P.1 

OAR Box 1852 

Prepped by Keeia Richards 

Document Number: 

18) II-A-18 

Docket Number: 

A-86-03 

Printed 11/19/2008 2:38:54 PM Sheet 18 of 101 
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H-&&-03 

U-R-& w 

JACKFAU-85-322-5 

BUTANE SUPPLIERS: AN IND^^>^|^PQCK^ D ANALYSIS 

OF THE IMPACTS OF DECREASED MARKET PRICES 

CAUSED BY GASOLINE VOLATILITY CONTROL 

FINAL REPORT 

Work Assignment #16 

Contract No. 68-03-3244 

Submitted to: 

U.S. ENVIRONMENTAL PROTECTION AGENCY 

Office of Mobile Sources 

Ann Arbor, Michigan 48105 

February 1988 

JACK FAUCETT ASSOCIATES 

730 0 PEARL STREET • SUITE 20 0 

BETHESDA, MARYLAND 208 1 4 

(301)961-8800 
TABLE OF CONTENTS 

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CHAPTER PAGE 

INTRODUCTION AND SUMMARY 1 

INDUSTRY PROFILE 7 

SUPPLY 7 

DEMAND 19 

PRICE 28 

THE EFFECT OF A MARKET PRICE REDUCTION ON 

BUTANE SUPPLIERS 34 

ANALYTICAL APPROACH 35 

SUMMARY 44 

RATES OF RETURN IN THE REFINING INDUSTRY ... . 48 

SURVEY OF PERFORMANCE MEASURES COMMONLY 

EMPLOYED 48 

ANALYSIS OF THE INDUSTRY BY REPRESENTATIVE 

SAMPLES 50 

PRESENTATION OF THE DATA 51 

THE TYPICAL ECONOMIC LIFE OF REFINERY 

PROCESSING EQUIPMENT 69 

APPENDIX A: SUPPLEMENTARY INFORMATION . 72 
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UST OF EXHIBITS 

EXHIBIT

 pAGE 

2-1 BUTANE SUPPLY, 1982-1984 8 

2-2 BUTANE PRODUCTION FROM NATURAL GAS 10 

2-3 U.S. PRODUCTION OF BUTANES AS A FUNCTION 

OF NATURAL GAS PRODUCTION 11 

2-4 U.S. REFINERY PROCESSING AND BUTANE YIELDS .. . 17 

2-5 MARKETED REFINERY BUTANE 18 

2-6 U.S. CONSUMPTION OF BUTANES 20 

2-7 U.S. CONSUMPTION OF BUTANES IN GASOLINE 22 

2-8 U.S. EXPORTS OF BUTANE AND NATURAL GAS 

LIQUIDS 29 

2-9 U.S. UNIT SALES VALUE FOR n-BUTANE AND 

ISOBUTANE 32 

2-10 U.S. MARKET PRICES FOR BUTANES 33 

3-1 1986 BUTANE SALES BY COMPANY 36 

3-2 EFFECT OF REVENUES OF A BUTANE PRICE 

REDUCTION 39 

3-3 LOSS OF REVENUES BY NUMBER OF COMPANIES AND 

PERCENT OF TOTAL BUTANE PRODUCTION FROM 

A 10, 20, AND 30 PERCENT PRICE REDUCTION ... . 43 

3-4 1986 PRODUCTION OF BUTANES BY THE TOP 30 

PRODUCERS BY COMPANY CLASSIFICATION 45 

4-1 COMPARISON OF THE COMPANIES CONSTITUTING 

THE API AND THE EIA SAMPLES 52 

4-2 DOMESTIC REFINERY CONFIGURATION FOR EIA 

COMPANIES AND FOR THE DOMESTIC INDUSTRY 

(1980 and 1985) 53 

4-3 OIL COMPANY NET INCOME AS A PERCENTAGE OF 

STOCKHOLDERS' EQUITY (After Tax, 1968-1986) .. . 54 

4-4 OIL COMPANY RATES OF RETURN (Net Income/Stockholders' Equity) 55 

4-5 OIL COMPANY NET INCOME AS A PERCENTAGE OF 

AVERAGE TOTAL ASSETS (1968-1986) 56 

n 
P.5 

LIST OF EXHIBITS - (continued) 

EXHIBIT PAGE 

4-6 OIL COMPANY RATES OF RETURN (Net Income/Average 

Total Assets) 57 

4-7 NOMINAL AND DEFLATED RETURN ON STOCKHOLDERS' 

EQUITY — Leading Oil Companies 59 

4-8 PERFORMANCE PROFILES OF MAJOR ENERGY 

PRODUCERS, 1977-1985 60 

4-9 OIL COMPANY RATES OF RETURN, 1977-1985 (Income/ 

Shareholders' Equity) 61 

4-10 OIL COMPANY RATES OF RETURN, 1977-1985 (Income/ 

Total Assets) 62 

4-11 OIL COMPANY RATES OF RETURN, 1977-1985 (Income/ 

Net Investment in Place) 63 

4-12 OIL COMPANY RATES OF RETURN, BY SEGMENT 

(Net Income/Net Investment in Place) 66 

4-13 OIL COMPANY RATES OF RETURN, 1977-1985 (Comparison 

of 4 EIA Measures) 67 

A-l GAS PROCESSING COMPANIES AND PLANTS: 1986 

CAPACITY AND PRODUCTS 73 

A-2 GAS PROCESSING COMPANIES: CAPACITY, 1986 

PRODUCTION AND REVENUES 93 

A-3 SOURCES OF INFORMATION USED IN DETERMINING 

SUPPLY OF AND PRICES OF NATURAL GAS LIQUIDS . 102 

m 
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CHAPTER 1 

INTRODUCTION AND SUMMARY 

This report presents a profile of butane suppliers and an analysis of the effects on open 

market suppliers of a reduction in the price of butanes attributed to potential changes 

in gasoline volatility control. The analysis examines the effects of decreases in the 

market price of butanes resulting from reduced blending of butane in gasoline in order 

to control gasoline Reid Vapor Pressure (RVP) during summer months. Since a long-run 

adjustment to reduced butane demand may affect capital investment in the refining 

industry, an examination of the rate of return on investment as well as the economic 

life of major processing equipment is also included. 

