U.S. BRIEFS

ENVIRONMENT

HYGRADE 42 barge spilled about 3,900 bbl of kerosine into the Hudson River near Marlboro, N.Y., about 60 miles north of New York City after striking an underwater reef. The barge, owned by Hygrade Operators, New York, was heading north to Rensselaer, N.Y., carrying about 30,000 bbl. Coast Guard crews reportedly contained the spill, although a sheen was spotted at a water treatment plant in Poughkeepsie, N.Y., 5 miles north of the grounding site.

BP AMERICA INC. agreed to pay the U.S. government $2.2 million and Pennsylvania $100,000 to resolve water pollution allegations at its Marcus Hook, Pa., refinery. The Justice Department said the fine is the largest it has levied in 13 years for water pollution violations. It alleged BP discharged pollutants into the Delaware River for 6 years in violation of its wastewater permit and the Clean Air Act.

DRILLING-PRODUCTION

APACHE CORP., Denver, reports completion of two Pennsylvanian Minnelusa wells in the Powder River basin, Campbell County, Wyo. Its 8 Lone Cedar Unit flowed 480 b/d of oil from perforations at 7,868 90 ft. Apache 1 L.A. well on Cheetah prospect 30 miles southwest pumped 435 b/d from perforations at 10,676-726 ft. Apache has 50% interest in 1 L.A. and operator Raymond T. Duncan, Denver, owns the remaining 50%.

NERCO OIL & GAS INC., Portland, Ore., 5 Ship Shoal 202, 80 miles south of Morgan City, La., flowed a combined 1,275 b/d of oil and 9.5 MMcfd of gas with 3,184 psi flowing tubing pressure from two pay zones at 14,576-660 ft. Nerco plans to drill another well on adjoining Ship Shoal Block 201 by yearend and three more wells on the two blocks in 1991.

WAINOCO OIL CORP., Houston, 1 Jewett horizontal well in Gonzales County, South Texas, flowed 2,046 b/d of oil and 895 Mcfd of gas through two 1 in. chokes with 150 psi flowing tubing pressure at 9,170 ft true vertical depth. Cretaceous Austin chalk horizontal displacement was 3,346 ft.

COGENERATION

PANDA ENERGY CORP., Dallas, will build a $350 million gas fired cogeneration power plant in West Jacksonville, Fla., for an undisclosed host company. Permitting is to begin in 1991 with start-up scheduled in 1994.

CMS ENERGY CORP., Grayling, Mich., and Grayling Generating Partners began construction on their 34,000 kw Grayling Generating Station cogeneration plant near Grayling. They expect to complete the $60 million waste wood fired plant by fall 1992.

ACQUISITIONS

GEODYNE RESOURCES INC., Tulsa, completed purchase of interests in 14 oil and gas fields in five states from Oryx Energy Co., Dallas, for $59 million (OGJ, Oct. 29, p. 32). Oryx also sold its interests in Hillhouse and Henry platforms and five nonproducing blocks off California, its share of Levelland oil field in Texas, and interests in West Moran oil field in Wyoming to undisclosed buyers for about $36 million.

RED EAGLE RESOURCES CORP. agreed to buy 50% interest in about 23,000 acres of leases from Boswell Energy Corp., Oklahoma City, near Silo field in Laramie County, Southeast Wyoming. Red Eagle, also of Oklahoma City, plans to drill a horizontal well to Upper Cretaceous Niobrara, spudding the first well in early 1992.

MITCHELL ENERGY & DEVELOPMENT CORP. paid $3 million to three companies for reserves of more than 2.3 bcf of gas and 52,006 bbl of oil, and 2,620 net associated acres on leaseholds in northern and southeastern Texas. In the biggest deal, Mitchell paid Tex Am Petroleum Corp. $1.8 million for 2 gas wells and 266 net associated acres in Eastland County, Tex.

CALUMET LUBRICANTS CO. bought assets of Calumet Industries Inc., including its Princeton, La., refinery, where it plans to increase output and expand sales in specialty lubricant markets. The refinery processes northern Louisiana crudes to produce naphthenic lube, white, transformer, and refrigeration oils. Calumet Industries has been in Chapter 11 reorganization since February.

PIPELINES

HEARTLAND PIPELINE CO. started up its 450 mile products pipeline and opened a 200,000 bbl products terminal in Pleasant Hill, Iowa. Heartland, a partnership of Conoco Pipe Line Co. and Enron Liquids Pipeline Co., will move gasoline and fuel oil from McPherson, Kan., to a Conoco terminal in Lincoln, Neb., and to the Pleasant Hill terminal.

BECHTEL CORP., project manager for the Pacific Gas Transmission Co.-Pacific Gas & Electric Co. Pipeline expansion, let multimillion dollar contracts to two firms for equipment for the project. Cooper Rolls, Mt. Vernon, Ohio, received a contract to supply three gas turbine compressor packages and 18 centrifugal compressors. Solar Turbines Inc., San Diego, will provide one turbine compressor package (OGJ, Sept. 3, p. 21).

GOVERNMENT

DEPARTMENT OF ENERGY delivered its first crude oil shipment from the Strategic Petroleum Reserve, part of a 5 million bbl test sale. The 75,000 bbl of sour crude sold to Citgo Petroleum Co. from the West Hackberry, La., SPR site, was moved through the Texas-22 pipeline in the Lake Charles, La., region.

ALTERNATE FUELS

SOUTHERN UNION CO., Natural Gas Resources Inc., and Frank Sapp Texaco, Austin, will open Texas' first independent compressed natural gas retail station in December. SU will loan the compressor and dispensing unit and supply CNG to the Austin service station. NGR will install the compressor station and fuel dispenser and supply equipment to convert vehicles to burn CNG.

EXPLORATION

CORPUS CHRISTI OIL & GAS CO. OCS-G 11789 flowed 2.5 MMcfd of gas with 4,665 psi flowing tubing pressure from perforations at 11,262-272 ft. The well in West Cameron Block 406, 97 miles south of Lake Charles, La., was drilled to 11,360 ft in 89 ft of water. Dekalb Energy Co., Denver, has a 25% working interest in the well, operator Corpus Christi Oil & Gas 10%, and remaining partners 65%.

COURTS

A FEDERAL JURY in Midland, Tex., awarded $85 million actual and $100 million punitive damages to Parker & Parsley Petroleum Co., Midland, in its suit against Dresser Industries Inc., Baker Hughes Inc., and BJ Services USA Inc. The suit alleged the defendants in 1983-87 were paid for but did not provide materials and services for acidizing and fracturing 523 wells owned by Parker & Parsley managed limited partnerships. Dresser valued the total jury verdict at $245 million.