Columbia Energy Group’s (CG) board once again told NiSource, inno uncertain terms, to take a hike yesterday and urged CGshareholders to reject NiSource’s $68/share ($5.7 billion) hostiletakeover offer. NiSource took its offer to shareholders June 25 andsaid it will continue to fight for the deal. It had no tally ofshares tendered as of yesterday but said numbers would be availableby the weekend.
Articles from Terms
Columbia Energy President and CEO Oliver G. “Rick” Richard IIIsays proposals for seasonal ratemaking and negotiated terms andconditions are the most important of the reform initiatives pendingbefore FERC, and deserve priority. Obtaining regulatory approvalfor both will be a “key initiative” of pipelines this year.
Cabot Oil &Gas Corp. plans to acquire the onshore South Louisiana properties of Oryx Energy Co. for about $72 million. Under the terms of the agreement, Houston-based Cabot will purchase 10 fields (six operated, four non-operated) covering 34,345 net acres with 68 producing wells. The acquired producing assets are concentrated in three primary fields that each provide Cabot with a high working interest. These fields make up 80% of the value assigned to the transaction.
BC Gas said it thinks its Southern Crossing Pipeline is now a go since it reached agreement on terms with BC Hydro for firm capacity on the proposed pipeline and peak-shaving to be provided to BC Gas by BC Hydro. In April, the British Columbia Utilities Commission (BCUC) voted down the $350 million Southern Crossing Pipeline paralleling the existing BC Gas mainline in southern British Columbia between Yahk and Oliver (see NGI April 13, 1998). BC Gas re-filed Friday with the BCUC and announced another shipper in addition to BC Hydro.
BC Gas said it thinks its Southern Crossing Pipeline is now a gosince it reached agreement on terms with BC Hydro for firm capacity onthe proposed pipeline and peak-shaving to be provided to BC Gas by BCHydro. In April, the British Columbia Utilities Commission (BCUC)voted down the $350 million Southern Crossing Pipeline paralleling theexisting BC Gas mainline in southern British Columbia between Yahk andOliver (see Daily GPI April 8, 1998). BCGas plans to re-file today with the BCUC and said it has anothershipper in addition to BC Hydro.
Natural gas is second only to the newly established electricitymarket in terms of volatility, and Tuesday it did little to dispelthat notion as the market dipped momentarily, only to spikedramatically higher in the last 90 minutes of trading, leaving eventhe most weathered of bulls surprised by the advance. Octobersettled at $2.132, a 17.8-cent gain for the day and nearly ahalf-dollar above the $1.63 low established less than two weeksago. Estimated volume confirmed the active trading with over120,000 contracts changing hands.
Pool marketer Pan-Alberta Gas and a consortium of sevenproducing companies have reached agreement on the terms under whichthe marketing company will be offered for sale to the more than 435Canadian producers in the pool. The announcement of the agreementconfirmed earlier reports that a Canadian coalition was expected towin out over bids from major U.S. marketers.