PNM Gas IRP
Thursday May 17, 2007


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First posted
Friday May 18, 2007 06:22
Updated
Monday December 8, 2009 07:10

Published: December 7, 2009 DIMOCK, Pa. — Victoria Switzer dreamed of a peaceful retirement in these Appalachian hills. Instead, she is coping with a big problem after a nearby natural gas well contaminated her family’s drinking water with high levels of methane.

Across vast regions of the country, gas companies are using a technology called hydraulic fracturing to produce natural gas from previously untapped beds of shale. The push has been so successful that the country’s potential gas reserves jumped by 35 percent in two years. The new supplies have driven down natural gas prices for consumers and might help the global environment by allowing more production of electricity from natural gas, which emits fewer global warming emissions than coal.

What the drilling push will do to local environments is another matter.

The friend wasn't hurt. But that and an explosion at another home weeks earlier forced Colorado to suspend natural gas drilling around this southern plains town until someone could find out why dangerous levels of methane were getting into the groundwater.


So what about the many sources of "unconventional" oil and gas? Won't these compensate for declining production from conventional sources? The short answer is no.

Geologist Art Berman, for example, offers a decidedly negative view of the latest "big thing" - obtaining large volumes of natural gas from "tight shales." In a comprehensive review of production and flow rates from several thousand wells drilled in the past decade in the Barnett Shale of Texas, Mr. Berman presents a gloomy forecast.

Looking at a large sampling of Barnett wells, the overall data reveal that initial gas flows decline rapidly. With some wells, the drop-off is as much as 70% in the first year, with further declines of 20% in the second year.

This hardly dovetails with the happy talk about how "shale gas" will supply US energy requirements for the next several decades, if not a couple of centuries. It appears that most Barnett wells are short-term money losers, with a few prolific wells carrying the bulk of capital expenditure.

Byron King
The Daily Reckoning
Wednesday October 28, 2009

Wednesday July 1, 2009 06:44 PNM recently sold its gas business to New Mexico Gas Company. 1 KilowattHour = 3,412 Btu Natural Gas Conversion Calculator Cubic Feet Btu 1 Cubic Foot = 1,028 Btu (based on U.S. consumption, 2007) PNM wrote that HEAT RATE [BTU/kWh] does not apply [N/A] to solar- and wind-generated electricity. See FOIL 7. Most of the other questions in this list can be tied up into this one question: does the invention defy the Laws of Thermodynamics? If the answer is yes, then something is wrong. HEAT OUT = HEAT IN - HEAT LOSS. Eclipse Aviation. There are many cases of con men with engines that only appear to run on alternative energy. New Mexico budding solar industries. Concern about solar and wind electricity generations has been raised by fast neutron Santa Fe, NM January 12, 2009 From actual experience, wind farms produce 1.2 watts per square meter. Solar Thermal and Photovoltaic methods capture 5 to 6 watts per square meter. There is no economy of size in either technology. Dividing the watts you need by those values gives the land area in square meters needed to produce the juice. The numbers are astronomical http://www.topix.net/forum/source/santa-fe-new-mexican/T0QVJ5UD3R25C8HRL and Keith O. Rattie said on April 2, 2009 Why did my generation fail to develop wind and solar? Because our energy choices are ruthlessly ruled, not by political judgments, but by the immutable laws of thermodynamics. In engineer-speak, turning diffused sources of energy such as photons in sunlight or the kinetic energy in wind requires massive investment to concentrate that energy into a form that's usable on any meaningful scale. http://www.prosefights.org/pnmgas/pnmgas.htm#nmgascompany

Cleanliness of Natural Gas Natural gas is the cleanest burning fossil fuel on the planet. When natural gas burns, virtually no harmful pollutants are produced. The main bi-products are carbon dioxide and water vapor, the very same compounds we exhale when we breathe. When you use natural gas, you can feel good knowing you are doing something good for the environment. Compared to coal or oil, natural gas produces a fraction of the sulphur dioxide and nitrogen oxides; virtually no ash, mercury compounds or particulate pollutants; and considerably lower levels of carbon dioxide, carbon monoxide and other reactive hydrocarbons.

Sunday June 28, 2009 06:30 ----- Forwarded Message ----- From: bpayne37@comcast.net To: kparker@hartenergy.com Cc: bbeaubouef@hartenergy.com Sent: Saturday, June 27, 2009 8:04:44 PM GMT -07:00 US/Canada Mountain Subject: [I]ran, holder of the second-highest gas reserve amounts. ... Interesting article http://www.prosefights.org/pnmgas/pnmgas.htm#parkergas regards http://home.comcast.net/~bpayne37/entelec/entelec.htm#background All are related. [I]ran, holder of the second-highest gas reserve amounts. ... Cool music. http://www.prosefights.org/pnmgas/pnmgas.htm#parkergas

