Gas company demands $85 million from Arizona

Thursday, March 2, 2000 | 10:17 a.m.

Oneok Inc. filed its claim - often a predecessor of a lawsuit - on Monday that alleges Arizona Corporation Commission Chairman Carl Kunasek and aide Jerry Porter improperly helped scuttle Oneok's attempt to acquire Nevada-based Southwest Gas.

The claim contends Kunasek and Porter were seeking political revenge against Commissioner Jim Irvin and former commission executive secretary Jack Rose.

Porter called the allegations baseless. Kunasek declined to comment.

The Tulsa-based company alleges Kunasek and Porter gave misleading information to another bidder, Austin-based Southern Union Co., in order to embarrass Irvin and Rose.

Southern Union has filed a $750 million lawsuit again Irvin, Rose, Oneok and Las Vegas-based Southwest Gas. The suit and a criminal investigation remain pending.

Oneok contends Kunasek posed accusatory questions to Oneok that contribution helped lead commission staff to recommend rejection of the merger.

Oneok withdrew its $912 million bid on Jan. 21, citing concern over stockholder liability. Southwest in turn sued Oneok, alleging Oneok used Irvin and Rose to induce Southwest to accept Oneok's offer over a higher one from Southern Union.

Oneok's claim says the company will accept $85 million as a settlement but that hits actual cost resulting from the failed merger attempt is much greater.