Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Thu, Jun 11 1992 Date: Thu, 11 Jun 92 05:20:27 EDT Message-ID: 06-11 0000 DECISIONLINE: Energy USA TODAY Update June 11, 1992 Source: USA TODAY:Gannett National Information Network TEXACO BEING SUED OVER SPILL: Star Enterprises, a Texaco affiliate, faces 52 lawsuits seeking $234 million for an underground oil leak in the Mantua section of Fairfax County, Va., one of the nation's most affluent counties. The massive underground petroleum leak has forced evacuations and deep fears about living atop a carcinogenic invader. It's one of the largest U.S. underground oil leaks ever reported. (For more, see special Spill package below.) LAWMAKERS URGE INCENTIVES: Congressional lawmakers from oil and gas-producing states Wednesday called again for tax incentives to help encourage investment in domestic oil and gas operations. They singled out the alternative minimum tax, which imposes a heavier tax burden on domestic producers. Intangible drilling costs are now taxed, something that doesn't happen in any other industry, they said. LESS SUPPLY BEING REPLACED: The taxing of intangible drilling costs, which could be as much as 80% of the cost of drilling a well, means the more a producer spends on an oil or gas well, the more they are taxed. Sen. David Boren, D-Okla., noted that producers are now replacing only 70% of the USA's natural gas supply each year instead of the traditional 90% to 100% rates of previous years. OIL PRICES INCREASE: Oil prices advanced Wednesday despite industry statistics showing supplies of crude and refined fuels increased last week. On the Mercantile Exchange, the price of benchmark light sweet crude oil for July delivery rose 19 cents a barrel to $22.51. Market strategists said they had little explanation for the contrarian behavior. NATURAL GAS PRICES FALL: Refined petroleum product futures prices rose Wednesday at the Mercantile Exchange. Wholesale home-heating oil for July delivery rose .91 cent to 61.47 cents; wholesale unleaded gasoline for July delivery rose .29 cent a gallon to 67.16 cents. Natural gas, which often behaves differently than other products, ended at $1.619 per 1,000 cubic feet on the Mercantile Exchange, down 1.5 cents. WAINOCO RESTARTING REFINERY: Process units were being restarted Wednesday at the Frontier Refining Inc. refinery in Cheyenne, Wyo., where a fiery explosion Monday killed one worker and burned five others. Frontier parent Wainco Oil said damage at the refinery was confined to four small product storage tanks and one water cooling tower. Wainco said it anticipates the plant will be running at normal rates by Sunday. CHRYSLER TO SELL FLEX-FUEL CARS: Chrysler Corp. said Wednesday it will begin accepting retail and fleet orders this summer in California for 2,000 flexible-fuel Dodge Spirit and Plymouth Acclaim sedans. The cars can run on gasoline, M85 - a mixture of 85% methanol and 15% gasoline, or any combination of the two fuels. Chrysler also has a program for vehicles that run on compressed natural gas and electricity. COMPUTER INDUSTRY MAKES PLEDGE: The computer equipment industry and the Environmental Protection Agency have agreed to work to improve the energy efficiency of computer products through a voluntary Energy Star Computer Program. The agreement by the agency and representatives of the Computer and Business Equipment Manufacturers Association will lead next to a detailed technical memo on standards. ALLIED-SIGNAL GAINS NASA DEAL: Allied-Signal Inc. said Wednesday that it has been awarded an $18 million contract by NASA to develop and test a new type of solar power system. Known as a solar dynamic power system, it could be used in future space applications and may prove to be twice as efficient as current solar panels, Allied-Signal said. Tests are slated for mid-1995 at NASA's Lewis Research Center in Cleveland. SPECIAL PACKAGE ON SPILL: CONGRESS TO HEAR ABOUT SPILL: A House Judiciary subcommittee hears testimony Thursday on the underground oil spill that has prompted 52 families in Virginia to sue Star Enterprises, a Texaco affiliate. "I'm afraid to live here," said Fred McDavid, a 27-year resident of the Mantua section of Fairfax County. Until the leak was detected this spring, few paid much attention to the huge fuel storage tanks there. 200,000 GALLONS MAY HAVE LEAKED: The exact size of the leak is unknown. The Environmental Protection Agency estimates as much as 200,000 gallons of fuel may have leaked. Virginia says more than 700,000 gallons have seeped into nearby storm sewers, streams and water underground. Cleanup could take 12 years. Star denies it's to blame for the entire mess. STAR ACCEPTS SOME RESPONSIBILITY: "We claimed responsibility from day one, but we are not liable because the type and quantity of the product on the water table does not correlate with the type and quantity we've released," Star spokesman Joe Kelly said. For now, Star is paying cleanup costs, has purchased three houses and has offered to buy 39 others in the leak's path. TANKS MAY BE LEAKING ACROSS USA: Nationwide, the EPA estimates that as many as 400,000 storage tanks may be leaking. "Oil contamination is a national disaster," said Kathleen Sheridan, spokeswoman for Citizens for a Healthy Fairfax. EPA's on-scene coordinator, Jerry Heston, said concern is that benzene - a petroleum ingredient - is a recognized human carcinogen, although air samples haven't turned up high levels. (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