The Back Story Iraqi gas exports to thwart Russian stranglehold Kevin Parker, Executive Editor Two recent announcements impacting construction of long-planned natural gas pipelines mark potentially significant chess moves in the "great game" of energy geopolitics, and most especially the prospect that Iraq could become a significant gas supplier to European markets. First, in mid-May Russia's natural gas monopoly Gazprom and Italy's Eni agreed to double the capacity of their planned South Stream pipeline. Almost simultaneously, the rival Nabucco project made strides toward securing enough natural gas supplies to become a viable project. Nabucco, a project to bring Central Asian and Middle Eastern gas to Europe, has been on the drawing board for seven years. In this latest development, Austria's OMV and Hungary's MOL each acquired 10% stakes in Pearl Petroleum from United Arab Emirates-based Crescent Petroleum and Dana Gas. Pearl Petroleum, in turn, already is investing $8 billion in two Iraqi natural gas fields located in that country's Kurdish region that could by 2014 produce more than three Bcf of gas. Pearl intends to extract gas from Khor Mor and Chemchmal in Kurdish Iraq, and pipe it across the Turkish border. From there, the gas would be carried by Nabucco, currently planned for completion by 2015. It has been reported that Nabucco will need about half of this capacity to operate as a viable project. Heretofore, the higher price Russia has been willing to pay for gas from Kazakhstan and Azerbaijan blocked attempts by Nabucco's European Union (EU) backers to secure supply Turkmenistan, on the other hand, intends to sell its gas to China. Some context offered Putting all this in perspective is a study released in early May "Russia and the Caspian States in the Global Energy Balance," from the James A. Baker III Institute for Public Policy, Rice University, which notes that while Russia holds the largest natural gas reserves in the world it is constrained by its dependence on the European market as its primary customer, limiting its energy geopolitical reach." According to the Institute study the importance of energy to Russia's international policy cannot be overstated, with 'energy relations supplanting communist ideology and the Warsaw Pact as a primary path to a revitalized global role." In response, the EU is trying to diversify supply both through alternative pipeline supplies and ship-borne LNG imports, even as "natural gas increases in importance as a primary energy source. Given the current alignment of players, with Iran, holder of tbe second-highest gas reserve amounts, constrained by international sanctions associated with its nuclear policy the Baker Institute analysis "reveals that the pace of Iraqi natural gas export capability is the single largest factor affecting Russia's ability to maintain its dominant position in the European market." The high prices Russia paid to lock in long-term gas supplies - as its own reserves decline and to block Nabucco's access to Central Asian supply - bas heightened pressure on its energy sector amidst falling prices, a 40% drop in exports, and an international credit crisis. Finding partners In its latest move, Gazprom signed the agreement with Eni to boost South Stream's capacity from 31 Bcm to 63 Bcm, in a ceremony witnessed by Prime Minister Vladimir Putin of Russia and Italian Prime Minister Silvio Berlusconi. That same day Gazprom and national gas companies from Bulgaria, Serbia, and Greece signed deals to create joint ventures in those countries to perform feasibility studies and construction for South Stream. The pipeline, which is slated to cost 8.6 billion euros ($11.6 billion) will cross the Black Sea to Bulgaria and potentially have two legs going through Serbia, Hungary, Greece - and likely Slovenia - and ending in Austria and Italy At the end of tbe day the analysts at the Baker Institute call for a new approach to international energy markets on tbe part of the US and EU. Russia will continue to be a "source of instability in energy markets," says the report and a range of policies will be needed to counteract its impact. Rather than focus on expensive and impractical new pipeline schemes - such as the Nabucco line - that appear to be years away the United States and Europe need to refocus their attention on market liberalization, not only in Western Europe, but also in Eastern Europe and Central Asia." Pipeline and Gas Technology June 2009 http://www.pipelineandgastechnology.com/

Monday June 1, 2009 10:20 http://www.prosefights.org/pnmgas/pnmgas.htm#nmgasmay2009

Sunday May 10, 2009 07:55 New Mexico Wildlife Federation OUTDOOR REPORTER Spring 2009 distributed at Los Pinos fly shop Albuquerque, NM on Saturday May 9, 2009. http://www.prosefights.org/pnmgas/pnmgas.htm#outdoorreporter

But instead of finding trophy animals and having a memorable final hunt together, father and son spent three days among the well pads, pump jacks and truck traffic in the nation’s second-largest natural gas field. It was not the San Juan he had expected to share with his father, says Goff, a former Sportsmen feel the impacts of energy development more than most Americans. New roads and well pads on the sagebrush prairie have driven down mule deer and antelope numbers. Erosion and sedimentation have affected drinking water quality and trout streams. The drone of compressors and truck traffic fill the air where there used to be silence.

Wednesday December 3, 2008 08:21 Natural Gas Down From December '07 Public Service Company of New Mexico says gas prices will be nearly one-fourth lower this December than the same time last year. Customers will pay about 59 cents per therm, a unit of heating. That's an increase of 11 percent over November's price of 54 cents and about 23 percent less than the 77-cent price of a year ago. The December price will mean an average gas bill of about $95. PNM says there are programs for low-income customers to get help with bills. That includes the Low-Income Home Energy Assistance Program. Albuquerque Journal Wednesday December 3, 2008

Election may bring hard look at oil-gas exemption comment.

ENERGY CRUNCH APS Will Turn Down the Heat · Officials say rising gas costs will break their annual budget By Zsombor Peters Journal Staff Writer Add some sweaters to your back-to-school shopping list. Albuquerque Public Schools officials say they'll turn down the heat and find other conservation savings to deal with rising natural gas prices that are likely to cost the district at least $1 million beyond what it budgeted for this year. John Dufay, the district's maintenance and operations director, would like to lock in the price APS will pay for its natural gas for the rest of the school year by the end of the month. He's keeping a constant watch on the market in hopes of catching the best possible price. The challenge, he said, is deciding "when to pull the trigger." "We're seeing some natural gas prices that will put gasoline to shame," Dufay warned the district's Finance Committee earlier this week. Singe January, the price of natural gas on the San Juan Index, from which APS buys its supplies, has risen from $6.38/decatherm to $11.36! decatherm. That's a 78 percent jump in the span of six months. Dufay says prices could surpass $13 by winter and might even hit $16 by the time the cold weather gets here. A decatherm is enough to heat a house between 2,800 and 3,000 square feet for one day. The district budgeted $1.3 million more than the $5.12 million APS paid for natural gas last year, according to Dufay, but that's still roughly $1 million short of what he expects the district will end up paying. Dufay said the district will dial down the temperature in its schools from an average of approximately 75 degrees to 70 or 71 degrees. He suspects most people won't notice the difference. Dufay said the district could also do more to isolate heating to the parts of a building being used and to restrict teachers from coming in at night and on weekends. A few prototype schools have started giving their water boilers a break by using pumps that harness heat in the ground beneath them to warm the buildings. Chief Operating Officer Brad Winter said that while updating its capital master plan this year, the district would look at ways to retrofit existing buildings with alternative technologies like those ground-source heat pumps. With all the sun Albuquerque gets, Dufay said the district could use more solar water heaters as well. Board member Robert Lucero said the state Legislature could lend a hand as well. He suggested asking lawmakers to cap the percent by which utility companies get to increase rates in any given year. "Maybe we need to say enough is enough with these monster increases," he said. Albuquerque Journal Saturday July 19, 2008

