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Show -"V .... zr-y-Js Hi'' A' Police Chief Ken Aikins put this new 1968 Ford police car into service last week. Aikins said that the new purchase is a police Pipeline Again Changing Hands But Expansion Seen Locally An agreement establishing $100 million as the price to be paid by Colorado Interstate Inter-state Gas Company for El Paso Natural Gas Company's equity in pipeline properties in the Pacific Northwest was 'reported last week to the Federal District Court for its special package, custom built, having a powerful interceptor engine. The red light has been omitted from the top of the car. approval. Under the proposed agree-ment, agree-ment, Colorado Interstate would not acquire El Paso's investment in two non-pipe-line properties, Pacific Northwest North-west Realty Corporation and Phillips Pacific Chemical Corporation. ' The District Court, in a tentative decision on June 21 selected Colorado Interstate over eight other applicants 'to purchase 1he Northwest properties, which El Paso Natural is diverting pursuant to a U. S. Supreme Court order. Negotiations between the two companies have been underway for the past 35 days. Under terms outlined by the District Court, the prop- erties will be transferred to a new company to be called Northwest Pipeline Corporation which will assume an appropriate am-'punt am-'punt of El Paso's bond and debenture debt originally estimated to be $170 million. According to Kelly Hill, 'general manager of the pipeline pipe-line company's compressor station south of Moab near 'LaSal Junction, stated Wednesday Wed-nesday that he did not expect ex-pect the management transfer trans-fer to affect the local operation. oper-ation. To the contrary, he said, projected new loads of natural gas coming into the line to serve an increasing demand in the Pacific Northwest North-west should require improvements improve-ments and increased responsibility respon-sibility for the southeastern Howard Boyd, chairman of the board of El Paso, and W. E. Mueller, president of Colorado Interstate, said the $100 million payment for El Paso's equity would be made in shares of preferred stock of Northwest Pipeline Corporation, Corp-oration, with an annual dividend div-idend rate of 6 per cent for the first five years and 5 per cent thereafter. The agreement provides that the preferred stock may be exchanged for Colorado Interstate common stock at the option of the holder five years after its issuance, on the basis of 1.75 shares of Colorado Interstate common stock for each $100 of the preferred stock. Under the agreement between be-tween the two companies, the preferred stock would contain provision for a purchase pur-chase fund and a sinking fund as well as appropriate anti-dSution and other protective pro-tective provisions. The preferred stock would be redeemable by Northwest Pipeline Corporation "at a time after it becomes exchangeable ex-changeable for Colorado Interstate In-terstate common stock," the two companies agreed. The redemption rights may not be exercised, however, unless un-less preceded by an offer by Colorado Interstate to exchange ex-change the preferred for Colorado Co-lorado Interstate common stock on terms at least as favorable as those that would prevail under the optional exchange. "Colorado Interstate and El Paso Natural are in substantial sub-stantial agreement with respect re-spect to the remaining provisions pro-visions of the preferred stock," the two companies said. The two companies reported report-ed to the Court that they applied ap-plied to the Internal Revenue Service on July 8 for a tax ruling on the proposed transaction, trans-action, and believe a ruling will be issued in the near future. They are preparing necessary applications to the Federal Power Commission to effectuate the transfer of the properties, they said, and have agreed in principal to restrictive provisions which would insulate Northwest Pipeline Corporation from any influence by El Paso Natural, or its officers, directors, dir-ectors, or large shareholders. The joint report said the two companies do not anticipate antici-pate any significant problems in complying with additional steps ordered by the Court, and requested permission to file documents relating to these matters on or before August 12. |
