July 2010 Vol. 237 No. 7

Atlas Pipeline Partners, LP (APL), announced July 27 that it has appointed Matthew Skelly as vice president of investor relations and capital markets. Brian Begley, who was serving as vice president of investor relations for APL until this point, will focus his responsibilities as VP of investor relations for Atlas Energy, Inc.

If you are concerned about the rising costs of railroad crossing fees and want to do something about it, now is the time to come together as a group and formulate a clear path forward to stop this injustice. Railroad crossing permit fees are a concern for the utility industry and the annual rental fees for these crossings installations continue to rise.

Eastern Shore Natural Gas Company (ESNG), a subsidiary of Chesapeake Utilities Corporation, received the <strong>American Gas Association</strong>'s Safety Achievement Award for the seventh year in a row. The 2009 Safety Achievement Award, presented at AGA's 2010 Operations Conference on May 12 in New Orleans was given to companies that achieved the lowest "DART" incident rate -- a mathematical calculation that describes the number of recordable injuries and illnesses per 100 full-time employees that resulted in days away from work or restricted work activity.

Advertisers from the print edition of Pipeline & Gas Journal, July 2010 Vol. 237 No. 7.

When I was a wee little lad many years ago, I celebrated my birthday going to see a campy cult classic movie entitled “The Blob” starring Steve McQueen in his first starring role. The Blob was this jello-like goop that fell from outer space in this town where the voracious entity gradually swallows up everything in its path.

Clamp-on ultrasonic flow meters are attractive to the gas industry because they are capable of providing portable, non-invasive gas flow measurement. This article describes the results of a Pipeline Research Council International (PRCI) funded project that addressed the ability of a clamp-on ultrasonic meter (CUSM) to measure distorted flow profiles.

Natural gas production creates a byproduct of natural gas liquids (or NGL), often referred to as “condensate.” The physical properties of condensate vary with the hydrocarbon constituents and differing fluid vapor pressures depending on the deposit at the location from which they are drawn. This constituent variation and the presence of water or natural gas in the flow stream discharge from the separator compromises the integrity of the measurement.

The costs of building and operating upstream oil and gas facilities — which fell drastically in Q1 2009 after a prolonged period of escalation — hit bottom and were beginning to show signs of an upward trend at the end of Q1 2010, according to two cost indexes developed by IHS Cambridge Energy Research Associates (IHS CERA).

Whenever one focuses on gas or fluid measurement, he or she will eventually discover an abnormal condition at a measurement station. Invariably someone will ask, “What effect will this have on measurement?” A student of measurement may spend years answering this question.

Horizontal directional drills are commonly used when it’s either impractical or impossible to dig a trench, such as under a highway, body of water, or railroad. The basic process consists of drilling a pilot hole, reaming it to the appropriate size, and pulling the new section of pipe back through the bore.

Global natural gas reserves of over 6,000 Tcf would suggest abundant supplies to meet continuing increases in demand. Yet, like oil, it is a non-renewable resource. As society comprehends the inevitable decline of fossil fuels and the impacts of carbon dioxide emissions, energy utilities and consumers are realizing the significance of long-term energy sustainability and the expanding role of natural gas.

Construction in the gas pipeline industry ranks among the riskiest undertakings of any in the energy business, or, arguably, of any industry. Risks run the gamut from discovery and acquisition of the reserve itself, permitting, financing, including the resolution of partnership questions, to design and construction of gas capture and transport. From any perspective, the business itself is fast-paced.

When it became necessary to dredge and deepen the Bacino di Evoluzione No. 3 ship canal in Venice to accommodate larger ships, an existing IES (Italiana Energia e Servizi S.p.A.) oil pipeline crossing the canal had to be relocated.

With the significant growth in the usage of ultrasonic meters, and industry’s drive for improvements, ongoing testing and development has resulted in enhanced performance of these meters. One such test was presented in 2009 at the CEESI USM Conference.

As the United States continues to examine new ways to conserve energy, especially in light of the tragic oil spill in the Gulf of Mexico, smart meters are gaining in popularity as a technology that can help homeowners and enterprises reduce energy consumption. In addition, the technology can greatly increase efficiencies inside the utility by improving meter reading accuracy, reducing operational costs and enhancing customer service – all while reducing service calls and shaving carbon footprints.

Snelson Companies, Inc. was contracted to construct compressor station facilities, a 26.8-mile, 30-inch gas transmission pipeline, a gathering line and related items in connection with the development of a natural gas underground storage facility located in Madera County, CA known as the Gill Ranch Storage Project.

One of the biggest problems encountered in measuring natural gas flows occurs when liquids flow with the gas. Traditional gas meters are not designed to cope with such wet gas flows. Therefore, wet gas flow testing facilities are also of increasing importance to the industry.

People who turn valves that only the utility should operate, or who install unauthorized connections to divert gas around meters and into their homes or businesses are not only breaking the law, they are also endangering property and lives. Tampering with a gas meter or natural gas line could cause property damage and fatal injury from asphyxiation, explosion or fire.

In the dawn of the “green” energy era, proponents of using fossil fuels for energy and power sources strike a “mother lode” of facts, data, and logic for the continued use of these materials. While many in the public sector and even some in the technical arena are fervently in favor of going with green power, author Robert Bryce in his new book, Power Hungry, makes a cogent argument why fossil fuels should be around for some time to come. Sure, their use presents certain deficiencies, but the social and economic benefits they bring are so much greater and needed by society!

