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Panhandle Eastern Corp. Historical Records Edit

Summary

Identifier
MS 500, part 1 of 2
Finding Aid Author
Philip Montgomery
Finding Aid Date
2005
Description Rules
Describing Archives: A Content Standard
Language of Description
English
Finding Aid Note
Stored off-site at the Library Service Center. Please request this material via woodson@rice.edu or call 713-348-2586.

Dates

  • 1927-1997 (Creation)

Extents

  • 120 Cubic Feet (Whole)

Agent Links

Subjects

Notes

  • Abstract:

    The bulk of this material consists of business records of the PanEnergy Corp., relating in particular to the records of the Panhandle Eastern Corp. and Texas Eastern Corp. from the 1920s to the 1990s. Much of the material is related to two corporate histories: From Texas to the East: A Strategic History of Texas eastern Corporation and Gas Pipelines and the Emergence of America's Regulatory State: A History of Panhandle Eastern Corporation, 1928-1993.

  • Historical Note

    Panhandle Eastern and Texas Eastern were both known as pipeline companies and carriers of natural gas that helped to shape the nations appetite for energy. In 1989, Panhandle bought Texas Eastern for $3.2 billion, which at the time was the highest valued transaction for a natural gas pipeline in U.S. history. The combined companies became PanEnergy Corp. Later, Duke Power Co. absored PanEnergy ending the story of Panhandle as an independent organization.

    The history of Panhandle Eastern began in turmoil and conflict. From its inception, Panhandle challenged a conglomerate of energy organizations that sought to nip the upstart energy company like a gardener nipping off an unwanted flower bud, but the upstart persisted and thrived as the growing U.S. economy demanded energy.

    In November 1927, a group of entrepreneurs, most notably Frank Parrish, formed a partnership that eventually led to the creation of the Missouri-Kansas Pipe Line Corporation, commonly known as Mo-Kan. In 1929, Mo-Kan created a subsidiary called Interstate Pipe Line Company to construct a pipeline to the Midwest. In 1930, Parish and his partners began working with William G. Maguire, a successful entrepreneur, to promote and build that pipeline. Maguire convinced the partners to change the name of Interstate Pipe Line Company to Panhandle Eastern Pipe Line Company and to make Indianapolis the destination of their new pipeline. That pipeline would eventually run through and challenge the domains of Cities Service Company, Standard Oil of New Jersey, and the powerful Columbia Gas. Maguire, who later forced Parrish out, become the chairman and guiding force of PEPL until 1965. He transformed the company into an industry leader. The first major pipeline the company constructed was a 24-inch diameter pipeline stretching 860 miles from the Hugoton gas fields of southwest Kansas to the Illinois-Indiana border.

    Texas Eastern arose out of World War II when German U-boats were devastating the U.S. merchant fleet and in particular the tanker fleet. The German submarines forced a dramatic decline in the number of barrels of oil the United States shipped to the industrial northeast and to Great Britain. The United States response the submarine threat was to build two oil pipelines to the northeast. The first line was the Big Inch, a 24-inch pipeline stretching from Longview, Texas to Norris City in southern Illinois. The second line was the Little Big Inch, a 20-inch pipeline running from the refineries in the area of Beaumont, Texas to Linden, New Jersey.

    In 1947, the United States government needed to sell off the war assets, the largest of which were the Inch lines, and established a bidding process. In a controversial bid Texas Eastern, backed by the powerful Texas brothers of George and Herman Brown, placed the winning bid of $143,127,000. Soon, Texas Eastern converted the Inch lines to transport natural gas, which was rapidly growing sector of the energy industry. Eventually, Texas Eastern expanded into liquefied natural gas or LNG, North Sea oil and Houston real estate.

    Panhandle Eastern changed its name to PanEnergy after absorbing Texas Eastern in 1989, but the company did not have a long life in that form. In 1996, Duke Power Company, an investor-owned utility with about 1.8 million customers, made a bid to purchase PanEnergy in a $7.7 billion deal that was consummated in April 1997. The combined companies then became known as Duke Energy Corp. with headquarters in Charlotte, North Carolina.

