Bucks

Archie W. Dunham, chairman and CEO of Conoco Inc., is thehighest paid executive of all the energy companies eitherheadquartered in Houston, TX, or with a significant local presencethere, according an annual ranking by the Houston Chronicle thatwas released yesterday.

BP Amoco has become the latest producer to shell out big bucksto settle whistle-blower claims for underpayment of royalties onoil production during the past decade. It has agreed to pay $32million as part of a settlement with the Department of Justice(DOJ), joining the ranks of other oil producers – Mobil Oil ($45million), Oxy USA Inc. ($7.3 million), Chevron ($95 million) andConoco Inc. ($26 million). Two whistle-blowers alleged that BP andAmoco underpaid their royalties prior to their merger. Thecomplaint against BP and Amoco was filed in a federal court inLufkin, TX, where a number of other cases alleging underpayment ofroyalties on natural gas production are pending as well. The DOJalready has intervened in three civil lawsuits accusing affiliatesof ExxonMobil Corp., Shell Oil Co. and Burlington Resources Inc. of”knowingly undervaluing” their royalties on gas, and it hasindicated it is investigating other gas-royalty cases. The twowhistle-blowers who initiated the complaint against BP and Amocounder the False Claims Act will share more than $5.4 million of thesettlement proceeds.

Fresh off a 5-cent rally in Wednesday night’s Access session thefutures market bulldozed higher yesterday amid light speculativebuying. July finished its first day as the prompt month up 7.2cents to $2.282, after notching a $2.30 high early Thursdayafternoon. Estimated volume was heavy, with 85,664 contractschanging hands.

The Coastal Corp benefited from its mix of producer and pipelineoperations, announcing a 17% jump from 3Q 1997 on a per-sharebasis. Coastal earned $89.5 million, or 41 cents/share, compared to$80.4 million, or 35 cents/share in 3Q 1997. Along with earnings,the company reiterated its commitment to the North American gassector, calling it the best energy investment opportunity anywhere.

At a time when the gas distributors and marketers are spendingbig bucks importing celebreties to popularize their brand names inthe retail market, Yankee Gas in Meriden, CT has engineered a swapwith one – none other than the ultimate TV homemaker, MarthaStewart – in its own back yard.

At a time when the gas distributors and marketers are spendingbig bucks importing celebreties to popularize their brand names inthe retail market, Yankee Gas in Meriden, CT, has engineered a swapwith one – none other than the ultimate TV homemaker, MarthaStewart – in its own backyard.