FirstEnergy Corp. and Belden & Blake Corp. agreed to createa joint venture called FE Holdings to acquire natural gasproperties. The companies also agreed to buy privately held MarbelEnergy Corp., a fully integrated natural gas company. “The creationof FE Holdings – with access to low-cost, high-quality explorationand production capabilities combined with utility distribution andtransportation facilities – will produce tremendous opportunitiesfor our company, customers and shareholders,” said FirstEnergy CEOWillard R. Holland. “The ability to offer customers bothelectricity and natural gas, as well as a wide range of otherenergy-related products and services, will further enhance ourposition as a strong competitor in the evolving energy industry.”

Under the agreements, Belden & Blake, an independent gascompany based in North Canton, OH, would provide FE Holdings withits trading and operational expertise. FirstEnergy will be theexclusive sales agent for FE Holdings, as well as for sales toend-use customers of Belden & Blake.

Marbel Energy sold and/or transported 34 Bcf of gas and producedgross revenues of $125 million in 1997. Marbel Energy is involvedin the exploration and production of oil and gas and thedistribution, transmission and marketing of natural gas. NortheastOhio Operating Companies, Inc., is a public utility holding companybased in Lancaster, OH. Northeast Ohio provides gas marketingservices, and owns and operates 109 miles of interstatetransmission and gathering pipeline with interconnections toColumbia Gas Transmission, East Ohio Gas and Hope Gas. Thetransaction should be concluded next month.

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