The Department of Defense intends to award the federalgovernment’s largest energy-saving performance contract ever toPepco Energy Services and Viron Energy Services. Pepco EnergyServices is a subsidiary of Potomac Electric Power Co. Viron EnergyServices is a subsidiary of York International Corp. President BillClinton announced the $200 million contract, designed to implementenergy-savings measures for the Military District of Washington(MDW). The MDW is a major Army command encompassing five Armyposts: Fort George G. Meade in Maryland; Fort Myer, Fort Belvoirand Fort A.P. Hill in Virginia; and Fort Lesley J. McNair inWashington, DC. More than 2,100 buildings were examined for energyimprovements. The 18-year MDW contract will result in about $220million in overall cost savings.

Burlington Resources bought 63% working interest in the Plutodeepwater Gulf of Mexico project from Mariner Energy Inc., an EnronCapital and Trade Resources affiliate, the companies said lastweek. While the amount of the purchase is undisclosed, a Burlingtonofficial said the company expects to invest $40 to $50 million forits part in the project. Overall net gas production for Burlingtonis expected to be 30 to 40 MMcf/d once production starts. Theacquired properties are located in Mississippi Canyon Blocks 673,674, 717, and 718 in approximately 2,800 feet of water. Marinerwill operate the well.

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