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California Energy Co. has announced that it has reacquired Kiewit Energy Co.'s one-half development interest in the Nevada and Utah geothermal properties that the company acquired from Chevron in the first quarter of 1991.

Kiewit had acquired such interest in February of this year as part of Kiewit's original equity investment in the company.The terms of the transaction include the grant to Kiewit of options to purchase an additional 1 million shares of California Energy stock at the closing market price Tuesday and the agreement by Kiewit to exercise 1.5 million shares of its existing $9 options. The board also approved an increase in Kiewit's permitted overall stock ownership from 34 percent to 49 percent under the company's standstill agreement with Kiewit.

The company also announced that Walter Scott Jr., Peter Kiewit Sons' Inc. chairman and chief executive officer, has been elected to California Energy's board of directors. In connection with the transaction, David Sokol entered into a five-year employment agreement with the company and terminated his existing stock ownership arrangement with Kiewit.

David L. Sokol, California Energy's chairman and chief executive officer, said the transaction provides "tremendous flexibility."