- 3 - I. Petitioner and Tri-Power Before the Acquisition A. Petitioner 1. Organization and Operations Petitioner was incorporated on November 30, 1983, as a wholly owned subsidiary of KN Energy, Inc. (KN Energy), a publicly traded company.1 Effective October 1, 1984, KN Energy assigned its ownership interests in substantially all of its then-remaining oil and natural gas producing properties to petitioner.2 On September 13, 1985, as the result of a spinoff, petitioner became an independent, publicly owned company. Stock 1 KN Energy, Inc. (KN Energy), was formed in 1936 as a pipeline company to purchase supplies of natural gas in the Otis field in central Kansas and deliver those supplies through a single transmission line to markets in northern Kansas and central Nebraska. 2 KN Energy had previously spun off a portion of its assets pursuant to a plan to thwart a 1983 takeover attempt. During 1983, KN Energy had two types of natural gas reserves, (1) "old" natural gas reserves (natural gas reserves associated with wells drilled before July 1, 1978), and (2) "new" natural gas reserves (natural gas reserves associated with wells drilled on or after July 1, 1978). As a defensive mechanism to the 1983 takeover attempt, KN Energy decided to spin off its oil and natural gas reserves. KN Energy accomplished the spinoff using two subsidiaries, Midlands Energy Co. (Midlands) and petitioner. The first spinoff took place on Dec. 13, 1983, after KN Energy transferred its new natural gas reserves and undeveloped properties to Midlands. The second spinoff was delayed because transfer of KN Energy's old natural gas reserves, which were subject to regulation by the Federal Energy Regulatory Commission (FERC), required FERC approval which had not yet been sought. On Jan. 29, 1985, FERC issued an order approving the Oct. 1, 1984, transfer of the remaining oil and old natural gas reserves to petitioner.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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