Western Gas Resources announces inaccuracies in price reporting

Western Gas Resources Inc., Denver, said it has learned that certain marketing employees furnished inaccurate information regarding natural gas transactions to energy publications reporting index prices.

Oct. 3, 2003

By OGJ editors
HOUSTON, Oct. 3 -- Western Gas Resources Inc., Denver, said it has learned that certain marketing employees furnished inaccurate information regarding natural gas transactions to energy publications reporting index prices.

The company has discontinued reporting price information to industry publications. The inaccuracies were discovered during a review of marketing activities in response to a subpoena issued by the Commodity Futures Trading Commission (CFTC).

Western Gas said the gas transactions in question primarily were related to points in Texas, and that its review of this continues.

Western Gas was one of many energy industry participants who routinely provided trade information to industry publications; consequently, Western Gas cannot determine whether the inaccurate data had any impact on the published indices.

CFTC has announced settlements with four companies over attempted price manipulation. They are Calgary-based EnCana Corp.; Williams Cos. Inc., Tulsa, El Paso Corp., Houston; and Dynegy Inc., Houston (OGJ, Aug. 11, 2003, p. 42).

In a submission to a US federal judge, the CFTC identified Western Gas and 17 other energy companies being investigated for reporting false gas prices to energy publishers. Publishers use price quotes to calculate indexes used for gas contracts.