Affiliates

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.

Enron Corp. affiliates have continued to file for Chapter 11 bankruptcy protection in recent days, making the total 28 so far. On Monday, telecommunications products trader Enron Broadband Services LP filed for bankruptcy protection in U.S. Bankruptcy Court in Manhattan listing assets of $64.5 million and debt of $63.7 million, not including off-balance sheet and contingent obligations. Affiliate Enron Freight Markets Corp. filed last Friday, listing $6.3 million in assets and $4.7 million in debts.

El Paso Natural Gas Co. and El Paso Merchant Energy (EPME) Friday filed a petition with FERC, seeking the appointment of an administrative law judge to facilitate settlement negotiations with California regulators over charges that El Paso abused market power and affiliate regulations in the transportation of gas along its Southwest pipeline system. The El Paso companies emphasized that the motion does not represent a retreat “in any way from their position” that they did not engage in market power in the California gas market, artificially raise gas or electricity prices, or engage in affiliate abuse.

Expanding its current fuel management role to merchant power plants, Houston-based Noble Affiliates Inc.’s subsidiary, Noble Gas Marketing, plans to manage the fuel needs of two of the largest merchant power plants in the country with a combined capacity of 4,400 MW. The natural gas-fired power plants are being constructed by Panda Energy International and TECO Power Services. Noble will procure fuel for the Union Power Station in El Dorado, AR, and the Gila River Power Station in Gila Bend, AZ.

Expanding its current fuel management role to merchant power plants, Houston-based Noble Affiliates Inc.’s subsidiary, Noble Gas Marketing, plans to manage the fuel needs of two separate natural gas-fired power plants being constructed by Panda Energy International and TECO Power Services. The company will procure fuel for the Union Power Station in El Dorado, AR and the Gila River Power Station in Gila Bend, AZ.

In the report on the adjournment of the FERC hearing investigating alleged market affiliate abuses by El Paso Natural Gas and its affiliates, which ran in NGI’s Daily Gas Price Index for Tuesday, Aug. 7: Note El Paso executives did not refuse to respond to questions from Judge Wagner. El Paso attorneys declined to put the executives on the stand — which would have subjected them to questions from the California Public Utilities Commission and others — as part of the case, saying El Paso’s case was closed. The attorneys said, however, the executives were willing to respond to the judge’s questions. Wagner did not ask any questions.

Reliant Energy Services said it signed power purchase agreementswith affiliates of El Paso Energy covering future supplies fromfacilities to be constructed in Florida. Reliant will purchase, viatwo tolling agreements, the rights to utilize and dispatchgenerating capacity totaling 1,100 MW from two new gas-firedsimple-cycle peaking plants (with fuel oil backup). The plants areexpected to be completed in the spring and summer of 2002 in Pascoand Hardee counties.

Independents Noble Affiliates and Kerr McGee Corp. have sharplyincreased their capital investment budgets this year. Kerr-McGee isbudgeting a record $1.24 billion for capital expenditures in 2001,a 60% increase from the company’s 2000 capital expenditures, andNoble’s spending is being increased 40%, with 60% of the $700million being used for developmental projects.

With Bighorn Gas Gathering LLC turning a year old this month,the joint-venture which consists of CMS Energy affiliates andNorthern Border Partners L.P. continues to sign up new customersfor its Powder River Basin natural gas gathering system, upping itstotal number of producers to six with the newly announced additionof Prima Oil and Gas, a subsidiary of Prima Energy.