See Sanders. Seeking Alpha viz.

Pain at the Pipe Line PNM tells customers to prepare for higher winter heating bills By Winthrop Quigley Journal Staff Writer SANTA FE - The state's largest natural gas utility on Tuesday warned customers to prepare for significantly steeper heating bills this winter. In a briefing for the Public Regulation Commission, PNM gas supply and transmission operations director Tommy Sanders said that natural gas that cost 78 cents a therm a year ago is selling for about $1.30 a therm today. The average residential customer uses about 59 therms a month year-round. PNM won't be ready to project what this winter's bills will be until August, but they will be "significantly higher," said spokeswoman Susan Sponar. State regulations allow PNM to pass through to its customers the cost it incurs for purchasing gas, but it cannot make a profit on gas costs. PNM has to buy all of the gas it delivers to its 500,000 customers. Sanders said several factors account for the steep rise in price: · Oil prices and natural gas prices have been moving in lock-step. As the price of oil has soared, so has the price of natural gas. ·Demand for natural gas worldwide has outpaced domestic supply. Much of that demand comes from electric utilities that use natural gas to fuel their power plants. ·The amount of supply that has been stored for future use in the United States has been below the five-year average since April. With supplies tight, weather and other disruptions on the other side of the globe can affect PNM's cost, Sanders said. A recent Japanese nuclear plant outage has strained supplies of gas because the Japanese operator had to substitute gas-fired generation for nuclear generation, he said. A bad hurricane season that disrupts production in the Gulf of Mexico will raise costs, he said. "We compete in the global market for that supply," sanders said. Commission Chairman Jason Marks speculated that PNM and its customers are victims of an oil and gas market that doesn't make sense and urged PNM to work with utilities nationally to identify where the market is failing. He said natural gas production an demand were out of balance about the same amount in 2003 as they are today but the price wasn't nearly a high. "We've gone past what supply and demand usually do," Marks said. "Some thing is broken in this market. I don't know what it is He added that "it would be a mistake to swallow that line that this is all supply and demand." Albuquerque Journal Wednesday July 16, 2008

Lybrook Williams closing? viz.

SunCal may also be faced with energy and water problems?

SunCal Defaults On Loans · Westland developer says New Mexico site won't be affected copyright © 2008 Albuquerque Journal By Sean Olson Journal Staff Writer California-based SunCal, developer of Albuquerque's massive Westland project, has had a rough year with some of its California and Nevada ventures - but insists that will have no bearing on its plans here. ... Albuquerque Journal Monday March 17, 2008

EIA Natural Gas Summary. Given the link to the left and the table below perhps some good computations can be made on how much natural gas is exported from New Mexico?

Natural Gas Weekly Update.

Important information gleaned from Thursday March 6, 2008 pnm gas irp.

Here's my notes.

Here is one of the more interesting tables presented at the meeting.

F. planning period means the future period for which a utility develops its IRP.

For purposes of this rule, the planning period is four to ten years and begins the year the utility files its plan with the Commission;

Does the 541 mean that natural gas supply capacity will peak in 2009? Not necessarily.

New Mexico AG lawyer Jeff Taylor stated that only 5% of the natural gas produced in New Mexico is consumed in New Mexico.

Jeff Romanowski [sp? - I asked for his business card but he did not have one.] and

explained the above table to me.

Note the declining reserve margins 526/483 = 1.09, 541/492 = 1.10, 516/500 = 1.03, and 516/509 = 1.01.

Notice that Lybrook, which is between Albuquerque and Navajo lake is supply is going away in 2010.

Jeff explained that the gas field is on the Jicarilla Apache reservation and that Williams operates the Lybrook plant.

Here's a jpg of the Lybrook natural gas plant taken on return from an essential non-gas-wasting fishing trip to Navajo lake on Sunday July 8, 2007.

The Jicarilla Apaches may have problems. The Williams Lybrook plant you see apparently not very efficient.

-----Original Message----- From: bill payne [mailto:bpayne37@comcast.net] Sent: Friday, March 07, 2008 7:04 PM To: jacc@jicarilla.net; lorenew@jicarilla.net; darwinalieb@jicarilla.net Cc: Amorales58@Comcast.Net Subject: jicarilla natrual gas sales Friday March 7, 2008 19:03 jacc@jicarilla.net lorenew@jicarilla.net darwinalieb@jicarilla.net Dear Jicarilla Apache friends: We have a question. In 2008 the Lybrook compressor station is supposed to supply 50 MMbtu of natural gas to PNM. In 2009, 25 MMbtu. From 2010 onward 0 MMBtu. What is your story about what is happening with your natural gas production and sales? We think others should be aware of what is going on. best bill

Maybe Williams wants the Apaches to fund a new compressor station?

PNM gas is now using wind in addition to temperature extremes to predict natural gas demand.

