Maritimes & Northeast Pipeline (M&NP) said its Point Tupper Lateral is now ready to deliver gas to customers in Point Tupper. The lateral was placed in service June 30. Following construction of a pressure reducing station, M&NP was granted final Leave-to-Open by the National Energy Board (NEB) on June 27. Final commissioning of the facilities took place over the past three weeks. “It is yet another milestone towards our target of establishing a 2 Bcf/d system by 2010 serving markets in the Maritimes, Eastern Canada, and New England,” said Phillip Knoll, president of M&NP. The Point Tupper Lateral is 37 miles long and extends from the M&NP mainline to Point Tupper, NS. M&NP closed the purchase of the lateral from Sable Offshore Energy Inc. on June 22. The lateral will serve the Sable fractionation plant, StoraEnso and CGC, Inc. in Point Tupper.

Williams and Barrett Resources announced a schedule for the completion of their planned merger. Barrett has scheduled a special meeting of its stockholders at 9 a.m. MDT Aug. 2 in Denver. The companies expect to complete the merger within one or two days following the meeting. Williams signed the merger agreement on May 7. Terms included a cash tender offer by Williams for 16,730,502 shares of Barrett common stock at $73 per share net in cash, which was completed on June 12. The shares accepted in the tender offer represent 50% of the 33.5 million Barrett shares outstanding. In the proposed merger, each remaining share of Barrett common stock will be exchanged for 1.767 shares of Williams common stock.

In order to strengthen its corporate ties with parent company Tractebel s.a., Cabot LNG LLC announced that it has changed its name to Tractebel LNG North America LLC. Cabot owns and operates the Everett, MA, liquefied natural gas (LNG) import terminal. Subsidiary Distrigas of Massachusetts LLC will not change its name, however. Since being acquired by Tractebel in September 2000, Tractebel LNG North America’s (Cabot’s) LNG shipments to U.S. ports grew by almost 50% during the first six months of 2001 over the same period in 2000 — 31 cargoes for the first half of 2001 versus 21 cargoes last year. Construction is well underway to more than double the LNG vaporization capacity at the Everett terminal to 1 Bcf/d in late 2001. This upgrade will enable Tractebel LNG North America to fuel a 1,550 MW power plant. In addition, Tractebel recently secured long-term charters for two brand-new 138,000 cubic meter LNG carriers to significantly bolster its transportation capabilities for many years to come.

Staff at the Texas Public Utility Commission (PUC) next week will hold a workshop related to the need for planning reserve margin requirements. The PUC is examining whether the adequacy of generating capacity reserve margins should be left to market forces, or whether other means should be created to help ensure a minimum reserve margin and, if so, what means should be used. At the workshop, which is scheduled for July 10, PUC staff will seek comment on the capacity markets and reserve margin requirements that have been implemented in other jurisdictions, including the lessons learned and the alternatives that could be implemented in Texas. Commission staff will also seek comment on the relevant policy issues that should be addressed. Questions concerning the workshop should be referred to Richard Greffe at (512) 936-7404.

Chicago-based Peoples Energy announced earnings per share guidance for the third quarter of fiscal year 2001. The company said earnings are expected to be in the range of $0.25 to $0.30 per share for the three-month period ending June 30, 2001, reflecting the effect of weather for the quarter that is 14% warmer than normal and 9% warmer than the same period last year. Despite the negative impact of weather in the third quarter, Peoples expects earnings for the fiscal year to be near the midpoint of the previously announced range of $3.15 to $3.25 per share. Peoples plans to release third quarter earnings on July 27, before the market opens. A teleconference call will be held at 10 a.m. EDT.

Texas-New Mexico Power (TNMP) and Public Service Company of New Mexico (PNM) have signed a long-term wholesale power contract to improve price stability and ensure an adequate power supply for TNMP’s firm retail customers. The contract, which runs from July 1, 2001 until Dec. 31, 2006, will provide varying amounts of firm power through 2002 to complement existing contracts TNMP has in place. As those contracts expire, PNM will replace them and become TNMP’s sole supplier beginning Jan. 1, 2003. In the last year of the contract, TNMP will need 114 MW of firm power. PNM will supply TNMP’s needs from its resource portfolio, including a natural gas-fired power plant PNM plans to build in southern New Mexico. The new plant, located approximately 12 miles west of Las Cruces, is currently scheduled to begin providing 135 MW of electricity in the fall of 2002. The company plans to expand the plant to 220 MW in late 2003. It will be PNM’s initial investment in new power supply for the competitive wholesale market.

Pyr Energy Group of Denver has abandoned its 3R West Flank wildcat exploration well in the San Joaquin Basin after it proved non-productive in tests. The well was drilled near a producing well on the East Lost Hills block, but it was determined that the hydrocarbon reservoir could not be reached. Pyr plans to conduct an evaluation of field development before any additional testing. CEO Scott Singdahlsen said that the company was disappointed with the results at the 3R, but would “actively pursue the development of the East Lost Hills discovery.”

Calgary-based Kinlock Resources Inc. has closed on the sale of several oil and gas producing properties located in the Pembina, Leduc and Alder areas of Alberta for C$342,000. Net present value of proved plus 50% probable reserves, discounted at 15% and using flat commodity prices, is C$500,500, according to Kinlock. Production is approximately 100 Mcf/d and 6 bbl/d of oil and natural gas liquids. The transaction is non-arm’s length because the vendor is a private company controlled by Fiona M.D. Read, an officer and major shareholder of Kinlock.

Sierra Pacific Resources has filed a shelf registration with the U.S. Securities and Exchange Commission to occasionally sell up to 20 million shares of common stock. The parent company of Sierra Pacific Power and Nevada Power utilities said it would use the money for its subsidiaries, debt repayment, general corporate purposes and possible investments.

Denver-based TransMontaigne Inc. has sold two petroleum distribution facilities in Little Rock, AR to Williams Energy Partners LP for $29 million. The proceeds will be used to repay long-term debt. It also is in the final stages to sell its Norco refined pipeline system and associated terminals to Buckeye Partners LP. That transaction is expected to close this month.

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