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 Tue, May 5 1992 Date: Tue, 5 May 92 05:31:47 EDT Message-ID: 05-05 0000 DECISIONLINE: Energy USA TODAY Update May 5, 1992 Source: USA TODAY:Gannett National Information Network OIL PRICES REACH 1992 HIGH: Oil prices soared Monday to new highs for the year. Light sweet crude oil for delivery in June settled at $21.12 per barrel, up 27 cents on the New York Mercantile Exchange. Oil for next-month delivery had not closed that high since Nov. 29, when the final price was $21.48 a barrel. Lower-grade sour crude oil for delivery in June settled at $18.47 per barrel, up 27 cents. GASOLINE LIFTS ENERGY MARKET: Energy prices headed higher Monday, driven by strong demand for gasoline futures. Unleaded gasoline for delivery in June settled at 66.45 cents a gallon, up 1.76 cents on the Merc. Home heating oil for delivery in June settled at 57.56 cents a gallon, up 0.86 cent. Natural gas prices were also higher, with contracts for delivery in June settling at $1.458 per 1,000 cubic feet, up 2.7 cents. LA. IMPACTED BY DRILLING: Louisiana reveals the clearest lesson on the dangers of offshore drilling: Communities linked to the fortunes of the oil industry risk economic devastation when the business falters. Pipelines lacing the Louisiana marshes increasingly lead to capped wells; more than 75% of the rigs that dotted gulf waters a decade ago are gone; and job losses of as much as 20% in the offshore industry. (For more, see special Louisiana package below.) ARCO SERVICE STATIONS DAMAGED: Riots in Los Angeles and elsewhere caused at least $5 million to $10 million in damage at Arco service stations, the Los Angeles-based oil company said Monday. Eleven of Arco's service stations were "burned to the ground," said spokeswoman Annie Reutinger. "We've had 36 looted and trashed so badly they had to be closed." A number of other stations were closed because of the danger. NUCLEAR PLANT ALERT DECLARED: Two monitoring systems failed Monday at the Palo Verde Nuclear Generating Station, causing operators of the Arizona plant to declare an alert, the second-lowest level of four emergency categories. Officials said no radiation leaked and operations continued. PANHANDLE EASTERN MAKES FILING: Panhandle Eastern Pipe Line Company and Trunkline Gas Company Monday filed new rates with the Federal Energy Regulatory Commission. Both companies, subsidiaries of Panhandle Eastern Corp., have proposed an effective date of June 1, but it is anticipated FERC will follow its customary practice and suspend the implementation of the new rates until Nov. 1. JUDGE TO HEAR MATTER WEDNESDAY: An Illinois judge Wednesday hears Commonwealth Edison's suit to stop Ogle County from sending out personal property tax bills to residents of the city of Oregon. The action is in response to the county's reassessment of Con-Edison's nuclear power plant from $516 million in value to $1 billion. WASH. NATURAL GAS FACES FINE: Washington Natural Gas Co. has been ordered to appear June 12 before the state Utilities and Transportation Commission to answer why it didn't properly check for leaks and maintain its system. The commission has proposed a $1.5 million fine for the utility. CLEAN COAL NETS DEAL: Powder River Coal Co. of Gillette, Wyo., has signed a long-term contract to supply coal to Associated Electric Cooperative Inc. in New Madrid, Mo. Powder River Coal attributed the new business to tougher clean air standards that favor Wyoming's cleaner coal. SPECIAL PACKAGE ON LOUISIANA: STATE FAILS IN LAWSUIT: "As the industry declines, businesses whose activities are geared toward offshore oil have not been able to adapt," says Robert Gramling of the University of Southwestern Louisiana. Moreover, Louisiana claims offshore drilling has cost all its taxpayers. Last year, it unsuccessfully sued the federal government for a share of lease revenues from drilling off the state. ENVIRONMENTAL CONCERNS RAISED: Despite the offshore industry's strong environmental record, the danger of spills must be considered when talking about offshore drilling. As recently as 1990, a fishing net tore a pipeline valve off Louisiana's coast, spilling 4,569 barrels of oil. And environmentalists claim the unseen impacts of drilling have not been studied enough to declare definitively that they are harmless. INDUSTRY HAS BEEN LOSER FOR LA.: "If there's a lesson to be learned from Louisiana, it's that you better not roll over too easy on this offshore oil stuff," said Robert Wiygul, an attorney for the Sierra Club Legal Defense Fund in New Orleans. "Offshore oil and gas exploration has been a net loser for Louisiana," he said. "That's in social and economic terms, as well as environmental terms." (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