U.S. BRIEFS

REFINING

ENVIRONMENTAL PROTECTION AGENCY seeks $525,000 in penalties from Mobil Oil Corp. for allegedly failing to notify appropriate agencies after three releases of hazardous materials from its Paulsboro, N.J., refinery during 1989 and 1990. EPA said Mobil didn't immediately notify them of a 2,900 lb release of sulfur dioxide Sept. 26, 1989, 2,200 lb of hydrogen sulfide Dec. 4, 1989, and 450 lb Of SO2 Mar. 12, 1990. Mobil plans to meet with EPA July 3 to point out errors in the complaint.

MOBIL plans a $150 million upgrade of its 180,000 b/d Joliet, Ill., refinery. The 2 year project includes adding a sulfur recovery unit, upgrading a reformer, and modifying the distillate treating unit. Mobil expects to use several contractors.

SHELL OIL CO. put its 139,000 b/d Wilmington, Calif., refinery up for sale in an effort to restructure its refining/marketing operations. The complex includes a lubricating oil compounding plant, product, solvent, and propane storage, and a products terminal. Shell said it will close the refinery but continue to operate the other facilities if a buyer isn't found.

DRILLING-PRODUCTION

MAXUS ENERGY CORP., Dallas, signed a $29.9 million agreement to acquire Freeport-McMoRan Inc.'s interest in Vermilion Blocks 225, 226, and 227 off Louisiana. Included are interests in 17 wells that will boost Maxus' net gas sales of about 109 MMcfd by about 18.1 MMcfd. Maxus plans to sell its Rocky Mountain leases, mainly in the Powder River, Wind River, Uinta, and Williston basins, in order to focus U.S. operations in the Texas Panhandle and Gulf of Mexico.

COLORADO OIL & GAS CONSERVATION COMMISSION approved Fuel Resources Development Co.'s request for 320 acre spacing in Plateau Creek field in Mesa County, Colo., where Cretaceous Cameo coal seams are being developed. Establishment of further field rules awaits resolution of protests. The commission also will recommend Amoco Production Co.'s request for tight formation designation for the Cretaceous J sand underlying parts of Weld and Adams counties to the Federal Energy Regulatory Commission.

NAHAMA & WEAGANT ENERGY CO., Bakersfield, Calif., agreed in principle to buy about 9 bcf of gas reserves from John Hancock Mutual Life Insurance Co. for $9 million. John Hancock is sole limited partner in a limited partnership in which Nahama & Weagant is general partner. The purchase boosts Nahama & Weagant's equivalent gas reserves by 43% to 30 bcf.

CNG

SOUTHERN UNION GAS CO., Austin, signed an agreement with Socorro Independent School District, El Paso, Tex., to convert Socorro's fleet of 57 school buses by Sept. 1, 1991, to run on compressed natural gas and to install a CNG refueling station at SISD's transportation center on Middle Drain Road in El Paso.

EXPLORATION

MINERALS MANAGEMENT SERVICE issued a call for information and nominations for a late 1993 Beaufort Sea lease sale, a March 1993 Central Gulf of Mexico sale, and an August 1993 western Gulf of Mexico sale. The Beaufort call, for Sale 144, covers 29.5 million acres 3-140 miles off Alaska in 7-3,200 ft of water. The central gulf offering, Sale 142, offers 47.8 million acres and the western gulf offering, Sale 143, 35.9 million acres.

FOWLER & WURZEL EXPLORATION, a joint venture of of J5 Inc., Englewood, Colo., and WSF Inc., Shreveport, will conduct a 2 year Michigan basin exploration program that includes a 23 well Antrim shale drilling program in Montmorency County.

PIPELINES

DEPARTMENT OF TRANSPORTATION issued final safety rules governing carbon dioxide pipelines. The rules, detailed in the June 12 Federal Register, follow an American Petroleum Institute task force's recommendations.

FEDERAL ENERGY REGULATORY COMMISSION ruled that Northern Natural Gas Co. may recover the principal of about $77 million in take or pay settlement costs. The company will recover $51.3 million through a volumetric surcharge and $26.1 million through a demand surcharge applied to total annual billing units. Northern Natural will absorb $27 million in interest.

ACQUISITIONS

ARKlA EXPLORATION CO., Shreveport, acquired Hunter Co., also of Shreveport, in a $20 million merger that adds about 15 bcf of gas equivalent to Arkla reserves. Hunter's holdings are mainly in the tight sands area of Carthage field in East Texas.

GARNET RESOURCES CORP., Houston, plans to acquire RGO Energy Inc. and RGO Partners Ltd. in the fourth quarter subject to shareholder approvals. Garnet will offer 2.55 million shares of its common stock to RGO shareholders in an exchange valued at about $18 million. RGO assets consist of about 60% cash and the balance in U.S. producing and undeveloped oil and gas properties.

COMPANIES

DAMSON OIL CORP., New York, filed Chapter 11 bankruptcy and will sell most of its gas processing interests and oil and gas leases, excluding its South Erath prospect in Texas, to Parker & Parsley Petroleum Co. , Midland, Tex., for $100,000 and 1,532,846 shares of Parker & Parsley common stock. Estimated reserves are 1.1 million bbl of oil, 13.5 bcf of gas, and 2.4 million bbl of natural gas liquids. Damson plans to use proceeds from the sale to cut its debt.

NERCO OIL & GAS INC., Vancouver, Wash., restructured, laying off about 40 employees in Vancouver, Houston, and other offices. All corporate functions and onshore oil and gas assets, including Black Lake field in Central Louisiana, will be managed from Vancouver. All other Gulf Coast assets will be managed from Houston.

FUEL CELLS

PACIFIC GAS & ELECTRIC CO. and Energy Research Institute, Danbury, Conn., started up a 100 kw pilot molten carbonate fuel cell power plant at PG&E's research and development center in San Ramon, Calif. The plant will be phased to capacity by yearend. PG&E and a group of six utilities plan a 2,000 kw demonstration plant to start up in 1994.

LOS ALAMOS NATIONAL LABORATORY and General Motors Corp. plan to develop a methanol fuel cell system to power cars, vans, and buses. The integrated unit could be incorporated into vehicles by early in the next century, Los Alamos said.