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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