U.S. BRIEFS

July 2, 1990
PACIFIC GAS & ELECTRIC CO. received California's first Air Pollution Reduction Award for developing and using a process to remove hydrogen sulfide gas from geothermal steam and reducing hazardous waste by as much as 90% at the Geysers power plant, Sonoma and Lake counties, Calif. The process cuts the volume of chemicals used at the plant.

ENVIRONMENT

PACIFIC GAS & ELECTRIC CO. received California's first Air Pollution Reduction Award for developing and using a process to remove hydrogen sulfide gas from geothermal steam and reducing hazardous waste by as much as 90% at the Geysers power plant, Sonoma and Lake counties, Calif. The process cuts the volume of chemicals used at the plant.

PROCESSING

CHEVRON U.S.A. INC. plans to spend $300 million to build a waste gas fueled 130,000 kw cogeneration plant as part of a proposed upgrade of its 325,000 b/d Richmond, Calif., refinery. Chevron also agreed to provide the Environmental Protection Agency a report on the extent of hazardous wastes at the refinery and on its cleanup plans.

BECHTEL projects fourth quarter completion and start-up for its upgrade of a wastewater treatment plant at Shell Oil Co.'s Wood River refinery complex in Roxana, III.

DEPARTMENT OF ENERGY adopted a $3.35 million settlement with Kern Oil & Refining Co., Kern County, Calif., and former Kern owner Larry Delpit. It resolves DOE charges that Kern and Delpit sold price controlled crude to resellers and bought entitlements exempt crude at major discounts during October 1979-January 1981. Kern will pay $750,000, Delpit $2.6 million.

SHELL OFFSHORE INC. will shut down its 1.2 bcfd Calumet gas processing plant in Patterson, La., for as many as 4 weeks after an explosion in the electrical system June 20, which injured two workers.

QUANTUM CHEMICAL CORP. resumed operation of its Tuscola, III., ethylene, polyethylene, and ethylene alcohol units. The ethylene unit was shut down June 8 after a fire damaged two separation columns.

TRANSPORTATION

EAST TENNESSEE NATURAL GAS CO. received Federal Energy Regulatory Commission approval to expand its 1,100 mile pipeline system by 62 MMcfd to serve markets in Tennessee, southwestern Virginia, and Georgia. At a cost of $24 million, East Tennessee will lay 27 miles of pipe, add two compressor stations, and expand three others.

NATURAL GAS CLEARINGHOUSE, Houston, will lay a 12 in., 100 MMcfd extension from its Anadarko gas gathering system in southern Roger Mills County, Okla., 18 miles southwest to a connection with El Paso Natural Gas Co. and Natural Gas Pipeline Co. of America lines just west of NGPL's Sayre, Okla., storage field.

ENDEVCO INC., Dallas, will lay about 19 miles of 12 in. and 8 in. gas pipeline in Smith and Simpson counties, Miss. Its Mississippi Fuel Co. unit also agreed to buy about 50 MMcfd of gas initially from Trimble, Hot Coffee Deep, and Hot Coffee Shallow fields.

COURTS

U.S. SUPREME COURT ruled manufacturers may legally charge wholesalers lower prices than retailers for the same product, but only to reimburse wholesalers for higher costs they incur. The court, in an appeal by Texaco Inc., upheld a $1.354 million lower court judgment in favor of 12 Spokane, Wash., service station dealers.

DELAWARE CHANCERY COURT ruled that Royal Dutch/Shell Group underpaid Shell Oil Co. stockholders when it bought the 30% of Shell it did not own for $5.5 billion in 1985. It said Royal Dutch failed to disclose that Shell Oil owned certain reserves valued at $1 billion. The court is expected to set damages later this year.

PLAINTIFFS LAWYERS for 912 West Virginians added $110 million in fraud and obstruction of justice claims to their lawsuit against Ashland Oil Co. for alleged toxic emissions from its Catlettsburg, Ky., refinery. Among the new charges are that Ashland harassed plaintiffs, witnesses, and reporters during an earlier trial, and Ashland Chairman John Hall wrote a misleading letter to residents in the refinery area.

EXPLORATION

NAHAMA. & WEAGANT, Bakersfield, Calif., plans to drill 15 to 20 prospects in the Sacramento Valley of California and in Oregon by yearend. It plans 15 wells in California and at least two in Northwest Oregon's Mist field area.

DRILLING-PRODUCTION

OXY USA INC. sold its leases in West Virginia, Kentucky, Pennsylvania, Tennessee, New York, Maryland, and Ohio to Ashland Exploration Inc. for about $107 million. The leases produce about 14 MMcfd of gas.

ARCO OIL & GAS CO. let contract to Mustang Engineering Inc. to add 2,000 hp of gas compression capacity to its platform in Brazos Block 451 in the Gulf of Mexico during third quarter 1990. Mustang also will design and manage construction of a 14 man living quarters for BP Exploration Co.'s Snapper platform in East Breaks Block 1 65.

TEXACO INC. let a $12 million contract to Twin Brothers Marine Corp., Morgan City, La., to build a 20 slot drilling/production platform for Garden Banks Block 189 off Louisiana in 720 ft of water. The platform is to be installed in summer 1991.

ENERGY DEVELOPMENT CORP. let a contract to Engicon Inc. to build a production platform and facilities for its Main Pass Block 49 development project in the Gulf of Mexico. Installation is scheduled for mid-July.

HEADINGTON OIL CO., Dallas, acquired 570 oil and gas leases, with more than 2,000 wells, in 15 states from Oryx Energy Co., Dallas, for about $32 million. Most of the leases are in Texas and Oklahoma.

NERCO OIL & GAS INC., Portland, Ore., bought 14 oil, gas and condensate wells, a gas gathering pipeline system, and undeveloped acreage in Trimble field, Smith and Simpson counties, Miss., from several investors for about $67 million.

ALASKA oil production in Cook Inlet resumed after it was halted earlier this year by eruptions from Redoubt Volcano. Cook Inlet Pipe Line Co. loaded the first tanker in 3 months at Drift River oil terminal. A jack up arrived from West Africa to drill the inlet's first wildcat in 6 years.

COMPANIES

SONAT INC. agreed to pay ARCO Oil & Gas Co. $300.5 million for claims stemming from a Mar. 19, 1989, explosion on ARCO's Platform Baker off Louisiana on South Pass Block 60. Official reports said the blast, which killed seven, occurred when a subcontractor's work boat cut an 18 in. riser, igniting gas and liquid hydrocarbons (OGJ, Apr. 23, p. 27). The accord settles ARCO's federal court claims against Sonat for platform damage and lost profits and claims by three ARCO workers who were injured.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.