Chairman

Senate Energy Committee Chairman Frank Murkowski (R-AK) willunveil draft electricity restructuring legislation today thatcouldn’t be more friendly to natural gas had the industry itselfwritten the measure.

FERC will address the remaining gas policy changes on its platebefore the end of the year, Chairman James J. Hoecker saidyesterday, confirming what other commissioners have indicatedrecently. But some of the main dishes originally on the menuprobably will not show up at the table because most of the industryfound them indigestible, Hoecker told attendees at the 55th annualmeeting of the Interstate Natural Gas Association of America inAventura, FL.

FERC Chairman James J. Hoecker has named Susan G Pollonais ashis advisor on gas and oil issues, replacing Patricia W. Jagtiani,who has accepted a position with the Natural Gas SupplyAssociation. Pollonais has served as a public utility specialist inthe Office of Pipeline Regulations Division of Litigation since1997. From 1993 to 1997 she was a gas regulatory consultant andproject manager for Northern States Power.

NiSource Chairman Gary Neale yesterday called on Columbiaofficials to provide detailed information to shareholders regardingincreased “golden parachutes” approved last week for 30 Columbiaofficials. In a letter to Columbia CEO Oliver G. (Rick) RichardIII, Neale also said he was “distressed to hear that you and yourchief financial officer, Mike O’Donnell, repeatedlymischaracterized the financing” of NiSource’s $68/share hostiletakeover offer ($5.7 billion) to Columbia shareholders during anearnings teleconference last week (see Daily GPI July 16, July 15,June25, June 11 and June 8).

Jack L. Messman, chairman and CEO of Forth Worth, TX-based UnionPacific Resources Group, will retire and UPR President GeorgeLindahl III will succeed him as well as remain president of thecompany. Messman has led UPR for more than eight years. He joinedthe company in 1991 while it was a subsidiary of Union PacificCorp. He oversaw an initial public offering in 1995 and the fullspin-off of the oil and gas company from Union Pacific in 1996.Lindahl has more than 30 years experience in the oil and gasbusiness and came to UPR in 1987 as exploration manager afterworking for 19 years in exploration and production, primarily as anexecutive with BP Amoco. He has been the company’s president since1996.

Jack L. Messman, chairman and CEO of Forth Worth, TX-based UnionPacific Resources Group, will retire and UPR President GeorgeLindahl III will succeed him as well as remain president of thecompany. Messman has led UPR for more than eight years. He joinedthe company in 1991 while it was a subsidiary of Union PacificCorp. He oversaw an initial public offering in 1995 and the fullspin-off of the oil and gas company from Union Pacific in 1996.Lindahl has more than 30 years experience in the oil and gasbusiness and came to UPR in 1987 as exploration manager afterworking for 19 years in exploration and production, primarily as anexecutive with BP Amoco. He has been the company’s president since1996.

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.

Wrangling over two Oklahoma Natural Gas Co. (ONG) rate cases andunbundling of the ONG system continues in Oklahoma. OklahomaCorporation Commission Chairman Ed Apple last week voted against astipulated agreement between the commission and ONG. The agreement,which was killed in a 2-to-1 vote, had previously been appealed byOklahoma Attorney General Drew Edmondson. The AG maintained he wasdenied due process in negotiations between the commission and ONG.Edmondson also alleged ex parte communications took place betweenONG and Commissioner Denise Bode.

Amid the merger frenzy that gripped the energy industry lastweek, CMS Energy Chairman and CEO William McCormick said he didn’tenvision his company falling prey to a takeover as it strives tobecome the third largest energy concern in the world. Instead, hesees CMS Energy continuing in an aggressor role – being the buyer,not the buyee.