Energy

The Federal Trade Commission (FTC) approved the merger ofDominion Resources Inc. and Consolidated Natural Gas Co. Stillpending are approvals by the Federal Energy Regulatory Commissionand the Securities and Exchange Commission, which are expected byyear end. The merger is expected to close in the first quarter of2000.

The Federal Energy Regulatory Commission (FERC) began thecertification process for the Coastal Corp.’s Gulfstream NaturalGas project, a pipeline from Mobile, AL, across the Gulf of Mexicoand the state of Florida. And in related news, Williams re-filedit’s application for the competing Buccaneer Gas Pipeline. Aprevious Williams filing was rejected without prejudice forinsufficient environmental information.

FERC yesterday accepted the $34.5 million mega-negotiatedcontract between Natural Gas Pipeline Co. of America (NGPL) andAquila Energy Marketing Corp., but there was a glitch. TheCommission’s acceptance was conditioned on the Midwest pipelineproviding a “satisfactory explanation” of why the transactiondoesn’t conflict with capacity-release rules and regulations, whichFERC suspects is the case.

One day after concluding its purchase of Sonat Inc., El PasoEnergy Corp. completed its after-merger corporate restructuring.Through normal attrition, early retirement and 607 layoffs, thework force has been pared down from 5,500 to 4,575, the companysaid Tuesday. The action is part of a company-wide plan toimplement the optimal corporate organization for the future, ElPaso said, and the company expects to save in excess of $100million in the first full year after the merger due to thesemeasures.

Houston-based El Paso Energy Corp. plans to acquire Crystal GasStorage Inc. of Shreveport, LA, for $57 cash per Crystal share in adeal worth $224.6 million.

Kinder Morgan and KN Energy announced the completion of theirmerger. The company has been renamed Kinder Morgan, Inc. and willtrade under the New York Stock Exchange symbol “KMI.” The $900million merger was announced last July.

Canada’s National Energy Board has sent a message toparticipants in the international natural gas trade: Stay cool andgreet predictions of Canadian supply shortages with healthyskepticism.

Two Alberta-based producers, Cabre Exploration and Jet Energy,jointly announced a merger last week, in which Cabre will acquireJet and its 43.9 Bcf of proven reserves. Cabre said it will mailits offer to Jet shareholders no later than Oct. 18.

Unico Inc. of Stamford, CT, bought Silver Valley Energy Inc.,including its proven oil and gas reserves located in the GlassMountains of Pecos County, TX, for an undisclosed amount. Theproperty is valued at more than $40 million based upon a recentindependent analysis.