Intent

El Paso Energy Partners LP, formerly Leviathan Gas PipelinePartners LP, said it has entered into a letter of intent with asubsidiary of El Paso Energy Corp. to buy El PasoIntrastate-Alabama Inc. (EPIA) for $24.5 million in cash. EPIA ownsand operates 450 miles of gathering and transmission pipelines andrelated compression facilities in the Black Warrior Basin inwestern Alabama.

Demonstrating its intent to build a strong production portfolio,Peoples Energy recently announced a purchase of 50% interest in SanJuan Basin coalbed methane producing territories from KochIndustries for $47 million. The purchase not only introduces theChicago-based company as a player in the basin, it also doubles theamount of its fledgling production business from 15 MMcf/d to 30MMcf/d.

El Paso Energy Partners LP, formerly Leviathan Gas PipelinePartners LP, said it has entered into a letter of intent with asubsidiary of El Paso Energy Corp. to buy El Paso Intrastate -Alabama Inc. (EPIA) for $24.5 million in cash. EPIA owns andoperates 450 miles of gathering and transmission pipelines andrelated compression facilities in the Black Warrior Basin inwestern Alabama.

“Owners of small businesses, intent on reducing their operatingcosts, are receptive to the idea of buying their energy supplies atreduced group rates through local or regional businessassociations,” according to a new study by RKS Research andConsulting. The North Salem, NY firm said a small businesssub-group, home-based businesses, would consider discountwarehouses and membership clubs for low-priced electricity offers.RKS also found a market emerging around the idea of bundledservices, including energy, local and long distance telephoneservice and Internet access all on one bill. While the small usersare interested in cutting costs, they can’t do without service.”Across the board, business owners say they seek long-termrelationships with suppliers who stress simplicity and ease ofuse…..They are willing to trade off price for service, qualitybrand name and convenience.”

Mitchell Energy & Development Corp. announced it enteredinto a letter of intent to purchase Conoco’s 50% interest in theJameson processing plant and an associated 2,600-mile West Texasgas gathering system for an undisclosed sum. The Permian Basinplant and facilities currently are owned evenly by Conoco andMitchell.

Mitchell Energy & Development Corp. announced it enteredinto a letter of intent yesterday to purchase Conoco’s 50% interestin the Jameson processing plant and the associated 2,600-mile gasgathering system for an undisclosed sum. The plant, located in WestTexas, is currently owned evenly by Conoco and Mitchell.

The Maritimes & Northeast Pipeline (M&NE) started anopen season yesterday asking for capacity requests from buyersintent on using M&NE’s interconnect with Algonquin’s proposedHubLine project at Salem, MA. Requests will be received throughSept. 30. Maritimes’ Canadian affiliate, Maritimes & NortheastPipeline Limited Partnership, will contemporaneously conduct anopen season for its pipeline in Canada, the company said.

Spirit Energy 76, Unocal Corp.’s U.S. Lower 48 exploration andproduction unit, signed a letter of intent to trade most of itsRocky Mountain oil and gas assets for 5.8 million shares of TomBrown Inc. and $5 million in cash. The total value of the deal wasabout $76 million. Unocal will hold 16.52% of the outstandingcommon stock of Tom Brown based on the number of shares to beissued. The agreement also gives Unocal a seat on Tom Brown’s boardand the option to increase its ownership up to 19.5% through openmarket purchases.

Spirit Energy 76, Unocal Corp.’s U.S. Lower 48 exploration andproduction unit, signed a letter of intent to trade most of itsRocky Mountain oil and gas assets for 5.8 million shares of TomBrown Inc. and $5 million in cash. The total value of the deal isabout $76 million. Unocal will hold 16.52% of the outstandingcommon stock of Tom Brown based on the number of shares to beissued. The agreement also gives Unocal a seat on Tom Brown’s boardand the option to increase its ownership up to 19.5% through openmarket purchases.