Development

The Gas Research Institute has offered a proposed budget of $98million for approval by the Federal Energy Regulatory Commission tofund research and development projects for 2000. The funding wouldcover $72.6 million for 43 Core projects, widely beneficial to theentire industry and gas users and $25.4 million for 22 Non-Coreprojects targeted to specific activities and major market segments.In addition to the FERC-directed portion of the budget, GRIanticipates receiving about $53 million in cofunding from industryand govenrment sources in 2000. The filing Tuesday marked the thirdyear of the seven-year transition to an all-voluntary R&Dprogram. In 2001 the funding through FERC will drop to $70 million,then $60 million in 2002-2004. At the end of that period thefunding will be voluntary.

Ground was broken this month for development of a $275 million,540 MW natural gas-fired power plant in Arizona by San Jose,CA-based Calpine Corp., and close observers of California electricrestructuring are indicating this plant may be the first of manymore out-of-state plants designed to serve California.

Old Dominion Electric Cooperative and Reliant Energy signed afive-year business alliance to evaluate the development of up to2,400 MW of new power generation, while partnering on retailmarketing operations in the Mid-Atlantic states.

The Department of Energy (DOE) proposed a $10 million cut infunding for natural gas research and development (R&ampD) as partof a $17.8 billion budget for fiscal year 2000 that it forwarded toCongress last week.

The Department of Energy (DOE) proposed a $10 million cut infunding for natural gas research and development (R&D) as partof a $17.8 billion budget for fiscal year 2000 that it forwarded toCongress earlier this week.

Market Hub Partners LP (MHP) subsidiary NE Hub Partners LP hasreached an agreement with CNG Transmission and North Penn Gas onthe development of NE Hub’s 5-6 Bcf Tioga Gas Storage Project innorth central Pennsylvania

Market Hub Partners LP (MHP) subsidiary NE Hub Partners LP has reached an agreement with CNG Transmission and North Penn Gas on the development of NE Hub’s 5-6 Bcf Tioga Gas Storage Project in north central Pennsylvania.

Oneok Inc. and Magnum Hunter Resources Inc. have created astrategic alliance to maximize gas production and developmentopportunities for both companies. Oneok will buy $50 million ofMagnum Hunter convertible preferred stock, becoming a 31% equityowner. Oneok will acquire $10 million of Magnum Hunter’s pendingacquisition of Spirit 76, including reserves and a gatheringsystem. Oneok also will market all of Magnum Hunter’s Oklahomaproduction and have the right to participate in Magnum Hunter’sOklahoma acquisitions.

Mitchell Energy & Development Corp. received approval fromthe Texas Railroad Commission for field rule amendments that willenable the company to more aggressively develop its Barnett Shalegas reserves in North Texas. The new field rules permit Mitchell todrill wells in the Newark East (Barnett Shale) field on as littleas 40-acre spacing. As a result of increased well density, or”in-fill drilling,” the company expects as many as 100 wells withabout 80 Bcf of estimated net gas reserves will be added to theproved undeveloped category. The new locations bring totalundeveloped well locations to about 200 for the field. The companyalso has identified another 100 probable locations that may beadded in the future.