U.S. BRIEFS

COGENERATION

DESTEC ENERGY INC., Houston, started up its Badger Creek cogeneration project near Bakersfield, Calif. The $58.4 million project provides 48,000 kw of electricity to Pacific Gas & Electric Co. under a 20 year contract and 46,000 lb/hr of steam to an Occidental Petroleum Co. unit for thermal enhanced oil recovery operations.

LS POWER CORP., Bozeman, Mont., is developing a $220 million, 168,000 kw, gas fired cogeneration project in Lockport, N.Y., under contract with CU Energy Partnership. The project is under construction and scheduled for completion in late 1992. The plant will provide power to New York State Electric & Gas Corp. and steam and electricity to Harrison division of General Motors.

PIPELINES

MOJAVE PIPELINE CO., Bakersfield, broke ground for its 382 mile, $230 million pipeline at the right of way near Arvin, Calif. (OGJ, Dec. 17, 1990, p. 31). It will extend from Topock, Ariz., into Kern County and deliver 400 MMcfd of natural gas for enhanced oil recovery projects and cogeneration plants when complete in 1992. It will join Kern River Gas Transmission Co.'s line from Wyoming at Daggett, Calif., where the projects will share a 1.1 bcfd capacity line into Kern County.

TRANSWESTERN PIPELINE CO., Houston, is accepting open season nominations through June 28 for a $22 million, 260 MMcfd expansion of its proposed 520 MMcfd San Juan lateral (OGJ, Feb. 11, p. 26). Expansion includes adding compression at Bloomfield, N.M., and a new compressor station where the lateral meets the mainline near Thoreau, N.M. Transwestern plans to finish the lateral and a mainline expansion by Dec. 1.

TRANSPORTATION DEPARTMENT plans to issue regulations implementing a law Congress passed last year requiring reburial of exposed pipelines in shallow waters. Operators of gas and hazardous liquid pipelines would be required to inspect their Gulf of Mexico pipelines in less than 15 ft of water within a year after a final rule is issued or May 16, 1992, whichever comes first. Companies would have to report the exposed lines to the Coast Guard and rebury them within 6 months of discovery.

MARKETING

AMOCO OIL CO. placed reduced volatility gasoline in its terminals and is preparing to stock its service stations to meet 1991 summer air quality standards. The action is in response to Environmental Protection Agency's 3 year Reid vapor pressure phasedown schedule, first phase of which concludes this summer. Additional volatility reductions are scheduled for 1992 under EPA's second phase regulations.

EXPLORATION

HUNTER EXPLORATION CO., Fort Worth, purchased half of Wolverine Exploration Co.'s 66.67% interest in 82,000 gross acres in Chittim Ranch, Maverick County, Tex. for $685,000 and a minimum drilling commitment of five exploratory wells plus associated geophysical work. Hunter plans to start drilling in the next 3 months.

SEAGULL ENERGY CORP., Houston, 2 OCS-G-9039 on Galveston Block 283 flowed 8.1 MMcfd of gas and 43 b/d of condensate through a 24/64 in. choke with 2,275 psi flowing tubing pressure from 47 ft of net pay at 6,910-7,000 ft. Seagull has a 50% working interest in the property in 65 ft of water 25 miles east of Freeport, Tex. Partners are Southwest Energy Production Co. and UMC Petroleum Corp. with 25% interest each.

PETROCHEMICALS

SHELL CHEMICAL GO., Houston, awarded a construction management contract to John Brown E&C for expansion and upgrading utility and offsite support facilities at its Geismar, La., petrochemical complex. Value of the contract, which commenced in February and is to be complete by mid-1993, is not disclosed.

COMPANIES

NOBLE AFFILIATES, Ardmore, Okla., increased its 1991 capital budget 12% to $103.5 million from the previously announced $92.7 million (OGJ, Feb. 11, p. 34).

AMERICAN PETROFINA INC. changed its name to Fina Inc. to eliminate confusion between American Petrofina and its main operating subsidiary Fina Oil & Chemical Co.

DRILLING-PRODUCTION

READING & BATES CORP. AND DIAMOND M CORP. jointly offered to buy all offshore drilling assets of Ocean Drilling & Exploration Co. for more than $400 million in cash and R&B common stock.

AMOCO PRODUCTION CO. 1 Jack Bauman Unit in Oklahoma's Arkoma basin flowed 62 MMcfd of natural gas through a 1 in. choke with 2,500 psi flowing tubing pressure without stimulation from Pennsylvanian Spiro at 13,784-834 ft. The well is about 7 miles southeast of Wilburton and 1 mile west of Amoco's 1 Raymond Smith Unit, completed in January flowing 32 MMcfd of natural gas from a similar Spiro zone (OGJ, Feb. 4, p.12.) Amoco has 32% working interest in the well. Partners are H&H Star Energy Inc., Anson Co., Nomeco, and Exxon Corp.

TEXACO INC. plans to spend $300 million for carbon dioxide floods in three Texas oil fields intended to increase their reserves by 140 million bbl. The first project, beginning next year in an unspecified field near Midland, could add an incremental 52 million bbl to ultimate recovery. The other two projects are slated to begin in 1993-94. Texaco also has selected 11 other areas where CO2 injection could boost recovery by 160 million bbl.

CONOCO INC. completed purchase of Mesa Limited Partnership producing properties in the San Juan basin of New Mexico and Colorado for $161 million cash (OGJ Apr. 1, p. 46).

ENVIRONMENT

LOUISIANA GOV. BUDDY ROEMER signed into law oil spill legislation creating a $15 million cleanup fund by levying a 2/bbl fee on oil transferred to or from marine vessels. For major spills, the fee can increase to 4/bbl and the fund to $30 million. The law establishes liability limits for companies responding to spills and requires appointment of a state coordinator to harmonize state cleanups with federal efforts and the Marine Spill Response Corp.

INTERIOR DEPARTMENT plans to revise rules to determine monetary damages companies should pay when oil spills and hazardous waste sites harm natural resources. The proposal would establish restoration costs as the basic measure of damages and permit damages for loss of resources pending restoration. The proposal was published in the Apr. 29 Federal Register.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.