A unit of Williams and Redbud Energy LP announced today the execution of agreements in which Williams will provide up to 51,980 Dth/d of firm natural gas transportation service to the natural gas-fueled Redbud Energy Facility near Luther, OK. In conjunction with the agreement, Williams’ Central pipeline system said it will seek permission from the Federal Energy Regulatory Commission (FERC) to construct a 30-inch diameter pipeline and measurement and flow control facilities to the plant. Williams said it proposes to have the new facilities in service by Dec. 15, 2002. Full operation of the 1,100 MW Redbud combined-cycle generation facility is scheduled for June 1, 2003. Financial terms of the agreement were not disclosed. “We are very pleased to have reached this agreement with Redbud to help them utilize clean-burning, economical natural gas for their proposed state-of-the-art power generation facility near Luther. This agreement is another example of Williams’ strong commitment to the fast-growing power generation market,” said Dean Jones, vice president of customer services and rates for Williams’ Central and Texas Gas systems.

Houston-based Harken Energy Corp. announced that initial testing of its state lease 1480 #3 well located in the Lake Raccourci Field in Southern Louisiana flowed gross production of approximately 2.8 MMcf/d of gas and approximately 154 b/d of condensate, while sustaining pressures of approximately 3,659 psi flowing tubing pressure. The results are consistent with previous successful well tests experienced in the Lake Raccourci Field area. “We are again pleased with the results of this most recent drilling success in Harken’s Gulf Coast area of operations,” said Harken’s President, Bruce N. Huff. “If test production volumes are maintained, the addition of the State Lease 1480 #3 well will contribute significantly to Harken’s domestic production levels.” The state lease 1480 #3 well successfully reached its target vertical depth of 13,700 feet and was completed in the Text 5 formation. Harken holds approximately 44% working interest in this new well.

Industrial titan Bethlehem Steel Corp. sought Chapter 11 bankruptcy protection from creditors on Monday after a losing battle against cheap imports, soaring costs and a declining economy. The South Bethlehem, PA-based company secured emergency financing of $450 million from GE Capital in an effort to return to sustained profitability. Chairman Robert S. Miller said, “Chapter 11 does not solve our problems. It provides us a process and framework within which we can address and explore the significant issues facing the company.” The third-largest steel producer in the United States couldn’t compete with cheap imports from eastern Europe, Korea and Japan. The company is saddled with $4.5 billion in debt, more than its assets of $4.2 billion. Since mid-1998, Bethlehem said revenues declined about $1.3 billion annually, resulting in operating losses of $500 million and a negative cash flow since then. On Monday, it reported a net loss of $152 million, or $1.25 diluted share, compared with a year-ago loss of $35 million or 34 cents a share.

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