Conjuring with coal

BP is one of the largest producers of coal bed methane in the world. Tom Seslar talks to BP's team in the prolific San Juan Basin about the technology and challenges of extracting gas from coal.

Note reference to Annual Gas Supply October 2007 to September 2008. This is a separate report which is published both in redacted and confidential [soures and prices published] versions.

On page 5 of this report is an EIA plot of natural gas production by type and year. The report states that 125% increase in gas drilling rigs is required to maintain a slighly fall natural gas production.

Maybe this EIA graph? Natural Gas Projections from EIA and Six Others

There may be some serious problems with natural gas availablity, like oil, in the near future.

Lots of talk about gas energy efficiency but NO talk about limiting new construction yet.

High Desert is a new subdivision to the base of the Sandia mountains in Albuquerque. From an energy annd water standpoint it may cause homeowners problems in the future. Friday March 7, 2008 photos. North facing windows to view Sandia peak. PNM employees emphasized that PNM is gas seller and deliver, not a gather of gas. PNM buys gas, stores gas, delivers the gas to consumers, and maintains the delivery infrastructure. Then charges customers for these services.

Nice draft report, Mary.

My opinion is that the above from Annual Gas Supply October 2007 to September 2008 should be included.

-----Original Message----- From: Homan, Mary E. [mailto:Mary.Homan@pnmresources.com] Sent: Tuesday, March 04, 2008 4:16 PM To: Homan, Mary E.; Alletta Belin; Andrea Delling ; bthroneatty@newmexico.com; Carolyn Fudge; charles.gunter@state.nm.us; clark de Schweinitz; CTcolumbia@aol.com; dahl.harris@state.nm.us; Dan Najjar; David Nava - COA; Howard Geller; Jamie Porter Lara; jim.brack@state.nm.us; jkumar@etcinc.biz; John Tyselling; jtaylor@ago.state.nm.us; lcampbell4@comcast.net; Loretta S Martinez; Martin.DeLaGarza@state.nm.us; Maude Richards; Micah Rose; Michael Hely; Nan Winter (E-mail); Peter Gould; Phillis Stevens; PNJones@doeal.gov; Robert D. Kidd - COA; Robert J. Monday; Roger Colton; Sheryl Carter; Steve Ruback; Sunny Nixon; Tim Martinez; Tom Patin; Tom Singer; Worthen, Clyde (Keleher); Barlow, Carla; Bean, Steven; Bill Bailey; Bill Connor; bphillips@pnm.com; Burks, Jeffrey; Carla Sonntag; Cheryl Bada; Craig O'Hare; Daniel Craig; Debbie Davis; Denzil Dunn; E. Gifford Stack; Fernald, John; Gail Ryba; Gottula, David; Horn, Terry; Jeffrey Houdek; Jim Palmer; John Wheeler; Kathryn Turnipseed; Mari Anixter; Marjorie Martin; Ortiz, Gerard; Patricia Cardona; Phillips, Ben; prasad.potturi@state.nm.us; Ralph Anderson; Steve.Schwebke@state.nm.us; Susan Innis; Susie Marbury; Warren Salomon; jtaylor@ago.state.nm.us; bellison@quik.com; jim.brack@state.nm.us; wjreal@msn.com; mdavis@caprockenergy.com; PPSG@msn.com; Bruce Ellison; The Korbachs; bill payne; Judy.Stubbs@state.nm.us; mdsandoval@ci.santa-fe.nm.us; SANDOVAL, MARGE D; Mayor Sam LaGrone; steve henderson; bmoore@epcog.org; Worthen, Clyde (Keleher); Melissa Davis; Dan Forsyth; wjreal@msn.com Cc: Christopher, Melvin; Collins, Mary; Phillips, Ben; Garcia, Charles; Sponar, Susan Subject: REMINDER - Gas IRP Meeting - Review of Draft Report Friendly Reminder: PNM provides this friendly reminder regarding the previously extended invitation to you to join the Gas Integrated Resource Plan ("IRP") Public Advisory Group in a review of the draft PNM Gas IRP document, which is due to be filed in April. The meeting will be held on Thursday March 6th at 1:30 pm in PNM's downtown Albuquerque headquarters, located at 414 Silver SW. Upon arrival, please proceed to the north security desk (adjacent to the outdoor fountain) where you will be signed in, given a security name tag and directed to the AS-2 La Luz conference room. Attached is a draft copy of the plan, which has been provided for discussion purposes only. Please review the attachment prior to the meeting and prepare any comments or questions you might have. PNM and the Public Advisory Group will discuss concerns and answer questions as appropriate. For those individuals unable to attend the meeting in person, the following information will enable you to join the group via teleconference. Please note that teleconference acoustics are not perfect and it may be difficult at times to hear all that is said. EVENT ID: 127903 FIRST TIME USER: Please login 5 minutes before the meeting starts. Draft Report

Creating an Energy Transition Plan away from natural gas requires at least a rough forecast of future production. Two very different forecasts for North American natural gas exist. The official “consensus” view published by Natural Resources Canada [NRC 2006] argues that 2,200 Tcf (trillion cubic feet) remain and that less than 50% of the total natural gas has been produced. Jean Laherrere has posted a forecast which shows only 600 Tcf (trillion cubic feet) remaining with about 70% already produced of the total supply of 1900 Tcf.

Energy Return on energy Invested (EROI) was explored as a method for choosing between the two forecasts. Examining a historical study of Louisiana natural gas production shows that EROI declined rapidly post peak production and that peak production occurred at about 70% of URR.

The EROI of Canadian natural gas production was found to be falling quickly. If current drilling rates are maintained, Canada could see energy break even occur as soon as 2014. The EROI analysis was extended to the US by comparing data on Yield-per-foot drilled and Yield-per-well drilled between the two countries. It was found that the US is rapidly approaching the same low EROI as Canada.

