The members of the New York Mercantile Exchange voted 97.5% infavor of a demutualization plan yesterday that will make the exchangethe first in New York to convert from a not-for-profit membershipstructure under New York law to a for-profit organization underDelaware law (see Daily GPI, May 5). Thedemutualization plan calls for the equity in the exchange to remainwith the seat-owners of its Nymex Division. “Today’s approval, is justthe first step in repositioning the Exchange as a 21st centurybusiness enterprise that will create and pursue profitable newopportunities, react rapidly and decisively in an increasinglycompetitive marketplace, and explore interest by outside investors,”said Exchange Chairman Daniel Rappaport. The plan has already receivedapproval from the Securities and Exchange Commission and the Exchangeanticipates approval shortly from the Commodity Futures TradingCommission. It is also seeking a favorable tax ruling from theInternal Revenue Service. A new stock-holding company named NymexHoldings, Inc., will be formed to own all of the economic interestsand most of the voting control in the for-profit membershipcorporation. Each existing Nymex Division membership will be convertedinto one share of common stock in Nymex Holdings. The Exchange is thelargest physical commodity exchange in the world, with volume reachingclose to 110 million contracts in 1999.

Remington Oil and Gas Corp. plans to drill 11 wells by the endof this year with an unrisked net resource potential to the companyof more than 100 Bcfe, officials said at the company’s annualmeeting Friday. The wells will be drilled in the company’s threecore areas of Mississippi, South Texas and offshore Gulf of Mexico.Remington also has been awarded all eight new leases that it bid onin the federal offshore lease sale held last March. Workinginterests in the new leases range from 75% to 100%, and willprovide the core of the 2001 exploratory program. In the offshorebusiness, platform fabrication is under way for operateddiscoveries in East Cameron 364 and East Cameron 344, andproduction from both of these developments is expected to begin inthe first quarter of 2001. The Dallas independent also announcedthat its capital expenditures for the year are expected to beapproximately $55 million, up from the originally budgeted figureof $37 million – mostly because of the company’s drilling successin the first half of this year. The increased capital will comefrom internal cash flow and a bank line of credit.

NewEnergy, a subsidiary of The AES Corp., has been granted alicense to sell electricity to retail customers in Delaware’s electricmarket. Already the company sells electricity to commercial andindustrial customers in Pennsylvania, New Jersey, New York,Massachusetts, Illinois and California. It will continue to focus oncommercial and industry electricity users, and will serve its Delawarecustomers through its regional subsidiary, NewEnergy EastLLC. Initially, the Dover, DE-based company will focus on consumers inConectiv’s territory. The AES subsidiary was formed in 1995specifically to serve customers in the emerging retail electricitymarket. See its website at www.newenergy.com.

After buying Energymarketplace.com from SoCalGas last month andrenaming it e-choicenet.com, Excelergy Corp. has relaunchedEnergymarketplace as a new Internet energy portal, designed toenable energy companies to build a customized site that can bepersonalized by business, municipal and residential customers.Sempra Energy Trading has signed a contract to useEnergymarketplace to launch a custom energy portal service for itscustomers. “The portal provides an innovative combination ofthird-party web applications with our own internal dataapplications for our customers,” said David Messer, president ofSempra Energy Trading. “We chose this solution because theseunique, value-added services will allow us to attract and servecustomers with a convenient and efficient means of communication.”While still allowing end-use customers to choose a different energysupplier, Energymarketplace also enables energy companies to offertheir customers a wide variety of products and services — suchas energy news, weather, energy pricing, asset management,presentation of energy usage data, and account review — from amenu of choices. For more information, visit the website atwww.excelergy.com. Also see www.e-choicenet.com.

Mariner Energy announced a successful appraisal well at itsdeep-water project, Devils Tower, which confirms the company’spreviously announced discovery. Devils Tower is located about 140miles southeast of New Orleans in 5,610 feet of water atMississippi Canyon Block 773. The appraisal well, MississippiCanyon 773 #3, was drilled to a total depth of 15,000 feet andencountered hydrocarbons in three zones in a separate fault blocknortheast of the discovery well. A sidetrack of the appraisal wellwill commence immediately to further delineate the discovery.Mariner is operator and has a 20% working interest. DominionExploration & Production owns a 60% working interest and willassume operatorship after rig release following the sidetrack.Other partners are Pioneer Natural and Westport Oil and Gas.

Baltimore Gas and Electric was granted a 2.69% increase in gasdistribution rates by the Maryland Public Service Commission (PSC).The raise translates to an additional $0.33 a month for the averageresidential customer. It is substantially less than what thecompany originally requested in November 1999. “We are disappointedwith the commission’s decision, which could affect our ability tokeep pace with the growing demand for natural gas services incentral Maryland,” said D. Douglas DeWitt, BGE director of gasregulatory planning. The increase, which will be effectiveimmediately, will apply to all BGE natural gas customers, includingthose who buy their gas from a supplier or broker.

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