While the impact of the BP oil spill on offshore oil and gas development is already obvious, its impact on pipeline safety is less so, despite what promise to be ramifications. That was clear from the hearings in the House Transportation and Infrastructure Committee on May 20 where both Democrats and Republicans peppered Cynthia Quarterman, the new administrator of the Pipeline and Hazardous Materials Safety Administration, with questions about the agency's existing plans for oil and gas accidents.

<a href="http://pipelineandgasjournal.com/july-newsreel#poly">Polyguard Products Receives Highest Presidential Award For Exports</a> <a href="http://pipelineandgasjournal.com/july-newsreel?page=2#up">UniversalPegasus’ Employees Achieved Safety Milestone On Pipeline Project</a> <a href="http://pipelineandgasjournal.com/july-newsreel?page=2#welk">Welker Announces Death Of Executive Dennis M. McKay</a> <a href="http://pipelineandgasjournal.com/july-newsreel?page=2#abb">ABB Agrees To Buy K-TEK</a>

Azerbaijan's state oil and gas company Socar is considering various financing options for an investment program that would overhaul the nation’s gas distribution network.

Cadeville Gas Storage LLC, a wholly-owned subsidiary of Cardinal Gas Storage Partners LLC, held a 30-day non-binding open season (June 1-30) for a planned natural gas storage facility to be located in Ouachita Parish 10 miles southwest of Monroe, LA.

Dresser Waukesha is supplying VGF Series F18GSID engines to Northland Power Services for temporary prime power applications in U.S. oilfields.

Statoil and EGL announced divestment of a combined stake of 15% in the Trans Adriatic Pipeline project (TAP) to E.ON Ruhrgas. The new shareholder structure of the TAP project now comprises EGL holding (42.5%), Statoil (42.5%) and E.ON Ruhrgas (15%).

With the filing of the Northern Gateway Pipeline project application by Enbridge Northern Gateway Pipelines, Canada’s Joint Review Panel will review the project under both the national Energy Board Act and the Canadian Environmental Assessment Act.

Energy Transfer Partners (ETP) and Chesapeake Energy have awarded contracts to Henkels & McCoy and Michels Corporation for the 175-mile Tiger Pipeline.

Enterprise Products Partners announced July 28 that construction of the southernmost segment of its Trinity River Lateral pipeline, consisting of 31 miles of 30-inch diameter pipe, is now complete and available to accept shipments of natural gas.

Excelerate Energy L.P. reports that it has now completed more than 40 LNG STS operations, transferring more than 5 million cubic meters of LNG.

El Paso Corp.’s subsidiary, Tennessee Gas Pipeline Co., has received (FERC approval for its 300 Line Project.

The FERC has recommended Oregon Pipeline LLC conduct an open season for the proposed 120-mile Oregon Pipeline - affiliated with Oregon LNG’s proposed LNG terminal in Warrenton, OR.

ONEOK Partners, L.P. will invest $405-470 million between now and the end of 2011 for projects in the Bakken Shale in the Williston Basin in North Dakota and the Woodford Shale in Oklahoma.

Paul van Gelder was named CEO at N.V. Nederlandse Gasunie, beginning on Sept. 1. He will succeed Marcel Kramer, whose contract terminates at the end of August when he turns 60.

State-run Philippine National Oil Company Exploration Corporation (PNOC-EC) is talking with foreign companies regarding the proposed Bataan–Manila (Batman-2) pipeline.

The value of internationally traded LNG that can be efficiently stored and transported by ships is expected to grow by an average of 17% per year from $73 billion in 2009 to over $180 billion in 2015.

Regency Energy Partners announced July 15 that it has sold its east Texas gathering and processing assets to an affiliate of Tristream Energy LLC for approximately $70 million.

Russia and Turkey have signed deals which their leaders hope will bring over $25 billion in mutual investment including construction of Turkey's first nuclear power plant and the Samsun-Ceyhan oil pipeline.

Telvent will replace and consolidate the existing control and monitoring systems of Inter Pipeline Fund’s (IPF) 85% owned and operated Cold Lake pipeline system.

Ukrainian pipelines serve as critical systems for the transit of natural gas and ammonia from Russia and Central Asia to the European Union.

Williams Partners L.P. anticipates filing an application with the FERC this fall seeking approval to construct the Mid-South Expansion project.

Williston Basin Interstate Pipeline Company, the wholly owned natural gas transmission pipeline subsidiary of MDU Resources Group, Inc., plans to expand its existing natural gas pipeline capacity by 33% in the Bakken production area in northwestern North Dakota.

As we all know by now, it’s the midstream sector of the natural gas industry that is driving forward much of the activity in America’s energy sector, fed by the tax advantages offered through master limited partnerships. They come in all sizes, shapes and mixtures of businesses, which can often change on a moment’s notice or at an executive’s whim.

The world’s drive for energy has put oil and gas flow measurement in the spotlight. Rising oil prices, along with increasing prices for natural gas, have made it more important to oil and gas producers, distributors and end-users to have accurate and reliable measurements of flow. As many of the world’s economies recover from a severe recession, demands for energy are increasing.

<strong>Savant Measurement Corporation </strong>Savant Measurement says its GFC paddle product satisfies AGA 3 requirements through 0.75 beta ratio. It is available in 2-4-inch line sizes and is independently proven and tested. It eliminates swirl and non-symmetry and sits between a set of OFU flanges and on top of dowel pins.