Coastal Corp and TransAmerican Natural Gas Corp have proposed settling more than four billion dlrs in lawsuits with an agreement for natural gas sales and transportation between the two Texas firms a lawyer for Coastal said. The proposed settlement also provided for Coastal to withdraw its reorganization plan in TransAmericans bankruptcy proceedings. Thomas McDade a lawyer for Coastal said the settlement included a five-year agreement for TransAmerican to transport up to 100 mln cubic feet of natural gas daily from south Texas fields to major pipeline interchanges. TransAmerican will also sell Coastal up to 125 mln cubic feet of gas at spot market prices during the next 10 years. McDade said Coastal would agree to support TransAmericans plan of reorganization pending in federal bankruptcy court. TransAmerican a Houston-based natural gas production and pipeline company had sued Coastal for 4.1 billion dlrs alleging that Coastal chairman Oscar Wyatt wrongly interfered with TransAmericans reorganization efforts. Coastal is one of TransAmericans unsecured creditors.
COASTAL <CGP>, TRANSAMERICAN SETTLE GAS DISPUTE