COASTAL <CGP>, TRANSAMERICAN SETTLE GAS DISPUTE
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 TransAmerican's 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 TransAmerican's
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 TransAmerican's reorganization efforts. Coastal is one of
TransAmerican's unsecured creditors.
 Reuter