The report includes the following: 

• An overview of the domestic butane market, including detailed 

descriptions of butane supply, demand, and pricing dynamics. 

• An analysis of the effect of decreased revenues from butanes on 

companies that own natural gas processing plants. 

• An examination of rate of return on investment of the refining industry. 

• An examination of the economic life of major processing equipment in the 

refining industry. 

The revenue analysis was undertaken for three price levels, representing a wholesale 

butane price decrease of 10, 20 and 30 percent of 1986 price levels. 

In summary, the analysis indicates very little effect on total revenues for most natural 

gas liquids (NGL) producers because most NGL plants are owned by very large 

corporations wherein total butane revenues represent a very small portion of total 

revenue. The extent of ownership of NGL producers (open market butane producers) by 

large companies is understated in this analysis because partial ownership of NGL plants 

by larger companies was not identified. Moreover, because 1986 price levels for 
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butanes were very low, the effect on revenues of a 10 to 30 percent price reduction 

related to RVP control will be much less than the effect of recent price reductions 

evidenced between 1985 and 1986 attributable to a general fall in the prices of all 

hydrocarbon products. Thus, a general recovery in the price of hydrocarbon products to 

1985 levels could more than offset price declines attributable to RVP control. 

Alternatively, a relative decline in the price of butanes from 1986 levels would imply 

that production of butanes for open market sales might be uneconomic. 

The poor performance of the industry in 1986 may have forced some NGL processors 

out of business. In 1985, there were 862 NGL plants identified, compared to 810 in the 

1986 survey. No specific information is available on the plants that dropped out of 

survey, but possible causes include: (1) closure of obsolete plants, (2) premature closure 

of plants that were approaching obsolescence, (3) changes in ownership that resulted in 

the plant not responding in 1986, (4) closure or mothballing of plant due to poor 

economic conditions. Because many plants did change ownership and distinct 

geographic plant identifiction is not possible for many plants, conclusive identification 

of plants that were not identified in the 1986 survey would be tedious and time 

consuming. Identification of these plants was not undertaken in this report. 

Determining the relative price decline in butane in conjunction with a general recovery 

in the price of hydrocarbons would be difficult. Complex modelling would be required 

to formulate scenarios of this type. It would be necessary to estimate the extent to 

which the price of butanes relies on their value as a generic hydrocarbon, i.e., what is 

the petrochemical floor price, and the extent to which the price of butanes have been 

bid up based on the premium associated with their value as a high octane gasoline 

component. Complicating this issue is the fact that decreased blending of n-butanes 

may result in increased use of isobutane as a gasoline component as well as other 

components, e.g., MTBE, that can be produced from butanes in combination with other 

components. Since by intentional isomerization n-butane can be converted to 

isobutane, some have speculated that the increased value associated with isobutane 

resulting from decreased use of n-butane may ultimately leave the suppliers of butane 

in approximately the same revenue position. Ttiis analysis was not undertaken in the 

curent research effort. Moreover, it should be noted that unless ownership of 

processing plants change dramatically, the effect of a relative decrease in the value of 

butanes in combination with an increase in the market value of other products would 
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have less effect than the decrease examined in the report, which indicated the 

centage effect on revenues with all other product values remaining constant. 

Beyond the short-term price reduction in butanes that may occur from RVP control 

(decreased demand for butanes), a much more dynamic response is to be expected. The 

refining industry and the natural gas liquids industry utilize complex configurations of 

machinery and equipment wherein the production configurations largely result from the 

particular product demand evidenced in the market at any point in time. For a number 

of reasons including legally mandated lead phasedown, the industry has adjusted its 

production capability to enhance the production of n-butane because of its high value as 

a direct additive in gasoline. The longer run production adjustment to a decreased use 

of n-butane as a direct additive to gasoline will take several paths. First, producers of 

n-butane will look for other markets for their product, of which there are several. In 

1986, 41 million barrels of butane were imported, including 24.7 million barrels of nbutane. However, simple assumptions that associate a decrease in U.S. demand with a 

decrease in imports to the U.S. should be avoided. Estimating the effect of a decrease 

in U.S. demand on imports would require an analysis of the relative transportation 

costs of domestically produced resource compared to imported (primarily from Canada) 

imports, the contractual agreements related to these imports and the source of the raw 

natural gas from which the butane products are produced. In some cases U.S. natural 

gas processing plants export raw NGL for conversion to product by Canadian processors. 

Analysis of specific contractual agreements related to the potential substitution of 

surplus domestic demand for imported products was not undertaken in the report. 

Also, intentional conversion of n-butane to isobutane could enable n-butane stocks to 

compete with imports of isobutane. Additionally, n-butane is a substitute feedstock in 

many processes and often can be used in place of naptha, ethylene co-products, and 

other natural gas liquids. The value of butanes in these applications will affect the 

decision-making of producers and the amount of butane producers choose to make 

available in the market place. 

To the extent that additional markets do not offer the desired revenues from butane 

production, its production efficiency at refineries will decrease (or at least slow its rate 

of increase) because refiners will cease to strive for more efficient butane extraction 

processes. Refineries will adjust their production processes to reflect the reduction in 

value of n-butane as a gasoline additive. Natural gas processing plants produce butanes 
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as they convert raw (wet) gas into a cleaner (processed) natural gas that is preferred by 

end-users of natural gas. While unprocessed natural gas (wet gas) can be consumed 

directly as fuel, today's market requires natural gas to be moved through pipelines and 

therefore processing is necessary to reduce hazards of condensation and reduce Btu 

content to contractual pipeline levels. Thus, natural gas liquids including virtually all 

butanes will continue to be removed from raw natural gas to satisfy pipeline 

requirements. However, lacking a market price that is attractive to refiners, butane 

production at refineries may decrease over time. 

