Audits

The Texas Sunset Advisory Commission has released findings from its separate audits of the Railroad Commission of Texas (RRC) and the Texas Commission on Environmental Quality (TCEQ). While each agency was recommended for another 12-year lease on life, changes are in order, the reviews found.

The Securities and Exchange Commission (SEC) may require independent auditors to examine energy companies’ proved oil and natural gas reserves in the wake of the major reserve write-downs by Royal Dutch/Shell Group and El Paso Corp. this year, according to an SEC memorandum that was sent to Rep. John Dingell (D-MI) last month.

The Securities and Exchange Commission (SEC) may require independent auditors to examine energy companies’ proved oil and natural gas reserves in the wake of the major reserve write-downs by Royal Dutch/Shell Group and El Paso Corp. this year, according to an SEC memorandum that was sent to Rep. John Dingell (D-MI) last month.

In response to continuing regulatory investigations, financial reporting delays and audits, Moody’s cut the credit ratings of NUI Corp. to Caa1 from B3 and cut the ratings on subsidiary NUI Utilities’ to B1 from Ba3 Tuesday. The decision affects $360 million of NUI Utilities debt and $255 million of NUI Corp. debt. Moody’s said its outlook for both entities remains negative.

El Paso Corp. last week delayed indefinitely reporting its fourth quarter 2003 earnings pending the completion of both an internal and an independent review on the impact of a 41% negative oil and gas reserves revision. The Houston-based company had been scheduled to issue its quarterly statement Thursday.

El Paso Corp. delayed indefinitely reporting its fourth quarter 2003 earnings pending the completion of both an internal and an independent review on the impact of a 41% negative oil and gas reserves revision announced last month. The Houston-based company had been scheduled to issue its quarterly statement Thursday.

Mirant announced Tuesday that a previously planned conference call this week was cancelled until the company completes its 2002 audit and a reaudit of 2000 and 2001 financial statements. The announcement was made after the market had closed; Mirant’s stock closed at $1.62 on Tuesday.

The Federal Energy Regulatory Commission’s Division of Regulatory Audits last week began an industry-wide audit of annual financial reports to determine why such a high number of jurisdictional natural gas and electricity companies reported negative balances in their asset (cash) accounts pertaining to subsidiary investments for 2001.

The Federal Energy Regulatory Commission’s Division of Regulatory Audits has begun an industry-wide audit of annual financial reports to determine why such a high number of jurisdictional natural gas and electricity companies reported negative balances in their asset (cash) accounts pertaining to subsidiary investments for 2001.