Taken together this evidence supports Laherrere’s position that North America is past peak production and that as little as 30% of our natural gas endowment remains to be produced.

PNM, now sold gas business, irp has been lots quieter than the pnm electric ipr.

Below article appears to be mainstream corpmedia nonsense to sell furnaces and continue new construction. A solution for existing buildings is to partition them during the heating and cooling seasons to reduce volume heated/cooled. Continental Energy makes money by selling natural gas. Utility companies, in the past, have encouraged natural gas consumption for business reasons in the past.

How Your Furnace Could Burn You Some Say New City Rules Will Be Too Expensive Copyright © 2008 Albuquerque Journal By DAN MCKAY Journal Staff Writer Replacing that broken furnace is about to get more expensive in Albuquerque. Requirements that go into effect April 1 call for homes to have 90 percent efficient furnaces. The rules apply to new homes or people who replace the furnace in their existing home. Opponents say that the city is going too far and that they may challenge the regulation in court. The goal is to increase energy efficiency and reduce greenhouse gas emissions that contribute to global warming. Scott Ruch, whose firm has installed furnaces for years, said the 90 percent models typically cost $400 to $900 more than the standard less-efficient furnace. One person who contacted the Journal said the cost would be several thousand dollars more for installation. But supporters say the new furnaces have a payoff. Monthly gas bills should be lower and the home should be warmer and heated more evenly. "It makes your house so much more comfortable," said Ruch, who owns Scott Ruch Heating, Air Conditioning, Plumbing and Electrical Inc. The changes are part of the "green" building code approved by Mayor Martin Chavez and city councilors. The ordinance was enacted last year, with many of the requirements going into effect April 1. But Dawn Matson, president of Associated Builders and Contractors, a trade group, said the city needs federal permission to enact more stringent rules for furnaces and air conditioners. She also said the federal government just reviewed furnace regulations and set them at 80 percent efficiency. Albuquerque's rule "leapfrogs the federal mandate," Matson said. Angelica Martinez, a state employee who lives in the Northeast Heights, said contractors told her they would have to dig up her home's foundation and front yard for the new furnace - at a cost of several thousand dollars. That's because 90 percent efficient furnaces typically create water as a byproduct and need a drainage line. "I understand we're trying to be green and more environmentally friendly, but at what cost?" Martinez asked. Faced with the extra cost, she chose to install an 80 percent efficient furnace, with no water byproduct, prior to the new rule kicking in. Ruch said there's no need to dig up the yard or foundation. The water can be drained some other way, he said. "Every installation is totally different," he said. It's even 6asier to do in new home construction, Ruch said. "I can't imagine a situation where people would have to tear up a yard," said City Councilor Isaac Benton, an architect. The water can be piped to the outside of the building, he said. It doesn't have to be connected to the existing sewer system. The cost can range from roughly $3,000 to $4,000 for high-efficiency furnaces, Ruch said. Martinez, meanwhile, said she estimated a 90 percent furnace would cost her $5,500 because of the expense of tearing up the yard. Benton suggested the cost of 90 percent efficient· furnaces may come down. "The market is going to change," he said. "People will start to get competitive with high-efficiency products as time goes ~ John Bucholz, Albuquerque's green-building manager, said some homes can get an exemption altogether. Houses that are heated exclusively through wall or floor heaters can't get a 90 percent furnace because they aren't available for those systems. And the green building code also includes an option for "performance" standards. That means that, if homeowners don't want to install an efficient furnace, they can opt to make other improvements that save an equivalent amount of energy. Installing better insulation in the roof, for example, could help meet the requirement, Bucholz said. Federal tax credits, meanwhile, can help offset the cost of putting in a 90 percent furnace, he said. The construction and operation of buildings comprise about 48 percent of greenhouse gas emissions, Bucholz said. "It's actually the big item," he said. Bucholz has made presentations on the new energy code to suppliers, builders, developers and others. The regulations apply to people who live within Albuquerque city limits. Furnace fight · The efficiency of a furnace -usually expressed as a percentage fuel refers to how much fuel is converted to heat. The city plans to require 90 percent efficient furnaces, starting April 1. · A high-efficiency furnace could save a homeowner about $10 a month, according to the federal government's "Energy Star" Web site (energystar.gov.) That example is based on a 2,500-square-foot home that goes from a 78 percent efficient furnace to a 90 percent furnace. · Homeowners with wall or floor furnaces can get an exemption from the new requirements on a case-by-case basis. · Opponents say the city is going too far by requiring 90 percent furnaces. The federal government recently set its regulations at 80 percent. · Opponents may challenge the regulation in court. Albuquerque Journal about February 4, 2008

