ONEOK Resources has signed a definitive agreement with OXY USAto purchase some of its natural gas and oil reserves including morethan 400 wells in Oklahoma and Kansas outside the Hugoton field forapproximately $135 million before adjustments. Net production isapproximately 30 MMcf/d and 400 b/d. The properties havelower-risk development potential for increased reserves. WhileONEOK’s previous reserve acquisitions have been concentrated inOklahoma, this purchase includes significant reserves in Kansaswhere ONEOK recently acquired Kansas Gas Service, an LDC servingtwo-thirds of the state. David Kyle, president and chief operatingofficer of ONEOK, Inc., said the acquisition will almost doubleONEOK’s oil and gas reserve base. The acquisition includes a gassweetening plant located in the Aledo Field in Oklahoma.

A deal struck for a gas-fired, combined-cycle power plant innorthern Ontario by TransCanada Power is part of an ongoing seriesof such deals expected from the company, officials said.TransCanada Power has agreed to acquire for C$119-million the42.6-MW, gas-fired Potter Station Power Limited Partnership projectnorthwest of Iroquois Falls, ON. In addition to the purchase of thePotter project, it is expanding two existing power projects inOntario, the 40-MW, gas-fired Kapuskasing project and the 36-MW,gas-fired Nipigon project. To finance the Potter Station purchaseTransCanada Power – which is 50% owned by TransCanada PipeLines and50% by public shareholders – plans to issue approximately 4.8million limited partnership units near the end of March.

The Gas Research Institute has published a guidebook to helpmunicipal utilities analyze different applications of distributedgeneration. GRI says its book offers cost estimates for natural gasreciprocating engines, gas turbines and fuel cells, withcomparisons for large capital expenditures, like new transmissionlines and substations. The guide “is timely as smaller-scaleelectricity generation becomes a more appealing option” for munis,said Paul Bautista, GRI program team leader. “While the technologyexists today to generate electricity on a small scale, the biggestchallenge is determining when distributed generation makes sensetechnically and economically.”

Houston-based El Paso Energy will develop a 544-MW gas-firedmerchant power plant in Milford, CT. in a joint venture with PowerDevelopment Company (PDC). The $225-million project is beingdesigned to reach commercial operation at the same time Conn. isexpected to begin full retail electricity supply competition,currently estimated in the year 2000. Gas supplies are expected tocome to the plant via the Iroquois gas pipeline. The partners areexpected soon to announce development of a second, similar plant inCT. Most of El Paso Energy’s recent power plant development hasbeen in international markets. The partnership with PDC brings ElPaso Energy back to U.S. gas-fired power plant development. A unitof El Paso Energy acquired Tenneco Energy and Tennessee GasPipeline Co. in 1996.

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