Texas

Mitchell Energy & Development agreed to settle the lastremaining 25 North Texas groundwater lawsuits brought against acompany subsidiary. Plaintiffs alleged in the suits that Mitchell’soil and gas operations in Wise County, TX, affected theirgroundwater.

El Paso Energy’s Tennessee Gas Pipeline (TGP) plans a newinterconnect in Casey County, KY, to deliver an additional 200MMcf/d of gas into Texas Eastern Transmission (Tetco) to servemarkets in parts of Kentucky and southern Ohio. The interconnect isexpected to be in service by Nov. 1. Tennessee plans to acceptnominations at the new point for November 1998 gas flow.

CES/Way International was selected by Vandenberg Air Force Basein California and Goodfellow Air Force Base in Texas to provideenergy conservation measures that could yield nearly 20% savings onutility bills. The subsidiary of Sempra Energy Solutions of LosAngeles, is one of 11 energy services companies that werepre-qualified last year under the Department of Defense (DOD)program to implement energy conservation projects in 46 states,Washington, D.C., and Puerto Rico. With a total of up to $1.1billion in potential contracts, CES/Way and the other energycompanies can receive project awards of up to $150 million eachthrough the program. Among the other pre-qualifiers are Honeywell,Johnson Controls, Duke Energy, and Xenergy.

Pricing was “pretty much the same as it was yesterday,” said aSouth Texas producer Friday reporting flat numbers in the low$2.10s. Most points traded flat to 2-3 cents up or down, with a tadmore downside than upside. Several sources agreed it was a quietand essentially featureless market. A big aggregator called it”mostly a dead day; there seemed to be a lot of people out of theoffice.”

Hot weather in the producing states of Louisiana and Texas,along with the futures screen’s rising example, set the tone forcash price hikes of 2-3 cents to almost a dime Monday. One tradersaid supplies seemed a bit tight in the Gulf Coast and Midcontinentfor some reason, allowing that it might have been southern coolingdemand soaking up available gas.

Texas Eastern Transmission (Tetco) on Tuesday submitted to FERCan offer of settlement that it insists will save pipeline customersmore than $260 million over the next five to six years.