Southeast

Transco alerted shippers that some production possibly could beinterrupted today on the Southeast Louisiana Lateral. The U.S. ArmyCorps of Engineers is expected to take about eight hours tocomplete matting of the western bank of the Mississippi River.Transco said it will make every operational effort to keep thiswork from impacting production, but curtailments are possible ifunforeseen events lengthen the operation.

Fall River Gas Co., a small LDC serving 47,000 customers inSoutheast Massachusetts, announced last week it received an offerto be bought at a value of $23.50/share, but did not provide anymore details. The company said its board of directors was takingthe proposal under advisement and had formed a committee to reviewits options. If accepted at the announced price, the transactionwould be valued at $51.7 million.

EnergySouth Inc., a holding company for utility and storagecompanies in the Southeast, recently announced an expansion planfor the storage facilities of its subsidiary Bay Gas Storage Co.The plan calls for an additional salt cavern to be developed, whichwill increase the total working gas capacity of the site from 2.4Bcf to 6 Bcf. An open season will be held from July 15 until Aug.31 to help assess the final size and shape of the expansion.

EnergySouth Inc., a holding company for utility and storagecompanies in the Southeast, announced an expansion plan Friday forthe storage facilities of its subsidiary Bay Gas Storage Co. Theplan calls for an additional salt cavern to be developed, whichwill increase the total working gas capacity of the site from 2.4Bcf to 6 Bcf. An open season will be held from July 15 until Aug.31 to help assess the final size and shape of the expansion.

Sempra Energy Trading made a strategic alliance with MEGMarketing LLC to market energy and energy-related products andservices to municipalities, federal and state government entitiesand major corporations.

Williams’ Transcontinental Gas Pipe Line subsidiary filed anapplication with FERC last week for its SouthCoast expansionproject, which would add 204,099 Dth/d of firm transportationcapacity to serve new markets in Georgia and Alabama.

Snyder Oil Corp. of Fort Worth, TX, completed the sale of itsremaining 55% interest in the Southeast Piceance Project innorthwestern Colorado to Ballard Petroleum LLC in a cashtransaction worth $28.8 million. The Piceance Project representsless than 5% of Snyder’s third quarter 1998 production and isestimated to represent 7% of its 1998 proven year-end reserves.

Records for low temperatures were being set Tuesday from theMidwest into the Southeast, but it would have been difficult todiscern that from the broad-based retreat in cash prices. Tradersnoted a falling futures screen and factored in a warming trend thatwas expected to begin in the Midwest as early as Tuesday, then sentcash numbers down by a nickel or more at almost every point.

Mitchell Energy & Development agreed to pay $50 million foroil and gas producing properties in three separate transactions.