Two important concepts related to the open market butane suppliers surfaced during 

the conduct of this research. First, when ownership of butane production facilities is 

examined, it is clear that the "open market" designation of butane sales by natural gas 

processors is inappropriate. Most of the butane production capacity from natural gas 

processing is owned by large oil companies. In combination with the knowledge that 95 

percent of butane consumption is by refineries, the concept of open market sales is 

vague at best. Moreover, in addition to plants that are wholly owned by oil companies, 

a large number of the remaining plants are owned in part by oil companies. In the total 

butane supply spectrum, oil companies control the 74 percent of U.S. production that 

takes place at refineries and own more than half of the remaining 26 percent of butanes 

produced from natural gas liquids. Simple arithmetic indicates that the oil industry 

controls (owns) upwards of 90 percent of U.S. production, coincidentally approximately 

equal to refinery share of consumption. 

The second important concept relates to the price of butanes. The value of butanes is 

tied to other hydrocarbons through its value as an additive to motor gasoline and its 

value as a replacement feedstock for the other hydrocarbon products. It is tied to the 

value of natural gas because (1) it is a by-product of natural gas production, (2) it has 

value as a replacement fuel for natural gas in some applications, and (3) it has value as 

a replacement feedstock for other by-products of natural gas processing. The concept 

of a petrochemical floor price for butanes is sound theoretically, but its application is 

subject to all the risk inherent in predicting the world price of hydrocarbons. In 1985 , 

the 1990 petrochemical floor price was estimated at $20.26 per barrel. The estimated 

price for butanes in 1990 was $23.08 per barrel. This analysis was based on a 1984 

Jack Faucett Associates, "The Butane Industry: An Overview and Analysis of the 

Effects of Gasoline Volatility Control on Prices and Demand," 1985. 
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butanes price of $22.00 per barrel inflated by the 4.88 percent growth rate expected for 

all petrochemical feedstocks. In fact, the 1986 price for butanes was approximately 

$15.00 per barrel. At 1986 prices, natural gas liquids producers (as well as many other 

hydrocarbon product producers) were squeezed to smaller-than-thought-possible 

margins. For NGL producers, the marginal operating costs associated with butane (and 

other products) production could scarcely be squeezed from the difference between the 

price paid for raw natural gas and the price received for butanes. As the entire energy 

industry became painfully aware, relative prices control the value of any given energy 

product and when crude prices fall, product prices do also. If the relative price of 

butanes falls further from RVP control, it is clear that its relative value as a 

replacement feedstock will increase. However, a decrease in price below its 1986 level 

would imply that, based upon current methods of assigning operating costs to the butane 

products, butane production would be uneconomic. Yet, contractual pipeline requirements necessitate the removal of some level of butanes from the raw natural gas 

stream. Thus, even if the value of butanes fell to less than the value of unprocessed 

gas, there is indication still that butane removal would continue. 

In summary, the 1986 price of butanes was so low that analyzing a further decrease 

relative to competitive fuels is not meaningful. Market production of butanes was 

scarcely (if at all) profitable in 1986 and would be uneconomic at lower prices. 

However, while butane production may not be economic, natural gas processing will 

most likely continue and include removal of butanes. To the extent that the relative 

value of butanes fall, NGL producers will find the most efficient to market or internally 

use the butanes they must produce (to process raw natural gas) and reconfigure their 

plants to produce the least amount of butanes possible. 

Interesting areas of study that were not wthin the limits of this research effort include: 

• the amount of butanes production, by refiners and natural gas processors, 

that is necessary to their processing of crude and raw natural gas; 

• the cost of modifying refinery configurations to produce less butanes if 

market production of butanes is not economic; 
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• 

the response by owners of natural gas processing plants (primarily 

integrated oil companies and large oil and gas producers) to a market 

price for n-butane that is lower than the price that is imputed (by owners) 

for its production; and 

the increase in production of butanes at refineries attributable to lead 

phasedown. 

The remainder of this report is organized as follows. Chapter 2 provides an industry 

profile of butane suppliers including an examination of supply, demand and prices. 

Chapter 3 identifies the suppliers of butanes by company and presents the effect on 

revenues of a decrease in the wholesale price of butanes. Chapter 4 examines the rate 

of return in the refining industry and Chapter 5 summarizes information available on 

the economic life of major processing equipment. The Appendix includes background 

materials on butane suppliers and price. 
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CHAPTER 2: 

INDUSTRY PROFILE 

2.1 SUPPLY 

Butanes are one of a group of hydrocarbons that occurs naturally in crude petroleum 

and natural gas. Butanes are produced in two ways, either as a by-product of petroleum 

refinery processes or by extraction from natural gas. Refineries are the largest source 

of domestic butane supply, accounting for 74 percent of domestically produced supply 

in 1985. Most of the butane produced at refineries is consumed internally in the 

2 

manufacture of gasoline and never enters the market. Butanes extracted from natural 

gas are the primary source of marketed butanes, and account.for the remaining 26 

percent of total domestic supply in 1985. In addition to domestic production, a 

significant amount of butanes are imported, primarily from Canada. Imported butanes 

accounted for approximately 6 percent of total domestic supply in the United States in 

1985 and 1986 imports were 158 percent of the 1985 level. Exhibit 2-1 details the 

quantities of butanes supplied by each of these sources over the past five years. The 

characteristics of each supply source are examined in the following sections. 

