15th cert. pursuant to rule 24
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
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In the Matter of
NATIONAL FUEL GAS COMPANY FIFTEENTH
NATIONAL FUEL GAS DISTRIBUTION CORPORATION CERTIFICATE
NATIONAL FUEL GAS SUPPLY CORPORATION PURSUANT TO
SENECA RESOURCES CORPORATION RULE 24
HIGHLAND FOREST RESOURCES, INC.
(F/K/A HIGHLAND LAND & MINERALS, INC.)
LEIDY HUB, INC.
DATA-TRACK ACCOUNT SERVICES, INC.
NATIONAL FUEL RESOURCES, INC.
HORIZON ENERGY DEVELOPMENT, INC.
SENECA INDEPENDENCE PIPELINE COMPANY
NIAGARA INDEPENDENCE MARKETING COMPANY
UPSTATE ENERGY INC. (F/K/A NIAGARA ENERGY TRADING INC.)
HORIZON POWER, INC. (F/K/A NFR POWER, INC.)
HORIZON ENERGY DEVELOPMENT B.V.
File No. 70-9153
(Public Utility Holding Company Act of 1935)
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THIS IS TO CERTIFY, pursuant to Rule 24, that certain transactions
proposed by National Fuel Gas Company ("National"), and its subsidiaries:
National Fuel Gas Distribution Corporation ("Distribution Corporation"),
National Fuel Gas Supply Corporation ("Supply Corporation"), Seneca Resources
Corporation ("Seneca"), Highland Forest Resources, Inc., formerly known as
Highland Land & Minerals, Inc., ("Highland") on its own behalf and as successor
by merger to Utility Constructors, Inc. ("UCI"), Leidy Hub, Inc. ("Leidy"),
Data-Track Account Services, Inc. ("Data-Track"), National Fuel Resources, Inc.
("NFR"), Horizon Energy Development, Inc. ("Horizon Energy"), Seneca
Independence Pipeline Company ("SIP"), Niagara Independence Marketing Company
("NIM"), Upstate Energy Inc., formerly known as Niagara Energy Trading Inc.,
("Upstate"), Horizon Power, Inc. formerly known as NFR Power, Inc. ("Power") and
Horizon Energy Development B.V. ("Horizon B.V.") (collectively, the
"Subsidiaries"), in their Application-Declaration on Form U-1, as amended,
("Application-Declaration") in SEC File No. 70-9153, have been carried out in
accordance with the terms and conditions, and for the purposes as represented by
said Application-Declaration, and the Order of the Securities and Exchange
Commission ("Commission") (HCAR No. 35-26847 dated March 20, 1998) with respect
thereto, as amended.
1. EXTERNAL FINANCING BY NFG
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BORROWING BY NATIONAL
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a. Short-term Debt
---------------
National borrowed funds by issuing commercial paper and/or short-term
notes (in all cases having maturities of no more than 270 days) to banks or
other financial institutions during the quarter ended September 30, 2001
("Quarter") as summarized below:
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At Beginning At End Maximum Level Minimum Level
of Quarter of Quarter of Such Short-term Debt Of Such Short-term Debt
$25,700,000 $25,900,000 $25,900,000 $24,700,000
b. Long-term securities
--------------------
(1) Long-Term Debt Securities; Preferred Stock
During the Quarter, National did not sell any long-term debt securities
(i.e. debt with maturities in excess of 270 days). National has no preferred
stock outstanding.
(2) Stock Issuance Plans
During the Quarter, National issued the following shares of common
stock through the following plans ("Stock Issuance Plans"):
Number of Number of Shares Exchanged as
Name Of Plan Shares Issued Consideration for Share Issuances
------------ ------------- ---------------------------------
Direct Stock Purchase and
DividendReinvestment Plan 86,737 N/A
Tax Deferred Savings 66,772 N/A
Plans [401(k)]
Retainer Policy for 1,680 N/A
Outside Directors
1997 Award & Option Plan 4,500 -0-
1993 Award & Option Plan 45,644 5,558
1984 Stock Plan -0- -0-
1983 Incentive Stock
Option Plan 7,854 2,312
Total Number of 213,187 7,870
Shares Issued/Exchanged
Net New Shares 205,317
Aggregate gross consideration received upon issuance of 205,317 shares:
$4,695,561.02.
Effective November 1, 1999, National combined its former Customer Stock
Purchase, and Dividend Reinvestment and Stock Purchase Plans into a new plan
known as the National Fuel Direct Stock Purchase and Dividend Reinvestment Plan.
