U.S.BRIEFS

DRILLING-PRODUCTION

NERCO INC. closed its $475 million purchase of Union Texas Petroleum Holdings Inc. leases in the Gulf of Mexico (OGJ, Mar. 18, p. 44). Upon closing, the U.S. offshore division of Union Texas became a division of Nerco Oil & Gas Inc., Vancouver, Wash. Union Texas said about 200 of its employees accepted jobs with Nerco.

MURPHY OIL CORP. began an exchange offer for all outstanding common shares of Ocean Drilling & Exploration Co. it doesn't own. The offer of one-half share of Murphy common for each share of Odeco common will expire May 1 unless extended.

A 50-50 COMBINE of Unocal Exploration Corp. and Texaco Inc. expects to begin development drilling early next year after it sets a four pile, six slot production platform in Vermilion Block 328 off Louisiana. Designed for production of 50 MMcfd of gas and 200 b/d of condensate, it will go on stream by mid-1992, Unocal-Texaco's 1 OCS-G 11896, drilled on Block 328, cut 91 ft of gas pay at 8,845-8,980. Unocal believes the reservoir extends under offsetting Vermilion Block 327, also leased by the combine.

PIPELINES

CONOCO PIPE LINE CO. bought ARCO Pipe Line Co.'s North Texas crude gathering system, including about 900 miles of 3 in. and 8 in. pipeline, storage tanks, pumps, and related equipment. The purchase doubles the size of the gathering system supplying oil to Conoco's Ponca City, Okla., refinery. Financial details of the deal weren't disclosed.

TRANSPORTATION DEPARTMENT proposed a rule limiting concentration of hydrogen sulfide in gas pipeline systems. The rule would ban shipment of gas containing more than 1 grain of H2S/CU ft downstream of gas processing plants, sulfur recovery plants, or storage fields. It would require operators to inform the Transportation Department of the release of H2S in excess of 20 grains/cu ft and require gathering lines carrying gas with more than 31 grains to file an accidental release contingency plan.

NEW YORK STATE ELECTRIC & GAS CORP., Binghamton, N.Y., completed its $57.5 million purchase of Columbia Gas System Inc.'s New York gas distribution subsidiary, Columbia Gas of New York Inc. Columbia offered the subsidiary for sale in May 1990 to focus its attention on states where its gas distribution units have a greater market share.

EXXON CO. U.S.A. agreed to help pay for environmental studies for Pacific Pipeline Co.'s proposed 171 mile crude oil line to transport Offshore California production to the Los Angeles area (OGJ, Apr. 8, p. 26).

COLUMBIA GAS TRANSMISSION CORP. will deliver as much as 20 bcf/year of gas to Public Service Electric & Gas of New Jersey and a 200,000 kw cogeneration plant at Westville, N.J., through an 8.9 mile, 20 in., $11.5 million pipeline. Jointly owned by Columbia and ANR Pipeline Co., a unit of Coastal Corp., the new line will transport as much as 17 bcf/year for use by the Eagle Point cogeneration project. Eagle Point will generate power and steam for Coastal's Eagle Point refinery at Westville.

GOVERNMENT

DEPARTMENT OF ENERGY and General Services Administration awarded Chrysler Corp. an $885,900 contract to provide 50 passenger vans powered by compressed natural gas. Various federal agencies will test the 1992 model year vans. GSA recently issued a contract to buy 65 passenger cars that can operate on either methanol or gasoline.

COMPANIES

UNOCAL CORP. retained Morgan Stanley, New York, to seek buyers for its Molycorp Inc. subsidiary, along with its chemicals distribution and emulsion polymers businesses. It's part of Unocal's plan to generate greater cash flow by focusing on segments in which it has a stronger competitive position.

REFINING

STAR ENTERPRISE, a joint venture between Texaco Refining & Marketing (East) Inc. and Saudi Refining Inc., applied to the Commerce Department for foreign trade zone status for its 225,000 b/d Convent, La., and 250,000 b/d Port Arthur, Tex., refineries. Zone procedures would exempt the refineries and related facilities from paying customs duty on crude oil imports processed into products that are exported.

CHEVRON U.S.A. INC. obtained access to methyl tertiary butyl ether to be produced in Canada. The gasoline octane enhancer will come from a 12,000 b/d MTBE plant Alberta Envirofuels is building at Edmonton, Alta., aiming for completion by yearend. Chevron Canada Ltd., like Chevron U.S.A. a unit of Chevron Corp., plans to buy a one third interest in Alberta Envirofuels. Petro-Canada Inc. and Neste Canada Inc. also hold one third interest each.

EXXON CO. U.S.A. dedicated a 250,000 sq ft lubricants plant at Port Allen, La., across the Mississippi River from its Baton Rouge refinery. The new $47 million plant has a rated capacity of 80 million gal/year of lubricating and process oils, Receiving basestocks by pipeline from the Baton Rouge refinery, it can produce, package, and inventory more than 200 formulations of industrial and process oils.

UOP acquired the KLP process technology from Dow Chemical U.S.A. The process selectively hydrogenates acetylenic compounds in crude butadiene streams. UOP said it achieves essentially complete acetylene conversion with little or no hydrogenation of butadiene.

MARKETING

MOBIL OIL CORP. plans an Apr. 18 dedication of its first of 10 methanol fueling stations in California. The California Energy Commission will take part in ceremonies at the site in Pasadena.

DIAMOND SHAMROCK INC., San Antonio, signed a definitive agreement to buy National Convenience Stores Inc.'s operations in the El Paso area for an undisclosed amount of cash. Acquired assets include 24 service stations operating under the Stop N Go logo.

EXPLORATION

RUDMAN PARTNERSHIP, Dallas, is committed to participate in drilling 18 wildcats this year and plans to take interests in another 32 by yearend.

MICHIGAN'S Department of Natural Resources will offer 73,818 acres of state land for leasing at a July 8 sale in Lansing. The acreage lies in Alcona, Antrim, Arenac, Bay, Calhoun, Clare, Crawford, Grand Traverse, Iosco, Kalkaska, Missaukee, Ogemaw, Osceola, Oscoda, Otsego, Presque Isle, and Roscommon counties.