U.S. BRIEFS

COMPANIES

NATURAL GAS CLEARINGHOUSE, Houston, agreed to buy Mesa Operating LP's Madill, Binger, and Ringwood gas processing plants and related gathering systems. The three plants in western Oklahoma have combined capacity of 120 MMcfd and produce more than 208,000 gal/day of NGL. Closing is expected by Sept. 1.

CONSOLIDATED NATURAL GAS CO., plans to merge its exploration and production units CNG Producing Co. and CNG Development Go. into a single unit with home offices in New Orleans by yearend.

CHEVRON CORP. plans to enhance its stock value in response to attempts by Pennzoil Co. to buy more Chevron stock, saying Pennzoil's actions are not in Chevron's best interests.

TRANSPORTATION

ENVIRONMENTAL PROTECTION AGENCY endorsed Iroquois Gas Transmission System's environmental impact statement and recommended that the Army Corps of Engineers issue a permit for the 370 mile pipeline project. EPA said harmful effects will be temporary from the project, which will move 575.9 MMcfd to customers in New York, Massachusetts, Connecticut, New Jersey, Rhode Island, and New Hampshire.

OKLAHOMA NATURAL GAS CO., Tulsa, signed an agreement to purchase utility and transmission systems in southern Oklahoma from Lone Star Gas Co., Dallas, for about $34 million (OGJ, Apr 30, p. 40).

WYOMING-CALIFORNIA PIPELINE CO. ordered seventeen 5,500 hp compressor units from Dresser Rand Co., Houston, to be installed at six stations along Wycal's 670 mile, Wyoming-California proposed pipeline.

ALYESKA PIPELINE SERVICE CO. shut down Pump Station 7 for about 1 day to repair and investigate a leak of about 5 gal of oil from a 36 in, bypass line next to the trans-Alaska pipeline. It expects the shutdown to cause lost throughput of about 300,000 400,000 bbl.

PROCESSING

CITGO PETROLEUM CORP., Tulsa, agreed to form a general partnership with Seaview Petroleum Co. LP in which Citgo will acquire 50% of Seaview's 84,000 b/d asphalt refinery and related marketing in Paulsboro, N. J.

CONOCO'S new unleaded gasolines with intake valve deposit control additive received BMW's "unlimited mileage approval," the auto maker's highest rating.

STAR ENTERPRISE, a joint venture of Texaco Refining & Marketing (East) Inc. and Saudi Refining Inc., let a multi million dollar contract to Bechtel Corp., Houston, to upgrade its Port Arthur, Tex., residuum processing plant. The project includes delayed coking and hydrotreating, sulfur recovery, and tail gas treating units.

ETHYL CORP. completed the purchase of Quantum Chemical Corp.'s polyalpha olefin unit in Houston (OGJ, June 18, p. 24).

ALTERNATE FUELS

A DEVELOPMENT PARTNERSHIP of CMS Generation Co. and Cogeneration Michigan Associates has been formed to build and operate a 34,000 kw, wood fired, independent power project in Cadillac, Mich. The partnership plans to begin building the $66 million plant in spring 1991 and have it on stream by January 1993.

EXPLORATION

COLEVE, a joint venture of Energy Ventures Inc. and Columbia Gas Development Corp., plans to temporarily abandon its B-1 exploratory well on West Cameron Block 507 in the Gulf of Mexico until it completes more exploratory drilling in the area. The well found two gas bearing sands between 11,800 and 12,200 ft, but they were not cored or tested.

UNITED EXPLORATION CO., Dallas, signed an exploration contract with Exxon Corp. covering about 27,000 acres in Lea and Eddy counties, N.M. UEC agreed to drill at least six Pennsylvanian Morrow test wells to a maximum 16,000 ft by yearend 1992. It will begin jointly drilling the first with Oryx Energy Co., Dallas, this year.

MARATHON OIL CO. entered the high federal oil and gas lease sale acreage bid of $164/acre for 77 acres in Huron National Forest, Michigan. ARCO's bid of $14,400, or $90/acre for 160 acres, in Oscoda National Forest was the high total bid.

ENVIRONMENT

ENVIRONMENTAL PROTECTION AGENCY let two 3 year contracts worth more than $15 million total to ICF Inc., Fairfax, Va., to help manage the Office of Underground Storage Tanks program.

DRILLING/PRODUCTION

DIAMOND M OFFSHORE INC., Houston, ordered a Varco Model TDS-4 high torque, two speed, top drive to upgrade the Diamond M New Era semisubmersible rig, rated for 1,500 ft water and working for a unit of Mobil Corp. in the Gulf of Mexico. Delivery is expected in August of the fifth top or side drive unit ordered by Diamond M this year. Top drives were installed on two semis working in Australian waters, Diamond M General for BHP and Diamond M Epoch for Marathon.

UNOCAL CORP. agreed to buy Amoco Production Co.'s 62.5% interest in the Chakachatna Group of leases in Alaska's Cook Inlet. The group owns two platforms each in Granite Point and Middle Ground Shoal fields. Total production is about 5,100 b/d of oil.

DIAMOND SHAMROCK OFFSHORE PARTNERS placed five gas wells-A-2, A-3, A-4, A-5, and A-6-on production at a combined rate of 23.5 MMcfd on Brazos Block 412 off Texas. Its A-1 satellite well on Brazos Block 435 is to go on stream late this month at about 2.5 MMcfd.

A LOUISIANA FEDERAL COURT denied an injunction sought by OKC LP, Dallas, against Texas Eastern Corp., Houston, for alleged breach of a gas purchase contract. OKC claims Tetco is paying $1.64/Mcf, compared with a contract price of $6.64/Mcf for regulated gas, which does not yield enough cash to allow OKC to meet all its drilling commitments. Trial is set for Nov. 5.

BELDEN & BLAKE CORP., North Canton, Ohio, purchased from New York Life Inc. interests in about 350 oil and gas wells, along with undeveloped leases and other assets, in eastern Ohio and western Pennsylvania for $6.4 million.

ENSERCH EXPLORATION PARTNERS LTD., Dallas, plans to further develop Garden Banks Block 388 off Louisiana based on results from two wells (OGJ, Apr 9, p. 38). Enserch also permanently abandoned its, first well on Garden Banks Block 387 after it penetrated salt at 9,925 ft.