U.S. BRIEFS

COURTS

EXXON CO. U.S.A. agreed to pay $26,000-65,000 in restitution to wholesale buyers of its refined products in North Carolina to settle a deceptive trade practices suit filed by the state attorney general. Exxon also promised to honor its posted prices for refined products and make no retroactive price hikes. The company said the dispute resulted from Aug. 3 invoicing mistakes caused by a computer error (OGJ, Aug. 20, p. 32).

A DISTRICT COURT in Blaine County, Okla., returned a judgment of foreclosure on oil and gas properties sought by Palo Duro Production Co., Oklahoma City, against Unit Petroleum Co., Unit Drilling & Exploration Co., Federal Deposit Insurance Corp., Senco Development Co. Inc., and Rambler Oil Co. It involved more than 150 producing wells in Oklahoma, Texas, and Arkansas. Palo Duro said the judgment's total value, including interest, may exceed $5 million.

REFINING

AMERICAN INTERNATIONAL PETROLEUM CORP., New York, agreed to lease its 30,000 b/d Lake Charles, La., refinery to an undisclosed company for an initial period of 17 months beginning Nov. 1. The agreement can be extended to 29 months or terminated any time before Mar. 15, 1991, both at the option of the lessee. American International will receive monthly lease payments based on the plant's processing rate during Nov. 1, 1990-Mar. 15, 1991, with a guaranteed minimum rate of 18,000 b/d after Mar. 15.

EXPLORATION

OCS SALE 131, scheduled for March 1991 by the Minerals Management Service, will offer 5,380 blocks covering 28.9 million acres 3-220 miles offshore in 4-3,425 m of water in the Central Gulf of Mexico. MMS estimates the sale area's potential resource at 130 million bbl of oil and 1.21 tcf of gas. MMS will offer 1,262 blocks in waters less than 400 m deep for 5 year terms and a 16-2/3% royalty. It also will offer 198 blocks in 400-900 m of water for 8 year terms and 3,920 blocks in more than 900 m of water for 10 year terms, all for 12-1/2% royalties.

UTE MOUNTAIN UTE TRIBE awarded a concession in Montezuma County, Southwest Colorado, to Triton Energy Corp., Dallas. Triton will explore the 75,000 acre area in the Paradox basin.

DRILLING-PRODUCTION

UNION PACIFIC RESOURCES CO., Fort Worth, started up three platforms off Texas and Louisiana, hiking its net offshore operated production to 120 MMcfd of gas and 1,470 b/d of condensate. South Timbalier 198 platform is producing 51 MMcfd and 1,000 b/d from six wells, High Island A200 platform 8 MMcfd from two wells, and Brazos A-2 platform 32 MMcfd and 506 b/d from three wells. UPRC also plans to develop four more fields in the Gulf of Mexico.

NABORS INDUSTRIES INC., Houston, agreed to merge its continental U.S. and Yemen drilling operations with those of Henley Drilling Co. Henley owns and operates 10 rigs in Texas and Louisiana and one rig in Yemen, bringing the companies' combined U.S. land fleet to about 50 rigs. Henley stockholders will receive about 2 million shares of Nabors common stock and a working capital note.

CHILES OFFSHORE CORP., Houston, acquired five jack ups and a semisubmersible rig and related assets from Penrod Drilling Corp. for $46 million, increasing the fleet under Chiles management to 20. Under a second closing of the deal, expected next month, Chiles will pay $8 million for another jack up.

PACIFIC ENTERPRISES OIL CO., Dallas, 1 Coyne-Strait horizontal well in Pearsall field, Frio County, Tex., flowed 937 b/d of oil through a 48/64 in. choke with 240 psi flowing tubing pressure at 10,767 ft measured depth and 3,937 ft displacement. Gross potential reserves are more than 400,000 bbl.

ENERGY DEVELOPMENT CORP., Houston, agreed to buy producing leases in South Lake Arthur field, La., from undisclosed sellers for about $220 million subject to adjustment. The purchase includes interests in 14 wells, seven operated by the sellers, producing a total 165 MMcfd of gas. EDC will also acquire deep exploration rights and an intrastate pipeline.

GEODYNE RESOURCES CORP., Tulsa, agreed to buy producing leases from Oryx Energy Co., Dallas, for $59 million. The purchase covers about 350 wells in 14 fields in Texas, Florida, Alabama, Mississippi, and Wyoming with combined net reserves of 33.1 bcf of gas, 2.7 million bbl of oil, and 3.5 million bbl of NGL.

ACQUISITIONS

ENERGY VENTURES INC., Houston, acquired nearly all nonreal estate assets of Hughes Tool Joint, formerly owned by a forerunner of Baker Hughes Inc., and all remaining assets of Hughes' Oncor line of downhole drilling tools. Also, its 91% owned ENGY Inc. unit completed the sale of its working interests in federal oil and gas leases to Columbia Gas Development Corp. and Columbia Gas Transmission Corp., settling all disputes and claims between those firms (OGJ, Oct. 8, p. 50).

HADSON ENERGY RESOURCES CORP., Oklahoma City, signed a letter of intent to buy all outstanding shares of Baruch-Foster Corp., Dallas, contingent on shareholder approval. Terms provide for Hadson to pay $6.70/share cash, subject to adjustment.

COGENERATION

PANTHER CREEK PARTNERS selected UC Operating Services to maintain and operate an 80,000 kw cogeneration plant being built near Nesquehoning, Pa. UCOS is a joint venture of Constellation Holdings Inc., Baltimore, and Hadson Power Systems Inc.

PIPELINES

TEXSTAR NORTH AMERICA INC., Houston, began gas deliveries of more than 12 MMcfd on its Kenedy Gas Gathering System serving Central and Southwest Kenedy fields in Karnes County, South Texas, The system's first phase is designed to gather as much as 30 MMcfd, with expansions planned as more wells are drilled.

MARKETING

MOTOR VEHICLE MANUFACTURERS ASSOCIATION OF THE U.S. INC. and Japan Automobile Manufacturers Association announced new motor oil specifications--Minimum Performance Standard for Passenger Car Engine Oils--and a proposed certification and licensing system--North American Lubricant Standardization & Approval System.

PETROCHEMICALS

MITSUI & CO. (U.S.A.) let a $200 million contract to M.W. Kellogg Co., Houston, to design and build a 12,500 b/sd methyl tertiary butyl ether plant next to its Intercontinental Terminals facility at Deer Park, Tex. Construction is to begin in 1991 and be complete in 1992. Mitsui unit Global Octanes Corp., Houston, will operate the plant.