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The Meeteetse wells were experiencing problems: they were not
flowing regularly, and there were problems transporting the
production from the field to the market. Accordingly, petitioner
took steps to improve its production in the Meeteetse field by
increasing the field compression to allow the gathering system to
take more gas through the transmission line that took it to
market. Petitioner made arrangements with the owner of the
gathering facility and a nearby market to sell its Meeteetse
production directly to that market. Petitioner also renegotiated
a new contract with Tennessee Gas Pipeline (a division of
Tenneco, Inc.) relating to the Meeteetse properties. Finally,
during 1995, petitioner drilled a new well in the Meeteetse
field.
Petitioner retained the Tri-Power properties located in the
Powder River Basin and acquired additional reserves in that
region. In addition petitioner acquired McAdams Roux, a high-
tech company, to assist in its exploration and development
efforts in that region. Petitioner also drilled a second well on
the Schoenfeld property, a Tri-Power property located in the
Deckers Prairie field. Finally, petitioner made efforts to
improve production in the troubled South Atlanta field.
Petitioner believed it could better produce and market the South
Atlanta production and attempted to takeover as the operator of
the South Atlanta wells. An audit ordered and paid for by
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