PRODUCERS REJECT A&S OFFER

Alberta producers last week rejected Alberta & Southern Gas Ltd.'s price proposal of an average $1.50 (U.S.)/MMBTU by a narrow margin, but it may not be dead yet. Producers may ask Alberta to agree to an extension to allow more contract talks. Current A&S wellhead purchase contracts, calling for $1.84/MMBTU, expired Aug. 1. A&S, Calgary, is the buying arm of Pacific Gas & Electric Co., San Francisco. A previous offer that averaged $1.40 (U.S.)/Mcf was rejected by 190 producers in the A&S

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