Statement

Reliant Energy said its subsidiary Reliant Resources, Inc., whichincludes all of its unregulated energy operations, has filed aregistration statement with the Securities and Exchange Commission foran initial public offering of common stock. The IPO was announced inJuly as part of a corporate reorganization plan designed to separatethe company’s regulated and unregulated businesses into two publiclytraded companies (see Daily GPI, July28).

In a draft environment impact statement (EIS) released last week, FERC staff concluded the Guardian Pipeline would have “limited adverse environmental impact” and would be an acceptable action, with appropriate mitigating measures.

In a draft environment impact statement (EIS) releasedyesterday, FERC staff concluded the Guardian Pipeline would have”limited adverse environmental impact” and would be an acceptableaction, with appropriate mitigating measures.

El Paso Energy and The Coastal Corp. announced through a jointproxy statement mailed Friday that special meetings of stockholderswill be held May 5 in Houston to vote on the proposed combinationof the two companies. Stockholders of record on March 17 will beeligible to vote. The merger was announced Jan. 18.

In keeping with FERC’s recent policy statement on capacitypricing, Viking Gas Transmission has become the first pipeline toseek authority to charge higher incremental rates for previouslylower-priced capacity that becomes available on its system.

After having been told to drop dead by Texaco in a publicstatement released in June, Chevron now apparently is courtingPhillips Petroleum, a smaller prize but still a significantconsolation if accomplished. Reports surfaced over the weekend inthe British Sunday Times in London that Chevron was willing to paya 20% premium and that triggered a 5% spike in Phillips shareprices yesterday. The companies would neither confirm nor deny therumors, but Phillips shares closed up $2.81 yesterday at $56.56,well above its 52-week high. A 20% premium would put the purchaseprice near $17.2 billion. Chevron stock, meanwhile, took a slight88-cent dip yesterday to $92.12/share.

The Public Utility Commission of Ohio (PUCO) filed a statementwith the federal Securities and Exchange Commission (SEC)supporting the merger of Dominion Resources Inc. and ConsolidatedNatural Gas Co. The PUCO told the SEC that the agency wouldcontinue to exercise jurisdiction over the regulated activities ofThe East Ohio Gas Co., CNG’s gas distribution company in Ohio, andthat the merger would have no impact on its ability to protect theinterests of Ohio ratepayers. The PUCO’s approval is not needed,but the commission conducted a review at the request of East OhioGas.

Pioneer Natural Resources USA Inc. filed a preliminary proxystatement with the SEC regarding a proposed merger with the limitedpartners of 25 publicly-held Parker & Parsley limitedpartnerships. According to the plan, each partnership that approvesthe proposals will merge with Pioneer and their partnershipinterests will be converted into the right to receive cash. At thesame time, Pioneer also is offering to acquire 21 non-publiclimited partnerships and 13 privately-held employee partnershipsthrough mergers for cash. Pioneer is the sole or managing generalpartner of all of the partnerships. As a result of the mergers,Pioneer will acquire additional working interests in wellspredominantly located in the Spraberry field in the Permian Basinof West Texas. If approved, the mergers are expected to add twomillion barrels of oil equivalent production next year. The amountof cash Pioneer USA will pay for the partnership interests will bebased on the partnerships’ reserve value plus net working capital(less expenses and fees of the mergers) as of Sept. 30. Undercurrent Nymex futures strip prices, Pioneer estimates that its cashoffer would be $60 million. However, it also said it will consideroffers from third parties to purchase any partnership or itsassets. Persons interested in making an offer should contactTimothy L. Dove or Mark L. Withrow at (972) 444-9001 before Nov. 1.

Conoco Inc. filed a registration statement with the Securitiesand Exchange Commission (SEC) outlining a split-off plan fromDuPont that will establish Conoco as a fully independent company.The proposed split-off would be achieved through an exchange offerin which DuPont stockholders would be given an opportunity toexchange DuPont common stock for shares of Conoco Class B commonstock currently held by DuPont. The split-off is expected to becompleted in the third quarter. Last autumn, DuPont sold 30% ofConoco last October in the largest initial public offering in U.S.history. The IPO raised $4.4 billion and left DuPont with a 70%controlling interest in Houston-based producer.