U.S. BRIEFS

EXPLORATION

GRACE PETROLEUM CORP., Oklahoma City, agreed to extend its Michigan exploration joint venture with Wolverine Gas & Oil Co. Inc., Grand Rapids, Mich., through 1993. Grace also acquired Wolverine's working interests in 27 gas wells and eight stripper wells in 12 Michigan fields, along with its interests in two pipelines and a gas processing plant serving those fields,

DRILLING-PRODUCTION

BASIN EXPLORATION INC., Denver, secured $15 million in private funding to finance its purchase of producing leases and its drilling and recompletion of low risk undeveloped reserves in about 75 locations by yearend. Basin also acquired 167 Denver basin leases from Nielson Enterprises Inc., Cody, Wyo., and 3,680 gross acres in Adams County, Colo., from Byron Oil Industries Inc., Ballwin, Mo.

CORUM PRODUCTION CO., Houston, completed a new pay discovery in South Chocolate Bayou field, Brazoria County, Tex. Oneok Exploration Co., Tulsa, with a 19.89% working interest after payout, said the 1 I.P. Farms flowed 4.051 MMcfd of gas and 104 b/d of condensate through a 10/64 in. choke with 7,320 psi flowing tubing pressure from Oligocene Frio A sand perforations at 12,680-686 ft. Site is 40 miles south-southeast of Houston.

NABORS INDUSTRIES INC., Houston, and Henley Drilling Co., Dallas, completed the merger of their drilling operations in the continental U.S. and Yemen (OGJ, Oct. 29, p. 32).

JN EXPLORATION & PRODUCTION, Billings, Mont., entered a limited partnership with Western Production Co., Rapid City, S.D., to acquire producing leases in the U.S. The two firms will engage in developmental drilling on the acquired leases, with JN as operator.

ARCO ALASKA INC. let contract to Veco Inc. for fabrication and transportation of 11 modules and skids for its Kuparuk River oil field development project on Alaska's North Slope. Completion of the modules is scheduled for February 1991 at an undisclosed price. It is the first of five ARCO projects scheduled in Kuparuk River and Cook Inlet oil fields during the next 13 months.

WASHITA PRODUCTION CO. and Helmerich & Payne Inc., both of Tulsa, completed their joint purchase of all U.S. leases held by Adena Exploration Inc. for $3 million. Washita and H&P will each own 50% of the acquired interests in 37 gas wells and three oil wells in Oklahoma, Texas, and Louisiana.

EBCO U.S.A. INC., Oklahoma City, will auction 500 producing leases in 12 states at an invitational sale to be held Dec. 13 in Dallas. Included are about 2,400 net mineral acres in the Arkoma basin to be sold subject to seller approval.

COLUMBIAN RESOURCES CORP., Topeka, Kan., agreed to acquire H-30 Drilling Inc., Wichita, including 17 drilling rigs rated to 5,000-17,000 ft with horizontal capabilities, for an undisclosed price.

PIPELINES

SOUTHERN NATURAL GAS CO., Birmingham, Ala., agreed to acquire United Gas Pipe Line Co.'s 50% interest in Sea Robin Pipeline Co. for an undisclosed price. After closing and regulatory approvals, Southern will own 100% of Sea Robin, which operates a 440 mile gas pipeline system off Louisiana.

MITCHELL ENERGY & DEVELOPMENT CORP., Woodlands, Tex., acquired Acacia Natural Gas Corp., a Central Oklahoma pipeline company with about 150 miles of gathering lines, for an undisclosed price. Mitchell unit Southwestern Gas Pipeline Inc. will operate Acacia, and Mitchell Marketing Co. will handle gas supply and marketing.

TRANSPORTATION DEPARTMENT'S Research and Special Programs Administration is considering extending federal safety standards to hazardous liquids pipelines operating at pressures 20% or less of the rated pipe strength. The low pressure lines have been exempt from the standards since 1969.

COGENERATION

KIAC (Kennedy International Airport Cogeneration Partners) was formed by units of Brooklyn Union Gas Co. and Public Service Enterprise Group Inc. to build and operate a gas fired cogeneration plant at the New York City airport. The plant will provide all the airport's electricity and heat and cool the central terminal area.

REFINING

ENVIRONMENTAL PROTECTION AGENCY issued rules requiring primary oil/water/solids separation sludges resulting from refinery process wastewater and oily cooling wastewater to be managed as hazardous wastes. The rules mean these sludges cannot be stored in unlined ponds. EPA said the rule, outlined in the Nov. 2 Federal Register, could cost the refining industry more than $100 million/year.

COMPANIES

CHEVRON CORP. agreed to pay about $8.3 million in severance benefits, in partial settlement of a class action lawsuit over Chevron's handling of the Gulf Oil Corp. pension plan, to divested former Gulf employees who left during 1984-86. Chevron also agreed to increase obligations to the Chevron pension plan by about $16 million for vesting and early retirement of some other divested employees and to pay reasonable attorney fees and expenses.

NOMECO OIL & GAS CO., Jackson, Mich., increased its capital budget for 1991 by 10% to $90 million. Nomeco cited record oil and gas reserves, higher oil prices, and 1990 net income of $10 million as reasons for the budget hike.

OREGON NATURAL GAS DEVELOPMENT CORP., Portland, Ore., acquired 11 oil and gas leases in southern Alberta from Gulf Canada Resources Ltd., and established a Canadian unit, Canor Energy Ltd., Calgary, to manage production and exploration on the acquired leases. The purchase includes mineral rights on 127,800 developed and 72,440 undeveloped acres.

ALTERNATE FUELS

SHELL OIL CO. and Pacific Gas & Electric Co. plan to install compressed natural gas (CNG) dispensers at some Shell service stations in PG&E's northern and central California service area. At first, the dispensers will be for fleet vehicles whose operators have CNG service contracts with PG&E. The companies expect the sites eventually to be available to all CNG equipped vehicles.

MARKETING

A HAUPPAUGE, N.Y., federal jury convicted Getty Terminals Corp., Getty officer William Rea, and two independent gasoline wholesalers, John Quock and John Pabone, of conspiracy and tax evasion. Prosecutors said the defendants took part in a scheme to evade more than $1 million in federal gasoline excise taxes by falsifying sales invoices and corporate records.