U.S. BRIEFS

MARKETING

SOUTHERN UNION CO., Austin, will build Texas' first public compressed natural gas filling station at Port Arthur. The station, which also will offer service and repair to CNG vehicles, has been approved by the Texas Railroad Commission.

PROCESSING

BENICIA, CALIF let contract to ENSR Consulting & Engineering, Acton, Mass., to prepare the third party environmental impact report for a 49,000 kw cogeneration plant Exxon Co. U.S.A. plans to build at its Benicia refinery. ENSR's San Francisco Bay area office will manage the project.

ALTERNATE FUELS

TRANS-PACIFIC GEOTHERMAL CORP., Oakland, plans to build and operate a 10,000 kw geothermal power plant in Surprise Valley, near Alturas, Calif., on moderate temperature geothermal leases owned by Magma Power Co. Construction is to begin in early 1992, and power deliveries under a 30 year, 10,000 kw purchase contract with Puget Sound Power & Light Co. are to start in mid-1993.

LNG

PHILLIPS 66 NATURAL GAS CO. and Marathon Oil Co. let contracts to Ishikawajima-Harima Heavy Industries Co. Ltd., Tokyo, to build two 87,500 cu m LNG tankers. Delivery is scheduled for mid-1993 for the first vessel and yearend 1993 for the second. They will replace the Arctic Tokyo and Polar Alaska 71,500 cu m vessels moving production from the Phillips and Marathon LNG plant in Kenai, Alas., to Tokyo.

TRANSPORTATION

THE EXXON MEDITERRANEAN tanker, formerly named Exxon Valdez, was refloated after an 11 month, $30 million repair job in a San Diego dry dock. The 987 ft tanker, which can carry nearly 1.4 million bbl of crude, will depart for ports in Egypt and Turkey after owner Exxon Shipping Co. completes seaworthiness tests in August.

CONOCO INC. let a 10 year contract to Williams Field Services Co., Salt Lake City, for gathering and treatment of 45 MMcfd of coalbed methane for its Manzanares coalbed methane pipeline system in the San Juan basin. Conoco's $95 million system, with a total capacity of 390 MMcfd, is scheduled for spring 1991 completion. It will run 110 miles through the basin in Northwest New Mexico and Southwest Colorado, delivering gas to the interstate pipeline system at a point near Blanco hub, 5 miles northeast of Bloomfield, N.M.

GENERAL ACCOUNTING OFFICE said the Coast Guard should screen data on alcohol use in medical reports filed by U.S. merchant mariners, better enforce intoxication rules, and collect better data on alcohol related accidents.

ACQUISITIONS

UTILICORP UNITED unit PSI, Kansas City, and EnCap Financial Services Inc., Dallas, acquired all outstanding equity in Clajon Holdings LP, Midland, Tex., for $65 million plus $5 million in purchase expenses. PSI has an option to buy, and EnCap an option to sell, all of EnCap's interest in Clajon in the future. Clajon owns and operates a 1,200 mile, 450 MMcfd capacity gas pipeline system in South Central Texas.

EDISTO RESOURCES CORP., Dallas, completed its purchase of ESCO Energy Inc., Tulsa, for $9.2 million cash plus 1,323,711 shares of Edisto common stock (OGJ, June 18, p. 24).

COMPANIES

FEDERAL TRADE COMMISSION filed suit in Washington federal court to block ARCO Chemical Co.'s purchase of the propylene glycol and urethane polyether polyols businesses of Union Carbide Chemicals & Plastics Co. Inc. ARCO said it has tried to reach a consent order with the FTC, which is seeking a preliminary injunction on grounds that the purchase would lessen competition.

EXPLORATION

UNION EXPLORATION PARTNERS LTD. tested its 1 OCS-G 9010 wildcat in Brazos Block 375 off Texas at 10.1 MMcfd through a 28/64 in. choke with 1,810 psi flowing tubing pressure from Middle Miocene pay. The discovery is in 60 ft of water about 15 miles south of Freeport, Tex. UXP plans to begin production by yearend.

DRILLING-PRODUCTION

EXXON CO. U.S.A. will sell 19 producing oil and gas leases in Ward County, Tex., Nov. 1. Bids are due Sept. 1.

PLAINS PETROLEUM CO., Lakewood, Colo., bought producing leases in West Texas' Permian basin from Michael L. Cass, Dallas, for $9.25 million. The purchase includes reserves of 1.4 million bbl and 2 bcf in 38 Permian Spraberry wells and a 75% interest in proved undeveloped acreage. Plains' Midland district office will operate and develop the acquired leases.

GOVERNMENT

THE HOUSE ENERGY COMMITTEE reported out a bill that would allow the Department of Energy to negotiate with foreign governments to lease crude for the Strategic Petroleum Reserve. The report retains for Congress the right to veto any lease agreement. The House bill keeps the SPR at 750 million bbl, unlike a pending Senate measure opposed by President Bush that raises it to 1 billion bbl.

GENERAL ACCOUNTING OFFICE reported to Congress that a company told it the U.S. had 45% of the Soviet market in oil and gas exploration and production equipment before foreign policy controls begun in the late 1970s and now holds less than 1%. The Commerce Department figures if U.S. manufacturers had maintained their share of the Soviet market, they would have acquired $2 billion in orders during 1979-85 instead of the $170 million they received.

REFINING

ETHYL CORP. said Petro-Canada tests of its HITEC 3000 MMT unleaded gasoline additive showed no sign of catalytic converter plugging after nearly 100,000 miles (OGJ, May 21, p. 26).

AMERICAN PETROLEUM INSTITUTE

predicted U.S. refining capacity will grow slightly this year to 15,590,900 b/d as of Dec. 31, compared with 15,493,050 b/d Mar. 31. The record high for crude distillation capacity was 18,051,260 b/d in 1981 with another 569,260 b/d operable but shut in. The recent low was 14,220,316 b/d, with 141,220 b/d operable but shut in.

COURTS

U.S. SUPREME COURT ruled states can't sue energy producers on behalf of consumers in federal courts for illegal price fixing. The 5-4 opinion held that only direct purchasers-in this case the utility-can sue for price fixing.

MOBIL OIL CORP. asked a federal court to strike down a new Virginia law that would restrict its control over franchise gasoline dealers. The law bars major oil companies from requiring franchise dealers to stay open 24 hr/day or to buy minimum amounts of gasoline.