Transaction

Questar Pipeline bought Enron Overthrust Pipeline Co.’s 18%interest in the Overthrust Pipeline effective Jan. 1, 2000. Thetransaction gives Questar Pipeline a 72% interest in the 88-mile,36-inch-diameter pipeline, which runs from the Whitney Canyon area— north of Evanston, WY, — to Rock Springs, WY. QuestarPipeline designed and built the Overthrust Pipeline, and hasoperated it since its completion in October 1982. Other partnersare Natural Gas Pipeline Co. of America and Colorado Interstate GasCo. The Overthrust Pipeline is a segment of the 793-mileTrailblazer system, which runs from southwestern Wyoming toBeatrice, NE. “Increased ownership of the Overthrust Pipeline is anatural fit for us,” said Questar Pipeline President Nick Rose.”Its location in our service territory and proximity to ourfacilities and supply sources will enhance the services weprovide.”

Williams Gas Pipeline snagged Duke Energy’s 9.8% stake in theAlliance Pipeline partnership last week, bringing its totalinterest in Alliance to 14.6%. Transaction details, including shareand unit prices, were not disclosed.

ScottishPower and PacifiCorp received Nuclear RegulatoryCommission (NRC) approval of their merger. It is the final federalapproval needed to complete the transaction. NRC approval isrequired because PacifiCorp owns a 2.5 percent share in the TrojanNuclear Plant in Oregon. The plant has not operated for severalyears, and is in the process of being decommissioned. “With allfederal, and four of the six state approvals in place, we are wellon track to completing the merger by the end of the year,” saidPacifiCorp CEO-designate Alan Richardson.

Dynegy’s takeover of Illinova took a big step toward completionas shareholders for each company voted in favor of the transactionyesterday. Illinova’s vote of approval was announced during aspecial meeting at company headquarters in Decatur, IL, whileDynegy’s was held during a special shareholder meeting in Houston.

Shareholders of SCANA Corp. and Public Service Company of NorthCarolina approved a two-step merger transaction under which PSNCwill become a wholly owned subsidiary of SCANA. Shareholdersrepresenting about 76% of Scana’s outstanding shares and about 80%of PSNC’s outstanding shares approved the two proposals. The mergerstill requires state and federal regulatory approvals. Completionis anticipated during the second half of 1999.

AEP Resources Inc., a wholly owned subsidiary of AmericanElectric Power, completed the purchase of the midstream gasoperations of Equitable Resources Inc.

Atlantic Richfield (ARCO) and Mobil Exploration & ProducingU.S. yesterday announced that they closed an exchange transactionthat will allow ARCO subsidiary Vastar Resources to boost its gasproduction and reserve activity level in the Gulf of Mexico shelfby one third, and Mobil’s exploration and production arm tosignificantly increase its stake in California production. The dealclosed on Oct. 31st.

The two major electronic natural gas trading systems havestarted a price war, slashing transaction fees to zero at multiplelocations for the month of September. In late August, Altra EnergyTechnologies announced a “Streamline Inventory Reduction Sale,”reducing prices to 0.001 cent/MMBtu at all its major Louisiana andTexas locations and dropping fees to zero at all of its othertrading points. Soon after, QuickTrade countered by dropping feesto 0.001 cent/MMBtu for day trades at major Louisiana an Texaspoints and Chicago, and cutting costs to zero for day trades at theColumbia Gas pool and the Henry Hub.

Peoples Energy Services has purchased the Midwest portfolio ofKN Energy subsidiary mc2 for an undisclosed sum. The transactionincludes 8,000 gas contracts, inventories and related receivables,increasing PE Services’ customer base to more than 20,000 Chicagoarea businesses, the largest of any supplier in the Chicago market,the company said.