Natural

Columbia Natural Resources (CNR) has expanded operations toeastern Canada with the purchase of an interest in gas and oilwells and undeveloped property in Ontario. The US$3.6 millionacquisition from Paragon Petroleum of Calgary includes a 50%interest in 24 wells and 100% of 5,000 acres of undevelopedproperty. The owner of the other 50% of the wells is CanEnercoLtd., which will market gas production. “Our move into Canada isthe second expansion of CNR’s base of operation in less than ayear,” said W. Henry Harmon, CEO. CNR’s $101 million purchase ofAlamco Inc. last August increased reserves by 25% and expandedcompany operations into southern Kentucky and northern Tennessee.

The 580 MW Connecticut Yankee Atomic Power Co. nuclear projectin Haddam, CT, may be converted to burn natural gas on or before itis decommissioned if engineering studies now underway indicate sucha conversion is feasible.

March 17 is the deadline for bidders to present proposals tosupply and manage the natural gas, electric and water and sewerutility services for the National Railroad Passenger Corp. (Amtrak)at facilities across the country. The current bill for the services- which Amtrak would like to see reduced – is $30 million a year.

As a result of KN Energy’s acquisition of MidCon Corp. in lateJanuary, MC2 said it plans to turn its focus to retail natural gasand electric markets in western states in which its new parent doesa lot of trading.

State regulators shouldn’t force utilities to relinquish theirmerchant role in a competitive natural gas market, industry expertsagreed last week. Why bother? Given enough time, the market will dothat job for regulators, an energy supplier remarked.

After a pause for consideration by one potential taker,TransCanada PipeLines, Canada’s second-biggest pool of natural gassupplies is again looking for new owners. Pan-Alberta Gas’president, Ross Weaver, confirmed, “we are still for sale.”

The next challenge to the troubled Canadian natural gas pipelineestablishment opens May 25, when the National Energy Board hasscheduled the start for hearings on AEC Suffield Gas Pipeline.

EEX Corp. agreed to sell nearly all of its properties in EastTexas and North Louisiana, containing 250 Bcfe of proved naturalgas reserves, to Cross Timbers Oil Co. for $265 million. Theeffective date of the sale is Jan. 1, 1998 with closing expected inthe second quarter.

Expiration week is supposed to be about extreme volatility atthe New York Mercantile Exchange, but the March natural gascontract exhibited anything but that on Monday. The spot monthinched 1.9 cents lower to $2.179 yesterday, amid a session bound bya tight 4-cent trading range