Charge

Viking Gas Transmission has appealed to FERC not to “silencedebate” on a limited Section 4 proposal that would allow it tocharge higher incremental rates for historically lower-pricedcapacity as it opens up on its system without having to file afull-scale rate case.

After resisting for nearly two trading sessions the promptcontract finally caved to selling pressure late Tuesday as localtraders liquidated the last of their positions. On that sour notethe October natural gas futures contract completed its tenure asprompt month yesterday by slipping 7.2 cents to $2.56. Estimatedvolume was robust as 122,906 contracts changed hands.

With its deal to acquire Poco Petroleums for $2.5 billion, Burlington Resources could be leading a charge of U.S. E&P companies heading to Canada for relatively cheap gas assets at a time when Canada is expected to play a large role in meeting strong gas demand growth.

PG&E declared a system-wide OFO with a 7% tolerance with aStage I non-compliance charge of $1.00/Dth due to high inventoryfor the weekend.

PG&E declared a system-wide OFO with a 3% tolerance with aStage I non-compliance charge of $1.00/Dth due to high inventory.

Following in the footsteps of gas pipelines, major producershave asked the federal government to reject an independentproducer-backed petition that seeks to have tariffs imposed oncrude oil imports from four foreign countries accused of illegaldumping.

Los Angeles-based ARCO said after-tax special charges in thefourth quarter are expected to total $890 million. Net chargeincludes asset write-downs, restructuring costs, and a tax refund.Asset write-downs are a result of investment impairments totaling$790 million after tax and mainly related to expectations of lowercrude prices. Properties involved include some assets acquired aspart of the Union Texas Petroleum (UTP) purchase and other assetsin the UK North Sea, Middle East and North Africa. Essentially allof the oil and gas properties impacted are overseas.

Halliburton Co. said it plans to take a $35 million pretaxcharge this quarter to lay off an additional 2,750 employees fromits Energy Services Group. Job cuts are a response to low oilprices and oil company customers’ plans to sharply reduce spendingin 1999.

MCN Energy Group Inc. said yesterday it will take a year-end,one-time charge of $10 million for the first phase of its corporatereorganization, which should remove $15 million a year from itscurrent operating expenses. The realignment establishes a morestreamlined organizational structure to enhance efficiency, linesof authority and internal customer responsiveness. It includes areorganization of some upper management positions, including theretirement, effective next April, of its Vice Chairman and CFOWilliam K. McCrackin.