In an effort to conform with recently published guidelines from the New York Stock Exchange and stay current with the evolving industry environment, El Paso Corp. said Monday it has restructured some of its executive management. The management changes come days after the company was found guilty of withholding natural gas supplies during the California energy crisis of winter 2000-2001 (see Daily GPI, Sept. 24).

The board of directors for the company announced that it has named Ronald L. Kuehn as lead director for the company. Kuehn, who was formerly chairman, president, and CEO of Sonat before it was merged into El Paso, will consult with management as a representative of the board of directors on important matters and will regularly report back to the board.

“Ron’s exceptional experience and expertise will be invaluable to this company as we work to deflect the erroneous conclusion revealed by the Federal Energy Regulatory Commission Administrative Law Judge Curtis Wagner,” said William A. Wise, CEO of El Paso Corp. “Ron’s participation will help us continue to lead the industry, operate world class pipeline, production, midstream, power, and trading businesses and confront the current financial, credit, regulatory, and legal environment.”

Wise alluded to Wagner’s ruling that found El Paso guilty of withholding natural gas supplies and contributing to California’s energy crisis. In the late September finding, Wagner ruled that El Paso Natural Gas withheld “extremely large amounts of capacity” from shippers on its system to drive up prices for natural gas delivered to the southern California border during the critical November 2000-March 2001 period.

In addition, the board also announced Monday that it has elected H. Brent Austin, currently executive vice president and CFO of El Paso, as president and COO. Austin will report to Wise and will be responsible for all non-regulated businesses as well as the financial function of the company. The board added that Ralph Eads will continue to have responsibility for the company’s power, trading, and production businesses, while Gregory G. Jenkins will continue to have responsibility for the company’s petroleum and liquefied natural gas businesses. D. Dwight Scott, presently senior vice president-finance, will be promoted to executive vice president and CFO. All three will report to Austin.

Under the management restructuring, Robert G. Phillips, president El Paso Field Services; John W. Somerhalder, president El Paso Pipeline Group; Joel Richards, executive vice president- administration; Peggy Heeg, executive vice president and general counsel; and Norma Dunn, senior vice president-communications and government affairs, will continue to report to Wise.

“The management team and Mr. Kuehn, which together have approximately 200 years experience as senior energy executives, are the most capable team in the industry and will follow through on the company’s early and aggressive actions to accommodate the changing environment,” Wise added.

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