Intention

The Bush administration has no intention of complying with a demand by the Government Accounting Office (GAO), Congress’ investigative arm, for information on the administration’s meetings with industry leaders and energy task force members while developing an energy policy, Juleanna Glover Weiss, spokeswoman for Vice President Cheney, told NGI. A deadline passed last night for the administration to respond to the GAO demand.

President Bush announced his intention to nominate Kathleen Burton Clarke to be director of the Bureau of Land Management at the Department of Interior. She has served as the executive director of the Utah Department of Natural Resources since 1998, and she was deputy director from 1993 to 1998. Clarke served in the office of Rep. James V. Hansen from 1987 to 1993, first as director of constituent services and then as executive director. A Utah native, she is a graduate of Utah State University.

President George W. Bush Tuesday announced his intention tonominate Texas regulator Patrick Henry Wood III and Pennsylvaniaregulator Nora Mead Brownell for the two vacant commissioner spotson the Federal Energy Regulatory Commission.

President Bush yesterday announced his intention to nominateVicky A. Bailey, who served as FERC Commissioner for seven years,to be assistant secretary of energy for international and domesticpolicy. She departed the Commission last February to becomepresident of PSI Energy Inc., Indiana’s largest electric utilityand a subsidiary of Cinergy Corp. Bailey, a Republican, was firstnominated to FERC by President Clinton in 1993 to serve a termthatexpired in 1996 and then was renominated for a five-year term. Sheleft the Commission before her full term was up. An Indiana native,Bailey served on the Indiana Utility Commission from 1986 to 1993.

Northern Border Partners LP announced its intention to enter theCanadian midstream business. The company is buying the 87 MMcf/dMazeppa sour gas processing plant southeast of Calgary and aminority interest in the 85-mile Gregg Lake/Obed Pipeline (150MMcf/d of capacity), which is west of Edmonton, AB, from DynegyCanada. The purchase is expected to close during the first quarter.

Following through on its intention to sell the company, independent power producer Sithe Energies last week sold 49.9% of its North American businesses to Philadelphia-based PECO Energy Co. for $682 million, with an option by PECO to purchase the rest of the company within five years.

Following through on its intention to sell the company,independent power producer Sithe Energies yesterday sold 49.9% ofits North American businesses to Philadelphia-based PECO Energy Co.for $682 million, with an option by PECO to purchase the rest ofthe company within five years.

Union Pacific Resource has reiterated its intention to examine apossible sale of its gas gathering and processing business orselected non-core assets as part of a “deleveraging” programfollowing its recent $3.5 billion purchase (including assumption ofdebt) of Norcen Energy. At the time of the Norcen deal, UPR said itintended to sell $500-$700 million in assets to cut its debt toequity ratio, which ballooned to 73% following the Norcen deal fromabout 40%. But the company has valued its midstream assets, whichare located in Texas, Louisiana, Wyoming and Colorado, at about $2billion. The assets produced about $150 million in pretax operatingincome in 1997. The company has 25 operating plants and relatedpipeline facilities. A UPR spokesman said the company is justbeginning to evaluate its options but noted the market formidstream assets has been hot. UPR’s announcement follows similarplans announced recently by Aquila Gas Pipeline and EquitableResources. “These assets have been selling at a much higher cashflow multiple than E&P assets.”