Shareholders of SCANA Corp. and Public Service Company of NorthCarolina approved a two-step merger transaction under which PSNCwill become a wholly owned subsidiary of SCANA. Shareholdersrepresenting about 76% of Scana’s outstanding shares and about 80%of PSNC’s outstanding shares approved the two proposals. The mergerstill requires state and federal regulatory approvals. Completionis anticipated during the second half of 1999.

The Interior Department’s Minerals Management Service hasscheduled a meeting in Houston to discuss implementation of itsGulf of Mexico Royalty In-Kind pilot program, which is slated tobegin in October. The three-year program will involve thecollection and sale of as much as 800 MMcf/d of royalty gas fromfederal leases in the Gulf. It is the MMS’s third RIK pilot, all ofwhich are being conducted to determine the feasibility andeconomics of accepting royalties in kind rather that as a cashpayment from lessees. The meeting on the Gulf RIK will begin at 10a.m. on July 20 at the MMS Houston Compliance Division Office RM104, 4141 Sam Houston Parkway East. It is open to the publicwithout reservation. Lessees, operators, payers and potentialpurchasers are encouraged to attend.

Meridian Resource Corp. said it has extinguished the large fireat its Thibodaux No. 2 well near Amelia, LA. The well “bridgedover” about 6 a.m., blocking substantially all the flow of naturalgas, the company said. The underground geologic formation collapsedinto the well bore as a result of the high pressure and flow rateof escaping gas, which created a natural “bridge” that temporarilyis blocking the gas flow. A small fire continues to burn debris andresidual natural gas near the well but will be allowed to safelyburn itself out. The height of the flames has been reduced to lessthan 12 feet from about 150 feet. Meridian CEO Joseph A. Reeves Jr.said, “This is great news in that our well control specialists andfirefighters on the scene can accelerate access to the well site bycloser dredging and debris removal under safer conditions with muchless heat and noise. Dredging operations may last another three orfour days. Once debris removal and well inspection is complete, ourteam can determine the best and safest method for capping thewell.” The well fire was cause by a lightening strike eight daysago. No one was injured but 11 families were evacuated from AvocaIsland last Friday night as a safety precaution. Meridian said thewell was scheduled to be placed in production in July with 18MMcf/d of gas.

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