

Several companies have been attracted by the idea of delivering West Texas crude directly to the refineries that dot the U.S. coast of Gulf of Mexico. Sunoco Logistics Partners started shipping such crudes to the Houston area on its Permian Express pipeline in the first quarter. Around the same time, Magellan Midstream Partners LP (MMP) reversed its Longhorn Express pipeline to ship crude from the Permian Basin to Houston.

Plains noted that crude oil delivered through the Cactus pipeline will have access to rail-loading capacity at the Gardendale, Texas, station operated by Plains All American and access to the Eagle Ford barge-dock facility in the Corpus Christi area.

The pipeline company added that the Cactus pipeline capacity can be increased as demand warrants.

Plains has experienced strong demand as it benefits from a huge boost in the U.S. supply of onshore oil.

The company, which transports, stores and sells oil, receives fees for many of its services, so it is less affected by the volatility of oil and gas prices.

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Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Magellan to Buy Pipelines from Plains All American

Magellan Midstream Partners, L.P. announced Friday that it has agreed to acquire approximately 800 miles of refined petroleum products pipeline from Plains All American Pipeline, L.P. for $190 million.

"This acquisition utilizes Magellan's expertise in transporting and storing petroleum products," said Michael Mears, chief executive officer. "These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve."

Rocky Mountain pipeline system. The acquisition includes approximately 550 miles of common carrier pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming. The system includes 4 terminals with nearly 1.7 million barrels of storage.

Magellan also will acquire about 250 miles of common carrier pipeline that transports refined petroleum products north from El Paso, Texas, delivering products to Albuquerque, New Mexico, and transports products south to the Texas-Mexico border for delivery via a third-party pipeline within Mexico.

Management expects the acquisition to be immediately accretive to the partnership's distributable cash flow per unit, with the potential for additional growth in cash flow from the assets over time.

The acquisition is expected to close in the second quarter of 2013 subject to regulatory approvals. Management expects to fund the acquisition with cash on hand and borrowings under its revolving credit facility, if necessary.

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Magellan to Buy Pipelines from Plains All American

Magellan Midstream Partners, L.P. announced Friday that it has agreed to acquire approximately 800 miles of refined petroleum products pipeline from Plains All American Pipeline, L.P. for $190 million.

"This acquisition utilizes Magellan's expertise in transporting and storing petroleum products," said Michael Mears, chief executive officer. "These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve."

Rocky Mountain pipeline system. The acquisition includes approximately 550 miles of common carrier pipeline that distributes refined petroleum products in Colorado, South Dakota and Wyoming. The system includes 4 terminals with nearly 1.7 million barrels of storage.

Magellan also will acquire about 250 miles of common carrier pipeline that transports refined petroleum products north from El Paso, Texas, delivering products to Albuquerque, New Mexico, and transports products south to the Texas-Mexico border for delivery via a third-party pipeline within Mexico.

Management expects the acquisition to be immediately accretive to the partnership's distributable cash flow per unit, with the potential for additional growth in cash flow from the assets over time.

The acquisition is expected to close in the second quarter of 2013 subject to regulatory approvals. Management expects to fund the acquisition with cash on hand and borrowings under its revolving credit facility, if necessary.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Plains All American Extends Mississippian Lime Pipeline

Plains All American Pipeline, L.P. announced it is constructing a 55-mile extension of its previously announced Mississippian Lime pipeline to service growing production in the Mississippian Lime resource play of western Oklahoma and southwest Kansas.

The Mississippian Lime pipeline extension, which is expected to be brought into service in the fourth quarter of 2013, will provide up to 75,000 barrels per day of crude oil throughput capacity from Coldwater in Comanche County, Kansas to Byron in Alfalfa County, Okla. From Byron, crude oil will flow on PAA's Mississippian Lime pipeline to its terminal in Cushing, Okla. The pipeline extension is supported by a long-term commitment from an area producer.

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Denver snow storm readies to roar through metro area, Eastern Plains

Font ResizeLocal NewsBy Kieran Nicholson
The Denver Postdenverpost.comPosted: 12/19/2012 06:48:06 AM MSTDecember 19, 2012 2:39 PM GMTUpdated: 12/19/2012 07:39:09 AM MST
Colorado RadarSend us your Colorado snow photos

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