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MIDWEST GAS AND MINNEGASCO SIGN LETTER OF INTENT

 DES MOINES, Nov. 16 ~PRNewswire~ -- Midwest Gas, a utility of Midwest Resources Inc. (NYSE: MWR), and Minnegasco, a division of Arkla Inc. (NYSE: ALG), have signed a letter of intent to exchange portions of their natural gas service territories.
 The exchange calls for Midwest Gas to receive Minnegasco's South Dakota service area, including Sioux Falls and Vermillion, while Minnegasco would acquire the Midwest Gas service area based in Coon Rapids, Minn., north of the Twin Cities. Midwest Gas will also receive a payment of $38 million.
 Headquartered in Sioux City, Iowa, Midwest Gas has over 76,000 customers and 94 full-time employees in Minnesota who will be affected by the agreement. Minnegasco, based in Minneapolis, has more than 44,000 customers and 80 full-time employees in South Dakota.
 According to Russell E. Christiansen, chairman and chief executive officer, the exchange provides a better "strategic fit" for both utilities' service areas.
 "This exchange will make Midwest Gas a significant natural gas supplier in South Dakota while consolidating its entire gas service territory into contiguous areas of Iowa, Nebraska and South Dakota," Christiansen said. He noted that Minnegasco will also be acquiring a service area "closer to home."
 Christiansen said the utilities expect to enter a definitive exchange agreement by mid-December. The exchange is subject to approval by utility regulatory authorities in South Dakota, Minnesota and Iowa.
 Midwest Resources is a utility holding company headquartered in Des Moines. The utility subsidiary, Midwest Power Systems Inc., has two operating divisions: Midwest Power and Midwest Gas. Midwest Power provides electric service to 412,000 customers in Iowa and South Dakota. Midwest Gas serves 363,000 customers in Iowa, Minnesota, Nebraska and South Dakota.
 -0- 11~16~92
 ~CONTACT: Peter Langlois of Midwest Resources, 712-277-7810~
 (MWR ALG)


CO: Midwest Resources Inc.; Midwest Gas; Minnegasco; Arkla Inc. ST: Iowa, South Dakota, Minnesota IN: OIL SU:

BB -- DV008 -- 1382 11~16~92 14:56 EST
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Publication:PR Newswire
Date:Nov 16, 1992
Words:318
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