Natural Gas Plant Production 

The primary source of marketed butanes in the United States is natural gas. Unprocessed natural gas contains a number of products, including butanes, which are 

removed from the gas streams at processing plants or from raw natural gas liquid 

3 

streams at fractionating facilities. Natural gas liquids are extracted from the natural 

gas stream for two primary reasons. First, removal of these liquids reduces the danger 

of condensation in gas transmission systems and decreases the Btu content of the 

"Butanes". Chemical Economics Handbook, SRI 1987, p.300.3051A. 

2 

Because most refinery butane is consumed by the producers, statistics detailing 

production and consumption at refineries are not generally available. Data on refinery 

production and consumption included in this report are based on estimates made by 

industry sources as cited. 3 

Available data on the operation of fractionators is incomplete. In this study, paralleling 

the techniques used by the Department of Energy, butane production is assigned to the 

NGL plant to avoid double-counting. 
EXHIBIT 2-1: 

BUTANE SUPPLY, 1982-1984 

(million bbls) 

1982 1983 1984 1985 1986 

oo 

Supply 

Gas Plants 

Refineries 

Total Domestic 

Imports 

Total Supply 

n 

77.3 

114.6 

191.9 

21.5 

213.4 

ISO 

39.8 

153.3 

193.1 

193.1 

Total 

117.1 

267.9 

385.0 

21.5 

406.5 

29 

66 

5 

100 

n 

78.1 

116.4 

194.5 

17.4 

211.9 

iso 

36.4 

154.4 

190.8 

— 

190.8 

Total 

114.5 

270.9 

385.4 

17.4 

402.8 

28 

67 

5 

100 

n 

74.3 

118.6 

192.9 

13.5 

206.4 

ISO 

36.3 

154.4 

190.7 

8.9 

199.6 

Total 

110.6 

273.0 

383.6 

22.4 

406.0 

27 

67 

6 

100 

n 

62.5 

127.0 

190.0 

15.6 

206.0 

ISO 

46.5 

178.0 

225.0 

10.3 

235.0 

Total 

109.0 

305.0 

414.0 

25.9 

440.0 

_*_ 

25 

69 

6 

100 

n 

57.2 

— 

24.7 

ISO 

46.6 

.__ 

16.3 

Total 

103.8 

— 

41.0 

— 

Sources: Gas plant production and import data from Energy Information Administration, Petroleum Supply Annual, 1982-1986. 1982-1986 Refinery 

production from William E. Cordill, "U.S. NGL Supply and Demand," paper delivered at the Gas Processors Association Annual Meetings, 1984. 

1985 Refinery production from "Butanes," CEH, op.cit. p. 300.3501A. 

Note: 1986 refinery production of butanes was not available. 
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to contractual pipeline levels thereby increasing the marketability of the 

1 gas. Second, the extracted liquids are marketable products that command a 

mium ove r t n e value of the gas itself. Butane, because of its value as a direct 

n(jirect blending component in motor gasoline and its relatively high BTU content, 

tvpically commanded a higher price in comparison to other natural gas liquids 

ducts such as propane and ethane. A lack of price data on the refinery use of nbutane prevents the analysis of the refinery value for n-butane. 

Production of isobutane, n-butane, and total butanes from natural gas over the past 17 

vears is shown in Exhibit 2-2. These quantities represent approximately 25-30 percent 

of total domestic supply. Total production was relatively constant from 1970-1975 at 

about 120 million bbls/year. However, from 1975-1978 production fell steadily, 

reaching a low for the fifteen year period of 102.8 million barrels in 1978. Over the 

next three years production levels climbed again and peaked for the period at 123.4 

million barrels in 1981. Since then, total production has been falling annually due to 

market surpluses and depressed market prices, and production levels are expected to 

continue to decline. n-Butane production as a share of total butane production from 

natural gas through 1984 has ranged between 67 and 74 percent, but since 1984 nbutane's share has dropped dramatically to 55 percent of total butane production. 

Exhibit 2-3 demonstrates butane production per million barrels and per million cubic 

feet. 

There are a number of factors that affect the amount of butane which is produced from 

natural gas. Foremost among these is the quantity of natural gas which is produced. 

Butane is basically a byproduct of natural gas production, and thus butane production is 

directly related to natural gas production. From 1975-1981, natural gas production was 

fairly stable, ranging from 21 to 22 trillion cubic feet a year. Since 1981 natural gas 

production declined sharply at 28 percent during 1981-1985. Butane production from 

natural gas also has been falling, from 123.5 million barrels in 1981 to 113.8 million 

barrels in 1986. 

A second key factor in the reduced production of butane from natural gas is the amount 

of butane obtained from each unit of processed gas. Gas processing plants have 

generally increased the efficiency of their liquid recovery operations over time, and 

thus the average amount of butane recovered per unit of processed gas has risen. 

However, natural gas has become progressively drier and total production per unit of 

natural gas throughput has decreased despite high processing efficiency. 
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EXHIBIT 2-2: 

BUTANE PRODUCTION FROM NATURAL GAS 

(million bbls) 

n-Butane %_ Isobutane % Total 

I ca i 

1986 

1985 

1984 

1983 

1982 

1981 

1980 

1979 

1978 

1977 

1976 

1975 

1974 

1973 

1972 

1971 

1970 

Sources: 

57.2 

62.5 

74.3 

78.1 

77.3 

80.9 

76.0 

76.6 

75.4 

79.8 

81.4 

85.0 

87.2 

88.8 

88.9 

88.5 

87.2 

55 

57 

67 

68 

66 

66 

66 

67 

73 

73 

73 

72 

72 

73 

73 

73 

74 

46.6 

46.5 

36.3 

36.4 

39.8 

42.5 

38.4 

38.0 

27.4 

29.7 

30.2 

32.9 

33.4 

33.6 

33.5 

32.3 

30.8 

45 

43 

33 

32 

34 

34 

34 

33 

27 

27 

27 

28 

28 

27 

27 

27 

26 

Energy Information Administration, Petroleum Supply 

1981-1986. Bureau of Mines, Crude Petroleum, Petroleum 

and Natural Gas Liquids, (1970-1980). 

