A new Enron? "Two energy partnerships to create huge, new entity"

[salin]

Salin's comments: I just ran across this - too late to be lbn - but thought folks should read it - and we should learn a little bit about it. Look at the merger ... one of the companies sounds familiar - look at GulfTerra? It's El Paso! One of the companies, I believe, that got caught with a little price gouging in California's market induced (through manipulation) energy crisis.

About a half year or so ago, a number of us were speculating where the money from folks like Ken Lay might have gone... money that was quickly pulled out of the company in the months preceding its collapse. Not speculating where Lay or his money is (one would presume he is still very low profile)... but am wondering if there is anything of note in this merger. If nothing else - it almost sounds like a little merger back a whiles ago (but that merger created a much smaller company)... thought we should at least become aware of this entity... in case it merits watching in the future.

Two energy partnerships to create huge, new entity

By NELSON ANTOSH
Copyright 2003 Houston Chronicle

A pair of acquisition-minded, Houston-based midstream energy partnerships agreed to merge Monday in a $3.2 billion deal that will create the nation's second-largest such entity.

Enterprise Products Partners will merge with GulfTerra Energy Partners in a multistep deal that will take until the second half of 2004 to complete.

The result will be a publicly traded, master limited partnership, with the Enterprise Products name, exceeded in size only by Kinder Morgan Energy Partners, also Houston-based.

Many energy companies, especially pipeline companies, create such entities to buy assets and reap tax benefits.

----------- snip

"This was the first major master limited partnership merger in several years, but it will not be the last," said Bruce Bilger, a partner at the Vinson & Elkins law firm who was one of several lawyers who worked on the deal.

more: http://www.chron.com/cs/CDA/ssistory.mpl/business/2298620

Gee, I wonder who will do their accounting?

[salin]

1. GulfTerra - board

Board of Directors
The board will normally consist of between 6 and 11 members, although the board (pursuant to the organizational documents of the Company and the Partnership) may from time to time change its size to accommodate the partnership's needs. The current board consists of the following individuals:

Michael B. Bracy
H. Douglas Church
James H. Lytal
Robert G. Phillips
W. Matt Ralls
Kenneth L. Smalley

A number of these folks were serving during the time of the California energy manipulation.

[rucky]

2. It's the same shit with a different smell

cockroaches - all of them.

and if they go to prison one day like they rightfully deserve, they'll probably try to corner the shiv market.

[stevedeshazer]

3. I know where else the $$ went

Come on, your thread won't fly here anymore unless you hate Dean or Clark or {insert Democrat here} :-)

A huge scandal is brewing in Oregon over the sale of Enron-owned Portland General Electric, the largest privately-owned distributor of electric power in the Northwest. (Most NW customers are served by municipally-owned power companies or public utility districts.)

The former governor, Neil Goldschmidt, has been cut in on a deal to sell PGE to... (drum rollllll....) The Texas Pacific Group! For about $2.35 billion, which includes $1.1 billion of assumed debt.

Now, the part that really frosts me is that there was a local ballot measure here in Multnomah County (Portland plus some) that would have created a public utility district, which would have been able under Oregon and federal law able to completely take over PGE and replace it with a board of elected citizens. The employees would go along with new PUD at the same pay. Win, win for everyone...except...

The executives, consultants, and lawyers. They spent megabucks in advertising, and the vote went 73% against.

Two weeks later, they announced the sale to this new group.

Here's more on what's up now:

<snip>

Enron officials told the U.S. Securities and Exchange Commission this month that threatened additional federal oversight will only hamstring its bankruptcy proceeding--expected to be completed by the end of 2004.


In turn, an offer by a Texas-based company to purchase Enron subsidiary Portland General Electric Co. could be snarled if the utility and its parent are subject to the Public Utility Holding Company Act of 1935. The SEC is deciding whether Enron and PGE can bypass the act--designed to give the SEC authority in some activities between a holding company and its subsidiary utilities.

Oregon utility regulators voiced their support for the Enron proposal at the hearing.

"To be candid, the concern is that that registration would mean a lot of difficult, unanswered questions. ... A very serious concern is that it will disrupt and delay the processes that we've spent so much time on, and that we hope to complete in the next 12 months," Enron attorney William Lamb said in an audio recording of the Dec. 4 hearing obtained by The Business Journal.

http://portland.bizjournals.com/portland/stories/2003/12/15/story2.html

You hit a nerve again, one of my last remaining. By the way, anyone heard anything about Kenny Boy Lay lately?

[stevedeshazer]

4. kick

[Armstead]

5. Sounds like Enron 2

The sercond biggest utility company?

Thanks for posting this.