Questar is buying CIG Overthrust Inc.’s 10% interest in the Overthrust Pipeline for $1.8 million, giving two Questar affiliates a combined 100% ownership interest in the pipeline partnership, which owns an 88-mile, 36-inch-diameter pipeline that transports about 227 MMcf/d of gas from the Whitney Canyon area north of Evanston, WY, to Rock Springs, WY. “Ownership of the Overthrust Pipeline will enhance the services we provide and give us more flexibility,” said Questar Pipeline President Nick Rose. “It is a natural fit for us with its location in our service territory and proximity to our facilities and supply sources.” Questar Pipeline designed and built the Overthrust system and has operated it since its completion in October 1982. In February, the company increased its ownership in the pipeline from 72% to 90% when it purchased the interest of NGPL Overthrust Inc. The Overthrust Pipeline is the westernmost segment of the 793-mile Trailblazer system, which runs from southwestern Wyoming to Beatrice, NE.

Not one to pass up a good price, Consol Energy said it has sold 83-86% of its expected 2003 natural gas production, or about 44.8 Bcf out of an expected 52-54 Bcf of gas, at an average fixed price of $3.99/MMBtu. The company also noted it sold 7.4 Bcf of gas to be produced in 2004 at a price of $4.16/MMBtu, and 7.4 Bcf of gas to be produced in 2005 at $3.97/MMBtu. “One of our key goals for 2003 is to create a stable financial platform for Consol Energy,” said CEO J. Brett Harvey. “We expect to begin 2003 with a high percentage of both our gas and coal under contract.” Consol Energy Inc. is one of the largest U.S. producers of coalbed methane (CBM), with daily gas production of 130 MMcf, primarily from wells in Virginia. The company recently began CBM production in Pennsylvania and West Virginia, and has a joint-venture company producing gas and oil in Tennessee. Consol Energy also is the largest producer of high-Btu bituminous coal in the United States, and is the largest exporter of U.S. coal.

Getting over its last major regulatory hurdle unscathed, Dallas-based Atmos Energy Corp. said it expects to close its $195 million acquisition of privately-held Mississippi Valley Gas Co. by Dec. 1. The company said it received approval last week from the Mississippi Public Service Commission to form the state’s largest natural gas utility. Atmos Energy said the commission’s decision was based on a stipulated agreement negotiated between it and the Mississippi Public Utilities staff. The transaction already has received federal regulatory approvals as well as approvals from six other state utility commissions. Under the terms of the acquisition, which was first announced in September 2001 (see NGI, Oct. 1, 2001), Atmos Energy will acquire Mississippi Valley Gas for $75 million cash and $75 million of Atmos Energy common stock. It also will repay $45 million of Mississippi Valley Gas’ long-term debt. Upon completion of the deal, Atmos Energy said it expects the acquired operations to be slightly accretive to fiscal 2003 earnings, excluding any one-time charges related to the acquisition. Mississippi Valley Gas serves approximately 260,000 Mississippi customers in 144 communities throughout 36 counties. Atmos Energy’s utility operations serve more than 860 small and medium-size communities in 11 states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West. After acquiring Mississippi Valley Gas, Atmos Energy will serve 1.7 million gas utility customers.

BC Gas Inc. said its earnings were up 40% for the first nine months of 2002 to C$49.8 million or C$1.17/share mainly because of its acquisition of Centra Gas British Columbia Inc. However, the company reported a third quarter loss of C$19.1 million or C$0.44 per share compared to a loss of C$22.3 million or C$0.58 per share in 3Q2001. Earnings from natural gas distribution increased by C$19.7 million to C$42.4 million in the first nine months of 2002 mainly as a result of the acquisition of Centra Gas. BC Gas Utility earnings increased from C$22.7 million in 2001 to C$25.3 million in 2002 mainly as a result of lower interest costs. For the third quarter, the company’s entire gas distribution segment posted a loss of C$21.4 million, a step upward when compared to the company’s loss of C$27.9 million during 3Q2001. Going forward, CEO John Reid said the key focus for BC Gas Utility and Centra Gas in the fourth quarter is the ongoing processes to establish rates for 2003 and develop multi-year regulatory settlements.

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