The purpose of is to promote the long-term ownership of National's common stock
by allowing for the purchase thereof directly from National, through cash
purchases and through reinvestment of cash dividends.
The purpose of National's two Tax-Deferred Savings Plans is to
encourage certain employees of National and of its Subsidiaries to provide for
their retirement needs by providing opportunities for long-term capital
accumulation, to promote ownership of National's common stock among certain
employees, to provide an attractive employee benefit, and to keep National's
employee benefit program competitive with programs offered by other
corporations.
The purpose of National's Retainer Policy for outside directors is to
pay outside directors a portion of their annual retainer in common stock of
National. This promotes the long-term ownership of National's common stock by
outside directors.
National adopted its four award and option plans in order to attract,
retain and motivate key employees of outstanding ability. These plans were
intended to provide an incentive to key employees to maximize the long-range
profits, revenues, and financial integrity of National by increasing the
personal stake of those employees in the continued success and growth of
National, and by providing significant incentives to their continuation of
employment at National and its Subsidiaries.
During the Quarter, the Compensation Committee of the Board of
Directors of National did not award any stock appreciation rights, stock options
or shares of restricted stock.
(3) Compliance With Parameters Concerning Long-Term Securities
During the Quarter, all long-term debt of National had bond ratings of
"investment grade", and National's common equity (as reflected in its Form 10-K)
did not fall below 30% of National's consolidated capitalization.
c. Hedging Transactions
--------------------
During the Quarter, National did not enter into any hedges or other
derivative transactions as contemplated by the Application-Declaration either
pursuant to a Hedge Program or an Anticipatory Hedge Program.
d. Other Securities
----------------
During the Quarter, National did not issue other types of securities
("Other Securities").
2. MONEY POOL
----------
During the Quarter, National coordinated the borrowing requirements of
Subsidiaries through the system money pool ("Money Pool"). Money Pool activities
included:
a. National sold commercial paper during the Quarter, through
Merrill Lynch Money Markets, Inc., J.P. Morgan Securities Inc. and/or Goldman,
Sachs & Co. The proceeds thereof which were not needed for National's own
corporate purposes were loaned by National to certain Subsidiaries that borrowed
either directly or through the Money Pool during the Quarter.
Commercial Paper Outstanding
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Maximum Amount Minimum Amount
At Beginning At End Outstanding During Outstanding During
of Quarter of Quarter Quarter Quarter
---------- ---------- ------- -------
$196,000,000 $200,000,000 $200,000,000 $144,600,000
b. National issued short-term notes to banks or other financial
institutions during the Quarter. The proceeds thereof which were not needed for
National's own corporate purposes were loaned by National to certain
Subsidiaries that borrowed either directly or through the Money Pool during the
Quarter.
National's External Bank/Financial Institution Borrowings Outstanding
(Money Pool)
---------------------------------------------------------------------
Maximum Amount Minimum Amount
At Beginning At End Outstanding During Outstanding During
of Quarter of Quarter Quarter Quarter
$209,700,000 $234,000,000 $260,100,000 $191,600,000
c. The maximum aggregate amount of external short-term debt
borrowed by National (for its own use and for the Money Pool) at any time during
the Quarter was $443,000,000, and the maximum aggregate amount that National and
its Subsidiaries lent to other Subsidiaries participating in the Money Pool at
any time during the Quarter was $507,500,000.
d. The following table lists cash balances that National and
certain Subsidiaries (i.e., Subsidiaries with surplus funds) loaned to other
Subsidiaries that borrowed through the Money Pool during the Quarter:
Cash Balances Loaned Through the Money Pool
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At Beginning At End
of Quarter Of Quarter Maximum Minimum
National $28,500,000 $32,000,000 $32,000,000 $26,900,000
Distribution 0 0 0 0
Supply 0 0 0 0
Seneca 30,100,000 30,300,000 33,000,000 30,100,000
Highland 0 0 0 0
Leidy 800,000 800,000 800,000 800,000
Data-Track 700,000 700,000 700,000 700,000
NFR 0 0 500,000 0
Horizon Energy 1,300,000 800,000 1,300,000 0
SIP 0 0 0 0
NIM 0 0 0 0
Upstate 0 0 0 0
Power 0 0 0 0
e. The following table lists cash balances that certain
Subsidiaries borrowed through the Money Pool during the Quarter. National does
not borrow from its Subsidiaries through the Money Pool or otherwise. In
addition, neither Horizon Energy nor Power borrow from the Money Pool.
