UNOCAL TO CLOSE SOLE U.S. COMMERCIAL OIL SHALE PLANT

Unocal Corp. will suspend operations June 1 at the only U.S. commercial scale oil shale project, a 10,000 b/d capacity demonstration plant at Parachute Creek, Colo. Unocal cited continuing negative cash flow because of limited shale oil production for the planned mothballing-despite receiving federal subsidies that could have totaled as much as $400 million to 1996. Shale oil produced at Parachute Creek is sold at a federally guaranteed price of as much as $42.50/bbl, indexed for inflation,

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