Lawyers

Lawyers for the Western States Wholesale Natural Gas Antitrust Litigation published a legal notice last Monday seeking to swell their plaintiffs’ rolls with commercial/industrial customers who bought natural gas during 1999 through 2002 for electric generation or for resale. A proposed $11.3 million settlement is pending with at least six of the defendants, subject to a fairness hearing Sept. 5 before a federal judge in Las Vegas, NV.

Lawyers for the Western States Wholesale Natural Gas Antitrust Litigation published a legal notice Monday seeking to swell their plaintiffs’ rolls with commercial/industrial customers who bought natural gas during 1999 through 2002 for electric generation or for resale. A proposed $11.3 million settlement is pending with at least six of the defendants, subject to a fairness hearing Sept. 5 before a federal judge in Las Vegas, NV.

‘Not so fast’ was the overwhelming message given Friday as the federal judge handling the Enron Corp. securities lawsuit ruled against several major financial institutions, law firms and Arthur Andersen, denying most defendants’ motions to be dismissed from the case. With the move, Enron shareholders will be able to begin the process of depositions and evidence discovery in the case, according to the University of California, which is lead plaintiff in the shareholders’ class action suit against the one-time energy giant.

As regulators and lawyers pick apart the details of Enron Corp.’s undoing, a letter written by a company executive to CEO Kenneth Lay last year raises the possibility that the company may have to reduce past earnings by another $1.3 billion. The letter discloses two investment vehicles — one not previously disclosed — which could cut into earnings more than its four-year restatement in an 8-K filing with the Securities and Exchange Commission (SEC) last November (see Daily GPI, Nov. 9, 2001).

Lawyers for Samson Investment Co., a Tulsa-based natural gas-heavy energy company, filed a lawsuit against auditor Arthur Andersen LLP this week in what is predicted to be the first of many such lawsuits accusing the Big 5 accountant of complicity in Enron Corp.’s ultimate bankruptcy. Samson claims Andersen “recklessly disregarded evidence of questionable financial transactions between Enron and its insiders.” The lawsuit, seeking unspecified damages, requests class-action status on behalf of more than 100 unnamed companies.

From FERC hearing rooms to California courtrooms the lawyers andregulators are huddling to bring some order to the chaotic westernenergy markets and address the muddled future of California’s onceomnipotent-appearing private sector utilities. Energy industry,political and regulatory heavyweights are mixing it up, includingthe closed-door FERC-called session in Washington, DC.

Producers – and the lawyers, brokers and analysts they break bread with – last week received a second helping of what was for lunch eight months ago at Houston’s Petroleum Club: a bullish outlook for gas prices.

Producers – and the lawyers, brokers and analysts they breakbread with – received a second helping of what was for lunch eightmonths ago at Houston’s Petroleum Club: a bullish outlook for gasprices.