U.S. BRIEFS

COMPANIES

A FEDERAL JUDGE in Los Angeles granted Mesa LP summary judgment in a lawsuit filed by Unocal Corp. in the wake of Mesa Partners II's attempt to acquire Unocal in 1985. Unocal had sought recovery under short swing profit provisions of Securities Exchange Act Section 16b, designed to prevent unfair use of information obtained through a person's relationship to the issuing corporation.

KIMCO ENERGY CORP., Denver, formerly Henry Energy Corp., and Broken Arrow Petroleum Corp., Scottsdale, Ariz., agreed to merge by Apr. 1.

DRILLING-PRODUCTION

ROYAL OIL & GAS CORP., Indiana, Pa., plans to sell Royal Producing Corp.-Texas, its largest wholly owned oil and gas subsidiary. Reserves, mostly in South Texas, are 6 million bbl of oil and condensate and 65 bcf of gas. Morgan Stanley & Co. Inc., New York, is Royal's financial adviser for the sale.

UNION PACIFIC RESOURCES CO. expects four Gulf of Mexico discoveries it drilled during second half 1989 to have combined net initial production of 80-100 MMcfd of gas. Three have been confirmed with offset wells. The discoveries are in 65-280 ft of water on Brazos Block A-2, High Island East Addition A-200, Ship Shoal Block 263, and West Cameron South Addition Block 604. Production start-up is set for fall 1990 with all discoveries to be producing by late 1991.

FREEPORT-MCMORAN ENERGY PARTNERS LTD. plans to spend $63 million for a platform and related costs to develop a gas discovery in Mississippi Canyon Blocks 320, 321, 322, 323, and 365 in the Gulf of Mexico. The discovery well, drilled to 10,268 ft measured depth on Block 365, encountered 128 ft of net gas pay in two sands. Seven expendable delineation wells were drilled. FMP let a $21 million contract to McDermott Marine Construction to design, build, and install an eight slot platform in 625 ft of water. Production is to start in second quarter 1992.

NORTHERN MICHIGAN EXPLORATION CO. (Nomeco) and Patrick Petroleum Co., both of Jackson, Mich., each acquired a 50% interest in the 1 Tenneco Fee gas well in Bayou Penchant field, Terrebonne Parish, La., from Llog Exploration Inc., Metairie, La. Reserves are 7.1 bcf of gas and 112,000 bbl of condensate. Nomeco will operate a development well.

A CHUSKA ENERGY CO.- Magellan Petroleum Corp. joint venture began a program Jan. 11 to develop Black Rock gas field in Apache County, Ariz., on the Navajo Indian reservation. Goal is to increase production to 20 MMcfd of gas from 8 MMcfd.

SWIFT ENERGY CO., Houston, agreed to buy five groups of producing leases in Texas, Oklahoma, and Louisiana for more than $42.5 million. The largest acquisition, from Amoco Production Co., covered interests in 114 wells in Custer, Caddo, and Washita counties, Okla., with net reserves of 44.6 bcf of gas and 447,400 bbl of oil. The other acquisitions, from undisclosed sellers, totaled net reserves of 634,200 bbl of oil and 15.7 bcf of gas in 88 wells in Burleson, Fayette, Freestone, Jim Hogg, Hidalgo, Grayson, and Lee counties, Tex.

SAMSON ENERGY CO. LP, Tulsa, acquired from Maxus Exploration Co. four producing properties in Anderson County, Tex., for $650,000, subject to postclosing adjustments. Net acquired reserves are 650 MMcf of gas and 21,400 bbl of oil.

BUREAU OF LAND MANAGEMENT issued proposed rules in the Jan. 19 Federal Register governing disposal of water produced with oil and gas on federal and Indian leases.

PROCESSING

ARCO shut down the hydrocracker at its 214,000 b/d Carson, Calif., refinery after a Jan. 19 accident in the hydrogen heater. The hydrocracker, which processes about 20,000 b/d of gasoline, is to be out of service until late February.

CONOCO INC. and Calcined Coke Corp. each bought a 50% interest in BP Oil Co.'s coke calcining business. They will combine the interests to form Venture Coke Co. (Venco), Houston, operated by Conoco. Assets include two coke calcining kilns each at Lake Charles, La., and Moundsville, W. Va. Combined rated capacity is 800,000 tons/year. Venco acquired existing contracts with BP's calcined coke customers and signed a long term contract to buy green anode coke from BP refineries in Louisiana and Ohio.

WESTERN GAS RESOURCES INC., Denver, plans to acquire ARCO's interest in the 31 MMcfd Gillette, Wyo., gas processing plant and gathering system. On closing, scheduled for Mar. 1, Western will own about 90% of the plant.

ALTERNATE FUELS

PACIFIC GAS & ELECTRIC CO. set up a business unit responsible for its nuclear power facilities, including the Diablo Canyon plant in California, and the nuclear support service required by the plant.

COGENERATION

WESTINGHOUSE ELECTRIC CORP. and Long Lake Energy Corp. won in competitive bidding exclusive rights to negotiate an energy services contract that will lead to development of a 300,000 kw cogeneration plant at Pilgrim State Psychiatric Institute on Long Island, N.Y. Estimated project cost is $200 million. New York State will negotiate with the companies' Mayflower Energy Partners.

FOSTER WHEELER POWER SYSTEMS sold an institutional investor a 49.5% limited partnership interest in its 99,000 kw cogeneration plant at Martinez, Calif. Proceeds were $20 million. The combined cycle plant, operating since June 1987, is fueled in part by waste gas from an adjacent Tosco Corp. refinery.

TRANSPORTATION

LONE STAR GAS CO. intends to sell all or most of its gas transmission/distribution system in Oklahoma within several months. Returns from the assets have been inadequate, said Lone Star, which has 97% of its customers in Texas.

MISSOURI PIPELINE CO., Tulsa, began delivering gas to Laclede Gas Co., St. Louis, Jan. 1. Deliveries averaged 22 MMcfd during Jan. 1-15 and were expected to reach 40-50 MMcfd by Jan. 31, depending on shipper requests and weather. System capacity will be 80-85 MMcfd once the West Alton, Mo., delivery spur is completed.

ANR PIPELINE CO. and Northern Indiana Public Service Co. laid a second interconnection, a 20 in. line, between ANR's transmission line in Lake County, Ind., and Nipsco's distribution system in Highland County, Ind. The connection went into service Jan. 15. Capacity is 200 MMcfd with expansion capacity of 100 MMcfd.

ONEOK INC., Tulsa, and HG&O Ltd. settled out of court a lawsuit involving a take or pay dispute regarding an Ellis County, Okla., gas well. Alleged deficiency was $1,157,195. HG&O also sought $14 million in punitive damages. Terms were not disclosed.