Agreement

Transco to Provide Gas to Dynegy Plant

Dynegy Inc. project affiliate Rockingham Power L.L.C. signed along-term gas interconnection agreement with Williams’ Transcopipeline. Williams’ interconnection will provide capacity for up to222 MMcf/d to fuel Dynegy’s proposed 800-megawatt (MW) generationfacility in Rockingham County, NC. Construction on theinterconnection is scheduled to be completed in December. “Naturalgas power generation is increasing and we look forward toadditional opportunities to expand our pipeline system to meet thisgrowing demand,” said Frank Ferazzi, vice president of customerservice and rates, Williams Gas Pipeline-Transco.

March 31, 1999

Partners Developing Gas-to-Liquids Technology

Rentech Inc. of Denver signed an exclusive agreement withPhoenix Gas Systems LLC (PGS) of Long Beach, CA, to develop amodular system to produce liquid hydrocarbons from gas and othercarbon-bearing materials. Rentech developed a process to convertgas, solid, and liquid carbon-bearing materials into super-clean,high-value fuels, products and chemicals. Products includesulfur-free, aromatic free diesel fuel (Ecodiesel), naphtha andwaxes. The process is known as the Fischer-Tropsch (FT) process orGas-to-Liquids (GTL). The naphtha and diesel fuel produced areideal fuels for the “advanced fuel cell” concept currently beingdeveloped for use in transport and utility vehicles.

March 31, 1999

Briefs

South Jersey Gas Co. has signed an agreement with WeatherwiseUSA allowing the New Jersey LDC to offer its retail gas customers aWeatherProof Bill. The bill, which is based on historical gas usepatterns, utility rates, average temperatures, and administrativecosts, fixes a customer’s total gas costs for 12 months withouthigh settle-up charges to cover any excess gas use.

January 25, 1999

Briefs

Gulf Canada Resources said it closed on a 50-50 partnershipagreement with KeySpan Energy for the operation of its natural gasmidstream business in western Canada. Cash consideration paid byKeySpan was $290 million (US$189 million) to Gulf plus a $100million (US$65 million) loan to the partnership. The cash willoffset significant charges Gulf took during the third quarterprimarily related to crude oil asset write-downs.

December 28, 1998

Cabot to Buy Oryx Louisiana Properties

Cabot Oil &Gas Corp. plans to acquire the onshore South Louisiana properties of Oryx Energy Co. for about $72 million. Under the terms of the agreement, Houston-based Cabot will purchase 10 fields (six operated, four non-operated) covering 34,345 net acres with 68 producing wells. The acquired producing assets are concentrated in three primary fields that each provide Cabot with a high working interest. These fields make up 80% of the value assigned to the transaction.

December 21, 1998

BC’s Southern Crossing Re-Files With Two Shippers

BC Gas said it thinks its Southern Crossing Pipeline is now a go since it reached agreement on terms with BC Hydro for firm capacity on the proposed pipeline and peak-shaving to be provided to BC Gas by BC Hydro. In April, the British Columbia Utilities Commission (BCUC) voted down the $350 million Southern Crossing Pipeline paralleling the existing BC Gas mainline in southern British Columbia between Yahk and Oliver (see NGI April 13, 1998). BC Gas re-filed Friday with the BCUC and announced another shipper in addition to BC Hydro.

December 14, 1998

BC Gas Back in Game with BC Hydro Contract

BC Gas said it thinks its Southern Crossing Pipeline is now a gosince it reached agreement on terms with BC Hydro for firm capacity onthe proposed pipeline and peak-shaving to be provided to BC Gas by BCHydro. In April, the British Columbia Utilities Commission (BCUC)voted down the $350 million Southern Crossing Pipeline paralleling theexisting BC Gas mainline in southern British Columbia between Yahk andOliver (see Daily GPI April 8, 1998). BCGas plans to re-file today with the BCUC and said it has anothershipper in addition to BC Hydro.

December 11, 1998

Collaborative Process Has Pluses, Minuses for Gas Pipelines

Attorneys and executives that have used the collaborativeprocess to reach agreement on thorny issues prior to filinghydropower relicensing applications touted the benefits of theprocedures for the natural gas pipeline industry, but they stressedthat the time involved and even the costs in some cases can beoverwhelming.

November 9, 1998

Unocal Inks Deal for Advance On 10-Year Contract

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract. The deal with Unocal follows a similar transactionPEAK negotiated with Marathon for supply this winter.

November 2, 1998

Unocal Inks Supply Deal with KY Munis

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract.

October 28, 1998