Energy Roundup: Frontier Oil Settlement

Energy Roundup: Frontier Oil Settlement

	Published : Sun, 14 Oct 2007 21:03 By : Agencies Print this Story

NEW YORK (AP) - The following is a summary of top stories in the energy sector at midday Friday.

Frontier Oil Agrees to Settle Beverly Hills Lawsuit

Frontier Oil Corp. will pay about $6.2 million under a deal settling a series of lawsuits alleging pollution from the energy company's facilities at a high school in California caused cancer.

Frontier Oil and other defendants have an agreement in principle on terms of a total $10 million settlement with the plaintiffs in the case. Frontier Oil's share of the settlement is covered by insurance, the company said.

A series of lawsuits filed on behalf of residents and former students and employees at Beverly Hills High School alleged facilities at an oil field operated by Frontier subsidiary Wainoco Oil & Gas from 1985 until 1995 released emissions that caused cancer and other related health problems.

The $10 million settlement is subject to approval of Los Angeles Superior Court, where the suits were consolidated.

With $4.76 billion in sales last year, Frontier Oil buys oil and refines it into gasoline and fuel at refineries in Wyoming and Kansas. The company makes 162,000 barrels of fuel a day and sells them to gas stations, wholesalers and other oil companies in Colorado, Wyoming and Nebraska.

Frontier shares rose 98 cents, or 2.2 percent, to $45.84 in midday trading.

Oil Floats Above $83

Oil futures fluctuated as investors assessed whether reports suggesting crude supplies are tight justify extending the recent price rally.

With little news to move the market, traders debated whether oil supplies are adequate to meet fourth quarter demand.

Many analysts think crude supplies are growing and doubt demand is as strong as recent forecasts by the Energy Department and International Energy Agency suggest. These analysts expect oil prices will soon begin a seasonal decline to $70 a barrel, or lower.

Light, sweet crude for November delivery rose 80 cents to $83.88 a barrel on the New York Mercantile Exchange, but alternated between gains and losses.

November gasoline rose 2.65 cents to $2.0931 a gallon, and heating oil futures rose 0.96 cent to $2.2569 on the Nymex.

Natural gas for November rose 6.5 cents to $6.941 per 1,000 cubic feet.

Wind Farm May Bloom in Maryland Waters

A company seeking to build a wind farm off the Delaware coast has begun discussions about building the wind turbines in Maryland waters, too, according to state and company officials.

Bluewater Wind, a New Jersey energy company, wants to put 150 turbines 11.5 miles off the coast of the resort town of Ocean City. If approved, the wind farm could one day provide enough power for 110,000 homes, according to the company.

The proposal, first reported by The Baltimore Sun, would bring clean energy to Maryland but would change the view from Ocean City's beaches. Even from several miles away, the turbines would be visible from land.

Helix to Build Australian Pipeline

Oilfield services provider Helix Energy Solutions Group Inc. received an order worth about $80 million to build an underwater natural gas pipeline off Australia.

Houston-based Helix has a letter of intent for the project, which is being led by Santos Ltd. Peedamullah Petroleum Pty. Ltd. and Mitsui E&P Australia Pty. Ltd. hold minority stakes in the project.

Work is expected to begin in the fourth quarter of 2008 and last for four and a half months. The project will be located in Australia's Otway Basin, a region off the southeastern tip of the continent.

Progress Energy Names New CEO

Progress Energy Inc. named William D. Johnson to replace former Chairman and Chief Executive Robert McGehee, who died suddenly earlier in the week.

Johnson, 53, has been with the company in a variety of roles since 1992, most recently serving as chief operating officer. Progress does not plan to name a new chief operating officer.

--Compiled by AP Business Writer Greg Stec. Questions or comments can be directed to gstec@ap.org.