UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
In the Matter of
FOURTH
NATIONAL FUEL GAS COMPANY CERTIFICATE
HORIZON ENERGY DEVELOPMENT, INC. PURSUANT TO
RULE 24
File No. 70-8649
(Public Utility Holding Company Act of 1935)
THIS IS TO CERTIFY, pursuant to Rule 24, that certain filing
requirements proposed by National Fuel Gas Company ("National") and its
subsidiary, Horizon Energy Development, Inc. ("Horizon") in Form U-1,
Application-Declaration, File No. 70-8649, as amended, have been carried out in
accordance with the terms and conditions of said Application-Declaration and the
Order of the Securities and Exchange Commission (the "Commission") (HCAR No.
35-26364 dated August 29, 1995) with respect thereto, in that, the following
information for the quarter ended June 30, 1996 is herein provided:
1a) Horizon's balance sheet at June 30, 1996 is attached as Exhibit 1.
1b) National's balance sheet at June 30, 1996 is included in
National's Form 10Q for the third quarter of fiscal 1996 which
was filed with the Commission on August 9, 1996 and is
incorporated herein by reference.
2a) Horizon's income statement for the quarter ended June 30, 1996
is attached as Exhibit 2.
2b) National's income statement for the quarter ended June 30, 1996
is included in National's Form 10Q for the third quarter of
fiscal 1996 which was filed with the Commission on August 9, 1996
and is incorporated herein by reference.
3) Recourse and non-recourse debt securities issued to third
parties by Intermediate Companies during the quarter ended June
30, 1996.
None.
4) A general description of the activities of the Applicants for
the period ended June 30, 1996 and of the projects in
which they or their subsidiary companies have an ownership
interest:
a) The Fauji Kabirwala Power Company Limited (FKPC) has
obtained a commitment from three lenders to provide the
financing necessary to construct, own and operate a 169
Megawatt (design capacity) combined cycle gas powered electric
generation plant near Kabirwala, Punjab Province in
east-central Pakistan (the "Project"). Horizon, through two
Intermediate Companies, would be an equity partner with the
Fauji Foundation of Pakistan and the Asian Development Bank in
FKPC, which will own the $170 million Project which is
proposed to be operated by Westinghouse International Services
Company pursuant to an operating agreement with FKPC. The
Fauji Foundation and Horizon's affiliate, Sceptre Power
Company, are joint developers of the project.
The Project would be financed with $127.5 million of
project-secured debt and $42.5 million equity. Horizon's
equity investment would be approximately $18 million.
One of the requirements of the several documents governing
the Project is for FKPC to obtain a $3.6 million letter of
credit ("LC") for the benefit of the Pakistan Water and Power
Development Authority. In order to induce ABFU-AMRO Bank N.V.
("Bank") to provide this LC, National Fuel Gas Company, on
5/30/96, provided a guarantee to the Bank of $1,734,840.
b) As of June 25, 1996, Horizon paid $1,612,500 (and will at
some time in the future pay a working capital adjustment in an
amount yet to be determined - said amount to be reported when
paid) for 100% of the capital stock of Beheer - En
Beleggingsmaatschappij Bruwabel, B.V. ("Bruwabel," a Dutch
corporation) to the corporations that sold Bruwabel to
Horizon: Power International Inc., an indirect subsidiary of
Cinergy Corporation, and Cinergy Investments Inc., a
subsidiary of Cinergy Corporation. Bruwabel owns 100% of the
ownership interests of Power International, s.r.o. ("PI," a
Czech corporation) and Power Development, s.r.o. ("PD," a
Czech corporation). PD owns 100% of the ownership interests of
Teplarna Kromeriz a.s. ("Kromeriz," a Czech corporation).
Bruwabel and its subsidiaries are primarily engaged in power
generation project development in Eastern Europe. Currently,
the only material asset of these companies is a district
heating system which sells steam heat to residential and
commercial customers in the city of Kromeriz, Czech Republic.
Horizon intends to carry out the plan of the previous owner to
convert this steam plant into a 35-50 MW cogeneration facility
which would sell electricity to the local electric
distribution company under an agreement currently being
negotiated. The Kromeriz district heating plant will continue
operating while Horizon continues the development of the
cogeneration expansion. It is anticipated that construction
will begin on the cogeneration expansion within one year.
Horizon will file for EWG or FUCO status in regard to the
Kromeriz project described above at the earliest appropriate
time.
5) Information on intercompany service transactions (including
those provided at cost and at market rates) involving affiliated
Intermediate Companies.
Neither Horizon or National engaged in any intercompany
service transactions with affiliate Intermediate Companies.
August 28, 1996 NATIONAL FUEL GAS COMPANY
By: /s/Philip C. Ackerman
Philip C. Ackerman
Senior Vice President
HORIZON ENERGY DEVELOPMENT,
INC.
By: /s/Bruce H. Hale
Bruce H. Hale
Vice President
Exhibit 1
HORIZON ENERGY DEVELOPMENT, INC.
BALANCE SHEET
At June 30, 1996
----------------
ASSETS
Current Assets:
Cash $76,164
Advance to Employees $1,200
----------
Total Current Assets $77,364
----------
Property, Plant & Equipment $69,832
Less: Reserve for DDA $0
----------
$69,832
----------
Other Assets $3,451,290
----------
Total Assets $3,598,486
==========
LIABILITIES AND STOCKHOLDERS EQUITY Capital Stock $1 Par:
Shares Authorized, Issued and Outstanding: 1,250 $1,250
Paid-in Capital $3,248,750
Retained Earnings ($4,875,408)
-----------
Total Stockholders Equity ($1,625,408)
-----------
Current and Accrued Liabilities:
Notes Payable - Intercompany $6,700,000
Accounts Payable $16,605
Accounts Payable - Intercompany $667,032
Other Accrued Liabilities $445,000
----------
Total Current and Accrued Liabilities $7,828,637
----------
Deferred Credits:
Accumulated Deferred Income Taxes ($2,616,431)
Other Deferred Credits $11,688
-----------
Total Deferred Credits ($2,604,743)
-----------
Total Liabilities and Stockholders Equity $3,598,486
===========
Exhibit 2
HORIZON ENERGY DEVELOPMENT, INC.
INCOME STATEMENT
Three Months Ended
June 30, 1996
-------------
Operating Expenses:
Operation Expense $2,268,981
-----------
Total Operating Expenses $2,268,981
-----------
Pretax Loss ($2,268,981)
-----------
Income Taxes ($792,950)
-----------
Loss Before Interest Charges ($1,476,031)
Interest Charges $43,223
-----------
Net Loss ($1,519,254)
===========
