U.S. BRIEFS

Feb. 12, 1990
DEPARTMENT OF ENERGY and American Electric Power Service Corp., Columbus, Ohio, will build a $660 million, cost shared, commercial scale pressurized fluidized bed combustion (PFBC) unit at the Philip Sporn plant in New Haven, W. Va., under DOE's clean coal program. Objective is to demonstrate the feasibility and economics of PFBC technology, which reduces sulfur dioxide and nitrogen oxide emissions, in a plant of at least 330,000 kw capacity.

ALTERNATE FUEL

DEPARTMENT OF ENERGY and American Electric Power Service Corp., Columbus, Ohio, will build a $660 million, cost shared, commercial scale pressurized fluidized bed combustion (PFBC) unit at the Philip Sporn plant in New Haven, W. Va., under DOE's clean coal program. Objective is to demonstrate the feasibility and economics of PFBC technology, which reduces sulfur dioxide and nitrogen oxide emissions, in a plant of at least 330,000 kw capacity.

GREATER CLEVELAND Regional Transit Authority placed in service a natural gas powered bus capable of traveling 450 miles before refueling. Six Kevlar-wrapped, aluminum cylinders under the seats can hold 16 Mcf of gas. Refueling takes 4 hr with a portable system and 58 min with a permanent setup. Tests are planned in Cleveland, Youngstown, and Warren, Ohio, Lake County, Ohio, and Altoona, Pa.

DRILLING-PRODUCTION

DEPARTMENT OF ENERGY let a contract to Jerry R. Bergeson & Associates, Golden, Colo., for technical support services at Elk Hills Naval Petroleum Reserve No. 1 in Kern County, Calif. The contract, covering things such as reservoir management analysis, carries a 3 year base period at $5.6 million with options for 2 more years at more than $2 million each. Evans, Carey & Crozier, Bakersfield, Calif., will provide support to Bergeson as the main subcontractor.

EXXON CORP. added enough reserves in 1989 to replace 150% of its net production of crude oil, natural gas, and natural gas liquids. Worldwide production was 658 million bbl of oil and NGL and 1.964 tcf of gas in 1989. Liquids reserve additions equaled 1989 liquids production, and gas reserve additions replaced 240% of gas production. The additions resulted from acquisitions, discoveries, improved recovery, extensions, and revisions.

TEXACO USA plans to let a contract worth more than $30 million to design, build, and install a 20 slot platform in 720 ft of water in Garden Banks Block 189 in the Gulf of Mexico 180 miles south-southwest of Morgan City, La. The contract is to be let to a joint venture of Gulf Island Fabrication Inc., Houma, La., and Micoperi SpA, Milan, Italy. Texaco in March will ask for bids on a contract for deck and production equipment fabrication. Design capacity is to be 60 MMcfd of gas and 10,000 b/d of oil. Union Exploration Partners Ltd. holds a 50% interest in the project.

TOTAL MINATOME CORP. began production from Platform G on Vermilion Block 268 off Louisiana in the Gulf of Mexico. The first two wells flowed a combined 9.1 MMcfd of gas and 360 b/d of condensate from about 11,000 ft. Three more wells have been drilled. Partners are Columbia Gas Development Corp., CNG Producing Co., and Forest Oil Corp.

NASSAU RESOURCES, Denver, received a U.S. Forest Service award for environmental measures exceeding federal regulations in its San Juan basin operations. The company, which operates more than 200 wells in the basin, has drilled 40 coalbed methane wells in the Carracas Mesa area of Carson National Forest and plans 20-30 more by yearend 1990.

MARKETING

COASTAL UNILUBE INC. acquired the lubricant and automotive chemical marketing assets of Macmillan Oil Co., Des Moines, Iowa.

COMPANIES

HONDO OIL & GAS CO., Roswell, N.M., is the new name for Pauley Petroleum Inc. Pauley, of Los Angeles, recently merged with its Hondo Oil & Gas unit, which holds producing leases representing the biggest portion of corporate assets. Pauley acquired Hondo, founded by former ARCO Chairman Robert 0. Anderson, in an exchange of stock in January 1988. In addition to upstream assets, Hondo owns a 30,000 b/d refinery in Carson, Calif., which will continue to operate as Fletcher Oil & Refining Co.

MEGA NATURAL GAS CO., Tulsa, plans to acquire Colony Energy Corp., Midland, Tex., from AlaTenn Resources Inc., Florence, Ala., for $6.3 million. Colony is a gas gathering system developer and gas marketer.

PROCESSING

SUN REFINING & MARKETING CO. plans a multimillion dollar upgrade of its 10,000 b/d Marcus Hook, Pa., naphthenic lubes plant during 3 years. Sun will add a state of the art control room and improve statistical process control on hydrotreaters to improve efficiency, reliability, flexibility, and product specification quality.

WESTERN GAS Resources Inc., Denver, will build a $14 million butane isomerization unit south of Gillette, Wyo., to start up in fourth quarter 1990 to serve northern Rocky Mountain refineries.

ACQUISITIONS

ENRON GAS PROCESSING signed a definitive agreement to acquire CSX Energy Corp. from CSX Corp., Richmond, Va., by the end of first quarter 1990 for an undisclosed sum. CSX Energy operates three natural gas liquids extraction plants, including one at Eunice, La.

EXPLORATION

AMPOLEX (TEXAS) INC., Denver, a subsidiary of Ampol Exploration Ltd., Sydney, Australia, and Petroleum Securities Australia Ltd., Sydney, began a 1990 exploration program in three Rocky Mountain basins. Ampolex operator, will drill five wells in the Powder River basin, as many as eight in the Williston basin, and as many as 13 in the Paradox basin.

PRAIRIE PRODUCING CO., Houston, will develop 1 S. L. 13633, a Miocene sand discovery in Main Pass Block 49 off Plaquemines Parish, La. It flowed 13.6 MMcfd of gas and 336 b/d of 57.6 gravity condensate through a 30/64 in. choke with 2,849 psi flowing tubing pressure from perforations at 10,430-516 ft. CAOF is 155 MMcfd. Prairie has 66% working interest in the well and 4,300 acres.

NAHAMA & WEAGANT ENERGY CO., Bakersfield, Calif., plans to develop an Upper Cretaceous Winters sand gas discovery 61/2 miles southwest of Sacramento in Yolo County, Calif. The 1-10 Glide flowed 6.25 MMcfd of gas through a "IrA in. choke with 2,213 psi flowing tubing pressure from the upper 10 ft of a 40 ft sand. The well can deliver 15 MMcfd of gas. Sales are to start in March 1990.

TRANSPORTATION

CITY GAS & TRANSMISSION CORP. (CG&T), Lexington, Ky., plans to buy Atlantic; Pipeline Corp. (APC), a Kentucky utility. APC owns 100% working interests in 50 leases on 13,196 acres in Southeast Kentucky, revenue interests in 48 producing gas wells, and 44 miles of gas pipelines in Clay and Laurel counties, Ky. CG&T plans a development drilling program with Gulf American Resources Corp.

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