103.8 

109.0 

110.6 

114.5 

117.1 

123.4 

114.4 

114.6 

102.8 

109.5 

111.6 

117.9 

120.6 

122.4 

122.4 

120.8 

118.0 

Annual, 

Products, 

19 
P.16 

EXHIBIT 2-3: 

- PRODUCTION OF BUTANES AS A FUNCTION OF NATURAL GAS PRODUCTION 

Year 

1970 

1971 

1972 

1973 

1974 

1975 

1976 

1977 

1978 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

Total NGL 

Production 

(Mil. Bbl.) 

605.92 

617.82 

638.22 

634.42 

616.10 

595.96 

587.05 

590.46 

572.09 

578.02 

575.79 

580.53 

561.91 

564.70 

595.15 

582.21 

Butanes as 

a Percentage 

of Total NGL 

19.9 

19.9 

19.5 

19.6 

19.8 

20.0 

19.2 

18.8 

18.1 

19.9 

20.0 

21.4 

20.0 

20.4 

18.6 

19.7 

Natural Gas 

Processed for NGL 

(Tril. Cu. Ft.) 

18.51 

19.25 

19.95 

19.68 

18.68 

17.75 

17.72 

17.57 

17.01 

— 

14.8 

14.7 

14.2 

13.2 

13.9 

— 

Butanes Recovery 

(Bbl./Mil. Cu. Ft. 

of Processed Gas) 

6.53 

6.38 

6.23 

6.31 

6.53 

6.72 

6.37 

6.27 

6.1 

— 

7.78 

8.44 

8.08 

8.74 

7.96 

— 

TTie considerable difference between butane recovery before and after 1980 

indicates that the reporting system probably changed. Only 68 percent of the 

gross natural gas production was processed for liquids extraction in 1980, 

whereas in previous years the percentage generally exceeded 80 percent. 

Source: Chemical Economics Handbook — SRI International. 

11 
P.17 

r i factor that has a somewhat longer range effect on butane production is the 

f raw (wellhead) natural gas. As long as the market value of butane exceeds the 

1 ad cost of natural gas plus the cost of extracting butane, there is incentive for 

. s t 0 extract as much butane as possible. Current processes indeed yield a high 

i 0f extraction, generally 95 to 98 percent of the butanes are removed in raw 

ral gas processing. Though producers may not seek to remove as much butane if its 

1 decreases, process changes will be limited by (1) the flexibility of existing process 

nacity, (2) the available alternates for marketing butanes in other products of the 

NGL stream, and (3) the value of other products from the process stream. For example, 

plants are reducing the amount of ethane produced (and thereby leaving it in the 

stream) because ethane values do not support extraction costs. Leaving ethane in the 

stream affects the Btu content of the natural gas and thus impacts the adjustment of 

Btu content required for pipeline transmission. However, butanes must be removed 

from the natural gas but might be suitable for mixture with propane. In summary, any 

individual producer will maximize total profits in the framework of a price taker for all 

potential products, the flexibility of production capacity, the content requirements of 

processed natural gas, and all of the above in combination as is required to maximize 

the economic efficiency of existing capacity. The value of all NGL plant products is 

important because butanes might be combined with or substituted for other products 

since they cannot be left in the stream. 

Refinery Production 

Refineries are the largest producers of butane, supplying 65-70 percent of total U.S. 

butane needs. At the same time, they are also the largest consumers of butane. As a 

result most refinery produced butane never enters the market. Refineries as a whole 

are net consumers of butane, producing from refinery production approximately twothirds to three-fourths of their total butane needs. It is also important to remember 

that integrated oil companies own refineries and also a large segment of NGL plants. 

However, while refineries are net consumers as a whole, some individual refineries 

produce butane in excess of their own needs and place these supplies into the market. 

Because the circumstances of individual refineries vary to a great extent, characterizing the supply and demand of butane at refineries is difficult. Factors such as the 

type and source of crude oil used, choice of catalyst, refinery design, severity of 

12 
P.18 

rations, and the desired final product mix all vary widely from refinery to refinery oper 

in addition, within each refinery operating conditions vary over time, refinery* 

• a both butane yields and needs. As a result, estimating butane production for changing 

rnerv industry as a whole as well as for individual refineries is extremely 

One approach that is commonly utilized is to estimate production based on 

butane yields and the amount of crude processed by various types of refineries, 

average u_ 

noroach was utilized to generate the following information by SRI. 

leum refiners recover butanes as components of the product spectrum from 

eral refinery operations. Refineries recover and separate light hydrocarbons from 

ll refinery processes, generally in a central gas recovery system. Normally, refiners 

feed the C, (butanes/butylenes) fraction (treated to remove butadiene and 

supplemented with additional isobutane) to an alkylation unit in which reaction of 

isobutane with olefins produces gasoline alkylate. Alternatively, the components of the 

stream may be separated. The isobutylene may be removed by absorption in sulfuric 

acid or by reaction with methanol to produce MTBE; extraction distillation separates 

the n-butenes, leaving the saturated butanes. In another method, fractionational 

distillation of the C4 cut yields one stream containing isobutane, isobutylene, and 1-

butene and another stream containing n-butane and 2-butene. After removal of the 

isobutylene from the first steam (by absorption in sulfuric acid), the isobutane can be 

isolated through fractional distillation; distillation also separates the n-butane in the 

second stream from the 2-butene. Refiner recoveries, by process, are described below. 

Crude distillation 

Butane concentrations average approximately one volume percent of crude petroleum. 

The ratio of n- to isobutane is commonly about 3:1, although this ratio and the butane 

percentage vary according to the source of the crude oil. Many light imported crudes 

have 2-3% butanes, while heavier foreign and most domestic crudes contain a lower 

percentage. 

