Planning

FERC said last week it has found Chicken Littles in the Y2Kplanning departments of several gas pipeline companies. TheCommission berated pipeline Y2K planners for crying “the sky isfalling” without any solid evidence that it is. To those pipelinesseeking a complete shut-down of multiple nomination periods justprior to and after Jan. 1, FERC explained that so far they have notprovided convincing arguments why such drastic methods would berequired.

FERC said yesterday it has found Chicken Littles in the Y2Kplanning departments of several gas pipeline companies. TheCommission berated pipeline Y2K planners for crying “the sky isfalling” without any real good evidence that it is. To thosepipelines seeking a complete shut-down of multiple nominationperiods just prior to and after Jan. 1, FERC explained that so farthey have not provided convincing arguments why such drasticmethods would be required.

Brandt Energy, a former partner in the Wild Goose Storageproject in California, is planning the development of Colorado’sfirst independent gas storage facility. The Totem Gas StorageProject is to be located about 12 miles east of the Denver Airportin a depleted gas field in the J Sand reservoir of the DenverJulesburg Basin. Brandt, Star Natural Gas, Renegade Oil & Gasand Fairchild, Ancell & Wells make up the development team forthe project, which will target growing power generation load andmarketers serving customers along the Front Range.

U.S. Senate Energy and Natural Resources Committee ChairmanFrank Murkowski (R-AK) is planning to take a closer look at thepotential impact on his home state and on the West Coast of theproposed merger of BP Amoco and Atlantic Richfield Co. Thecommittee has scheduled a hearing on June 24 at 9 a.m. to reviewthe merger. BP Amoco-Arco would hold 75% of the Alaska North Slopeoil fields and a similar share of the Trans-Alaska Pipeline System.It also would have control over 90% of the crude oil delivered tothe West Coast. Its property holdings in Alaska would far exceedthe maximum allowed by state law, although the companies said theyplan to divest some of their leases. The merger would create thelargest oil producer in the U.S. and the world’s second-largestpublicly traded oil firm, with a market capitalization of about$200 billion.

Commonwealth Edison (ComEd) parent Unicom is planning a shoppingspree that could include one or several major gas or waterdistribution companies or a communications company, Unicom Chairmanand CEO John W. Rowe said this week at the company’s annualmeeting.

Commonwealth Edison (ComEd) parent Unicom is planning a shoppingspree that could include one or several major gas or waterdistribution companies or a communications company, Unicom Chairmanand CEO John W. Rowe said this week at the company’s annualmeeting.

DuPont is planning a stock split-off to establish Conoco as afully independent company. The split off would be achieved throughan exchange offer providing DuPont stockholders the opportunity toexchange, on a tax-free basis, shares of DuPont common stock forshares of Conoco Class B common stock currently held by DuPont. Theexchange offer is subject to approval by the SEC and acceptablemarket conditions. It is expected the exchange offer will becompleted in the third quarter.

Dallas-based Panda Energy International announced plans to builda 1,000 MW generation plant in Coweta, OK, near Tulsa. The plant’smaximum daily quantity for gas consumption will be about 170,000MMBtu/d. Gas supply and transportation agreements are expected tobe finalized in the next several months.

After a $297 million net loss in 1998, it should come as nosurprise that Baker Hughes is cutting capital spending this yearand will not be out shopping for assets or new combinations likemany other industry companies. Drilling activity continues to plumbnew depths (figuratively, not literally), reaching a record lowlast week with 498 rotary rigs operating in the U.S.