OTHER NEWS - May 24, 1996

NGC, Chevron Sign Final Pact to Merge Units: The deal to combine their natural gas operations would make NGC the largest natural gas and natural gas liquids wholesaler in North America. Under its terms, Houston-based NGC Corp. would pay $300 million in cash and notes and issue Chevron Corp. 38.6 million new common shares and 7.8 million preferred shares. Based on NGC’s closing stock price on Wednesday, the shares would be worth $713.4 million. After the merger, expected to be completed in the third quarter, San Francisco-based Chevron would hold a 25% stake in NGC. British Gas and Canada-based Nova Corp., which each previously held a third of the company, agreed to reduce their stakes to 25% to make room for Chevron. NGC’s shares rose 50 cents to $15.875 and Chevron’s shares fell 12.5 cents to $61.75. Both trade on the New York Stock Exchange.