NGI Staff Reports

Phelps Dodge Corp. has accused El Paso Natural Gas of refusing to provide new transportation service to its refining facility under the company’s existing agreement because the terms of the pipeline’s comprehensive rate settlement would prevent the Texas-based pipeline from making any money on the deal.

Apache Corp. signed an exchange agreement with Altura Energy Ltd., a partnership of Amoco and Shell Oil, that allows it to avoid large expenditures needed to get more oil out of the properties it is giving up. Apache will receive Altura’s interests in the New Mexico Federal Unit (NMFU) and the Drinkard Unit of Lea County, NM, in exchange for Apache’s interests in West Texas’ Cogdell Canyon Reef Unit.

Guy P. Wyser-Pratte, president of Wyser-Pratte & Co., Inc. and a Pennzoil shareholder who beneficially owns 454,100 shares, announced the SEC completed a review of his proxy statement for an upcoming annual meeting of Pennzoil shareholders. Wyser-Pratte’s by-law proposals if adopted would give shareholders power to review and potentially block board decisions to reject future offers for the company’s shares. The proposed changes in company by-laws are in response to the Pennzoil board’s rejection last year of a purchase offer by Union Pacific Resources.

Conoco added about 101 Bcf of proved reserves and production of 12.5 MMcf/d when it exercised its right to buy gas production and storage acreage in New Mexico’s San Juan Basin from Amoco for $56.9 million. The company also gains 23,000 exploration acres.

Heeding President Clinton’s call for all federal agencies to cut energy use by 30% by 2005, the Department of Energy announced a second round of energy efficiency contracts for upgrades in government facilities. The first group of contracts was awarded last May for facilities in the western U.S. The special DOE contracting program-called Financing Renewable Energy and Efficiency, or “Free Savings”-is expected to attract $5 billion in private-sector funding to install energy-efficient and renewable energy technology in 50,000 federal buildings nationwide by 2000. The equipment is paid for entirely from energy savings and therefore does not require any taxpayer funding. This round of contracts is valued at $750 million and includes agreements with Duke Engineering and Services, Energy Pacific subsidiary CES Way International, Northern States Power subsidiary Energy Masters, ERI Services, Honeywell Inc. and Johnson Controls. The companies will install renewable energy systems and energy efficient chillers, lighting, monitoring and control systems in DOE, Department of Transportation and other government facilities in nine southeastern states and two territories.

The last contract year is going down as one to remember in the Canadian natural-gas community. Exporters chalked up a banner year before El Nino’s warm winds blew down prices.