The Supreme Court last Tuesday rejected a petition for writ of
certiorari filed by the California Public Utilities Commission
(CPUC) and Southern California Gas (SoCalGas) after the parties
failed to meet the deadline. The petitioners, which filed for
review on Nov. 5, missed the deadline by three days. The CPUC and
SoCalGas had asked the high court to review a 1996 FERC decision -
upheld by the D.C. Circuit Court of Appeals two years later - that
they claimed amounted to a "power grab" of California's
jurisdiction by the federal agency.
Dynegy Inc. is combining its power generation operations with
its trading and marketing organization to "further define and
capture opportunities presented by the convergence of the gas and
power industries." The new organization will operate under the name
Dynegy Marketing and Trade. Steve Bergstrom will serve as president
and chief operating officer.
Sheridan Energy Inc. intends to form a joint venture with
Amerada Hess Corp. to explore, develop and produce from all of
Hess's Sacramento Basin, CA, gas properties. The joint venture will
also seek to explore, develop and produce oil and gas from other
Hess U.S. onshore and offshore properties. Sheridan has agreed to
contribute $58 million and other considerations, and Hess will
contribute its California properties along with certain other U.S.
holdings. Current net production from the California properties is
about 20 MMcf/d. The agreement includes unitized and prospect
acreage totaling 37,000 net acres.
Unocal Corp. said last week it expects to cut capital spending
30 to 40% in 1999 from this year's level. In addition, the company
is targeting cash expense reductions of $150 million, of which
about $100 million has already been identified.
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