Borrowings from the Money Pool
------------------------------------------------------
At Beginning At End Maximum Minimum
of Quarter of Quarter Borrowed Borrowed
Distribution $ 35,000,000 $ 74,600,000 $ 75,300,000 $ 6,100,000
Supply 39,900,000 33,400,000 46,900,000 31,100,000
Seneca 310,300,000 291,900,000 333,300,000 291,900,000
Highland 57,900,000 62,900,000 63,100,000 57,900,000
Leidy 0 0 0 0
Data-Track 0 0 0 0
NFR 11,000,000 19,000,000 21,300,000 0
SIP 13,000,000 13,200,000 13,400,000 13,000,000
NIM 0 0 0 0
Upstate 0 3,600,000 4,400,000 0
3. USE OF PROCEEDS
---------------
National has used the proceeds of the aforementioned issuances of
short-term debt, and the borrowing Subsidiaries have used the proceeds of their
Money Pool borrowings, for acquisitions, capital expenditures, working capital
needs, for the retirement or redemption of securities, or for other general
corporate purposes.
4. EXTERNAL FINANCING BY DISTRIBUTION
----------------------------------
During the Quarter, Distribution did not engage in external financing.
5. FINANCING ENTITIES
------------------
During the Quarter, National and its nonutility Subsidiaries did not
organize new corporations, trusts, partnerships or other entities created for
the purpose of facilitating financing.
6. GUARANTEES BY NATIONAL
----------------------
During the Quarter, National made guarantees on behalf of its
Subsidiaries in the aggregate amount of $15,000,000. The maximum amount of
guarantees or credit support that National had outstanding to its Subsidiaries
at any time during the quarter was $564,160,000.
All guarantees relate to gas transportation, purchases or sales, or
other credit support agreements relating to the Subsidiaries' existing
businesses.
7. ACQUISITIONS OF EWGS, FUCOS AND RULE 58 COMPANIES
-------------------------------------------------
During the Quarter, neither National nor any of its Subsidiaries made
any investments in entities that had been designated as exempt wholesale
generators (EWGs) (except for Power's ongoing development activities in
accordance with its EWG status) or foreign utility companies (FUCOs), and
neither National or any of its Subsidiaries made any investments in
energy-related companies and gas-related companies under Rule 58 other than
loans reported herein or on National's Form U-6B-2 or Form U-9C-3 for the
Quarter.
The aggregate investment of National and its Subsidiaries in EWGs and
FUCOs does not exceed the limits set forth in the Commission's Rule 53.
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned companies have duly caused this Thirteenth Certificate
Pursuant to Rule 24 to be signed on their behalf by the undersigned thereunto
duly authorized.
NATIONAL FUEL GAS COMPANY
By: /s/ P. C. Ackerman
--------------------------------------------
P. C. Ackerman
President
NATIONAL FUEL GAS DISTRIBUTION
CORPORATION
By: /s/ D. F. Smith
-----------------------------------------
D. F. Smith
President
SENECA RESOURCES CORPORATION
By: /s/ J. A. Beck
-----------------------------------------
J. A. Beck
President
NATIONAL FUEL GAS SUPPLY CORPORATION
By: /s/ D. J. Seeley
-----------------------------------------
D. J. Seeley
President
NATIONAL FUEL RESOURCES, INC.
By: /s/ W. M. Petmecky
-----------------------------------------
W. M. Petmecky
Secretary/Treasurer
HORIZON ENERGY DEVELOPMENT, INC.
By: /s/ P. C. Ackerman
-----------------------------------------
P. C. Ackerman
President
HIGHLAND FOREST RESOURCES, INC.
By: /s/ J. A. Beck
-----------------------------------------
J. A. Beck
President
DATA-TRACK ACCOUNT SERVICES, INC.
By: /s/ P. C. Ackerman
-----------------------------------------
P. C. Ackerman
President
LEIDY HUB, INC.
By: /s/ W. E. DeForest
-----------------------------------------
W. E. DeForest
President
SENECA INDEPENDENCE PIPELINE COMPANY
By: /s/ W. E. DeForest
-----------------------------------------
W. E. DeForest
President, Secretary & Treasurer
NIAGARA INDEPENDENCE MARKETING COMPANY
By: /s/ T. L. Atkins
-----------------------------------------
T. L. Atkins
Treasurer
UPSTATE ENERGY INC.
By: /s/ T. L. Atkins
-----------------------------------------
T. L. Atkins
Treasurer
HORIZON POWER, INC.
By: /s/ B. H. Hale
-----------------------------------------
B. H. Hale
President
HORIZON ENERGY DEVELOPMENT B.V.
By: /s/ B. H. Hale
-----------------------------------------
B. H. Hale
Managing Director
Dated: November 29, 2001