Urged

The Federal Energy Regulatory Commission could go a long waytoward increasing liquidity in the pipeline transportation marketby combining capacity release and pipeline interruptibletransportation under one set of rules, according to the head of thelargest electronic gas and power trading system.

Sen. Frank Murkowski (R-AK) last week urged the Clintonadministration not to intervene in the domestic crude oil market toreduce rising prices. The chairman of the Senate Energy and NaturalResources Committee was especially concerned about reports that theadministration was considering tapping into the Strategic PetroleumReserve (SPR) to bring down prices.

While Congress played political football with draft electricrestructuring legislation, natural gas pipelines urged legislatorsto take a page from the history of natural gas deregulation andgive FERC enough authority to effectively oversee the nationalelectric grid.

While Congress played political football with draft electricrestructuring legislation, natural gas pipelines urged legislatorsto take a page from the history of natural gas deregulation andgive FERC enough authority to effectively oversee the nationalelectric grid.

Southern California Edison called on FERC last week to approve”without condition or modification” an agreement under which ElPaso Natural Gas would pay the California electric utility $32million and make other concessions to forestall the collapse of its1996 capacity-turnback settlement. The deal, if approved by FERC,would put an end to a four-year legal battle by Edison, the only ElPaso customer to object to the settlement in its entirety. It also”clears the way” for Commission approval of the settlement.

The board of directors for the London-based International Petroleum Exchange urged its members last Wednesday to accept a buy-out offer from five outside investors including British Gas, Distrigas, Enron, Nord Pool and OM Group, rather than accept a proposed merger bid from the New York Mercantile Exchange. The 475 members of the IPE will vote on the sale at an extraordinary general meeting held on July 30. The board threatened to resign if the outside investor sale failed.

The board of directors for the London-based InternationalPetroleum Exchange urged its members Wednesday to accept a buy-outoffer from five outside investors rather than accept a proposedmerger bid from the New York Mercantile Exchange. The 475 membersof the IPE will vote on the sale at an extraordinary generalmeeting held on July 30. The board threatened to resign if theoutside investor sale failed.

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.

In a letter to U.S. Interior Secretary Bruce Babbitt this weekSen. Dianne Feinstein (D-CA) urged Interior’s Minerals ManagementService to shutdown exploration on 40 offshore California leases,for which producers paid $1.25 billion initially.