Pure Resources Inc. announced Wednesday that its subsidiary, Pure Resources II Inc., has successfully completed its initial tender offer and subsequent offering period for all of the outstanding shares of Hallwood Energy Corp. common stock at a price of $12.50 per share and all the outstanding shares of Series A Cumulative Preferred Stock of Hallwood Energy at a price of $10.84 per share. As of May 15, Pure Resources reported that it had accepted for payment approximately 86% of Hallwood Energy’s common stock and 81% of the company’s Series A Cumulative Preferred Stock. Pure Resources first reported the $268 million acquisition of Hallwood Energy in early April (see Daily GPI, April 2). The companies said completion of the merger would occur as soon as practicable. Pure Resources is an independent exploration and production company that develops and produces oil and natural gas in the Permian Basin, the San Juan Basin, the Gulf Coast, and the Gulf of Mexico. Denver-based Hallwood Energy is a public oil and gas company with properties primarily located in the Permian Basin, the San Juan Basin, South Texas and onshore South Louisiana.

Covanta Energy Corp. reported on Wednesday that the California Energy Commission (CEC) has unanimously approved its application for certification on its proposed 500 MW Three Mountain Power project. The decision, which was announced at a CEC business meeting in Sacramento, CA, grants Covanta a license to construct and operate the natural gas-fired, combined cycle facility to be located in Burney, approximately 45 miles northeast of Redding, CA. Project construction is expected to begin in the fall of 2001, with commercial operations expected to commence in late 2003 or early 2004, the company said.

The U.S. Bankruptcy Court approved Pacific Gas and Electric Company’s motion to confirm that the funds collected by the utility for public purpose programs, including energy efficiency, low income, research and development and renewable generation programs, are not part of the bankruptcy estate and can be used to honor pre-petition obligations incurred in connection with the programs. In addition the court also allowed the utility to pay its pre-petition portion of property taxes. Under the public purpose programs, the utility owes $37 million to consumers who have requested rebates and to contractors who have performed work in customers’ homes and businesses to make them more energy efficient. The ruling ensures that the $260 million now in the energy efficiency accounts will be fully available for payments for these programs. As a result of the ruling, Pacific Gas and Electric will be able to immediately pay up to $41.2 million, its portion of property taxes prior to April 6, the day it filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The company’s total property tax payment was $78.5 million, and it paid the post-petition portion of $37.3 million on April 10.

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