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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 27, 1995
APACHE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-4300 41-0747868
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification
Number)
2000 POST OAK BOULEVARD
SUITE 100
HOUSTON, TEXAS 77056-4400
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (713) 296-6000
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ITEM 5. OTHER EVENTS
NATURAL GAS MARKETING
On September 30, 1995, the contract of Apache Corporation ("Apache")
with Natural Gas Clearinghouse ("NGC") terminated and Apache began to market
all of its own natural gas, including the natural gas previously marketed by
NGC. The price at which Apache is marketing its natural gas is substantially
the same as was received from NGC.
On October 27, 1995, wholly-owned affiliates of Apache, Orxy Energy
Company and Parker & Parsley Petroleum Company formed Producers Energy
Marketing, LLC, a Delaware limited liability company ("ProEnergy"). Until
operations of ProEnergy are begun, Apache will continue to market its own
natural gas. Following inception of operations which is expected to occur in
the first quarter of 1996, ProEnergy will market substantially all of such
members' natural gas and natural gas liquids pursuant to member gas purchase
agreements having an initial term of ten years, subject to early termination
following specified events. The price of gas purchased by ProEnergy from its
members will be based upon agreed indexes. ProEnergy will also provide certain
contract administration and other services.
ProEnergy's limited liability company agreement provides that capital
funding obligations, allocations of profit and loss and voting rights be
calculated based upon the members' respective throughputs of natural gas sold
to ProEnergy. Members' liability with respect to future capital funding
obligations are subject to certain limitations. Natural gas throughputs will
be calculated, profit distributed, and/or capital called on a quarterly basis.
Apache is currently the holder of a majority interest in ProEnergy.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
APACHE CORPORATION
Date: November 1, 1995 /s/ Z. S. Kobiashvili
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Z. S. Kobiashvili
Vice President and General Counsel
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