Ferc Sets Sept. 30 as Production-Related Cost Deadline
L. D. Barney, THE JOURNAL RECORD
FERC designed the order, issued July 29, as a guideline to interstate pipelines and other purchasers with offset production-related costs due to producers against refund amounts for certain britishthermal unit overcharges owed to pipelines by producers.
The offset mechanism was vacated in a March 5 decision by the U.S. Court of Appeals for the District of Columbia.
"Good cause exists," the commission said in light of the decision, not to hold pipelines that used the previously allowed offset procedure in paying undisputed amounts to be in violation of commission regulations requiring those particular production-related cost payments by Dec. 31, 1984, provided they pay by the Sept. 30 deadline.
Natural gas purchasers failing to pay the uncontested amounts by that date will be considered in violation of FERC regulations. . .
- Kenneth G. Buford has joined Kerr-McGee Corp. as director of internal auditing.
Buford has 20 years of internal auditing experience with Gulf Oil Corp. and Skelly Oil Corp. . .
- Sequoyah Fuels Corp., a subsidiary of Kerr-McGee Corp., has signed a nine-year contract for the converion of approximately 5.5 million pounds of uranium concentrates to uranium hexafluoride for Kyushu Elextric Power Co., of Fukuoka, Japan.
The contract period begins in 1989.
The conversion process removes chemical impurities from uranium and prepares it for enrichment and subsequent manufacture into fuel for nuclear reactors that generate electricity.
Kyushu operates three nuclear power plants in the southwest region of Japan and is scheduled to have a fourth plant on line in 1986. In Japan, 28 nuclear power plants currently supply 23 percent ofthe country's total electricity, compared with 14 percent in the U.S.
Sequoyah Fuels, which has a plant at Gore, Okla., is one of five uranium conversion facilities in the free world and one of two in the United States. . .
- Tenneco Oil Exploration and Production Co. of Houston will purchase all oil and natural gas producing properties in Californa operated by Baltimore-based Crown Central Petroleum Corp. under a definitive agreement signed by the two companies.
Terms of the agreement were not disclosed. Closing will take place later in the third quarter.
Tenneco Oil is a unit of Houston-based Tenneco Inc. . .
- Diamond Shamrock Exploration Co. completed a natural gas field discovery well in Libscomb County, Texas, that tested at 2.3 million cubic feet of gas and 25 barrels of condensate per day through a 16/64-inch choke. Flowing tubing pressure was 2,590 pounds per square inch.
The well, Lydia Bradford No. 3, was drilled to 9,800 feet and perforated for testing in the lower Morrow formation between 9,579 and 9,585 feet. It is located 2 1/2 miles south of the nearest production in the formation.
Diamond Shamrock Exploration, a subsidiary of Dallas-based Diamond Shamrock Corp., is operator and has 100 percent working interest. The company also has 3,061 net acres surrounding the discovery and plans to begin a development drilling program on the acreage during the third quarter of this year. . .
- The Dancy Energy Scholarship has been established by Victoria A. and Joseph R. Dancy, to be awarded to students at Oklahoma City University interested in Energy or Mineral Law.
Victoria Dancy is an associate with the Oklahoma City law firm Kornfeld Frankln & Phillips. Joseph Dancy is an associate with the Oklahoma City law firm Andrews, Davis, Legg, Bixler, Milsten and Murrah.
Both practice in the area of oil and gas law and both received their Juris Doctorate from OCU. . .
- Hubert B. (Hugh) Hunt recently retired as division manager, Oklahoma City, for The Superior Oil Co. …