U.S. BRIEFS

ENVIRONMENT

ARCO ALASKA INC. agreed to pay a $200,000 fine to Alaska as a penalty for an August 1989 pipeline valve leak that spilled 300-600 bbl of oil on about 1.4 acres of tundra in Kuparuk River oil field. ARCO also agreed to rehabilitate the spill site and increase its field inspection, maintenance, and testing of pipelines and valves.

ACQUISITIONS

AMAX OIL & GAS INC., Houston, will buy Ladd Petroleum Corp., Denver, for about $515 million, with closing expected by yearend. Ladd holds interests in about 650 miles of pipelines and gathering systems, wholly owns four gas processing plants, and has proved and probable reserves of 500 bcf of gas equivalent.

PIPELINES

FEDERAL ENERGY REGULATORY COMMISSION granted a 75 day stay of its order that Transcontinental Gas Pipe Line Corp. pay about $112 million in cash refunds to customers. FERC issued the order to give it more time to consider Transco's request for rehearing. FERC had ordered Sept. 12 that Transco forego recovery of $26 million in gas costs and pay the refunds within 60 days.

MINNESOTA'S Public Utilities Commission voted to rehear its 2-1 decision to disallow a proposed merger of the Diversified Energies Inc., Minneapolis, gas distribution unit, Minnegasco, with Arkla Inc., Shreveport. The rehearing was scheduled for Nov. 20.

NORTHERN BORDER PIPELINE CO., Omaha, accepted a certificate to build and operate its 20,000 hp compressor station No. 10 in Clark County, S.D., and a 12 in. meter run at Ventura meter station in Hancock County, Iowa. Northern Border expects to complete the facilities by November 1991 at a cost of $16 million.

U.S. SUPREME COURT denied a request by Colorado Interstate Gas Co. to hear its appeal of a 10th U.S. Circuit Court of Appeals decision. The circuit court had overturned a $500 million award to CIG in a lawsuit against Natural Gas Pipeline Co. of America, reversing a trial court's ruling that NGPL breached a purchase contract and tried to monopolize gas transmission from Wyoming.

GOVERNMENT

WEATHERBEE SUPPLY INC. and operator Glenn Weatherbee were indicted by a Louisville federal grand jury on charges of drilling and operating five underground injection wells without a permit and falsifying a permit application. The Justice Department said the indictments are the first issued under the Safe Drinking Water Act.

DEPARTMENT OF ENERGY adopted a final agreement requiring Salomon Inc., a New York City crude reseller, to pay $83.75 million to resolve allegations that it violated federal oil price regulations from Jan. 1, 1978, through Jan. 28, 1981.

COGENERATION

O'BRIEN ENERGY SYSTEMS, Philadelphia, started up its $54 million, 52,000 kw Newark Group Industries cogeneration plant in Newark, N.J. It will supply electricity to Jersey Central Power & Light and steam to Newark Boxboard Co. under a 25 year contract.

DRILLING-PRODUCTION

GRACE OFFSHORE CO. will buy Songa Sky and Songa Sun jack ups, currently stacked in the Gulf of Mexico, from Blystad Group plc, London, for $22.9 million, pending Blystad shareholder approval. Blystad acquired the rigs last summer through its purchase of Jemez Ltd.

ARCO ALASKA INC. let contract to Parker Drilling Co., Tulsa, to build a drilling rig designed for environmentally sensitive areas as part of ARCO's North Slope exploration program. The rig will include a transport system designed to minimize road damage, closed loop mud system, zero discharge liquid system, top drive, high speed shale shakers, and advanced centrifuges. ARCO plans to begin using it in Kuparuk River field in mid 1991.

ASHLAND EXPLORATION INC. offered for sale 22 MMcfd of its Appalachian basin gas to end users on the Columbia Gas Transmission System under a 1 year contract beginning in January 1991. Ashland said it is the most gas it has offered to sell directly to industrial customers.

DI INDUSTRIES INC., Houston, acquired drilling assets of James Bigard Drilling Co. of Michigan for $5.019 million. The purchase includes 12 drilling rigs with ratings to 18,000 ft and a transport company with 26 trucks.

MERIT ENERGY CO., Dallas, has since July 31 acquired producing oil and gas leases in New Mexico and South and West Texas from undisclosed sellers for more than $22 million. The largest purchase was a majority working interest in Pecos Slope Permian Abo field in Chaves County, N.M.

EXPLORATION

BUREAU OF LAND MANAGEMENT sold 48 of 101 parcels offered, raising $196,394 in total revenue, at its auction of oil and gas leases in Ohio, Pennsylvania, Illinois, and Florida. Everflow Eastern Inc., Canfield, Ohio, had the highest per acre bid, $400/acre for 32.46 acres in Trumbull County, Ohio, and the highest total bid, $24,250 for 97 acres in Mahoning County, Ohio.

COMPANIES

FOREST OIL CORP.'S offer to acquire Conquest Exploration Co. expired by its terms. The Conquest board decided to proceed with a prior agreement to merge with American Exploration Co. (OGJ, Nov. 12, p. 46).

TOTAL PETROLEUM (NORTH AMERICA) LTD. plans to spin off its Canadian oil and gas operations to its shareholders in a separate company. The spinoff, subject to U.S. and Canadian regulatory approval, is expected to occur in 1991.

MARKETING

AMOCO OIL CO. will begin a motor oil recycling program in Florida Dec. 11. Participating Amoco service stations will accept as much as 5 gal/visit from each customer, provided the used oil is in capped containers.

REFINING

LANDMARK PETROLEUM INC., Houston, bought a "substantial portion" of the assets of Western Slope Refining Co., Fruita, Colo., which had produced gasoline, jet fuel, and diesel fuel before it shut down. Landmark, founded by LB Consulting Inc., also of Houston, plans to have the 18,000 b/d refinery back on stream early in 1991.

DIAMOND SHAMROCK REFINING & MARKETING CO. resumed partial operations at its 55,000 b/d Three Rivers, Tex., refinery after it shut down for about 36 hr following an incoming electrical power failure. It was to begin full production of gasoline, jet fuel, and other products by Nov. 16. Diamond Shamrock expected no supply interruptions.