In an agreement to ensure the sale of CrossCountry Energy is approved, Enron Corp. has agreed to increase the funding of pension plans for about 17,000 current and former employees. The agreement resolved litigation with Pension Benefit Guaranty Corp. (PBGC). According to PBGC, Enron has agreed to pay $321 million to cover the underfunding of four of its former benefit plans. Previously, Enron had said paid $200 million would be enough to pay for the fund, but PBGC had threatened to stall the sale of CrossCountry, Enron’s pipeline business, which was approved by the bankruptcy court earlier this month. Enron said it has “resolved” the PBGC objections, and said it would put $321 million into an escrow account to fund the pension.

American Energy Production Inc.‘s subsidiary Bend Arch Petroleum Inc. has purchased 1,116 acres in the Barnett Shale natural gas play in Palo Pinto, TX. Included in the purchase are 10 natural gas wells producing from either the Bend Conglomerate or Strawn formations. The 10 wells need to be re-worked and re-stimulated to achieve maximum productive potential, the company said. The property is located near a project where American Energy has produced more than 12 Mcf of natural gas and 5,500 bbl. The acreage is estimated to hold the potential for 15-20 oil wells and more than 20 gas wells.

The Exploration Co., based in San Antonio, said its current Maverick Basin net production on Sept. 10 was 10.6 MMcf/d and 1,270 boe/d, for a combined rate of 18.2 MMcfe/d, up 20.2% from its rate on June 30. CEO James E. Sigmon said that by the end of September, daily production in the Texas basin will reach 20 MMcfe when two gas wells resume production. The independent spudded 17 wells in the third quarter, and since the beginning of the year, has spudded 45 wells of its 66-well drilling program in the Maverick Basin. Currently, six rigs are operating. Third-quarter plans include re-entering two existing vertical Glen Rose porosity wells for horizontal re-completions as a workover rig becomes available.

With particular ire toward an $11.3 million disallowance of natural gas costs, Spokane, WA-based Avista Corp. lashed out at the Idaho Public Utilities Commission for an interim order in Avista utilities’ electric and gas general rate case. The disallowance relates to gas purchased for its electric generation plants. Avista said that as of May 31 this year it had $26 million in unrecovered gas fuel costs, and the interim PUC order allowed for recovering only about $15 million of those costs. Nevertheless, the net increases amounted to $24.7 million for electric rates and $3.3 million for gas, along with an authorized rate of return overall of 9.25% and 10.4% return on common equity, representing what the utility conceded is 80% of its revised request. The new rates became effective Sept. 9. The Idaho commission announced new permanent rate bases for gas and electric customers and temporary surcharges for both. Overall, a 1.9% increase in electric revenues went into effect, along with 20.6% increase in gas rates, the PUC said. The gas rate changes include the first base rate change in 14 years and a 14.2% hike in the utility’s purchased gas cost adjustment mechanism, reflecting the higher wholesale gas costs in the past year. Avista originally asked for a $35.2 million increase in its revenues for electric service, and subsequently reduced that to $31.1 million. Avista had asked for 10.9%. return on equity.

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