Supply

Tax Notice Leads to Fraud Investigation

The investigation that led the Natural Gas Supply Association(NGSA), to accuse its president of misappropriating funds wassparked by a bill from the Internal Revenue Service, requiring aconsultant to pay taxes on income he never received for services henever provided to NGSA.

February 22, 1999

NGSA’s Bush Accused of Misappropriating $2 Million

The Natural Gas Supply Association (NGSA), which represents thenation’s major gas producers, earlier this week placed itspresident, Nicholas J. Bush, on administrative leave without pay inthe wake of an investigation and a subsequent civil lawsuitaccusing him of misappropriating more than $2 million from thegroup since the late 1980s. The D.C. Superior Court, where the suitwas filed, has issued a temporary restraining order against Bushand has continued the case until Feb. 26 [Docket No. 001028-99].

February 19, 1999

Powder River Potential Draws New Gathering Consortium

The tremendous supply potential of the Powder River Basin inMontana and Wyoming has attracted a new consortium of energycompanies with plans to build a large gas gathering system. CMSEnergy, Enron Capital &amp Trade Resources, Western Gas Resourcesand CIG Resources announced they have formed Fort Union GasGathering, L.L.C. to build a $43 million, 106-mile, 24-inchgathering header from Glenrock, WY, north to a point near Gillette,WY. A gas treating facility also will be installed at Glenrock.

December 28, 1998

Houston Industries Wholesale Group Supplies LGS

Houston Industries Wholesale Energy Group, an affiliate ofHouston Lighting & Power, has signed a 10-year contract tosupply up to 50 Bcf to LGS Natural Gas, an affiliate of LouisianaGas Service Co., the largest distributor in the state.

December 18, 1998

GRI Study Optimistic on Future Supply

A newly released Gas Research Institute study examining theshift in perceptions of the U.S. gas resource base, titled”Changing Perceptions Of Remaining U.S. Conventional GasResources,” discusses how the move — from the shortage mentalityof the 1970s to today’s view that gas is abundantly available –has resulted from an interplay of factors. Factors discussedinclude increased exploration success rates in frontier plays,improved gas well recoveries and continued reserve appreciationactivity in existing fields. GRI, with Energy and EnvironmentalAnalysis Inc. of Arlington, VA, developed the study.

October 26, 1998

TransCanada Inks Its Largest Asset Management Deal

Last week’s agreement by Semco Energy Gas Co. to a three-yeardeal with TransCanada PipeLines Ltd. for management of its gassupply gives TransCanada its largest asset management relationshipto date. Semco also will buy the majority of its gas supplies fromTransCanada for the three years of the agreement, which iseffective April 1, 1999.

October 12, 1998

Semco Makes Asset Management Deal With TransCanada

Semco Energy Gas Co. signed of a three-year agreement withTransCanada PipeLines Ltd. for management of its gas supply. Thecompany also will buy the majority of its gas supplies fromTransCanada for the three years of the agreement, which iseffective April 1, 1999.

October 9, 1998

Storm Apprehension Leads to Futures Unchanged

Normally natural gas futures are influenced by a hodgepodge offactors: storage, technicals, support, resistance, supply anddemand. Of course last week was anything but normal as a hurricanewhich the market has not seen the likes of since Andrew, wasbearing down on the Gulf of Mexico leaving a wide swath ofdestruction in its wake. Now the question to be answered is whetherHurricane Georges (pronounced ZHORZH) will not only live in theminds of residents of Florida and the Carribean Islands, but alsoin the memories of natural gas traders. That was still a very murkyquestion as of Friday. One thing was becoming evident late lastweek: October’s expiration today will be anything but normal. But,despite the continued threat of storm, the October actually slipped0.2 cents to settle at $2.181 on Friday.

September 28, 1998

NICOR Taps GE for Microturbines

NICOR and GE Power Systems signed a memorandum of understanding,calling for GE to supply NICOR with GE-Elliott Energy Systems (EES)turbo alternators for sale to customers in the midwestern UnitedStates.

September 24, 1998

Calpine Expands California Power Plant, Gas Network

A new nonutility natural gas supply network and someenvironmental concessions to local agricultural interests are twonew twists to a major 500 MW merchant natural gas-fired power plantproposed for northern California in proximity to the SacramentoValley gas fields. As a result, the project sponsor, CalpineCorp., has agreed to invest an additional $20-$25 million in theestimated $300 million project to use a more environmentally benignair cooling system at the plant instead of the traditionalwater-based evaporative cooling approach.

September 21, 1998