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After several years of battling, both in the courts and at FERC,the Commission this week finally approved a version of El PasoNatural Gas’ 1996 rate and capacity-turnback settlement that seemedto satisfy all parties involved. But to get to that point, El Pasowas forced to make some big concessions along the way to quellconcerns.

Under heavy pressure from near record-setting high temperatures,the natural gas market caved in yesterday as traders continued toliquidate long positions. After opening at $2.80 the Decembercontract was hit with a Microsoft-like drop, breaking through keysupport levels at $2.74 and $2.70, to finish off 21.9 cents at$2.665.

Southern Union Co. received final approval from the FederalEnergy Regulatory Commission for its merger with PennsylvaniaEnterprises Inc. The FERC approved transfer of control of powermarketing licenses held by Pacific Enterprises. The merger,announced June7, is expected to close Thursday.

Using results from their latest Y2K survey as proof, the NaturalGas Council and the American Petroleum Institute (API) deemed theirworking group, formed to spur on Y2K readiness throughout the oiland gas industries, a success. With over two months to go, 93% ofthe oil and gas companies surveyed said their embedded systems areready for the Year 2000 and the rest expect to be done soon,leaders of the working group said at the National Press Club inWashington D.C. last week.

Using results from their latest Y2K survey as proof, the NaturalGas Council and the American Petroleum Institute (API) deemed theirworking group, formed to spur on Y2K readiness throughout the oiland gas industries, a success. With over two months to go, 93% ofthe oil and gas companies surveyed said their embedded systems areready for the Year 2000 and the rest expect to be done soon,leaders of the working group said at the National Press Club inWashington D.C. yesterday.

Blocked in its bid for neighboring Southwest Gas, Austin,TX-based Southern Union Co. focused on the East, picking upapproval from its board of directors and that of the Fall River GasCo., on a merger agreement.

Fresh competition has emerged for TransCanada PipeLines Ltd.’sNova gas-gathering grid in Alberta – this time from its neighbor tothe east in Saskatchewan.

Sonat’s proposed $82 million rate hike hit a major snag lastweek as FERC suspended any increase from occurring until March 1and called for a hearing where opposition to the proposal canpresent information.

Sonat’s proposed $82 million rate hike hit a snag last week, asFERC suspended any increase from occurring until March 1 and calledfor a hearing where opposition to the proposal can presentinformation.