Cozy

In an attempt to break up the “cozy relationship” between the Minerals Management Service (MMS) and the oil and natural gas industry, the Interior Department’s acting inspector general (IG) last Thursday raised the possibility of requiring companies that do business with the federal government in the future to comply with ethics standards. At the same time, President Obama appointed someone with an extensive law and order background to take over the agency.

In an attempt to break up the “cozy relationship” between the Minerals Management Service (MMS) and the oil and natural gas industry, the Interior Department’s acting inspector general (IG) Thursday raised the possibility of requiring companies that do business with the federal government in the future to comply with ethics standards.

Williams and AES Corp. re-lit the flame under their cozyrelationship last week. Williams signed a 20-year agreement withAES to supply gas and market 832 MW of generating capacity andassociated energy and ancillary services from AES’ planned Red Oakpower facility in Sayreville, NJ. Financial terms of the agreementwere not disclosed. Red Oak will generate power to be sold to thePennsylvania-New Jersey- Maryland (PJM) markets. Construction onthe gas-fired, combined cycle plant began earlier this month andoperations are scheduled to begin in the first quarter of 2002. Itis the third deal between the two companies. In May 1998, theysigned a similar agreement under which Williams provides fuel toand markets 4,000 MW of capacity and associated energy andancillary services from three of AES’ southern Californiagenerating stations. And in February 1999, Williams reached anagreement to supply fuel to and market 700 MW of capacity andassociate energy and ancillary services from AES’ Ironwood facilityin South Lebanon, PA, which is currently under construction. AESRed Oak completed a $384 million non-recourse project bondfinancing yesterday for the construction of the New Jerseyfacility. AES’ total investment in the plant will be $440 million,which includes an equity contribution of $56 million. RaytheonEngineers & Constructors, Inc. began construction earlier thismonth.

Williams and AES Corp. re-lit the flame of their cozyrelationship yesterday. Williams signed a 20-year agreement withAES to supply gas and market 832 MW of generating capacity andassociated energy and ancillary services from AES’ planned Red Oakpower facility in Sayreville, NJ. Financial terms of the agreementwere not disclosed.