Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.energy,americast.usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Wed, Sep 2 1992 Date: Wed, 2 Sep 92 04:30:34 EDT Message-ID: 09-02 0000 DECISIONLINE: Energy USA TODAY Update Sept. 2, 1992 Source: USA TODAY:Gannett National Information Network LEAK SHUTS DOWN PIPELINE: Texaco Pipeline Inc. Tuesday shut down an offshore pipeline after a leak spilled more than 300 barrels of oil into the Gulf of Mexico off Houma, La. A spokesman said the company noticed a change in the line's flow rate Monday afternoon. The oil slick is at least a mile wide and 10 miles long. (For more, see special Texaco package below.) OIL PRICE RISE MODERATELY: Oil prices rose moderately on the New York Mercantile Exchange Tuesday based on concerns that an industry report released after Tuesday's close would show a decline in U.S. inventories due to hurricane-related shutdowns of operations in the Gulf of Mexico last week. Light, sweet crude oil for October delivery rose 16 cents to $21.64 a barrel. PETROLEUM PRODUCTS MIXED: October heating oil rose .27 cent to 61.17 cents a gallon on the New York Mercantile Exchange Tuesday. October unleaded gasoline rose .57 cent to 61.16 cents a gallon. Natural gas futures again retreated from last week's powerful gain, as October deliveries fell 3.1 cents to $2.081 per 1,000 cubic feet. GASOLINE PRICES FALL: Gasoline prices fell 0.1 cent per gallon this week, according to a national survey for the American Automobile Association. The average price of self-serve regular unleaded gasoline was $1.157 a gallon, AAA said. This week's average is 0.5 cent below last Labor Day's price and the lowest Labor Day price since 1988, when the average was $1.12. COURT REMANDS PART OF ORDER: South Carolina Electric & Gas Co. must refund $8.8 million to electric customers and reduce rates by $2.2 million annually under a decision handed down by the state's Supreme Court today. The court remanded a portion of a 1989 rate order, ruling that evidence didn't support a return on common equity higher than 13%. Earlier, the court had granted the utility a return of 13.25%. TEXACO TO MAKE ANDREW DONATION: Texaco Inc. and Star Enterprise Tuesday announced donations to aid hurricane victims in Florida and Louisiana. The companies will donate a combined $100,000 to a fund organized by Barnett Bank. The donation will be matched by Barnett. Texaco will donate $50,000 to a state fund created by Florida Gov. Lawton Chiles. In Louisiana, Texaco and the Texaco Foundation have pledged $100,000. AEC, PRUDENTIAL REACH AGREEMENT: American Exploration Company Tuesday announced an agreement in principle with Prudential Insurance to acquire Prudential's equity stake in Canadian Conquest Exploration Company. Prudential will transfer its 40% stake in Canadian Conquest to American and pay $6.5 million to acquire two million shares of American common stock and warrants to purchase another 2.1 million shares at $3.38. ICC TO MEET WEDNESDAY: Illinois Power Co. hopes the Illinois Commerce Commission will reverse a decision that keeps the company from recouping $230 million in costs from its Clinton nuclear power plant, Bloomberg Business News said. ICC commissioners are scheduled to decide on Illinois Power's request Wednesday. An Aug. 7 ruling by the ICC meant that Illinois Power must write off $202 million. NOXSO RELEASES TEST RESULTS: Noxso Corp. Tuesday released interim results of its test of the Noxso flue gas treatment process being conducted at Ohio Edison's Toronto, Ohio, power station. The test is designed to operate the pilot plant and collect data from at least 5,000 hours of operation. The test is more than 50% complete and all the data are meeting or exceeding expectations, Noxso said. SHREWSBURY TO CLOSE: The Valley Camp Coal Co. Tuesday sent advance notice to salaried and hourly employees that the Shrewsbury Coal Company in West Virginia will cease operations Nov. 1. Valley Camp said it notified 30 salaried workers and 94 hourly workers, as required by law. The mining complex consists of underground and surface mines as well as a preparation plant. L.A. RATES TO BE ADJUSTED: The Los Angeles Board of Water and Power Commissioners Tuesday announced minor adjustments to electric rates. The changes are designed to bring the rate structure more in line with the structure used by the California Public Utilities Commission. Changes include a simplification of the senior citizen lifeline rate, which will lower bills for eligible customers. UNOCAL NEGOTIATES WITH PUREGRO: Unocal Corp. said Tuesday that it is negotiating the sale of portions of its PureGro Co. subsidiary. Crop Production Services Inc. wants to purchase 33 units. Wilbur-Ellis Co. has offered to purchase two stores. J.R. Simplot Co. is negotiating for the purchase of 13 PureGro units. And Harbach, Gillan and Nixon Inc. has offered to purchase a facility. SPECIAL PACKAGE ON TEXACO: CLEANUP BEGAN TUESDAY: Texaco shut down a pipeline leaking into the Gulf of Mexico Monday after noticing a change in flow, but cleanup work could not begin until daylight Tuesday. Repairs are under way, said Vice President Clint Blanchard. The pipeline could be back in service by Wednesday. Production from 36 platforms feed into the 20-inch pipeline. PIPE WAS BELOW CAPACITY: The pipeline has a capacity of 185,000 barrels per day. But it was carrying only about 120,000 barrels per day when the leak occured, because offshore platforms had shut down for Hurricane Andrew. The pipeline in Terrebonne Parish runs to Timbalier Bay and ties into Texaco's six-inch pipeline that extends north-northwest to Houma. CAUSE OF LEAK NOT DETERMINED: Texaco said it hasn't determined the cause of the leak. The Coast Guard said it's "possible" the pipeline was damaged by Hurricane Andrew, since the pipeline was in Andrew's path as it moved ashore to Louisiana last week. Divers are still trying to assess the condition of the pipeline. (End of package.) Energy Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. 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