At the beginning of 1986, calendar day capacity of 15.3 million barrels for crude oil 

distillation reflected a decline of 17 percent from 18.5 million barrels per day in 1981. 

Several refineries have been mothballed or permanently closed during the past several 

years because of excess capacity, lower gasoline demand since the peak of the late 

"Butanes". SRI, pp. 300.3501B-E. 

13 
P.19 

„H o considerable reduction in refinery throughput; operating refineries 

l970's, »

n u 

-I trrtm 303 in 1981 to 189 at the start of 1986. In 1981, refinery runs declined ir°'» 

ted only 68 percent of nameplate capacity, a sharp decline from the 85-90 

level of the late 1970s; by 1985, refinery utilization recovered to about 80 

percen t

 based on crude runs. 

d catalytic cracking (FCC) upgrades middle and heavy distillates to motor gasoline 

d lighter products. Cracking of paraffins yields shorter-chain paraffins plus olefins, 

hie the process converts alkyl naphthenic components to naphthenes and olefins. 

Although zeolite catalysts and riser-type cat crackers have improved the technology, 

vields of C streams continue to depend on cracking severity and the refiner's emphasis 

gasoline or fuel oil production. The C. stream typically amounts to 14-16 volume 

cent o f th e product slate, with the output of saturated butanes equal to 7-8 percent 

of the fresh feed; the n- to iso ratio is generally about 1:3. Newer antimony-containing 

passivating catalysts, which reduce the heavy metals content from crude oil, apparently 

have only a slight effect on the nature of the C4 stream. 

Catalytic reforming 

Catalytic reforming provides another significant route to butanes; this process improves 

the octane rating of naphtha and heavy straight run gasoline fractions. A complex 

series of reactions, which convert naphthenes to aromatics and entail cyclization and 

cracking of paraffins, are the largest refinery source of gasoline blending components. 

Butanes are formed by the cracking and saturation of higher paraffins. 

Improvements in reforming technology are attributed primarily to increased preference 

for bimetallic platinum-rhenium catalysts over the conventional platinum-alumina 

system. The bimetallic catalyst retains higher activity, improves gasoline component 

selectivity, and permits lower operating pressures. By 1986, bimetallic catalysts 

represented 82 percent of reforming capacity, a sharp increase from 29 percent in 1972 

and 75 percent in 1981. 

Reforming capacity increased at an average 2.4 percent annual rate, from 3.59 million 

to 4.05 miUion barrels per stream day during 1976-1981, before declining to 3.67 million 

14 
P.20 

stream day by 1986. According to SRI, butanes output typically equals 7-9 barrels per »«-

1 

^pn t of the feed stream (4-5 percent normal, 3-4 percent iso). volume per<.«» 

Hydrocrackjnj 

lvtic hydrocracking, which commonly operates with a rare earth-impregnated 

-aluminum catalyst, also upgrades heavier distillation fractions to gasoline quality. 

aior difference from cat cracking is that the reducing hydrogen atmosphere 

ates large volumes of saturated hydrocarbons during the severe cracking and 

nation reactions. Butane yields from fresh feed average 16-17 volume percent, 

d the n- to iso ratio is about 1:2 when gasoline is the major product. 

Although hydrocracking grew rapidly during the 1960s, its popularity dimmed because of 

hteh capital costs and utility requirements and the need for an adjacent captive source 

of hydrogen. However, after annual capacity increases of only 2 percent during 1976-

1981 to 0.91 million barrels per stream day in 1981, U.S. hydrocracking increased to 

1.06 million barrels per stream day in 1986. With continued capacity increases to 1.15 

million barrels per stream day and an 85 percent operating rates in 1990, hydrocracking 

will yield 55-58 million barrels of butanes per year (1.15 million barrels times .85 

capacity times .16 volume percent times 365 days). 

Thermal operations 

Several minor thermal processes yield small quantities of butanes in the product 

spectrum. Total butanes supply from these operations are estimated at 8-12 million 

barrels (22-33 thousand barrels per day) in 1986. 

Delayed coking is a severe cracking process that produces petroleum coke and 

minimizes residual fuel oil production from refinery bottoms such as vacuum residuals 

and thermal tars. Although yields vary with the type of crude oil and cracking severity, 

the C4 output accounts for 3-5 volume percent, and butanes represent 60 percent of 

that fraction. The n- to iso ratio is approximately 2.5:1. 

Fluid coking converts heavy liquid feeds to coke, liquids, and gaseous fuel products. 

The C4 volume averages 3.5 percent of the original feed, and butanes account for 50 

percent of this fraction. 

15 
P.21 

mild form of thermal cracking, upgrades refinery bottoms by maximizing visbreaking»

 a 

• IH while minimizing gasoline output. Butanes account for 50-70 percent of 

fuel oil yi e i a 

, n fraction, which represents 2 percent of the total yield, the total o4 ir«» 

finers isomerize straight-chain C, and Cg alkanes to improve octane ratings 

ude distillation fractions (e.g., straight run naphthas), but refiners operate C4 

zation units specifically to convert n-butane to isobutane. Refiners then 

isobutane for gasoline alkylate, a gasoline blending component with lower 

t'litv than the reactant isobutane and olefins. Isomerization commonly employs a 

tnum catalyst under mild conditions (100-200°C and 200-5000 psi in the presence of 

droeen) although the process may also use molecular sieves, on silica/alumina. 

merization becomes feasible only when other refinery operations yield insufficient 

• obutane and a natural gas liquids source is not readily available. The price 

differential between iso and normal must also be sufficient to warrant operation of the 

unit. Currently, this differential is 4-5 cents per gallon on a marginal cost basis and 

about 10 cents per gallon fully costed. Current U.S. industrywide nameplate C4 

isomerization capacity is approximately 80 thousand barrels per day; Quest Enterprises, 

Inc. (26 thousand barrels per day), Marathon Oil Company (15 thousand barrels per day), 

Valero Petroleum (12 thousand barrels per day), Phillips Petroleum (8 thousand barrels 

per day), and Champlin Petroleum Company (7.5 thousand barrels per day) operate the 

largest units. However, many small units possibly operate intermittently below 

capacity, and several may be mothballed; actual isobutane supply from this source was 

estimated at 5 million barrels per year (15 thousand barrels per day) in 1985. Because 

data on small units is lacking, unused isomerization capacity cannot be estimated. 

