U.S. BRIEFS

PETROCHEMICALS

MOBIL CHEMICAL CO. placed on stream added polystyrene capacity of 120 million lb/year at its Joliet, Ill., plant (OGJ, July 3, 1989, p. 20), bringing total plant capacity to 480 million lb/year and Mobil's total U.S. polystyrene capacity to 625 million lb/year.

COGENERATION

PANDA ENERGY CORP., Dallas, plans a $200 million, gas fired cogeneration plant in Prince George's County, Md. Panda signed a contract to supply Potomac Electric Power Co., Washington, D.C., 230,000 kw of electricity from the plant. Construction is to begin by mid-1994, and commercial operation is scheduled by June 1, 1996.

TOSCO CORP., Stamford, Conn., plans a $40 million, cogeneration unit at its Seminole Fertilizer Corp. site in Bartow, Fla. The project includes installation of a 41,000 kw steam turbine generator that will use excess steam at Seminole's plant and steam produced from three sulfuric acid units at the plant. Seminole also will use the power generated, while excess power will be sold to a Florida utility under a 15 year contract.

GOVERNMENT

OKLAHOMA CORPORATION COMMISSION asked for comments on any or all of 29 issues identified as matters of concern about gas production, supply, transportation, regulation, and related issues. The request set a comment deadline of Nov. 12 but did not set a schedule for further action. After the commission reviews the comments, it will determine what other steps will be taken.

DRILLING-PRODUCTION

TRANSCO EXPLORATION PARTNERS LTD. rejected bids received for its interest in Chalkey field, Cameron Parish, La., one of the remaining assets to be sold under its plan of liquidation (OGJ, June 24, p. 35). Transco and its financial adviser deemed the bids inadequate. Transco is studying other steps regarding completion of the liquidation, some of which may move the process into next year.

DEPARTMENT OF COMMERCE'S Office of Export Enforcement signed a consent agreement with Dominion Oilfields Supply Co. Ltd., Houston, under which the firm was fined $10,000 for conspiring to export U.S. manufactured drilling equipment to Libya without a valid license. The consent order also denies Dominion's export privileges for 5 years but suspends all but 2 months of that because Dominion was cooperating in an investigation.

DISTRICT OF COLUMBIA Federal Circuit Court of Appeals upheld a Federal Energy Regulatory Commission rule that ended incentive prices for tight formation gas for wells spudded after May 12, 1990. FERC issued the rule in response to a 1989 suit in which the same court held FERC failed to explain its decision to limit the incentive price for tight formation gas.

CONOCO INC. is offering for sale 25 operated and nonoperated oil and gas leases in Cooke and Grayson counties, Tex., and Lea County, N.M. Offers are due by Oct. 4, and the effective date of sale will be Nov. 1.

EBCO U.S.A. INC., Oklahoma City, will auction 650 oil and gas leases in 13 states at a nonminimum bid sale Oct. 10 in Dallas.

PLAINS PETROLEUM OPERATING CO., Lakewood, Colo., completed the purchase of interests in 204 wells in 20 fields in Southeast New Mexico and West Texas from Arch Petroleum Inc., Fort Worth, for $17.3 million (OGJ, July 29, p. 46). Proved reserves are estimated at 4.2 million bbl of oil equivalent.

WAINOCO OIL & GAS CO., Houston, completed the purchase of Texaco Exploration & Production Inc.'s interest in Conroe field (OGJ, Aug. 19, p. 27) for $4.2 million. After adjustments, reserves are estimated at 1.5 million bbl of oil and 24 bcf of gas.

COMPANIES

AMOCO PRODUCTION CO. and Williams Natural Gas Co. agreed in principle to resolve all disputes about gas purchase arrangements in Kansas and Wyoming. Both companies plan continued investment in Kansas' Hugoton field. Amoco will continue to supply gas to Williams' markets in Kansas and western Missouri during the heating season, and added Amoco volumes will be transported by Williams to other markets under a long term agreement.

MESA LP acquired a 70% interest in CleanFuels Inc., Martinsburg, W. Va., that designs, manufactures, and installs natural gas vehicle engines and fuel systems. CleanFuels is developing a natural gas engine for buses and delivery trucks and recently completed a fuel system that enables forklifts to run on natural gas. CleanFuels also received a contract to develop a compressed natural gas conversion system for pickup trucks.

SUN CO. will consolidate its corporate staff at Radnor, Pa., and the Sun Refining & Marketing Co. unit in Philadelphia into one unit. The new organization will be in Sun's Philadelphia offices, a move that is to be complete by the end of first quarter 1992. The decision is part of Sun's plan to consolidate, simplify, and streamline operations.

ARCO ALASKA INC. will lay off 200-250 employees due to decreased oil production and increasing costs in Prudhoe Bay field on the North Slope. The cut is in addition to 90 jobs eliminated through a joint effort by field operators to consolidate operations. ARCO's staff in Alaska numbers about 2,800.

ALTERNATE FUELS

TAMPA ELECTRIC CO. plans to build a $400 million, 220,000 kw power plant in Southwest Polk County, Fla., using clean coal gasification technology to power the combined cycle plant. The Department of Energy agreed to fund part of the project, which is located on property previously mined by Agrico Chemical Co. The project is to be complete before yearend 1996.

DOE chose Sierra Pacific Power Co., Reno, Nev., to design, build, and operate the Pinon Pine Power Project, a $341 million, 80,000 kw integrated coal gasification combined cycle plant at Sierra's Tracy station near Reno. Sierra plans to let contract to M.W. Kellogg Co. to build the plant and act as subcontractor to design the fluidized bed gasification process. DOE will pay for half of the project cost as part of its Round IV Clean Coal Technology Program.

EXPLORATION

MINERALS MANAGEMENT SERVICE asked for an expression of interest in a proposed Cook Inlet, Alaska, lease sale in mid-1994. The sale, No. 149, would cover about 54.3 million acres 3-38 miles from land.

BUREAU OF LAND MANAGEMENT will conduct a competitive oil and gas lease sale Sept. 30 in Sacramento. The sale will cover eight parcels totaling about 2,200 acres in Kern County, Calif.