Agreement

Unocal Corp. and Titan Exploration, Inc. announced an agreementto merge Unocal’s oil and gas exploration and production assets inthe Permian and San Juan basins with Titan last week. The newcompany, Pure Energy Resources Inc., is expected to be formed aftera Titan shareholder vote during the first quarter of 2000. Unocaland Titan expect the new company to have a balance sheet valuedbetween $800 and $900 million.

CMS Marketing, Services and Trading announced yesterday it wasthe winning bidder for a pre-paid $139 million 12-year gas salesagreement with the Ohio Schools Council (OSC). Under the contract,CMS will deliver 44 Bcf of gas to 111 school districts in northernOhio through Oct. 31, 2011 (including the last three months of thisyear).

Unocal Corp. and Titan Exploration, Inc. announced an agreementto merge Unocal’s oil and gas exploration and production assets inthe Permian and San Juan basins with Titan yesterday. The newcompany, Pure Energy Resources Inc., is expected to be formed aftera Titan shareholder vote during the first quarter of 2000. Unocaland Titan expect the new company to have a balance sheet valuedbetween $800 and $900 million.

Barrett Resources Corp. announced a purchase and sale agreementto acquire additional working interests in Piceance Basin gasproperties in western Colorado and all the outstanding interest inthe related gas gathering system for $72 million last week.Although the company said multiple sellers were involved, it wouldnot divulge who those sellers were. Closing on the propertypurchases is expected to occur on Dec. 16. Acquisition of thegathering system is subject to regulatory approval, which isexpected in January 2000.

Attempting to lower its energy costs, Washington-based PugetSound Energy announced yesterday an agreement to buy out theremainder of a large gas-supply contract from Cabot Oil & GasCo. for $12 million. As a result of this deal, Puget will becomethe supplier to its own 160 MW co-generation plant near Bellingham,WA, which it purchased earlier this year. Puget expects to reduceits gas costs by 5 to 15% annually for the duration of theremaining nine years of the contract.

Polaroid Corp. of Cambridge, MA, and Enron Energy Servicessigned a 10-year outsource agreement for Enron to provide energymanagement services at Polaroid’s seven major U.S. facilities. Thedeal is worth more than $200 million. Enron will manage or supplyPolaroid’s energy commodity requirements including electricity, gasand fuel oil; design, build, operate and finance certain energyinfrastructure improvement projects; as well as provide alloperation and maintenance services at Polaroid’s three centralmanufacturing plants in Massachusetts: Waltham, New Bedford andNorwood. “Enron will drive energy savings for Polaroid by managingtheir commodity usage, investing capital to upgrade or replacePolaroid’s energy equipment and by providing best in classoperation and maintenance services,” said Lou Pai, Enron EnergyServices CEO. Enron will offer positions to the 20 Polaroidemployees in the company’s Operation and Maintenance team.

Barrett Resources Corp. announced a purchase and sale agreementto acquire additional working interests in Piceance Basin gasproperties in western Colorado and all the outstanding interest inthe related gas gathering system for $72 million. Although thecompany said multiple sellers were involved, it would not divulgewho those sellers were. Closing on the property purchases isexpected to occur on Dec. 16. Acquisition of the gathering systemis subject to regulatory approval, which is expected in January2000.

Reliant Energy recently announced plans to construct a 340 MWpeaking plant in Shelby County, IL. The company has signed anoption agreement on an 80-acre parcel of land about 20 milessoutheast of Shelbyville, IL, near the town of Neoga.

Reliant Energy Retail Group and Luby’s Restaurants LP of SanAntonio, TX, made a multi-year energy services agreement fornon-regulated Reliant Energy Solutions Inc. to develop andimplement a comprehensive energy management services program forall Luby’s locations in the United States.