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Recent basement-dweller KN Energy electrified the energyindustry Friday, announcing what one analyst called the deal of thedecade – a marriage with the brains and bucks of Houston’s KinderMorgan Inc. KN’s Chairman Larry Hall immediately resigned, andKinder Morgan Chairman Richard D. Kinder, credited with helpingbuild Enron’s underpinnings, was named heir apparent. Theannouncement sent KN’s stock price soaring nearly 55% on Friday.

FERC Chairman James J. Hoecker said the Commission will open anew office, called the Office of Energy Projects, which will havethe engineering and environmental expertise to certificate new gaspipelines and authorize and monitor hydroelectric projects. The newoffice will include the functions formerly conducted by the Officeof Hydropower Licensing and most of the certification functions ofthe Office of Pipeline Regulation. Another new office, the Officeof Markets, Tariffs and Rates (OMTR), also will handle some of thecertification duties. “Energy Projects and Markets, Tariffs andRates effectively represent two major and distinct areas of theCommission’s technical expertise and statutory responsibility,”Hoecker said, adding that Energy Projects will focus on siting andenvironmental aspects of projects while OMTR will focus onpromoting competition and protecting against market power.

In an effort grow its natural gas asset portfolio, Aquila Energy, UtiliCorp’s energy services subsidiary, recently formed a gas asset acquisition arm called Natural Gas Partners. The new entity was created to purchase storage facilities, pipelines and other properties as well as enter alliances, management deals and partnerships. The unit, which has not yet reached its full work force, is based in Kansas City, MO.

In an effort to diversify its energy services, Aquila Energy,Utilicorp’s energy services subsidiary, recently formed a gas assetacquisition arm called Natural Gas Partners. The new entity willpurchase storage facilities, pipelines and other properties as wellas enter alliances, management deals and partnerships. The unit,which has not yet reached its full work force, is based in KansasCity, MO.

Questar Pipeline has called on FERC to jettison the proposedmerger of powerhouses Sempra Energy and KN Energy, insisting thedeal would “undermine” competition in the natural gas and electricmarkets in southern California.

Questar Pipeline has called on FERC to jettison the proposedmerger of powerhouses Sempra Energy and KN Energy, insisting thedeal would “undermine” competition in the gas and electric marketsin southern California.

Columbia Gas Transmission said it opened a data room to provideinformation on 545 miles of small-diameter gas gathering pipelines,called the CHEWP system, and the Holbrook Storage Field, which has1.5 Bcf of total capacity in northern West Virginia andsouthwestern Pennsylvania. Anyone interested in the assets shouldmake an appointment to visit the data room in Charleston, WVA, bycalling (304) 357-2282.

The Ohio-Pennsylvania Landowners Association (OPLA) has calledon the Senate Energy and Natural Resources Committee to commissiona General Accounting Office (GAO) study of the need for thecontroversial Independence Pipeline project.

Energy Secretary Bill Richardson has called on FERC to design anoffshore policy that encourages private-sector investment in theGulf of Mexico gas infrastructure and the development of advancedproduction technologies. Such a policy would be in keeping with theClinton administration’s 1993 domestic natural gas and oilinitiative, he wrote in a recent letter to Chairman James Hoecker.