HICKSGAS history

Chandler adopted Gauthier's idea and in 1958 the company completed the first piece of what was to become the world's largest underground aquifer storage system.

In March of 1966 Chandler entered into merger discussions with Peoples Gas, which served the city of Chicago.

Gauthier sought to drill for new reserves but after a 1972 ruling in which the Illinois Commerce Commission turned down the company's request for a price surcharge to cover its drilling costs, he could not obtain financing.

Gauthier also stepped up drilling in Elk City, Oklahoma, participated in offshore Louisiana exploration programs with Mobil Oil, and in 1974 signed an agreement with then-Illinois Governor Dan Walker to seek development of an Illinois-based $250 million coal liquification plant.

In 1976 the company was granted such holding-company status; and that same year, it reorganized as NICOR with NI-Gas as its principal subsidiary.

In 1979 it recorded its tenth straight year of record profits, earning $87.4 million on sales of $1.6 billion and boasting a 15.1 percent return on equity--a figure well above the average 12.8 percent return on equity for large utilities.

In February of 1981 officials announced a plan to spend $100 million to add 20 more rigs to its 35-rig contract-drilling operation.

Under pressure from red ink on the balance sheet, NICOR cut its common stock dividend from $3.04 to $1.80 in 1986, divested itself of unprofitable contract drilling, river barge, and mining and mineral subsidiaries, and worked to become a leaner and more focused organization.