Formed

Chairman James Hoecker announced yesterday that a FERC staffteam has been formed to closely monitor developments in theelectric market in an attempt to identify and prevent priceaberrations similar to those which occurred in the Midwest lastsummer.

PennzEnergy Co. and Sonat Exploration Co. formed a joint ventureto develop mineral interests underlain by coal bed methane at the700,000-acre Vermejo Park Ranch in northeast New Mexico.PennzEnergy has held the bulk of the mineral rights since 1970.

PennzEnergy Co. and Sonat Exploration Co. formed a joint ventureto develop mineral interests underlain by coal bed methane at the700,000-acre Vermejo Park Ranch in northeast New Mexico.PennzEnergy has held the bulk of the mineral rights since 1970.

Midland, TX-based Costilla Energy Inc. and ONEOK Inc. formed astrategic alliance to capitalize on properties Costilla plans toacquire from Pioneer Natural Resources Co. as well as otherpotential transactions. Tulsa, OK-based ONEOK will participate inCostilla’s previously announced $335 million acquisition of oil andgas properties from Pioneer (assuming it is successful) through anequity investment in Costilla preferred stock.

PennzEnergy Co. — recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State — is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in East and West Texas, on- and offshore Gulf ofMexico, and in Egypt, Azerbaijan, and Venezuela.

PennzEnergy Co. – recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State – is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in the in East and West Texas, on and offshore Gulfof Mexico, and in Egypt, Azerbaijan, and Venezuela.

Calpine Corp. of San Jose, CA, and North Dartmouth-MA basedEnergy Management Inc. formed a new power marketing joint venture,Calpine/EMI Marketing, LLC, which will sell power and transmissioncapacity in New England from new generation facilities in theregion.

Coral Energy and Western Farmers Electric Cooperative (WFEC)formed an alliance to co-market power generated by WFEC throughoutthe Southwest Power Pool and adjoining areas. The alliance willmarket all power generated by WFEC in excess of that consumed byits cooperative member companies.

Georgia deregulation proved it is in full throttle last week asthe municipality representing the city of Marietta formed analliance with Columbia Energy’s Georgia affiliate, Columbia EnergyRetail Corp. The alliance calls for a 10-year deal with the city ata guaranteed base price of 39.9 cents per therm for one year and acontractual promise to be competitive for the other nine. Themunicipality includes between 30,000 and 40,000 gas customers.