Plan

Western Gas Resources said last week it is weighing its optionsin the wake of a judge’s rejection of its proposed pipeline bypassof Pacific Gas & Electric Co. Administrative Law Judge AndreaBiren recommended regulators approve the gas utility’s motion toreject Western’s application, and reject a contention by Westernthat PG&E was engaging in anti-competitive behavior. Thejudge’s recommendation is scheduled to be considered by theCalifornia Public Utilities Commission Oct. 7.

Pacific Gas and Electric is attempting to block Denver-basedWestern Gas Resources’ plans for moving into a heavilyindustrialized part of the utility’s East San Francisco Bay serviceterritory by converting a proprietary gas pipeline to astate-regulated, open-access supply line serving proposed newmerchant power plants in Pittsburg, CA, along with surroundinglarge industrial loads.

Pacific Gas and Electric Co. is attempting to block Denver-basedWestern Gas Resources’ plans for moving into a heavilyindustrialized part of the utility’s East San Francisco Bay serviceterritory by converting a proprietary gas pipeline to astate-regulated, open-access supply line serving proposed newmerchant power plants in Pittsburg, CA, along with surroundinglarge industrial loads.

Leviathan Gas Pipeline Partners and Tejas Energy unveiled NemoGathering Co. yesterday. The new company, which is 66% owned byTejas and 33% owned by Leviathan, has entered into a gas gatheringagreement with Shell Deepwater Development Inc. and will constructa 24-mile, 20-inch gas gathering line connecting Shell’s plannedBrutus development with the existing Manta Ray Offshore GatheringSystem. Tejas will operate the line once it is constructed.

Southern Union’s plan to take its merger proposal straight toSouthwest Gas shareholders was dismantled Monday, as SouthernUnion’s two court actions intended on delaying the merger betweenSouthwest and Oneok were rejected. Southwest Gas shareholders areexpected to vote in favor of the merger today. Southern Uniondeclined to comment.

BP Amoco CEO Sir John Browne put the company on a crash dietlast week, with a worldwide three-year plan to cut $4 billion incosts and surgically remove $10 billion in non-core asset fat,including the sale of its 64% share in U.S. gas and oil producerAltura Energy. BP Amoco also intends to boost capital expenditures$26 billion.

Conoco Inc. filed a registration statement with the Securitiesand Exchange Commission (SEC) outlining a split-off plan fromDuPont that will establish Conoco as a fully independent company.The proposed split-off would be achieved through an exchange offerin which DuPont stockholders would be given an opportunity toexchange DuPont common stock for shares of Conoco Class B commonstock currently held by DuPont. The split-off is expected to becompleted in the third quarter. Last autumn, DuPont sold 30% ofConoco last October in the largest initial public offering in U.S.history. The IPO raised $4.4 billion and left DuPont with a 70%controlling interest in Houston-based producer.

Public Service Co. of New Mexico (PNM) said it embarked on a$17.3 million stock repurchase plan last week after announcing theNew Mexico Supreme Court rejected a $112 million rate cut imposedby the state’s outgoing Public Utility Commission (PUC) late lastyear.

Rep. Robert Franks (R-NJ) told natural gas executives yesterdaythe Pipeline Safety Act of 1995, which is up for reauthorization inCongress this year, has been a success story so far and that hedoesn’t think it should be changed.