CMS Marketing, Services, & Trading (CMS-MST), the energy marketing and trading unit of Dearborn, Mich.-based CMS Energy Corp., reported that Tamela W. Pallas has resigned from her position as president and CEO of the unit.
The announcement follows confirmed reports that CMS-MST engaged in so-called "round trip" electricity trades involving the simultaneous sales and purchases with the same counterparties at the same price.
The CMS unit began the trading practice, which is legal, in May 2000 and ceased in mid-January. The transactions, CMS reported, did not result in any profit, loss, or cash flow for the company, but rather "had the effect of increasing trading volumes." Thirteen of the trades accounted for about 98% of the volume.
The CMS unit stopped such trades "after internally concluding that the cessation of such trades was in the company's best interests."
Pallas-who has headed CMS-MST since November 1999-was responsible for the organization during the period in which the round trip trading activity occurred.
In the meantime, David B. Geyer, vice-president and chief risk officer of CMS Enterprises, has been named interim president of CMS-MST.
In submitting her resignation, Pallas in a written statement "expressed regret over the controversy that has resulted from this trading activity" and that she thought her stepping down was "in the best interest of CMS Energy."
"These round trip trades are not consistent with the company's values and high standards of integrity," said Wil- liam T. McCormick Jr., CMS Energy chairman and CEO. McCormick added that the company remains "committed to ensuring that such practices are never repeated."
CMS Energy has stated that it is presently "cooperating fully" with the US Securities and Exchange Commission, which has asked the company to provide information in connection with an informal inquiry into the electricity deals.
Other moves
Apco Argentina Inc., Tulsa, has appointed a new chairman and CEO and president and chief operating officer following the resignation of Randy Bar- nard, who served as chairman, president, and CEO.
Ralph A. Hill has been named Apco chairman and CEO, and Thomas Bueno has been named president and chief operating officer. Prior to joining Apco, Hill served as senior vice-president and general manager of the exploration and production and petroleum services units of Williams Cos. Inc., Tulsa. Bueno formerly served as Apco's general manager, controller, and chief accounting officer.
Western Gas Resources Inc., Denver, has recently appointed several executive managers.
William J. Krysiak has been promoted to executive vice-president and chief financial officer. Krysiak will be responsible for WGR's corporate finance, accounting, and financial planning functions. Krysiak most recently served as chief financial officer. He joined WGR in 1985.
John F. Chandler has been promoted to executive vice-president, upstream and marketing. Chandler joined WGR in 1984, most recently serving as senior vice-president, marketing, production, and business development.
Edward A. Aabak has been promoted to executive vice-president, midstream. He joined WGR in 1993 and most recently was senior vice-president, operations.
Vance S. Blalock has been appointed to the position of vice-president, treasurer, responsible for the company's credit and cash management, debt compliance, information technology, and various other internal accounting functions. Blalock joined WGR in 1981, most recently serving as treasurer.
Separately, F.X. O'Keefe has joined WGR as exploration and acquisitions manager. O'Keefe will oversee a team responsible for identifying and capturing new growth opportunities in the Rocky Mountains. O'Keefe's career includes 20 years with BP PLC and predecessor Amoco Corp., including geoscience manager, technology director, and most recently as business unit leader, Alaska exploration.