West Texas roots Cap Rock Energy Corp. began life as a West Texas rural electric cooperative and went public in 2002, and it had a rocky history with both its ratepayers and with the Texas Public Utilities Commission, according to Bob Campbell, a reporter for the Midland Reporter-Telegram who has covered the company. In 2006, the Texas regulatory agency ordered Cap Rock to make $1.2 million in refunds to customers and pay a $339,228 penalty because of regulatory violations in 2003 and 2004. Once Lindsay Goldberg & Bessemer acquired Cap Rock Energy, it formed Cap Rock Holding Corp., which then acquired two more gas utilities, Semco Energy Inc. and Semco's Alaskan subsidiary Enstar Natural Gas Co., in November 2007. At that time, Schreiber, today Continental's president and CEO, was Semco's president and CEO. He is described in company literature as a "prominent banking and energy company executive" who has served as chairman of Credit Suisse First Boston's Global Energy Group before joining Semco. Before that he was president of Pinnacle West Capital Corporation, which owned Arizona Public Service Company and Suncor Development Corp. Schreiber told the Journal that it was an Anchorage, Alaska, reporter's investigation into Cap Rock Holding Co. at the time of the SemcolEnstar acquisition that pushed the company into a new name. "We knew we were going to have to change the company name anyway, because of the Semco acquisition. But, in Alaska, the reporter Googled 'Cap Rock' and what comes up is this complete mess before we were the owner. So we had this article in the Anchorage Daily News, and here we were looking at getting regulatory approval there," he said. A new Identity The holding company officially changed its name to Continental Energy Systems within in the past month. "We didn't do anything before that, because we didn't know we were selling Cap Rock (to PNM), but as this deal really came together, we woke up one morning and said 'We can't continue to be Cap Rock,' " Schreiber said. Both Campbell, the Midland Reporter-Telegram 'reporter, and Elizabeth Bluemink, who covers Enstar for the Anchorage Daily News, said that, so far, Continental has improved or maintained service, and maintained wages and-benefits for workers in their communities. Screiber said, even though natural gas supply prices have been steadily rising, he still believes in natural gas-powered utilities. "The reason is that if you look in many parts of the country at the economics of heating your home, natural gas, even at $7 to $8 per thousand cubic feet, is much cheaper than electricity. We think the stability of the regulated gas delivery business makes it very attractive," he said. Albuquerque Journal Business Outlook Monday February 4, 2008

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-----Original Message----- From: Homan, Mary E. [mailto:Mary.Homan@pnmresources.com] Sent: Friday, February 22, 2008 4:39 PM To: Alletta Belin; Andrea Delling ; bthroneatty@newmexico.com; Carolyn Fudge; charles.gunter@state.nm.us; clark de Schweinitz; CTcolumbia@aol.com; dahl.harris@state.nm.us; Dan Najjar; David Nava - COA; Howard Geller; Jamie Porter Lara; jim.brack@state.nm.us; jkumar@etcinc.biz; John Tyselling; jtaylor@ago.state.nm.us; lcampbell4@comcast.net; Loretta S Martinez; Martin.DeLaGarza@state.nm.us; Maude Richards; Micah Rose; Michael Hely; Nan Winter (E-mail); Peter Gould; Phillis Stevens; PNJones@doeal.gov; Robert D. Kidd - COA; Robert J. Monday; Roger Colton; Sheryl Carter; Steve Ruback; Sunny Nixon; Tim Martinez; Tom Patin; Tom Singer; Worthen, Clyde (Keleher); Barlow, Carla; Bean, Steven; Bill Bailey; Bill Connor; bphillips@pnm.com; Burks, Jeffrey; Carla Sonntag; Cheryl Bada; Craig O'Hare; Daniel Craig; Debbie Davis; Denzil Dunn; E. Gifford Stack; Fernald, John; Gail Ryba; Gottula, David; Horn, Terry; Jeffrey Houdek; Jim Palmer; John Wheeler; Kathryn Turnipseed; Mari Anixter; Marjorie Martin; Ortiz, Gerard; Patricia Cardona; Phillips, Ben; prasad.potturi@state.nm.us; Ralph Anderson; Steve.Schwebke@state.nm.us; Susan Innis; Susie Marbury; Warren Salomon; jtaylor@ago.state.nm.us; bellison@quik.com; jim.brack@state.nm.us; wjreal@msn.com; mdavis@caprockenergy.com; PPSG@msn.com; Bruce Ellison; The Korbachs; bill payne; Judy.Stubbs@state.nm.us; mdsandoval@ci.santa-fe.nm.us; SANDOVAL, MARGE D; Mayor Sam LaGrone; steve henderson; bmoore@epcog.org Cc: Christopher, Melvin; Collins, Mary; Phillips, Ben; Garcia, Charles; Sponar, Susan Subject: Gas IRP Meeting - Review of Draft Report PNM extends an invitation to you to join the Gas Integrated Resource Plan ("IRP") Public Advisory Group in a review of the draft PNM Gas IRP document, which is due to be filed in April. The meeting will be held on Thursday March 6th at 1:30 pm in PNM's downtown Albuquerque headquarters, located at 414 Silver SW. Upon arrival, please proceed to the north security desk (adjacent to the outdoor fountain) where you will be signed in, given a security name tag and directed to the AS-2 La Luz conference room. A draft copy of the plan will be provided via email prior to the meeting for your initial review and comment preparation. PNM thanks you for your past interest and/or participation in Gas IRP meetings and hopes you will join us in the final stage of preparing the April 2008 plan. Please provide your RSVP by March 3 to Mary Homan, 505-241-4797 or mary.homan@pnmresources.com to assure adequate seating availability and document preparation (indicate each guest's name who will be in attendance). Mary Homan Manager, Regulatory Projects PNMR Services Co., an affiliate of Public Service Company of New Mexico 505-241-4797

State Loses Three In the Rig Count

The number of rigs exploring for oil and natural gas in -the United States dropped by 18 last week to 1,769. Of the rigs running nationwide, 1,458 were exploring for natural gas and , 305 for oil, Houston-based Baker Hughes Inc. reported. Six were listed as miscellaneous. A year ago, the rig count was 1,754., . Of the major oil- and gas- producing states, Louisiana lost 14 rigs, and Colorado lost six. New Mexico and Oklahoma lost three each, and California lost one. Wyoming gained four, and Texas gained three. Alaska's count was unchanged.

Fax or e-mail your New Mexico business briefs to (505) 823-3994 or tfeld@abqjournal.com

Albuquerque Journal Tuesday September 25, 2007

More than 126,000 new oil and gas wells have been approved or are under review for federal lands in Wyoming, Colorado, Montana, Utah and New Mexico, according to the Wilderness Society report. Wyoming would see the most activity: 58,000 new wells.

