Exchanged

DTE Energy Services and Entergy Wholesale Operations announced that construction of a jointly-owned 320 MW natural gas-fired electric power generating plant began in May in Will County, IL. The plant, located about 30 miles south of Chicago in the Village of Crete, is expected to be in commercial operation in June 2002. The facility will be operated by Entergy Operating Systems Inc., in cooperation with DTE Energy Services. “The electric output from this facility will be available in time to supply additional electricity to the region during high-demand periods next summer,” said Barry G. Markowitz, president of DTE Energy Services. The companies said gas for the project will be provided through the recently completed Vector Interstate Pipeline. The Vector pipeline is partially owned by MCN Energy, which will become part of DTE Energy as a result of a merger between the companies, expected to close today. EntergyShaw LLC, an affiliate of the Shaw Group, will provide the engineering, procurement and construction services for the project.

To strengthen its capital structure before an anticipated spinoff this year, Tulsa-based Williams Communications exchanged assetsfor shares of stock with its parent company Williams yesterday. Inthe agreement, Williams received 24.3 million common shares ofWilliams Communications, bringing its total ownership to 420million shares, or 86% of the outstanding stock. In return forequity, Williams Communications will purchase its outstandingpromissory note from Williams and acquire the 15-story,750,000-square-foot Williams Technology Center, scheduled forcompletion this summer adjacent to Williams’ headquarters in Tulsa.

Occidental Petroleum Corp. and EOG Resources Inc. said theyexchanged certain oil and gas assets to enhance each company’sfocus on exploration and production and achieve cost savingsthrough operational synergies. Occidental received producingproperties and exploration acreage in its expanding Californiaasset base, as well as producing properties in the western Gulf ofMexico near existing operations. The exchange increased EOGResources’ gas production and reserves in East Texas, where italready has a significant presence, and will add to its drillingportfolio in the Oklahoma panhandle.

Coastal Oil & Gas and Santa Fe Snyder have exchangedproperties in Utah, Wyoming, Texas and the Gulf of Mexico “toconsolidate assets into core areas for each company. Coastalreceived interests in six GOM blocks, plus the Jeffress Field inSouth Texas and 97,000 acres in Uintah and Duchense Counties inUtah. Coastal also received a cash payment of $18 million. Santa FeSnyder received interests in 22 Wyoming fields in the Green RiverBasin and three units in Gaines County, TX, in the Permian Basin.

Union Pacific Fuels and three Wichita, KS-based affiliates ofKoch Industries exchanged certain gas and gas liquids assets inEast Texas and Southern Louisiana. The Koch companies will receivea portion of Union Pacific’s interest in the Panola Pipeline, whichruns from Carthage, TX, to Mont Belvieu, TX. In addition, the Kochcompanies will receive Union Pacific’s interest in the Mont BelvieuI fractionator as well as the Patterson and Calumet gas plants inSouthern Louisiana.