U.S. BRIEFS

COMPANIES

WARD PETROLEUM CORP., Enid, Okla., and Teikoku Oil (U.S.A.) Inc., a unit of Teikoku Oil Co., Tokyo, signed a multiyear agreement covering oil and gas exploration and development in Oklahoma's Anadarko and Arkoma basins.

COGENERATION

DESTEC ENERGY INC., Houston, agreed with Fort Howard Corp. to develop a $200 million, gas fired, 260,000 kw cogeneration plant in Green Bay, Wis. Construction is to begin in 1993 and be complete in about 2 years. The plant will sell electrical power to eastern Wisconsin utilities and 200,000-400,000 lb/hr of process steam to Fort Howard's paper mill.

A JOINT VENTURE of J. Makowski Co., Bay State Gas Co., Tenneco Gas Pipeline Co., PG&E-Bechtel Generating Co., and General Electric Co. completed financing for a 240,000 kw, gas fired cogeneration plant in Springfield, Mass., securing $240 million of nonrecourse senior debt with Chase Manhattan Bank. The Mass-power plant will provide steam to Monsanto Chemical Co. and electricity to area utilities. Startup is expected in summer 1993.

ENVIRONMENT

ENVIRONMENTAL PROTECTION AGENCY filed a complaint against Alyeska Pipeline Service Co., Exxon Shipping Co., and BP Oil Co. for alleged violations of the wastewater discharge permit at Alyeska's Valdez terminal and seeks a $20,000 penalty. The BP chartered Tonsina and Exxon New Orleans tankers had discharged ballast water transferred from other vessels carrying Alaskan North Slope crude to the terminal treating plant. Alyeska said the effluent met all permit limitations.

EPA ordered companies sharing a fuel tank farm in Sparks, Nev., to clean up a fuel leak estimated to range from 4 million to 40 million gal or pay as much as $25,000/day in fines. Companies involved are Santa Fe Pacific Pipeline Partners LP, Southern Pacific Transportation Co., Shell Oil Co., Time Oil Co., Berry-Hinkley Terminal, Chevron USA Inc., Golden Gate Petroleum Co., and units of Texaco Inc., BP America Inc., and Unocal Corp.

EPA plans to give small operators with underground storage tanks another year to obtain leak insurance. It proposes to extend the compliance date from Oct. 26, 1991, to Dec. 31, 1992, for owners with 12 or less tanks at more than one facility, fewer than 100 tanks at a single facility, and nonmarketers with a net worth of less than $20 million.

OXYGENATED FUELS PROGRAM under the 1990 Clean Air Act is designed to reduce carbon monoxide emissions, not carbon dioxide as incorrectly reported (OGJ, Aug. 26, p. 37).

TRANSPORTATION

ALTAMONT GAS TRANSMISSION CO. accepted permits from the Federal Energy Regulatory Commission for construction of its proposed 620 mile, 36 in., 719 MMcfd gas pipeline from Port of Wild Horse, Mont., to Opal, Wyo. (OGJ, Mar. 18, Newsletter).

CNG TRANSMISSION CORP., Clarksburg, W. Va., started construction on a 7 mile section of its proposed 28 mile pipeline in Virginia that will provide long term gas sales service to Virginia Natural Gas Inc. and Richmond, Va. (OGJ, Aug. 13, 1990, p. 22). CNG also will provide transportation and interruptible storage service for Doswell LP's proposed 650,000 kw power plant and Virginia Electric & Power Co.'s power plant near Richmond.

SOUTHERN CALIFORNIA GAS CO. will spend $24 million to upgrade its system in southern California to accommodate receipts from the Kern River and Mojave pipeline projects scheduled for completion in 1992. They include a two train, 11,000 hp, gas fired compressor station near Wheeler Ridge in Kern County at the Kern-Mojave 36 in. intersection that will allow delivery of 450 MMcfd of firm gas into the SoCal Gas system by July 1993.

SOCAL GAS completed tie-in of its $25 million, 200 MMcfd, 65 mile northern system expansion in southern California, linking its Adelanto compressor station in San Bernardino County and Quigley station in Los Angeles County.

U.S. COAST GUARD proposed rules requiring ships and tankers using San Francisco and Houston-Galveston harbors to participate in vessel traffic service (VTS) programs. The rules would consolidate VTS regulations nationally, except for local rules used by Washington's Strait of Juan de Fuca cooperative system.

MARKETING

PENNZOIL PRODUCTS CO. is introducing its gasoline and other fuels in Utah, western Colorado, and Southwest Wyoming markets to be served by its 8,000 b/d refinery at Roosevelt, Utah. About 75 service stations and convenience stores will sell Pennzoil brand products in the tristate area. For the past 60 years the company served only Pennsylvania and nearby eastern states.

UNOCAL CORP. is restructuring its marketing operations in the western U.S. Under the new organization, Unocal western marketing will be split into retail, commercial, and auto products units vs. the previous geographic split. It will mean staff cuts of 70-80 persons. Unocal operates about 1,500 service stations in California, Oregon, Washington, Alaska, Hawaii, Arizona, and Nevada. In recent months it has announced closing of almost 300 stations in California.

DRILLING-PRODUCTION

MARATHON OIL CO. is drilling a second step-out after extending Ewing Bank Block 873 field east in 775 ft of water, 96 miles southwest of Venice, La. Marathon 2 Ewing Bank 873 cut 127 ft of oil pay, extending the known oil column another 347 ft downdip, demonstrating an oil column about 1,500 ft thick. A sidetrack of the discovery well, tested in April, flowed 2,407 b/d of 18 gravity oil and 596 Mcfd of gas through a 16/64 in. choke with 2,718 psi flowing tubing pressure from 52 ft of net pay in the lowest of three sands.

PARKER & PARSLEY PETROLEUM CO., Midland, Tex., accepted a $16.425 million offer from undisclosed buyers for its 3% interest in 13 gas wells Amoco Production Co. operates in Port Hudson Field Unit in East Baton Rouge Parish, La. The purchasers also have an option to buy Parker & Parsley's remaining interest in the unit for $2.074 million.

EXPLORATION

MINERALS MANAGEMENT SERVICE scheduled hearings in eight cities on the draft environmental impact statement for its proposed 1992-97 offshore leasing program. Hearings are scheduled in Anchorage, Wilmington, N.C., New Orleans, Houston, Ocean Springs, Miss., Mobile, Ala., Santa Maria, Calif., and Gulf Breeze, Fla., Sept. 10-19. Times and locations are detailed in the Aug. 12 Federal Register.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.