BP Amoco’s merger with Atlantic Richfield Co. (ARCO) took a bigstep forward yesterday with the announcement the Federal TradeCommission agreed with the companies to seek adjournment of federalcourt proceedings opposing the merger. Reuters reported yesterdaythat Phillips Petroleum agreed to pay $6.5 to $7 billion for ARCO’sAlaska oil assets, which are being sold to meet the FTC’s antitrustobjections to the merger. An FTC spokesman said negotiationsbetween the commission and BP Amoco were ongoing and had no word onwhen a final announcement would be made. “We don’t know at thispoint. We really don’t. This is obviously a step in the rightdirection as far as a settlement is concerned.” BP Amoco stockclosed up $1.63 at $52.75 yesterday. ARCO closed up $4.25 at$83.25. Phillips closed down 38 cents at $39.06.

Nicor Gas said yesterday gas customer participation in itsCustomer Select pilot program has grown to 101,000. The program isnow entering its third year. This year, residents of multiple newcommunities and all business customers throughout Nicor Gas’territory have the opportunity to enroll. There are three weeksremaining in the sign up period. “Customer Select has become one ofthe largest natural gas pilot programs in the country,” said JohnMadziarczyk, director rate projects for Nicor Gas. “As the energyindustry deregulates and choice becomes more familiar to customers,we expect to see Customer Select continue to grow.” Suppliersmarketing to residential and business customers include Corn BeltEnergy, The Energy Cooperative, Nicor Energy LLC, Volunteer EnergyServices and WPS Energy Services. Suppliers marketing only tobusiness customers include AmGas/MidAmerican Energy, CMS EnergyMarketing, EnergyUSA, Nicole Energy Marketing, Peoples EnergyServices, Reliant Energy, Santanna Energy Services, Unicom EnergyServices and UtiliCorp Energy Solutions. Nicor Gas serves more than1.9 million Illinois customers.

Duke Energy plans to transfer its general partner interest inTEPPCO Partners LP to Denver-based Duke Energy Field Services(DEFS) by the end of March. TEPPCO’s headquarters will remain inHouston. “We believe that this transfer improves TEPPCO’s and DEFS’business position in the midstream natural gas industry andprovides significant additional flexibility in pursuingacquisitions,” said Fred Fowler, Duke Energy’s group president forenergy transmission. “We’re excited that the TEPPCO generalpartnership interest will be a part of the recently announcedcombination of the midstream natural gas businesses of Duke Energyand Phillips Petroleum,” said Jim Mogg, president of Duke EnergyField Services. TEPPCO Partners, L.P., is a publicly traded masterlimited partnership, which conducts business through two operatingcompanies. TE Products Pipeline and TEPPCO Crude Oil. DEFS is thenation’s largest producer of natural gas liquids (NGLs), one of thelargest natural gas gatherers and marketers and one of the largestNGL marketers. The company operates 52 plants today in seven U.S.states and Alberta, Canada.

Duke Energy Gas Transmission completed the acquisition of EastTennessee Natural Gas, formerly a wholly owned subsidiary of ElPaso Energy. East Tennessee owns and operates two mainline systemsin central Tennessee that converge near Knoxville, extending to apoint near Roanoke, VA. The pipeline, regulated by the FederalEnergy Regulatory Commission, has a design capacity of 700 MMcf/dand provides unbundled, open-access transportation and storageservices to 40 local distribution companies and 16 industrialcustomers in the region.

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