Central

Market Hub Partners LP (MHP) subsidiary NE Hub Partners LP has reached an agreement with CNG Transmission and North Penn Gas on the development of NE Hub’s 5-6 Bcf Tioga Gas Storage Project in north central Pennsylvania.

EEX Corp. agreed to sell substantially all of its oil and gasproperties in Oklahoma and the Hardeman Basin, North Central Texas,for about $32 million in cash. Lariat Petroleum Inc. is acquiringthe properties in Oklahoma, and Key Production Co. Inc. isacquiring the Hardeman Basin properties. Aggregate daily productionfrom these properties is about 15 MMcfe/d of gas.

Following the lead of Central Illinois Light Co. (CILCO),Peoples Energy’s Chicago gas utilities, Peoples Gas and North ShoreGas, last week took advantage of a state law passed last year thatallows the LDCs to request approval of fixed annual gas rates.

American Electric Power (AEP) and Central and South West (CSW)said a recommendation from an Oklahoma Corporation Commission (OCC)administrative law judge creates a procedural hurdle, but “does notquestion the merits of the merger” of the companies and should notdelay its completion.

Viking Gas Transmission last week proposed plans for a 45-mile,28 MMcf/d looping of its existing system in northwestern andcentral Minnesota in 1999. This is “a smaller project matched tomeet incremental market demand,” said Viking Gas President GregoryH. Palmer, but he noted it’s the first of a series of expansionsthe pipeline plans to carry out over the next couple of years.

Despite $15 oil and the whopping $810 million federal CentralGulf of Mexico lease sale three weeks ago, oil and gas prospectorshad enough shekels remaining to make the Texas General Land Officesale April 7 the largest high bids sale in 22 years and the seventhlargest in the history of the 150-plus-year old agency.

KN Energy is holding an open season for expansion of its systemfrom production fields in Wyoming to the Rockport Hub in northcentral Colorado.

Portland Natural Gas Transmission System (PNGTS) told the FERCCentral Maine Power Co. (CMP) is off base in its argument againstsiting of construction activity for PNGTS’ Rumford-Jay lateral pipealong a CMP power line corridor. CMP is seeking a stay order fromthe Commission.