By comparison, the five states had 77,000 wells producing oil or natural gas as of earlier this year. Natural gas at Wyoming's two main trading hubs is selling at 30 percent of national average, cutting off millions of dollars in state revenue.

The daily spot price average on Friday was $1.99 per thousand cubic feet of gas at Opal in southwest Wyoming, and $1.72 at the Cheyenne Hub, according to the Wyoming Pipeline Authority. That compares with $5.82 per thousand cubic feet at the California gate, and $6.04 at Henry Hub in Louisiana.

PNM supplies natural gas to Eldorado, NM.

John Arum, an attorney for the Northern Cheyenne tribe, said he was disappointed with the decision but had yet to consult with the tribe on whether they would seek another hearing.

"The tribe will be evaluating its options to ensure that drilling does not occur until the supplemental environmental impact statement is completed," he said.

The Powder River Basin in Montana and Wyoming is the largest coal deposit in the United States and among the biggest in the world. Coal-bed methane is a natural gas generated by coal deposits and trapped in coal seams by groundwater. It is extracted by pumping the groundwater out of the land and into rivers. As the water is removed, the pressure on the gas is eased so the gas percolates and is piped to the source, where it can be recompressed for shipping.

Opponents argue that the process pollutes rivers and streams, causes aesthetic harm, and draws down aquifers and water wells.“It's difficult to pull money away from oil right now,” said Canadian Natural vice-chairman John Langille. “[Natural gas exploration] costs are still too high in comparison to the sales price … I would anticipate 2008 spending at similar levels [to 2007].”

While Canadian Natural spent around $2-billion on gas exploration in 2006, it expects to spend roughly half that in 2007, a level that now looks likely to persist into next year.

Natural gas prices have plummeted from their hurricane-assisted highs in late 2005 because of weak demand and high storage levels in North America, while more recently Canadian prices have dropped over 20 per cent since the start of July. That's particularly problematic for firms involved with Canada's plethora of shallow or tight gas plays, which don't produce for a long time and so are uneconomic to drill at times of lower prices.

It's not just the problem of the rich and famous. In the case of Amaranth, an independent congressional panel concluded that its large position in natural gas markets caused market volatility. That, in turn, forced average people to pay much higher prices. And hedge funds with mortgage assets are a separate problem. Their losses have constrained lending practices, which means ordinary businesses like utilities may not borrow and subsequently add jobs or new technologies.

Certainly, most of the pain will be centered on the housing sector. But the energy sector needs to cooperate with federal lawmakers and regulators to determine how hedge funds that trade key commodities can be monitored. The Senate Permanent Subcommittee on Investigations conducted a nine month investigation into the collapse of Amaranth. It concluded that Congress needs to enact laws that would curtail "excessive speculation," allocate more money to the Commodity Futures Trading Commission and delete the "Enron exemption."

"Amaranth accumulated such large positions and traded such large volumes of natural gas futures that it distorted market prices, widened price spreads and increased price volatility," the panel wrote. The fund, which lost about $6.5 billion before it finally went bankrupt in September 2006, held 100,000 natural gas contracts that accounted for 5 percent of all natural gas consumed that year.

energybizinsider email September 12, 2007

B Ark on September 11, 2007 - 1:28pm

Gas rischio black out (in Italian)

Fulvio Conti, CEO of ENEL (the Italian electric distribution company) warns: this winter we risk finding ourselves in cold and dark homes. Consumption of gas is steadily growing, while storage capacity has been reduced. The planned regasification terminals will reduce the physical risk of contingent lack of supply, but won't stop the rise of gas prices.

BigTex wrote: The Texas grid is probably the most stable in the country.

For how much longer, 40% gas-fired and new wells are showing 30% decline rates. I wish Matthew Simmons would publish an update on the situation.

Grey hair viz.

Typically, tar sands are produced using natural gas to heat the steam that drives the oil out of the sands. It takes a lot of gas to do this: over 1,000 cubic feet--about $8 worth--to produce one barrel of bitumen.

At the current production level of about 1 mpbd, the tar sands operations consume about 4% of Canada's natural gas supply. So quadrupling production would consume fully 16% of the supply, and completely max out the gas market. Nearly all estimates for tar sands operations over the next ten years exceed the projections for available amounts of natural gas!

Canada's natural gas supplies are running out fast. Numbers from the EIA and the NEB suggest that its proven reserves of natural gas will be gone in about eight years.

Arrived in Saturday September 8, 2007 PNM bill.

If the energy industry were a zoo, then Unit might be the duck-billed platypus, a hybrid creature with an unusual mix of features. Though the Tulsa-based company focuses primarily on natural gas, it operates a few lines of business. Founded in 1963 as a contract-drilling company, it has since diversified into exploration and production as well as gathering and processing natural gas. While drilling still accounts for some 60% of revenues, the mix of businesses means Unit is often misunderstood or neglected by investors seeking pure plays, according to analysts and money managers who track the stock.

Chesapeake, an exploration and production (E&P) company based in Oklahoma City, boasts an impressive track record. Under CEO Aubrey McClendon, the company has grown into one of the country's largest suppliers of natural gas, which heats homes and fuels power plants. Through aggressive acquisitions and active drilling, Chesapeake has increased production by about 30% a year.

6,000 mcf of natural gas is equal to the 1 barrel of oil in terms of BTU's. The EROEI for bitumen production is much higher than what you stated.