Refining production by process and product is shown in Exhibit 2-4. 

While refineries as a whole are net consumers of butane, some refineries do produce in 

excess of their individual needs and put butane onto the market. Exhibit 2-5 presents 

the amounts of refinery butanes that have been marketed in the past 10 years. The 

amount which is marketed depends upon individual refinery butane supply/demand 

balances, and varies considerably from year to year. The vast majority of the market 

supply is n-butane, since there are few uses for isobutane other than in the manufacture 

gasoline. Refinery supplies to the market show considerable seasonal variation. In 

16 
P.22 

^ ^ 

EXHIBIT 2-4: 

U.S. REFINERY PROCESSING AND BUTANE YIELDS 

Process 

Crude Distillation 

Catalytic Cracking 

Catalytic Reforming 

Hydrocracking 

Delayed Coking 

Fluid Coking 

Visbreaking 

Process 

Crude Distillation 

Catalytic Cracking 

Catalytic Reforming 

Hydrocracking 

Thermal Operations 

Isomerization 

Total 

Product Distribution 

Total Butanes n- to Iso 

(volume percent) Ratio 

1 3:1 

7-8 1:3 

7-9 1.2-1.3:1 

16-17 i:2 

1.8-3 2.5:1 

1-1.2 4:1 

1-1.4 3:1 

Production of Butanes at Refineries 

(millions of barrels per year) 

1985 

n-Butane Isobutane Total 

34 11 45 

29 87 116 

45 37 82 

17 35 52 

7 3 10 

-5 5 — 

127 178 305 

Refinery Process Capacity 

(millions of barrels 

Per stream day) 

1981 1985 

19.4 15.90 

5.53 5.17 

4.05 3.67 

0.91 1.06 

1.02 1.17 

0.13 0.17 

0.24 0.14 

Sources: (A) "Annual Refining Report," Oil & Gas Journal, March 31. 1981. DD. 63-

65; and March 18, 1985, pp. 122-132 (Refinery Process Capacity data 

for 1981 and 1985).

 y 

(B) "Butanes 

i 

s," SRI (all other data). 

17 

i 
EXHIBIT 2-5: 

MARKETED* REFINERY BUTANE 

(million bbls) 

P.23 

jfear 

1986 

1985 

1984 

1983 

1982 

1981 

1980 

1979 

1978 

1977 

1976 

1975 

n-Butane 

35.0 

30.1 

22.7 

14.5 

3.0 

9.8 

15.5 

17.0 

18.7 

17.6 

20.0 

17.4 

Isobutane 

1.7 

(.2) 

.1 

.4 

.9 

1.0 

2.0 

2.2 

2.4 

2.6 

2.2 

Total 

36. 

29. 

22. 

14. 

3. 

10. 

16. 

19. 

20. 

20. 

22, 

19. 

,7 

9 

.8 

,9 

,0 

,7 

,5 

,0 

.9 

.0 

.6 

.6 

Source: Energy Information Administration, Petroleum Supply Annual, 

1981-1986. Bureau of Mines, Crude Petroleum, Petroleum 

Products, and Natural Gas Liquids, 1975- 1980. 

Note that this table does not represent total refinery production of 

butanes. The quantities shown here represent the total amount of butanes 

that are marketed to others by refineries in the course of the year. These 

market quantities represent the supply/demand imbalance at refineries. 

18 
P.24 

refinery use of butane drops while production of butane remains relatively 

• h e sU<T>rt'eI,» 

A a result, refineries offer more butane for sale during the summer months, 

steady* ^ 

s

 . .. . «,, the butane content of gasoline increases, refineries consume more 

m the winter, a. 

butane internally and market less. 

2.2 DEMAND 

90 percent of all butanes are used by the refining industry in gasoline motor fuel. 

,..., include the petrochemical industry, fuel markets, and exports. Total Other users 

motion in 1985 is estimated at 431 million barrels. ' Uses in 1974, 1978, and 

Q81-83 in each of these areas are shown in Exhibit 2-6. 

Demand for butanes by gasoline refiners and fuel markets has generally been declining 

nee 1978-1980 because of 1) decreased demand for gasoline and 2) for many uses, the 

high price of butane relative to substitutes. Demand by the petrochemical industry 

turned down in 1982. Discussions of the characteristics of butane use in each demand 

category follow. 

Gasoline Uses 

The dominant use of butanes is in gasoline. Blended directly into the fuel, butanes 

increase volatility without negatively impacting octane. Made into alkylate, they 

enhance the octane rating while maintaining suitable volatility. n-Butane is blended 

directly into gasoline while isobutane is generally first reacted with low molecular 

weight, highly volatile olefins and saturated isoparaffins to make alkylate. TTie volume 

of butanes directly blended in gasoline in 1985 was 188 million barrels; the volume of 

3 

isobutane consumed for alkylate was about 290 million barrels. 

Estimates of total and refinery consumption of butane are difficult to make because 

most butanes produced by refineries do not leave the plant as separate products. Also, 

small volumes may be used as plant fuel. This possible use is not further discussed here 

and is not reflected in the consumption estimates. 

"Butanes," SRI, p. 300.3501 M 

3 

"Butanes," SRI, pp. 300.3501Q and 300.3501S. 

