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The departure of one large gas storage company, Bismark,ND-based Williston Basin, from the American Gas Association’sstorage survey last week, both shocked and puzzled industryobservers. Williston, one of the largest gas storage operators inthe western region, if not the largest, with 193 Bcf of working gascapacity, wouldn’t say why it was exiting the survey. AGA said itwas told the company was cutting costs by reducing time spentreporting storage information to numerous surveyors, not just AGA.

Texas Utilities said talks with Britain’s The Energy Group continue despite the announcement earlier this month that PacifiCorp increased its bid for the firm by 10% to $12.62/share, including the assumption of $4.1 billion in Energy Group debt. PacifiCorp’s offer is valued at $10.2 billion. TU said it will pursue The Energy Group “in full recognition of the regulatory approvals that it may require in order to make such an offer and that any such offer would need to compare favorably with PacifiCorp’s renewed offer which expires March 9, 1998, unless extended.” TU has one less opponent, however. The Japanese banking firm Nomura announced last week it is no longer pursuing a merger with The Energy Group. PacifiCorp also welcomed the news.

Spot wellhead prices are expected to lose some of the strengthexhibited earlier this month and average at or below $2/MMBtu forFebruary, according to industry analysts at PaineWebber, andWashington DC-based Energy Security Analysis Inc. (ESAI).

If you thought the StarWars missile defense system had nothing to do with natural gas, think again. The Gas Research Institute, the U.S. Air Force, the U.S. Army and the Colorado School of Mines are teaming up to determine if StarWars laser technology could “revolutionize” how natural gas wells are drilled.

Tennessee Gas Pipeline has filed plans to increase capacity onsix separate lines in the Gulf of Mexico that together, wouldrepresent an increase of over 720 MMcf/d in offshore line capacityowned by Tennessee and other parties.

Offshore Energy Development Corp. (OEDC) faces a class action onbehalf of shareholders alleging the company misrepresented itsperformance to investors and certain officials participated ininsider trading.

El Paso Energy’s Tennessee Gas Pipeline Company is holdingparallel binding open seasons running through late March for theEastern Express Project 2000. The two separate open seasons willcover emerging power generation and other growth markets in NewEngland, the New York City area, and the Ellisburg/Leidy storagearea. Shippers will be asked to submit bids and execute bindingprecedent agreements for receipts in New England, which closesMarch 24, and for receipts in the Gulf Coast, Chicago, NiagaraFalls, and Ellisburg/Leidy storage areas, which closes March 31.

CMS Marketing, Services and Trading, a unit of CMS Energy, madeits first foray into Canada by acquiring 50% ownership of Canadiangas marketer PremStar Energy Canada Ltd., which will provide energyprocurement and management services throughout Canada. “PremStarfirmly establishes CMS Marketing, Services and Trading in the toptier of Canada’s energy service providers,” said William W.Schivley, CMS-MST chief operating officer. “This joint venturecombines the financial strength and U.S. energy operations of CMSwith PremStar’s strong Canadian presence to grow our customer basein North America. This is especially strategic as we move toward anopen, restructured North American energy market of the future.”

ANR Pipeline Company’s long-standing rate settlement won approval from the Federal Energy Regulatory Commission last week, but without FTS-3 short-term service rates, and without the Commission agreeing to lift the “at-risk” condition on several projects, as the pipeline had hoped it would.