Finance and Economic

National Fuel Gas Co. and New Mountain Vantage GP, L.L.C., a leading shareholder of the energy company, have settled a disagreement involving several issues.

As part of the agreement, Williamsville-based National Fuel will increase the size of its board to 11 directors from 10 and to nominate, as a new director, Vantage's candidate Frederic Salerno.

Salerno will receive no compensation for his board service for as long as Vantage continues to own common stock of the company. The company said Salerno will be added to the original slate of the following continuing directors: Robert Brady, Rolland Kidder and John Riordan.

All four candidates will be nominated to serve for a term to expire in 2011. Upon election to National Fuel's board, Salerno will join the compensation and the nominating/corporate governance committees.

The parties, who have been at odds for several months, also agreed to resolve a dispute involving development of acreage Appalachian, including the Marcellus Shale, propetty which is considered extremely valuable faxless payday advance.

Also, National Fuel said that it intends to evaluate the divestiture of its assets in the Gulf of Mexico as one key alternative if performance targets set by the company are not met during this fiscal year.

"We have always sought to achieve a productive relationship with National Fuel's management and Board for the benefit of all shareholders," said a statement David DiDomenico, managing director of Vantage. "We believe that together we can successfully advance the Company's interests by focusing on developing the Appalachian acreage, including the Marcellus Shale, by carefully evaluating ongoing and future activities in the Gulf of Mexico, by considering Vantage's other suggestions, and by taking important steps to improve corporate governance."

Shares of National Fuel Gas (NYSE: NFG) closed up 18 cents thursday to $41.35.

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