U.S. BRIEFS

PETROCHEMICALS

MARKWEST HYDROCARBON PARTNERS, Englewood, Colo., licensed Phillips Petroleum Co.'s steam active reforming and methyl tertiary butyl ether process for its proposed 1,700 b/d MTBE plant at South Shore, Ky. Construction is to begin this summer, with start-up scheduled for third quarter 1992.

COURTS

A DALLAS district appeals court denied a motion by Arabian Shield Development Co. to rehear its lawsuit against Hunt Oil Co. On Apr. 12 the same court upheld a judgment against Arabian Shield (OGJ, Apr. 22, P. 46).

REFINING

NATIONAL COOPERATIVE REFINERY ASSOCIATION let contract to Litwin Engineers & Constructors Inc. for design, procurement, and construction of a 20,000 b/sd UOP continuous catalyst regeneration platformer and a 30,500 b/sd distillate hydrodesufurizer at its McPherson, Kan., refinery. The project is to be complete by spring 1993 at a cost of more than $100 million.

MOBIL OIL CORP. let contract to Jacobs Engineering Group Inc. for design of a benzene emissions reduction unit at its Chalmette, La., refinery. The unit will be designed to meet federal emission standards under hazardous air pollutant regulations.

VALERO REFINING & MARKETING CO. is studying plans to build a $60 million aromatics extraction unit to recover benzene and toluene from a 27,000 b/d naphtha reformer being built at its Corpus Christi, Tex., refinery. If an engineering study is completed as expected in the fourth quarter, Valero could have the aromatics unit in service by third quarter 1993.

PRIDE COS. LP started up a catalytic reforming unit at its Abilene, Tex., refinery, enabling it to increase refinery crude throughput to 45,000 b/d from 25,000 b/d. Pride also commissioned gasoline storage tanks at its new San Angelo, Tex., terminal, where diesel sales began in April.

GOVERNMENT

ENVIRONMENTAL PROTECTION AGENCY toughened automotive tailpipe emissions limits the first time since 1981. The tighter rules, required by 1990 Clean Air Act amendments, require passenger car hydrocarbon emissions cut 31% and nitrogen oxide emissions 60%. The standards will be phased in during 3 years.

LOUISIANA'S SENATE passed and sent to the House natural resources committee a bill to limit stringency of state air quality rules to requirements of the federal Clean Air Act. The bill's sponsor contends in seeking emissions cuts in some cases of more than 95%, the Louisiana Department of Environmental Quality surpassed its authority under a 1989 state law calling for a 50% reduction in air toxics.

ACQUISITIONS

MURPHY OIL CORP. is increasing its exchange offer for outstanding shares of Ocean Drilling & Exploration Co. common stock not owned by Murphy to 0.55 share from one-half share of Murphy common stock under a proposed settlement of litigation by Odeco stockholders. Murphy is extending its exchange offer to June 21 (OGJ May 13, P. 36), which it says in its final offer.

MERGER of Ladd Petroleum Corp., Denver, and Amax Oil & Gas Inc., Houston, was complete effective May 31 (OGJ, Dec. 31, 1990, P. 38).

DRILLING-PRODUCTION

GERRITY OIL & GAS CORP., Denver, began a 120 well drilling program June 1 , targeting Cretaceous Codell in Wattenberg field in Colorado's Denver-Julesburg basin. Gerrity has about 200 locations available for drilling and expects to complete the current program by yearend.

MIKE MULLEN ENERGY EQUIPMENT RESOURCE INC., Dallas, purchased Willbros Drilling Inc., Midland, Tex., including 12 drilling rigs, rolling stock, and real estate for an undisclosed sum. Willbros operations are in the Permian basin.

PRIDE PETROLEUM SERVICES INC., Houston, bought 10 well servicing rigs from Alliance Well Service, Liberty, Tex., increasing Pride's service rig fleet to 419. Related support equipment and a yard at Liberty are included.

DI INDUSTRIES INC., Houston, bought fixed assets of Woolf & Magee Inc., Tyler, Tex., for $3.4 million. The purchase includes five active and one stacked rig with all operational equipment and interests in 120 oil and gas wells, mostly in Texas and Louisiana. Woolf & Magee's client base and operating area adjoin DI's North Louisiana division.

EXXON COMPANY U.S.A. offered to sell 47 oil and gas leases in West Texas, divided into 14 regional packages. Two are Exxon operated, and 45 are operated by others. Offers are due July 15, with sales to be effective Sept. 1.

PANCANADIAN PETROLEUM LTD., Calgary, plans to sell its U.S. oil and gas assets, including production of about 1,900 b/d of oil and natural gas liquids and 8.4 MMcfd of gas. Most of the oil reserves are in Laurel, Reedy Creek, and Chaparral fields, Miss. Gas reserves are mainly in Bayou Vermilion field, La., and Anschutz Ranch East Unit, Utah. Other producing interests are in Kansas, Texas, Wyoming, and the Gulf of Mexico.

PIPELINES

SHELL PIPE LINE CO. began laying a 12 3/4 in., 7.3 mile gas pipeline in the Gulf of Mexico from its Bullwinkle platform in 1,350 ft of water on Green Canyon Block 65 to Boxer platform on Green Canyon Block 19. Shell Offshore Inc. late last year finished development drilling from Bullwinkle, the world's tallest fixed platform, where it plans to start production this year.

AMERICAN PIPELINE CO., Houston, signed a 5 year transportation agreement with KN Energy Inc., Lakewood, Colo., giving American 50 MMcfd of firm capacity on KN's Buffalo Wallow system in western Oklahoma. A spur is planned from the Buffalo Wallow system to Transok Inc.'s Thomas, Okla., gas processing plant (OGJ, May 27, P. 46). American unit Westar Transmission Co. signed a 5 year contract with Transok to purchase gas at the Thomas plant gate to be delivered through KN's system to Westar in Hemphill County, Tex.

EXPLORATION

PG&E RESOURCES CO., Dallas, completed 1 McMillan Unit in Brazoria County, Tex., near depleted Manor Lake Frio field, in Tertiary Lower Frio sandstone at 10,672-780 ft with absolute open flow potential of 85.7 MMcfd of gas with 7,728 psi shutin tubing pressure and 9,031 psi bottomhole shutin Pressure. The well flowed 6.4 MMcfd of gas and 30 b/d of condensate with 7,423 psi flowing tubing pressure through a 12/64 in. choke.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.