Proposed

Favorable rulings on the MarketLink and Independence Pipelineprojects at the Dec. 15 FERC meeting are “absolutely critical topreserve any realistic opportunity” for the proposed facilities tobe built and operating by the targeted November 2000 deadline, saysa senior official at Williams Gas Pipelines – Transco.

Favorable rulings on the MarketLink and Independence Pipelineprojects at the Dec. 15 FERC meeting are “absolutely critical topreserve any realistic opportunity” for the proposed facilities tobe built and operating by the targeted November 2000 deadline, saysa senior official at Williams Gas Pipelines – Transco.

Transcontinental Gas Pipeline says it’s willing to price itsproposed SouthCoast expansion in Georgia and Alabama at anincremental rate, which should eliminate much of the opposition tothe project.

FERC last week approved the proposed merger of Illinova Corp.and Dynegy Inc., saying the $2 billion deal posed no competitiveconcerns. It noted “there is insufficient ‘overlap’ betweenrelevant upstream delivered gas and downstream electricitymarkets…to raise significant competitive concerns.” Also, thetransaction “does not enhance the merged company’s incentive toraise its rivals’ costs because it has a relatively small share ofthe relevant downstream electricity markets.”

Coastal’s ANR Pipeline Co. said yesterday that its proposedexpansion, the Wisconsin 2000 project, received a favorableenvironmental assessment from the FERC staff. Joe Martucci, aspokesman for the company said the project is on track and expectsfinal FERC approval early in 2000.

Pioneer Natural Resources USA Inc. filed a preliminary proxystatement with the SEC regarding a proposed merger with the limitedpartners of 25 publicly-held Parker & Parsley limitedpartnerships. According to the plan, each partnership that approvesthe proposals will merge with Pioneer and their partnershipinterests will be converted into the right to receive cash. At thesame time, Pioneer also is offering to acquire 21 non-publiclimited partnerships and 13 privately-held employee partnershipsthrough mergers for cash. Pioneer is the sole or managing generalpartner of all of the partnerships. As a result of the mergers,Pioneer will acquire additional working interests in wellspredominantly located in the Spraberry field in the Permian Basinof West Texas. If approved, the mergers are expected to add twomillion barrels of oil equivalent production next year. The amountof cash Pioneer USA will pay for the partnership interests will bebased on the partnerships’ reserve value plus net working capital(less expenses and fees of the mergers) as of Sept. 30. Undercurrent Nymex futures strip prices, Pioneer estimates that its cashoffer would be $60 million. However, it also said it will consideroffers from third parties to purchase any partnership or itsassets. Persons interested in making an offer should contactTimothy L. Dove or Mark L. Withrow at (972) 444-9001 before Nov. 1.

Maritimes & Northeast Pipeline (M&NE) declared an openseason for its interconnect with Algonquin’s proposed Hublinepipeline last week, as the entire project enters the final stagesof completion. With impending operation date in November fastapproaching, activity has sparked throughout the Northeast Coast inanticipation.

ARCO and BP Amoco shareholders approved the proposed $27 billioncombination of the two companies last week, but the combinationremains subject to the approval of regulatory authorities,including the US Federal Trade Commission (FTC) and the EuropeanCommission. It’s expected to close later in the year. The all-sharedeal will involve the exchange of 0.82 BP Amoco American DepositoryShares (ADS) for each ARCO share.

ARCO shareholders approved the company’s proposed $27 billioncombination with BP Amoco. The all-share deal will involve theexchange of 0.82 BP Amoco American Depository Shares (ADS) for eachARCO share. BP Amoco’s shareholder meeting to vote on thecombination is scheduled for Wednesday in London. The combinationremains subject to the approval of regulatory authorities,including the US Federal Trade Commission (FTC) and the EuropeanCommission. The companies currently are working to close thetransaction later in the year.