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Consumers Energy will expand its “Gas Customer Choice” retailprogram this April to 100,000 customers state-wide in Michigan,following a one-year pilot that allowed 500 customers in Bay Countyto pick another natural gas supplier. In all, 300,000 customerswill be given a choice of suppliers over the next three years.

Westinghouse reported last week that it had just built thelargest solid-oxide fuel cell (SOFC) generating system for a Dutchenergy distribution utility. The system, which runs on natural gas,is delivering 106 KW to the electric grid plus 80 KW of thermalpower to the area’s district heating system, according to thecompany. The unit is the first to integrate a natural gas reformerwithin the SOFC stack.

ONEOK Resources has signed a definitive agreement with OXY USAto purchase some of its natural gas and oil reserves including morethan 400 wells in Oklahoma and Kansas outside the Hugoton field forapproximately $135 million before adjustments. Net production isapproximately 30 MMcf/d and 400 b/d. The properties havelower-risk development potential for increased reserves. WhileONEOK’s previous reserve acquisitions have been concentrated inOklahoma, this purchase includes significant reserves in Kansaswhere ONEOK recently acquired Kansas Gas Service, an LDC servingtwo-thirds of the state. David Kyle, president and chief operatingofficer of ONEOK, Inc., said the acquisition will almost doubleONEOK’s oil and gas reserve base. The acquisition includes a gassweetening plant located in the Aledo Field in Oklahoma.

Prices for the last day of February were mostly softer Friday,but quotes for the Southwest basins, Rockies and intra-Albertareflected flatness. And Canadian exports into Northwest at Sumas,which had been languishing in the low to mid $1.10s at the start ofthe week, climbed to the $1.30 area. The big exception to Westernfirmness was a fall of about a dime at the Southern Californiaborder in wide-ranging numbers.

After a pause for consideration by one potential taker,TransCanada PipeLines, Canada’s second-biggest pool of natural gassupplies is again looking for new owners. Pan-Alberta Gas’president, Ross Weaver, confirmed, “we are still for sale.”

Prices continued to rise Thursday in trading for both lateFebruary and March. It was mostly a response to the screen’sbelated run-up Wednesday, sources said, but there was enoughblizzard-like weather spreading out from the Upper Plains region togive prices a little extra boost.

Halliburton Co. and Dresser Industries announced a $7.7 billionmerger agreement yesterday that will create the world’s largestdrilling and energy engineering company with combined 1997 revenuesof $16 billion and combined market capitalization of over $19billion. The firm, which will retain the Halliburton name will have100,000 employees worldwide. It will be based in Dallas, TX.

The controversy over the terms and conditions of the contractsgiving Natural Gas Clearinghouse a large bite of the westboundtransportation capacity on El Paso Natural Gas – capacity that wasdestined to be turned back to the pipeline at the end of last year- is expected to take center stage at FERC next week. Marketers andproducers say they plan to make a case that the contracts areanticompetitive and contain illegal negotiated terms andconditions, and are responsible for the run-up in transportationrates on El Paso’s system to the California border.

The Williams Companies Thursday said its shareholders and thoseof MAPCO approved measures necessary to complete Williams’non-taxable, stock-for-stock acquisition of MAPCO. Federal TradeCommission clearance is expected in time for a first-quarterclosing. Thursday, Williams shareholders approved a charteramendment to provide sufficient common shares and authorizedWilliams’ board of directors to issue stock to MAPCO shareholders.