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MMS Resists Putting Royalties at Risk in the Market

As House lawmakers touted the benefits of a royalty in-kind(RIK) program at the federal level, the Department of Interior lastweek dug its heels in deep in opposition to a new piece oflegislation that would completely overhaul the current system forcollecting oil and natural gas royalties in favor of an RIK scheme.

March 23, 1998

PSE&G, NRDC Announce Plan to Regulate Marketers

Public Service Electric &amp Gas of New Jersey and the NaturalResource Defense Council announced a joint agreement they hope willset the standard for electric utility restructuring. The planincludes monitoring energy marketers by requiring that theydisclose their energy portfolios to support “green energy” claims.[See related story on page 8.]

March 23, 1998

Questions Arise Over FERC’s Delay of LNG Project

Granite State Gas Transmission believes it’s “too soon to tell”whether the recent order on its proposed liquefied natural gas(LNG) tank signals that FERC is leaning toward more stringentrequirements for showing of market support by all new projects. Atthis point, it says it’s more focused on the narrower issue ofwhether the ruling may suggest the existence of a “double standard”- one for pipeline projects and another for non-pipeline projects,such as the LNG facility – for demonstrating market backing.

March 23, 1998

In Brief

CIG is holding an open season through April 6 to gauge customerinterest in a new interstate line between CIG’s existing westernterminus in Uintah County, UT, and an interconnection with PaiutePipeline near Elko, NV. The project would connect the growingmarket in northern Nevada to Canadian and Rocky Mountains supplies,CIG said. It would have interconnects, capable of both receipts anddeliveries, with CIG, Paiute, Northwest, Questar and Kern River.The line would pass through developing coalbed methane fields nearPrice, UT. Initial capacity would be up to 250,000 MMbtu/d. CIG istargeting an in-service date of Dec. 1, 2000. Call Ed Miller at(719) 520-4305, Tom Dobson at -4606 or Laine Lobban at -4344 forinformation.

March 23, 1998

House Legislative Option to Heat Up Restructuring Debate

The congressional debate over electricity restructuring so farhas focused on whether it should be handled as comprehensivelegislation or as piecemeal reform starting with the Public UtilityHolding Company Act (PUHCA), but a third option may be tossed intothe fray soon.

March 23, 1998

PERSONNEL BRIEFS

PG&ampE Corp. has selected Joseph P. Kearney, currently seniorvice president of PG&ampE Corp. and president and CEO of its U.S. Generating Company (USGen), to assume the additional responsibilityof president and CEO of PG&ampE Gas Transmission. Kearney, 52,succeeds Jack F. Jenkins-Stark who is leaving the company to pursueother interests.

March 23, 1998

Energy Council Against Fuel Mix Mandates; Favors LNG Project

The Energy Council last week unanimously adopted a policystatement stridently opposing congressional restructuring measuresthat would mandate states to use a specific fuel mix in thegeneration of electric power. It also said it was against federaltargets mandating the use of renewable energy sources to producepower.

March 23, 1998

Marketers Resist State Attempts to Label Power by Source

Although interest in enforceable, uniform standards for thedisclosure and labeling of power has grown during the past coupleof years, a top energy consultant believes the practices areunworkable, will cause serious legal hassles and ultimately will becounterproductive to the creation of a competitive electric market.

March 23, 1998

Marketers Spurn MI Residentials, Complain About Pilot

What if they had a customer choice pilot and nobody showed up?

March 23, 1998

Columbia Buys Canadian Properties; Supplies AK Steel

Columbia Natural Resources (CNR) expanded operations to easternCanada with the purchase of an interest in gas and oil wells andundeveloped property in Ontario. The US$3.6 million acquisitionfrom Paragon Petroleum of Calgary includes a 50% interest in 24wells and 100% of 5,000 acres of undeveloped property.

March 23, 1998