Rocky 2Q for Aquila Gas Pipeline, Sale Questionable

Aquila Gas Pipeline might be taken off the auction block inlight of depressed gas liquids prices and the fear a sale pricewon’t do justice to the company’s value. Indeed, the company’ssecond quarter results were something less than stellar. Net incomewas $1.4 million, down from $7 million in the second quarter of1997. This despite the fact gas throughput and marketed volumesaveraged a record 1.4 Bcf/d, compared to 1.2 Bcf/d in the secondquarter of last year. However, total system throughput was 446MMcf/d, compared to 534 MMcf/d in the second quarter of 1997. Anincrease in gas volumes marketed off system to 954 MMcf/d from 642MMcf/d in the second quarter of 1997 reflects the continuedincreased emphasis on marketing activities. Liquids productiondecreased to 25,000 barrels/d from 38,000 barrels/d 2Q 1997. Lowliquids prices were the reason for the decline.

August 5, 1998

FERC Begins Inquiry of OCS Regulation-Again

The FERC majority voted yesterday to once again submerge itselfinto the “familiar, yet very rocky waters” of pipeline regulationon the Outer Continental Shelf (OCS). Specifically, it initiated anotice of inquiry (NOI) into alternatives to the Commission’spresent method of exercising its jurisdiction over offshorepipelines.

May 28, 1998
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