South

Pioneer Natural Resources Co. of Dallas closed a $62.3 millionsale of South Texas gas properties to CNG Producing Co. Proceedswill retire bank debt. Pioneer also agreed to sell a West Texasproperty for $35 million to EnerQuest Oil & Gas of Midland, TX.The property is the last waterflood field operated by Pioneer.Selling the higher-cost field cuts Pioneer’s operating costs. Thetransaction is scheduled to close by the end of the third quarterwith a Jan. 1, 1999 effective date. Pioneer announced the propertysales in June. Pioneer property divestitures in Canada areprogressing as expected, and the company expects to close the lastof several Canadian deals this month. Pioneer has major operationsin the United States, Canada and Argentina.

FERC has decided to give Atlanta Gas Light (AGL) a short-termextension of waivers to Commission regulations to preserve the”status quo” of natural gas unbundling in the state while itexplores other non-waiver options for utilities.

NGPL reported experiencing an unexpected pipeline outageSaturday south of Station 304 on the Gulf Coast Mainline. Untilfurther notice NGPL is unable to flow volumes from six receiptpoints in Panola County, TX.

American Electric Power and Central and South West Corp. reacheda settlement with FERC trial staff that resolves the market powerand rate issues relating to the pending merger of the twocompanies. Under terms of the settlement, AEP would transfer theoperation and control of its bulk transmission facilities locatedin Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and WestVirginia to a regional transmission organization (RTO). Thesettlement also covers rates for transmission services andancillary services and confirms, subject to FERC guidance oncertain elements, that the previously announced generationdivestiture program will satisfy the market power concerns of theFERC staff. Once the merger is completed, the new company will beserve 4.7 million electric customers in 11 states.

The Mexican Energy Regulatory Commission (CRE) awarded thelicense to build and operate a gas distribution system in the LaLaguna-Durango geographic zone in north-central Mexico toDistribuidora de Gas Natural de La Laguna-Durango S. de R.L. deC.V. (DGN), wholly owned by San Diego-based Sempra EnergyInternational.

The Oklahoma Corporation Commission (OCC) unanimously approvedthe proposed merger of American Electric Power Co. of Columbus, OH,and Dallas-based Central and South West Corp.

Effective May 1 until further notice, Tennessee will not acceptreceipt nominations at 20 meters on the Donna Line in South Texasor at 10 meters on the Kinder-Natchitoches (KN) Line in westernLouisiana as it prepares both lines to make them “piggable.” TheDonna and KN outages are scheduled to last until June 9 and June 1respectively. Delivery nominations will be allowed at theProvencal, Pitkin, Grant and J.R. Franks #1 meters on the KN Line.

Effective May 1 until further notice, Tennessee will not acceptreceipt nominations at 20 meters on the Donna Line in South Texasor at 10 meters on the Kinder-Natchitoches (KN) Line in westernLouisiana as it prepares both lines to make them “piggable.” TheDonna and KN outages are scheduled to last until June 9 and June 1respectively. Delivery nominations will be allowed at theProvencal, Pitkin, Grant and J.R. Franks #1 meters on the KN Line.

Florida Gas Transmission reported completion of lowering its30-inch mainline at Station 7.5 in South Louisiana ahead ofschedule and has commenced lowering the 24-inch mainline. This workis expected to limit St. Landry volumes to 910 MMcf/d-65 MMcf/dbelow maximum-through April 10.