Federal

The Federal Energy Regulatory Commission yesterday significantlyraised the bar for interstate pipelines seeking to construct newprojects by requiring that the proposed facilities be able to standon their own financially.

If the results of last week’s Gulf of Mexico lease sale are any indication, the federal government is now feeling the effects of weak commodity prices and industry consolidation.

The proposed marriage of KN Energy Inc. and Kinder Morgan Inc.has passed federal antitrust review and has been verbally approvedby Colorado regulators, which puts the deal on track to becompleted in the early fourth quarter, the companies said.

The proposed marriage of KN Energy Inc. and Kinder Morgan Inc.has passed federal antitrust review and has been verbally approvedby Colorado regulators, which puts the deal on track to becompleted in the early fourth quarter, the companies said.

Oneok Inc. of Tulsa, OK, filed to hold Southern Union incontempt for violating a federal preliminary injunction preventingit from attempting to influence a shareholder vote on the merger ofOneok and Southwest Gas Corp.

The Senate last week confirmed Commissioner Curt Hebert Jr. to anew five-year term on the Federal Energy Regulatory Commission. Histerm expires in June 2004.

The Senate last week confirmed Commissioner Curt Hebert Jr. to anew five-year term on the Federal Energy Regulatory Commission. Histerm expires in June 2004.

Following in the footsteps of gas pipelines, major producershave asked the federal government to reject an independentproducer-backed petition that seeks to have tariffs imposed oncrude oil imports from four foreign countries accused of illegaldumping.

NiSource said it filed the necessary information under theHart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 with theFederal Trade Commission and Department of Justice regarding itstender offer for all of Columbia Energy Group’s common shares. CEOGary Neale said it “sends a serious message to Columbia that we arecommitted to completing this transaction and that we are confidentin our ability to secure the necessary regulatory approvals. Wehave said throughout that we believe the regulatory approvalprocess can be completed within six to nine months if we worktogether. HSR clearance is an important first step, and one thatconfirms our commitment to move forward on all fronts of thistransaction.” NiSource is offering $68/share for Columbia stock.Columbia’s board has said the company is not for sale and isfighting the hostile takeover attempt (See Daily GPI July 16, July15, June 25, June 11 and June 8).