Reduce

In an effort to reduce U.S. dependence on foreign oil, Sen. KayBailey Hutchison (R-TX) introduced legislation last week that wouldoffer tax credits to domestic producers of marginal oil and naturalgas wells. Although the credits would not become effective untilthe prices of oil and gas fell significantly, they would provide asort of financial safety net to encourage marginal well producersto reopen shut-in wells in the face of a volatile market.

In an attempt to reduce U.S. dependence on foreign oil, Sen. KayBailey Hutchison (R-TX) introduced legislation yesterday that wouldoffer tax credits to domestic producers of marginal oil and naturalgas wells. Although the credits would not become effective untilthe prices of oil and gas fell significantly, they would providesecurity for marginal well producers facing market uncertainty.

Citing a need to prepare for competitive environments, CinergyCorp. announced steps to reduce the size of its corporate centerlast week.

Traders hoping for unsubscribed El Paso capacity to reduceprices at the Southern California Border will be sorelydisappointed because of last week’s announcement that an unnamedshipper signed for 1.2 Bcf/d. The southwestern pipeline said itrecontracted all of its available firm capacity for a minimum of$37.5 million in revenues for 2000. The amount reflects an increaseof 7% over the annual average revenues generated from the Dynegydeal over the past two years. Dynegy paid $70 million for 1.3Bcf/d.

FERC Chairman James J. Hoecker announced last week that staffhas developed new timelines that could reduce the litigation timeby one-third for cases set for hearing before the Commission’sadministrative law judges (ALJ). The new timelines take effectimmediately, and apply to new cases and any pending cases thathaven’t had a procedural schedule set by a presiding judge.

Analyzing and following industry “best practices” can helponshore gas producers reduce operating costs and achieve greateroperating efficiency. Two studies recently completed by Ziff EnergyGroup suggest producers in South Texas and the Midcontinent can dowell by turning to their peers for advice.

FERC Chairman James J. Hoecker announced yesterday that staffhas developed new timelines that could reduce the litigation timeby one-third for cases set for hearing before the Commission’sadministrative law judges (ALJ). The new timelines take effectimmediately, and apply to new cases and any pending cases thathaven’t had a procedural schedule set by a presiding judge.

Cross Timbers Oil Co. executed a series of acquisitions, salesand closings last week in an attempt to tidy its portfolio andreduce debt. Through all the activity, the Texas-based producergained full control of Oklahoma City-based Spring Holdings Co. andclosed a previously announced $231 million deal with Ocean Energy.Cross Timbers said the net result of all this activity was anincreased reserve base, without deviation from its debt reductionplan.

In a move to improve organization and reduce overlap, AquilaEnergy laid off all 34 members of its industrial gas sales team.Their work will be picked up by Aquila’s commercial gas sales team,located in Columbus, OH.