U.S.BRIEFS

ALTERNATE FUEL

A PARTNERSHIP of Hadson Power Systems, Irvine, Calif., and Westmoreland Energy Inc. began funding $200 million in nonrecourse construction loans for two of four coal burning cogeneration projects in Virginia. The projects will be 70,000 kw units supplying electrical power to Virginia Electric and Power Co. and steam to industrial users.

ACQUISITIONS

PLAINS PETROLEUM CO., Lakewood, Colo., will acquire for stock all outstanding shares of McAdams, Roux & Associates, Denver. Plains will assume about $1.4 million of debt and deliver about $5.7 million in newly issued shares of its common stock for MRA. It plans to complete merger of MRA with subsidiary Plains Petroleum Operating Co. in June.

CITY GAS & TRANSMISSION CORP., Lexington, Ky., is near completion of its acquisition of Atlantic Pipeline Corp., including 44 miles of gas transmission lines and four compressor stations in eastern Kentucky, plus interests in about 80 gas wells. CG&T will in the third quarter of 1990 begin a 50 well development drilling program in Kentucky.

PROCESSING

COASTAL CHEM INC., Houston, let contract to Davy McKee Corp. to provide front end design for a $65 million, 4,000 b/d methyl tertiary butyl ether plant in Cheyenne, Wyo. The plant also will produce 23 million gal/year of methanol. Projected start-up is late 1991.

AUX SABLE PARTNERS plans to acquire and convert the former Northern Illinois Gas Co. synthetic natural gas plant in Grundy County, Ill., to a 12,500 b/d methyl tertiary butyl ether plant to start up by second quarter 1992. Project financing and participants are being sought. Aux Sable is a partnership of Gunnison Capital Development Corp., Fort Worth, led by Richard W. Moncrief, and Citicorp North America, New York.

CHEVRON CHEMICAL CO. will close its lube oil additives plant in East Los Angeles in early 1991 due to difficulty in meeting stricter air quality standards that take effect next year. Chevron will arrange for manufacture of these additives at other facilities. About 60 employees will be affected by the closing.

COMPANIES

TESORO PETROLEUM CORP., San Antonio won a verdict worth an estimated $6.4 million in a lawsuit against Holborn Oil Co. Ltd. A New York Supreme Court jury found Holborn had agreed in May 1979 to buy 25,000 metric tons of gasoline from Tesoro, then refused to accept delivery. The amount includes Tesoro's loss plus interest.

MESA LIMITED PARTNERSHIP, Dallas, withdrew its proposed sale of units in Hugoton Royalty Trust. The action stemmed from delays in bringing the transaction to market and on, price indications that did not, in Mesa's opinion, accurately reflect the value of its Hugoton field gas reserves.

TRANSPORTATION

THE EXXON LONG BEACH tanker was released by the Coast Guard to resume normal operations the day after it ran aground on soft mud while carrying 52.5 million gal of Alaskan crude in Long Beach, Calif., harbor. About 90 min after the Apr. 5 grounding, the 211,000 dwt tanker was refloated and returned to anchorage. Diver inspection showed no damage to the vessel.

EXXON CORP., and subsidiary Exxon Shipping Co., pleaded innocent in Alaska federal district court to five criminal charges stemming from the Mar. 24, 1989, Exxon Valdez oil spill in Prince William Sound. The companies each are charged with two felony and three misdemeanor counts, and face as much as $700 million in fines if convicted.

WILLISTON BASIN INTERSTATE PIPELINE CO. will begin construction in the spring of a gas compressor station near Glen Ullin, N.D. Completion is expected next Nov. 1. The 5,300 hp unit will allow Williston Basin to deliver a maximum 60 MMcfd through the Northern Border pipeline system to the Midwest.

SONAT INTRASTATE-ALABAMA INC., Birmingham, began delivering coal seam gas through Phase I of its new Cedar Grove pipeline. The 16 in. line on Sonat;s main system, which extends 16 miles northeast from just south of Tuscaloosa, Ala., is part of a $7 million expansion.

FRONTIER PIPELINE CO., will resume service from Southwest Wyoming to Casper during the second quarter of 1990 due to increased shipper demand for crude oil in Wyoming and Utah. Frontier, operated "by Amoco Pipeline Co., shut down in early 1988 when Overthrust Belt oil production declined.

DRILLING-PRODUCTION

POCAHONTAS LAND CORP., Bluefield, W.Va., bought from WJS Inc. a 29% average working interest in 77 gas wells in Kentucky. Pocahontas, bought the interest for $5.35 million in parent Norfolk Southern Corp. stock. The wells have a projected combined production of 1.5 bcf in 1990.

UNION EXPLORATION PARTNERS LTD. placed on production a fault block extension of its Matagorda Island Block 670 gas discovery off Texas. Combined flow from lower Miocene at 7,300-7,900 ft in the discovery well and the 2 OCS G-6048 extension is 13 MMcfd. Interests are UXP 60.7%, Pogo Producing Co. 25%, and Pogo Gulf Coast 14.3%.

PRAIRIE PRODUCING CO., Houston, and Union Exploration Partners Ltd. plan to develop their Monroe County, Ala., upper Jurassic Smackover dolomite oil and gas discovery. The 1 B.G. Mims 7-3 cut 60 ft of pay and flowed 575 b/d of oil and 68 Mcfd with 2,060 psi flowing tubing pressure.

EXPLORATION

UNION EXPLORATION PARTNERS LTD. drilled two gas strikes in the Matagorda Island area off Texas. Its 1 OCS G-7021 sidetrack cut 124 ft of net pay in lower Miocene at 6,746-8,330 ft and flowed 5 MMcfd with 2,367 psi flowing tubing pressure from 8,188-8,239 ft. UXP also cut 62 ft of Middle and lower Miocene pay in 1 OCS G-8548--cased and suspended without testing--on Matagorda Island Block 688.

PRAIRIE PRODUCING CO. confirmed its 1988 Green Valley gas/condensate discovery in Rains County, Tex., reported 45.7% partner Union Exploration Partners Ltd. The well tapped more than 200 ft of pay in upper Jurassic Smackover dolomite and flowed 6.3 MMcfd of gas through a 22/64 in. choke with 2,598 psi flowing tubing pressure.