Complete

The Federal Energy Regulatory Commission needs to “do a completeoverhaul of its cost of service ratemaking model,” according toproducer attorney Katherine Edwards, because the rates currently inplace on many pipelines no longer reflect the costs.

Richmond, VA-based Dominion Energy stretched across the Continent to complete its purchase of gas producer Remington Energy Ltd., of Calgary, AB in a deal valued at nearly US$300 million that will give Dominion a stake in Alliance Pipeline. Still to be completed is its $6.3 billion agreement to buy Consolidated Natural Gas (CNG), which was originally announced in February, just days before the Remington buyout was revealed (See NGI March 1, 1999).

Calpine Corp. has raised $265 million to complete constructionof a 510 MW expansion of its Pasadena, TX, power plant. Calpine,based in San Jose, CA, and the largest independent power producerin Texas, broke ground on the Pasadena plant expansion in November.The company expects to begin electricity production in June 2000 tohelp meet peak summer demand. The Pasadena plant currentlygenerates up to 240 MW of capacity. With the expansion, it willgenerate enough electricity to power 750,000 households.

Unable to complete final agreements with many of its U.S.markets, Maritimes &amp Northeast Pipeline is expected to file anamended certificate application for Phase II of its pipelineproject with FERC this month that will defer construction of nearlyall of its previously planned pipeline laterals in the U.S. It alsois expected to show an increase in rates because of newcalculations of construction costs.

Snyder Oil Corp. of Fort Worth, TX, completed the sale of itsremaining 55% interest in the Southeast Piceance Project innorthwestern Colorado to Ballard Petroleum LLC in a cashtransaction worth $28.8 million. The Piceance Project representsless than 5% of Snyder’s third quarter 1998 production and isestimated to represent 7% of its 1998 proven year-end reserves.

Portland Natural Gas Transmission System isn’t going to make itssecond start-up deadline this month, but officials are promising tobe in service in early February. The pipeline originally expected152 MMcf/d of Canadian gas would begin flowing to New Englandmarkets last November.

British Petroleum (BP) and Amoco Corp. said they will completetheir merger today after receiving Federal Trade Commission (FTC)approval yesterday for the $57 billion deal. To win FTC approval,the companies agreed to free up more than 1,600 gas stations in 30southeastern and midwestern markets and to divest nine petroleumterminals. The 4-0 vote in favor of the merger becomes final aftera 60-day comment period.

Devon Energy Corp. and Canadian-based Northstar Energy Corp.completed their merger, which was announced June 29 (see NGI July6, 1998). Devon is issuing about 16.1 million common equivalentshares to the Northstar shareholders. In addition, Devon isassuming US$312 million in existing Northstar debt.

El Paso Field Services said its Global Compression Project inthe San Juan Basin is now complete, providing producers with anadditional 40,000 horsepower of compression, new gas dehydrationfacilities and 54 miles of new pipeline looping.