Pays

In compliance with a major rate settlement approved by FERC inDecember, Kinder Morgan Interstate Gas Transmission LLC (KMI) lastweek reported it paid $32.6 million in refunds to customers on itsmainline and Buffalo Wallow system last month.

In compliance with a major rate settlement approved by FERC inDecember, Kinder Morgan Interstate Gas Transmission LLC (KMI)earlier this week reported it paid a whopping $32.6 million inrefunds to customers on its mainline and Buffalo Wallow system lastmonth.

In Washington, it usually pays to know people in high places.But even Sen. Frank Murkowski (R-AK) couldn’t help Nicholas Bush,the ex-president of the Natural Gas Supply Association (NGSA), whowas sentenced to 3 1/2 years in federal prison for embezzlementlast week and ordered to pay restitution in the amount of $3.5million.

Deep-water gas production reached 560 MMcf/d in 1998 from only381 MMcf/d the year prior, a 47% increase, according to datareleased yesterday by the Mineral Management Service (MMS). Another311.5 MMcf/d of deep-water gas production is expected to come online this year.

Combating its poor first quarter performance, Houston-basedApache Corp. dramatically grew its asset base Thursday, paying $715million and transferring one million common shares of stock toShell in exchange for 22 fields in the Outer Continental Shelf ofthe Gulf of Mexico (GOM). Apache expects the transaction to add 20cents/share of value in 1999. The acquisition will go into effectretroactive to March 1.

Oneok completed two reserve acquisitions totaling $54 millionwith estimated proven reserves that could exceed 75 Bcfe. Bothdeals are for primarily natural gas reserves in Oklahoma. Acash-for-stock agreement was made to acquire the privately heldOklahoma properties of Anderman Oil Corp., AOL Holdings Inc., andMohan Petroleum Oklahoma Inc. The purchase price is $28.5 million,subject to certain adjustments, with an effective date of Aug. 1,1998. Oneok also will acquire properties from St. Mary Land &Exploration Co. for $25.5 million, subject to adjustments, with aneffective date of Sept. 1.