  • Scope and Contents

    The bulk of this material consists of business records of the PanEnergy Corp., relating in particular to the records of the Panhandle Eastern Corp. and Texas Eastern Corp. from the 1920s to the 1990s.

    The material types in this collection include correspondence, memos, hand-written notes, internal and external publications, including news releases, brochures, pamphlets, quarterly and annual reports, news clippings, legal documents, and federal publications. Also included are visual and audio materials, including maps, charts, postcards, filmstrips, video and audio tape, and roughly 3,000 photographs and negatives.

    Subjects covered include Panhandle Eastern Corporation, Texas Eastern Corporation, natural gas pipelines, and government regulation of the energy industry.

    The collection includes records about building projects, such as the Big Inch and Little Big Inch pipelines, Arctic-Alaskan pipelines, and downtown Houston development. Other topics include international and joint ventures, such as occurred in Russia, Algeria, Mexico, and the North Sea. Coal slurry and coal slurry pipelines and the lobbying efforts to gain right of ways for those pipelines are covered extensively. The collection also includes internal records involving legal battles for the Detroit market area and regulatory struggles with federal agencies, such as the Federal Power Commission. The early history of natural gas in the United States is also well documented. The collection includes more than 3,000 photographs ranging from pipline construction to employee lifestyles.

    See notes in Detailed Description of the Collection for more information.

  • Access Restrictions

    This material is open for research.

  • General Physical Description note

    120 cubic feet (240 boxes)

  • Conditions Governing Access

    Stored off-site at the Library Service Center. Please request this material via woodson@rice.edu or call 713-348-2586.

  • Arrangement

    Materials are organized into three series:

    1. Part I: Series I, Panhandle Eastern Corporation; 1927 - 1993 (75 cubic feet, boxes 1-150)Subseries A:Panhandle Energy Company Records Sub-subseries:Business and FinanceMarketing, Sales and PromotionsResearch, Development, and TechnicalEmployeesSubsidiariesPEPL Projects Subseries B:Panhandle Energy Story Sub-subseries:Growth, Hurdles, CompetionRegulatory, LegalHistoryNews ClipsVideo and FilmReference BooksPanhandle Eastern Photos

    2. Part II: Series II, Texas Eastern Corporation; 1947-1989 (45 cubic feet, box 151-240)Subseries ATexas Eastern Company Records Sub-subseriesBusiness and FinanceExecutive RecordsResearch and DevelopmentMarketing, SalesAlaskan and Arctic Gas Subseries BTexas Eastern Story Growth and RegulationInch LinesHistory ProjectPhotos

    3. Part II: Series III, Duke Energy Corporation; 1931-2000 (12 folders in box 239)

  • Restrictions on Use

    Permission to publish material from the Panhandle Eastern Corp. Historical Records must be obtained from the Woodson Research Center, Fondren Library.

  • Related Materials

    See also MS 464, Guide to Builders: Herman & George R. Brown Book Research Files, 1898-1989 at http://www.rice.edu/fondren/woodson/mss/ms464.html

    See also MS 488, Brown & Root / George R. Brown Executive Files, 1937-1978 at http://www.rice.edu/fondren/woodson/mss/ms488.html

    See also MS 277, The James A. Clark Papers, 1889-1974 at http://www.rice.edu/fondren/woodson/mss/ms277.html

    See also MS 503, Gilcrease Oil Company records

    See also MS 504, Kirby Petroleum records and George Sawtelle Executive Files

    Castaneda, Christopher J., and Pratt, Joseph A. (1993). From Texas to the East: A Strategic History of Texas Eastern Corporation. College Station, Texas: Texas A&M University Press.

    Castaneda, Christopher J., and Smith, Clarance M. (1996). Gas Pipelines and the Emergence of America's Regulatory State: A History of Panhandle Eastern Corporation, 1928-1993. New York: Cambridge University Press.

  • Preferred Citation

    Panhandle Eastern Corp. Historical Records, 1927 - 1997, MS 500, Woodson Research Center, Fondren Library, Rice University

  • Acquisition Information

    PanEnergy Corp. presented the bulk of the papers contained in this collection to the Woodson Research Center of Fondren Library on June 18, 1996. The papers come from the corporate records of Panhandle Eastern Corporation and Texas Eastern Corporation.

Components