NGI Staff Reports

NGI’s Jan. 12, 1998 issue contained an article by Susan Parkeron page 11-12 stating that four current and former officers of NewJersey Resources Corporation and affiliates, including former NJRChairman Oliver G. “Rick” Richard III, reached an agreement withthe Securities and Exchange Commission on “charges” they”conspired” to improperly value NJR’s oil and gas properties in theearly 1990s. This statement and the headline reading “NJRExecutives Settle SEC Conspiracy Charges” were erroneous. Theindividuals without admitting or denying the claim, did not assertthe existence of a “conspiracy,” but rather that certain currentand former officers of NJR “caused” violations of certain SECreporting requirements arising from the use of gas contracts in anaccounting calculation.

Columbia Gas System pointed up its new, expanded focus with a name change – to Columbia Energy Group – last week and then announced its gas transmission and storage operations had led the company to new earnings heights in 1997.

Columbia Propane, in existence since 1941, is targeted forgrowth, according to Columbia CEO Oliver G. Richard III (seerelated story). As of Jan. 1, 1997 it was rate the 14th largestretailer of propane in the U.S. by Butane/Propane News, having soldnearly 76 million gallons the previous year.

California regulators intend to transform the state’s natural gas industry through comprehensive reforms that are expected to be in place by the end of 1998. If they follow current recommendations, the state’s new gas industry will begin to converge greatly with electricity and the gas utility business will be restricted to that of transportation services.

Duke Energy’s Excelsior project to deliver gas across New York Bay to Long Island is likely to be supplanted by the Cross Bay Pipeline project announced last week by Duke and Williams. Cross Bay would convert Transcontinental Gas Pipe Line’s (Transco) Long Beach lateral to pipeline status and add new facilities yet to be specified. The Long Beach lateral runs 35 miles from Morgan, NJ, to Long Island.

The Oklahoma Corporation Commission (OCC) gave Enron and other energy marketers – as well as LDC Oklahoma Natural Gas — something to smile about last week when it released its revised proposed rule for gas industry restructuring and specified full competition by Oct. 1, 1999. Previously, the commission’s proposed rule only considered unbundling upstream of the citygate and merely invited industry participants to propose downstream unbundling plans.

Putting the retail gas and power marketplace on the Internet where customers post their needs and suppliers offer up service saves end-users money and cuts the sales and marketing costs of energy marketers. So say the backers of the World Wide Retail Energy Exchange (REX), a real-time electronic commerce application that works something like a dating service for the two sides of energy industry transactions.

Marketing companies interested in pursuing an aggressive programto promote guidelines and standards for an efficient andcompetitive energy market across the nation should join with theNational Energy Marketers Association in writing the rulebook now,according to NEMA organizer Craig Goodman.

Higher realized gas prices and increased production boostedVastar Resources’ 1997 earnings to a record of $240.5 million, or$2.47/share, a 9% increase from the $220 million, $2.26/share,reported for 1996. Fourth quarter 1997 earnings were $66.9 million,69 cents/share, down from $69.1 million, 71 cents/share Q4 1996.The decline was mainly due to decreased liquids commodity prices.”Our financial performance was very solid, and our operationalachievements have established a sound foundation for the future,”said CEO Charles Davidson. “Vastar’s large project inventory shouldlead to sustainable production growth in the near term, while ourexploration portfolio in the Gulf of Mexico deep-water playprovides potential for the years ahead.”