Mexico

El Paso South System Flows 700 MMcf/d

Less than two weeks after the deadly explosion on El PasoNatural Gas’ system in southeastern New Mexico, the pipeline lastweek had more than 700 MMcf/d of its 1.1 Bcf/d capacity restored toits South Mainline that services markets between Texas andCalifornia.

September 5, 2000

Lawsuit Says El Paso Negligence Caused Blast

The first civil lawsuit was brought Tuesday against El PasoNatural Gas for the deadly explosion in southeastern New Mexico,accusing the pipeline of negligence in failing to “properlyinspect, maintain and operate” its system.

August 31, 2000

DIGP Connects With Two Gulf Projects

Increased natural gas development in the Gulf of Mexicocontinues at break-neck speed. Daulphin Island Gathering Partners(DIGP) recently completed two projects that will expand natural gasservice in the Gulf.

August 21, 2000

Rockies Independents Will Shoulder Heavy Supply Burden

Except for the deep-water Gulf of Mexico, major producers haveessentially “thrown in the towel” in the U.S. oil and gas marketand are traipsing overseas to find their fortunes, a top executivewith The Coastal Corp. said yesterday. As a result, he believesmost of the burden to supply a 30 Tcf natural gas market will fallto the independent producers.

August 11, 2000

Industry Brief

Blue Dolphin Energy has signed an agreement to build a gaspipeline in the Gulf of Mexico to transport 120 MMcf/d ofproduction for Vastar Resources. The new 3.4-mile, 12-inch diameterline will be designed to accommodate production from High IslandA-5 to Blue Dolphin’s Black Marlin Pipeline in High Island BlockA-6. Transportation service is expected to commence in 60 days.Blue Dolphin will own a 50% interest in the new pipeline at anestimated net cost of $1.1 million. It owns a 50% interest andoperates the Black Marlin Pipeline system, which currentlytransports 120 MMcf/d. Black Marlin has capacity to transport 200MMcf/d. Blue Dolphin Energy Company is engaged in the acquisitionand exploration of oil and gas properties, and the gathering andtransportation of natural gas and condensate.

August 8, 2000

Industry Briefs:

Coastal Oil and Gas has announced it is selling its interests in36 offshore oil and gas holdings. The offshore leases are locatedin the Gulf of Mexico, in blocks ranging from offshore of Alabamato south of Texas. When asked about the reasons for selling theseleases, spokesperson Dorothy Beeler said it was just “ongoingportfolio asset management,” and that it had nothing to do withCoastal’s planned merger with El Paso Energy.

June 6, 2000

Industry Briefs

TXU of Dallas agreed to sell its majority interest in a MexicoCity gas distribution system to Gas Natural and Hidroelectrica delCantabrico for $68 million. Gas Natural will become operator whenthe deal closes, which is expected later this year.

March 30, 2000

El Paso’s Lateral to Mexico Gets FERC Stamp

The Federal Energy Regulatory Commission (FERC) last weekapproved construction of a proposed 60-mile, 130 MMcf/d pipelinelateral off El Paso’s mainline in Arizona to proposed Mexicanborder crossing facilities. The proposed $30 million pipe andborder crossing facilities are designed to serve several existingand proposed gas-fired power plants in Sonora.

February 14, 2000

El Paso’s Lateral to Mexico Gets FERC Stamp

The Federal Energy Regulatory Commission (FERC) approvedconstruction of a proposed 60-mile, 130 MMcf/d pipeline lateral offEl Paso’s mainline in Arizona to proposed Mexican border crossingfacilities. The proposed $30 million pipe and border crossingfacilities are designed to serve several existing and proposedgas-fired power plants in Sonora.

February 10, 2000

GPM Buying Kinder Morgan NM Gathering Assets

Kinder Morgan Inc. agreed to sell the capital stock of MidCon Gas Products of New Mexico Corp., a wholly owned subsidiary, to GPM Gas Corp., a unit of Phillips Petroleum, for $20 million in cash. Closing is expected by year-end. MidCon Gas Products owns the Big Eddy and Logans Draw gathering systems in Eddy County, NM. The combined systems include 159 miles of four- to ten-inch pipe with average throughput of 50 MMcf/d. Richard D. Kinder, CEO, said the sale is part of Houston-based Kinder Morgan’s back to basics strategy to divest of non-core assets. Sale proceeds will reduce debt.

December 27, 1999