Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Mon, Apr 6 1992 Date: Mon, 6 Apr 92 05:43:33 EDT Message-ID: 04-06 0000 sDECISIONLINE: Energy USA TODAY Update April 6, 1992 Source: USA TODAY:Gannett National Information Network FLA. LAWMAKERS AT IT AGAIN: Once again, Florida lawmakers have put out the word: When it comes to offshore oil and gas drilling, 30 miles from the state's coast is about 70 miles too close. Both of the state's senators and 18 of its 19 House members signed a letter circulated last week by Republican Rep. Porter Goss expressing concern over proposed legislation that would ban new drilling within 30 miles of Florida. (For more, see special Florida package below.) OIL PRICES UP ON OPEC NEWS: Energy futures prices staged a strong advance in hectic trading Friday, spurred by word that OPEC trimmed March output. Light sweet crude oil for delivery in May jumped 49 cents to settle at $20.29 a barrel on the New York Mercantile Exchange. OPEC reportedly reduced crude oil output by about 900,000 barrels a day in March. That would put daily output at an average 23.5 million barrels. REFINED PRODUCTS ADVANCE: Refined petroleum products posted gains Friday on the NYMEX. Home heating oil for May delivery gained 1.40 cents to settle at 55.68 cents a gallon. Unleaded regular gasoline for May delivery rose .93 cent to settle at 62.65 cents a gallon. Natural gas prices fell slightly. The May natural gas contract settled at $1.319 per 1,000 cubic feet compared to $1.352 on Thursday. NUMAC ANNOUNCES 1991 RESULTS: Numac Oil & Gas Ltd. Friday said it increased crude oil and natural gas liquids production 5% in the year ended Dec. 31, 1991 to an average of 5,058 barrels per day, vs. 4,810 barrels per day in 1990. Natural gas production rose 21% to an average of 18.7 million cubic feet per day. Production revenue for 1991 fell 8% to $46 million as output increases were offset by lower prices. STATE ASKED TO SHUT DOWN PLANT: The Fairfax, Va., City Council is calling for the state to shut down Star Enterprise, the Texaco affiliate suspected of causing an underground oil leak. The Council said Saturday there is new evidence a barrier system is failing to prevent petroleum from seeping off the firm's property. Tests results expected in week will confirm the system is working, Star Enterprise said. LA. TO DEBATE NAT. GAS PRICES: A public showdown is expected Monday on a proposal to limit production and increase natural gas prices in Louisiana. Gov. Edwin Edwards supports the plan, saying it would raise state tax revenue and possibly lower taxes. Foes say large companies would be hurt by the proposal. ROSS, STATE DISAGREE ON WASTE: Ross Electric Co., Helena, Mont., says it could begin burning electric transformers from outside of the state in Baker by late summer. Montana health officials say Ross still needs a permit and the company can't import such waste until Oct. 1, 1993. SPECIAL PACKAGE ON FLORIDA: HUTTO THINKS 30-MILE BUFFER OK: Rep. Earl Hutto, a Democrat who represents the Northwest Florida district where offshore oil and gas production is most likely, did not sign a letter circulated by the state's Congressional delegation expressing concern over proposed drilling legislation. His staff said he has not yet reviewed the letter but is unlikely to sign on because he believes a 30-mile buffer is adequate. LONG-TERM FUTURE AT STAKE: Historically, Florida lawmakers seek one-year bans on new offshore drilling operations within 100 miles of the state by adding language to the yearly spending bill for the Interior Department, which regulates offshore drilling. But the stakes are higher this year, with Congress considering two bills that would dictate the long-term future of offshore drilling. HOUSE BILL BEING DRAFTED: One of the bills, a broad energy strategy, still is being drafted in the House. The Senate, which passed its version of the measure earlier this year, rebuffed efforts by Florida senators Connie Mack and Bob Graham to bar offshore drilling within 100 miles of the state. The other bill, which dictates how coastal resources will be managed, was the focus of the letter. ENVIRONMENTAL DAMAGE FEARED: As written, the coastal resources management bill codifies President Bush's ban on drilling in latitudes south of Naples, Fla., and extends a 30-mile buffer to the rest of the state. The Florida delegation's letter said "30 miles falls far short of the reasonable and legitimate expectations" of the state. Officials are concerned that drilling creates a risk of environmental damage. (End of package.) Energy Editor: William Snoddy. (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. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM