Atmos Energy plans gathering system

Atmos Energy Corporation reports that it will seek exemption from regulatory oversight by the FERC for a natural gas gathering system it plans to build in Eastern Kentucky. The company says that the new system should help relieve severe gas gathering and transportation constraints that historically have burdened natural gas producers in the area, and should improve delivery reliability to natural gas customers.
The proposed Straight Creek Gathering System will originate in Floyd County, Kentucky, and extend north approximately 50 mi to interconnect with the Tennessee Gas Pipeline in Carter County, Kentucky. Tennessee Gas Pipeline’s interstate system delivers natural gas to the northeastern United States, including New York City and Boston.
The project, estimated to cost between $75 million to $80 million, has received support from major independent oil and gas producers in the area. Atmos Energy officials estimate that the economic benefit to Kentucky of the new gathering system could exceed $150 million a year.
Initially, the 20-in. system will be capable of moving up to 100,000 MMBtu per day, with the ability to expand throughput up to 225,000 MMBtu per day. Compression, treatment and processing facilities will be located at the northern end of the system, immediately upstream from the interconnection with Tennessee Gas Pipeline. Upon receiving all required regulatory approvals, construction is expected to begin in the fall of 2006, with operations expected to begin by the summer of 2007.

Regulators approve Aquila utility sale
Missouri regulators have cleared the way for Aquila Inc. to sell its natural gas operation in the state to The Empire District Electric Company. The $84-million sale was unanimously approved by the Missouri Public Service Commission. Kansas City-based Aquila announced the deal with Joplin-based Empire in September, along with three other utility sales, for a total of $896.7 million. The utility sales are part of a restructuring aimed at reducing Aquila’s debt. The company’s Missouri natural gas utility serves about 49,000 customers in the western part of the state, including Platte County. The regulatory approval puts the transaction on track to be completed by June 1 of this year.

Piedmont receives safety award
Piedmont Natural Gas says that it has been honored by the American Gas Association (AGA) for its outstanding achievements in promoting operations safety. The safety awards are given annually by AGA to those with the lowest employee disability injury and illness rate among companies of their size and type for the previous year. To receive the award, the companies also must have an employee disability injury rate lower than the average rate in the industry.
Piedmont was honored in the category representing the largest natural gas distribution companies, by total customers. The presentation was made at the association’s 2006 Operations Conference held in Boston, Massachusetts. Receiving the award for Piedmont at the conference were Ross Wilcox, an Equipment Operator from the Company’s Wilmington, N.C., district, and Robert Mohler, Manager-Operations Safety.

AGA recognizes AGL employees
Three employees from Atlanta-based AGL Resources were recognized by the American Gas Association for their exceptional efforts benefiting local communities impacted by the 2005 hurricanes, as well as the entire natural gas community. The natural gas industry awards were presented at the AGA’s annual Operations Conference held May 2-4 in Boston.
Bud LeBlanc and Jason Mire of AGL Resources’ Pivotal Jefferson Island Storage & Hub (JISH) natural gas salt-dome storage facility in Erath, Louisiana, were each presented Heroes of the Hurricane awards for demonstrating marked self-sacrifice that went beyond their job responsibilities throughout the duration of the 2005 hurricanes and their aftermath.
LeBlanc, a plant operator, with his father-in-law, Glen Miguez, assisted local emergency personnel throughout the day and night in a fishing boat during Hurricane Rita to help rescue people stranded on rooftops from the surge of Vermilion Bay’s rising floodwaters. One rescue effort involved a 60-year old man and his 90-year old father sitting on a kitchen counter with water up to their necks. Approximately 1,000 people were rescued that day without a single casualty.
Mire, an instrument technician, led efforts to restore JISH wellheads, pipelines and related facilities; responded to a potential JISH pipeline leak, and interacted with local emergency responders to assure the integrity of JISH operations after Hurricane Rita and to restore service within 48 hours.
Richard R. Lonn, director of Regulatory Compliance at AGL Resources in Atlanta received two awards: A Silver Award of Merit recognizing his publication of original technical papers, outstanding leadership and continuing service to the natural gas industry; and a silver Trailblazers Award for championing causes that benefit the entire natural gas community.