Greatly weakened from that overland journey, Dean moved across the Bay of Campeche in the southern Gulf of Mexico, home to more than 100 oil platforms, three major oil exporting ports and the Cantarell oil field, Mexico's most productive. The entire field's operations were shut down just ahead of the storm, reducing daily production by 2.7 million barrels of oil and 2.6 billion cubic feet of natural gas.

In general, EIA has produced a steady spate of optimistic projections of the future of NG in the U.S. Over the period 2000—2006, for instance, this optimism has been relentless:

The well-head price of NG was underestimated in 21 of 22 annual forecasts (95%)

Consumption of NG by electric generators was underestimated in 22 of 22 forecasts

Domestic production of NG was overestimated in 19 of 22 forecasts (86%)

Baltimore, MD--Today, the most popular oil sands extraction method is dependent on natural gas. And considering that 80% of bitumen is located deep underground, the question is whether or not there is a future for oil sands once Canadian natural gas runs dry. ...

"The problem is that the gas is going to run out," he said. But we already knew that Canadian natural gas production peaked years ago.

Before I could mention that, he continued, "This is going to really complicate things when they're going after the bitumen. Most of the oil companies out there are using huge amounts of natural gas during extraction."

pnmgas viz.

Mary Homan phoned [241-4797].

Whiskey and Gunpowder email Monday August 6, 2007.

North American natural gas A shortage of natural gas in North America starting in a few years appears to be a significant possibility. Natural gas from conventional sources is in increasingly short supply. Gas from shale, which is a major "unconventional" source, is looking increasingly non-economic. Liquified natural gas (LNG) from overseas is sometimes thought to be a substitute, but a lack of investment in overseas facilities to process LNG is likely to limit its availability.

A Case Study On Peak Energy: The U.S.'s Natural Gas Disaster

Matt Simmons: (Natural gas is) "the single best energy source we've ever had. It's too bad we didn't understand it. We've used up probably two thirds of the finest natural gas in the world through one of two reasons- we either flared it because we didn't have any idea what to do with it, or we sold it for 1/10th the amount we sold oil for and we gave oil away. It's not the emissions aspect of natural gas that makes it so unbelievably precious. It's the only source we have of instant heat."

Electricity makes up a minor part of home heating use - of course, there is also natural gas and coal used as a precursors to electricity but I didn't extend this analysis that far. (About half of all energy used by a household goes to heat and cool the home. (116 billion kWh (2001) = 116 billion * 3,413 Btu = 396 trillion BTUs (.396 quads))

US residential heating is dominated by natural gas - more than 2/3 of our home heating is derived from piped natural gas.

Aside from the Irak quagmire, energy problems continue to dominate Bilderberger discussions. Oil and natural gas are finite, non-renewable resources. That’s because once used up it cannot be replenished. As the world turns, and as oil and natural gas supplies dwindle while demand soars dramatically, especially with Indian and Chinese booming economies who want all the trinkets and privileges of an American way of life, we, as the Planet, have crossed the midpoint of oil production and discovery. From now on, the only sure thing is that supply will continue to diminish and prices will continue to increase. In these conditions world conflict is a physical certainty. End of oil means end of world’s financial system, something which has already been acknowledged by Wall Street Journal and the Financial Times, two full time members of the Bilderberger inner circle. Goldman Sachs oil report, [another full time member of the Bilderberger elite] published on March 30, 2005 increased the oil price range for the year 2005-6 from $55-$80 per barrel to $55-$105. During 2006 meeting, Bilderbergers have confirmed that their short range price estimate for oil for the 2007-08 continues to hover around US$105-150/barrel. No wonder Jose Barroso, President of the European Commission, announced several months ago during the unveiling of the new European energy policy that the time has come for a “post-industrial age.” To bring the world into the post industrial age, you first need to destroy the world´s economic base and create another Great Depression. When people are poor, they don´t spend money, they don´t travel, and they don´t consume.

PNM natural gas people should be asked about: NG is pretty much history is about 5 years. Dave Graf, November 30, 2006 It appears that the blue chart, or drilling activity, must keep growing to offset the very rapid natural production decline rates we see in natural gas. (As a vapor, natural gas is far more “permeable” than oil, so the gas trapped in the source rock is able to flow to the well bore far faster than crude oil.) Dan Amoss, November 22, 2006

may be a talking head? While the hidden management was listening to who said what.

Friday May 18, 2007 06:19 Mary It appeared that you were connecting a phone which was apparently being used to deliver the audio portion of the IRP meeting to some other party[ies]. Who? Thanks bill Here's Mary

Patty and bill are PNM voting stockholders. If any lawyers are running, then we will vote against them.

Friday May 18, 2007 21:05

Unpleasant Surprises for Natural Gas

Sunday May 20, 2007 07:27 Therm = A unit of heat equivalent to 100,000 British Thermal Units (Btu). MMBtu = One million British thermal units, 252,000 Kilocalories or 293 Kilowatt Hours. We learned at the IRP that the therms per gas volume vary. PNM employee Debbie Brunt made the anology of the blue flame on a gas burner being either about two inches high or about 6 inches high for the same gas control setting. Homan said this is the reason PNM bills by therm rather than volume of gas consumed. In addition for the question for Sanders to produce Dave Hughes-type plots [gas volume and number of wells drilled by year for both the San Juan and Permian natural gas basins], we now have the guestion: Please give us a plot of terms per gas volume by year. EROEI of oil has apparently been declining over the years, we read of the web. Is the same for natural gas too? Natural gas weekly update: http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp Tonto aka stupid or fool en el español.

Albuquerque Journal Monday May 21, 2007 Developers appear to be ignoring peak natural gas and peak oil. In 50 years there is likely to be little or no natural gas remaining. So PNM needs, as part of its IRP, to explain energy realities to to architect Polyzoides. Especially about future natural gas supply.