Reserved

Ruling that the case was not ripe for review yet, the D.C.Circuit Court of Appeals has denied challenges to FERC’s policystatement and subsequent orders that gave interstate gas pipelinespermission to enter into negotiated rates with their customers.

A property swap between an ARCO subsidiary and Mobil wouldresult in Houston-based Vastar Resources picking up 1999 Gulf ofMexico production estimated to be 180 MMcfe/d.

Temperatures that were 15.2% and 2.1% warmer than normal in thefirst and second quarters of the year, respectively, prompted theAmerican Gas Association to significantly scale back its gas demandforecast for the year. The association is projecting a 0.3% decline(0.1 quadrillion Btus -1 quad is roughly equivalent to 1 Tcf) ingas demand in 1998 to 22.6 quads in contrast to its Decemberforecast of 3.1% gas demand growth this year.

Dynegy CEO Chuck Watson attributed his company’s improved secondquarter performance to stronger margins in the wholesale gas andelectric businesses despite weaker margins in the company’s liquidsbusiness.

Koch Midstream Gathering and Processing and Duke Energy FieldServices signed a letter of intent to exchange gas gathering andprocessing systems in Texas, Mississippi, New Mexico, Alabama andOklahoma.

Of the 36,600 MW of new electric generating capacity underconstruction or planned in the U.S., more than 93% will be fueledby natural gas, according to a new analysis by Boulder, CO-basedResource Data International (RDI). And of the projects identified,about 90% do not yet have gas supply contracts.

SCANA Energy Marketing is expanding its presence in the westernUnited States through a joint venture with Intermarket Trading Co.The two companies formed SCANA Energy Trading LLC to market gas andother energy related services in the West. SCANA Energy TradingLLC, will be a subsidiary of SCANA Energy Marketing and will serveas the company’s marketing vehicle for energy management, gas andretail electric services in California and other western states.

Northern Border Partners LP reported a 15% increase in earningsper unit. Earnings improvement from the first half of 1997 wasattributed mainly to return on equity from investment in theChicago Project, an $839 million expansion and extension of theNorthern Border Pipeline system.

PG&E Energy Services signed a $5 million contract withPepsi-Cola General Bottlers Inc. to supply gas, energy management,and billing services to all of its Midwest manufacturing anddistribution centers.