Comes

Oklahoma Corporation Commissioner Denise Bode is waiting forsomeone to be politically incorrect — at least when it comes tosetting up a domestic energy policy. She readily admits, however,that the problems that basically eliminated natural gas drillingfor nearly two years in her state won’t be solved overnight.

At the end of a mostly negative price week, traders decided togo quietly into the weekend Friday. Nearly all points were flat toless than 4 cents up or down.

Producers and utilities last week registered strong protests toTrunkline Gas Co.’s proposal to spin down 720 miles of its 26-inchdiameter natural gas mainline to an affiliate, saying that whilethis action may be in the pipeline’s best interest it’s not “in thepublic interest.”

Things are looking so good for Mitchell Energy & DevelopmentCorp. the company has stepped down from the auction block where it hasstood since early October (see Daily GPI, Oct. 7).

BP Amoco said it is near an agreement with the FTC on its mergerwith Atlantic Richfield Co. (ARCO). The news comes with theannouncement the companies are selling ARCO’s Alaskan businesses toPhillips Petroleum Co. for $7 billion. BP Amoco also agreed to sellARCO’s interests in the Cushing storage terminal, together withvarious pipeline interests, to TEPPCO Partners of Houston for $355million.

Except for the still-falling Northeast, Tuesday’s developingmarket plunge came to a complete halt Wednesday and even reverseddirection at several Midcontinent and western points.

The electricity restructuring legislation that survived markupby the House Energy and Power Subcommittee last Wednesday is ashell of the bill that was sponsored by Chairman Joe Barton (R-TX),energy industry lobbyists say.

Transcontinental Gas Pipe Line’s proposal to revise the existingcash-out provisions of its tariff has come under heavy attack fromlarge shippers on its system.

Natural gas futures surged again yesterday amid concerns thatproduction shortfalls associated with a sudden barrage of tropicalstorm and hurricane activity will put pressure on an already tightsupply-demand situation. Fresh off a 28-cent price run late lastweek, the September contract tacked on an additional 12.6 centsyesterday to finish at $3.064 after notching a fresh high at $3.08.Estimated volume was healthy, with 101,460 contracts changinghands.