Told

Natural Gas Pipeline Co. of America (NGPL) fears that corrective action ordered by FERC with respect to its auction practices, if construed improperly, could boomerang and potentially “nullify” the pipeline’s negotiated-rate authority and “aggravate” its decontracting problems.

Vastar Resources would appear to be taking a wait-and-see viewof next year’s gas prices. CEO Chuck Davidson told Houston energyreporters Tuesday that “not much” of the company’s gas productionis hedged next year. Indeed, Vastar generally doesn’t hedge morethan a year out and hedges less than 50% of its production.Davidson said the company also is using more collars rather thanhedges linked to a specific price.

Oneok Inc. CEO Larry Brummett told the Oklahoma CorporationCommission (OCC) that rumors and allegations about a 1993 gaspurchase contract may jeopardize the planned merger of Oneok andLas Vegas-based Southwest Gas.

Amoco Energy Trading, Amoco Producing and Burlington Resourcestold FERC last week in a Section 5 complaint that they are losingmillions of dollars because of El Paso Natural Gas’ poor firmdelivery point allocation procedures at Topock, AZ.

Amoco Energy Trading, Amoco Producing and Burlington Resourcestold FERC this week in a Section 5 complaint that they are losingmillions of dollars because of El Paso Natural Gas’ poor firmdelivery point allocation procedures at Topock, AZ.

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.

With 87% of its reserves in gas, Chesapeake Energy Corp. CEOAubrey McClendon said his company is “a natural gas company onpurpose.” McClendon told attendees at the PLS Dealmakers prospectconference in Houston Wednesday that both the supply and demandsides look very bright for gas producers, especially relative tooil.

Cinergy Corp. CEO James Rogers told analysts recently the company may exit the power supply business altogether, including nonregulated trading and marketing, and regulated sales, as a result of the huge losses suffered in the power market in July (see NGI, Aug. 9). Cinergy’s board intends to make a decision on the matter this fall. The company also plans to consider spinning off its generation business into a separate subsidiary.

Cinergy Corp. CEO James Rogers told analysts this week the companymay exit the power supply business altogether, including nonregulatedtrading and marketing, and regulated sales, as a result of the hugelosses suffered in the power market in July (see Daily GPI Aug. 9, Aug. 11). Cinergy’s board intends to make adecision on the matter this fall. The company also plans to considerspinning off its generation business into a separate subsidiary.