19 
r 

EXHIBIT 2-6: 

1974 

U.S. CONSUMPTION OF BUTANES 

(million barrels per year) 

1978 1981 1985 

to 

o 

Gasoline 

Volatility Control 

Gasoline Alkylate 

Fuel Uses 

LPG 

SNG 

Chemicals 

Ethylene 

Butadiene 

Acetic Acid 

Maleic Anhydride 

Propylene Oxide 

Other 

Total 

Source: "Butane", Che 

n 

155 

16 

1 

7 

13 

5 

neg. 

1 

197 

iso 

8 

182 

— 

5 

1 

195 

mi cal Economics 

Tot 

163 

182 

16 

1 

7 

13 

5 

neg. 

5 

1 

393 

Handbook 

n 

179 

14 

15 

12 

4 

5 

1 

1 

230 

', SRI, 

iso 

10 

208 

— 

7 

1 

226 

1987, p. 

Tot 

189 

208 

14 

15 

12 

4 

5 

1 

7 

2 

456 

n 

167 

16 

3 

13 

3 

5 

1 

2 

209 

iso 

9 

185 

4 

9 

1 

208 

3003501N-300.3501O. 

Tot 

176 

185 

20 

3 

13 

3 

5 

1 

9 

3 

417 

n 

179 

20 

0-1 

4 

3 

2 

0 

2 

210 

iso 

9 

200 

-

11 

1 

221 

Tot 

188 

200 

20 

0-1 

4 

3 

0 

3 

11 

3 

431 

Ul 
P.26 

Dire£! Blending 

imarily n-butane, has for many years been considered an excellent substance 

80

 * •'•„_• easoline volatility without negatively affecting the octane rating. The 

for raising B 

content of gasoline varies widely however, depending on temperature conditions. 

•h- summer in warmer regions of the country, n-butane content may be only 0-2 

During tne su' 

„ nprcent, compared to 14 volume percent in the Upper Midwest and Northeast 

volume pen-* 

t n e winter. The average butane concentrations in 1985 for automotive gasoline 

during 

8 volume percent. According to SRI, n-butane accounts for 95 percent of the 

ectiy blended butanes and isobutane accounts for 5 percent. Exhibit 2-7 lists the SRI 

. -nto of butanes consumption in gasoline for 1961 to 1985. estimate w» 

^o^ne Alkylate 

Alkylation is a refinery process that converts low molecular weight, highly volatile 

olefins and saturated isoparaffins to gasoline components with suitable octane ratings 

and volatility properties. Few published data are available for alkylate and isobutane 

production because these products are both generated and consumed within the 

refinery. SRI has estimated isobutane consumption for 1961 to 1985 from historical 

reported alkylation capacities and assumed industrywide refinery operating rates. 

Exhibit 2-6 summarizes these estimates. 

Fuel Uses 

A second major user of butane is the fuel market. The 1985 volume of butanes 

consumed by the fuel markets was 21 million barrels. LPG represents almost all of the 

total. 

LPG's 

LPG. are clean burning fuels, usually propane and/or butane, that are in liquid form 

under pressure at room temperatures. LPG's may also sometimes include ethane. The 

product is used in residential and commerical heating, for industrial energy, in internal 

combustion engines, and for miscellaneous uses such as crop drying, tobacco curing, and 

r arm applications. Industrial consumption probably accounts for about 80 percent 

"Butanes," SRI, p. 300.3501P. 

21 
P.27 

EXHIBIT 2-7: 

U.S. CONSUMPTION OF BUTANES IN GASOLINE 

(million barrels) 

year 

1961 

1962 

1963 

1964 

1965 

1966 

1967 

1968 

1969 

1970 

1971 

1972 

1973 

1974 

1975 

1976 

1977 

1978 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

Direct 

Blending 

107 

111 

114 

116 

119 

125 

129 

136 

142 

147 

154 

162 

168 

163 

168 

176 

181 

189 

189 

180 

176 

184 

179 

178 

188 

Gasoline 

Alkylate 

(Isobutane) 

140 

153 

161 

166 

174 

181 

195 

212 

220 

246 

255 

270 

283 

263 

269 

287 

290 

301 

302 

276 

268 

264 

269 

282 

290 

Total 

Butanes 

247 

264 

275 

282 

293 

306 

324 

348 

362 

393 

409 

432 

451 

426 

437 

463 

471 

490 

491 

456 

444 

448 

448 

460 

478 

Source: "Butanes," CEH, pp. 300.3501Q, 300.35015. Indirect blending, the ratio of nbutane to Isobutane is 95:5. Assumes 7 volume percent of all gasoline 

produced 1960-1978, 7.5% during 1979-1984, and 8% in 1985. Alkylate 

production is estimated based on estimated capacity utilization rates. 

22 
P.28 

of butane use in LPG. Natural gas liquids (NGL's) are the primary source. However, 

refineries sometimes market butanes also, after their own requirements have been met. 

Because normal and isobutane have much higher boiling points, at atmospheric pressure, 

than propane (31 and 11 F compared to minus 127°F), the butanes are not as useful as 

propane as a portable convenience fuel in cold climates because they will not vaporize 

when released to a burner tip. However, butane LPG is used in the southern states to a 

limited extent. A somewhat more common, but still limited, LPG is a butane-propane 

mix. This formulation too is not practical for most applications in cold climates 

because the propane tends to vaporize fractionally, leaving a predominantly butane 

2 

mixture in the tank. 

Compared to propane, only small volumes of butane are consumed as fuel. In addition 

to the vaporization problems described already, this is because butane can usually 

command a higher price in gasoline and other uses than for its straight BTU fuel 

content. Industrial users consider butane only when it is temporarily in large supply and 

prices drop to the BTU fuel value equivalent with propane or fuel oil. 

SNG 

When natural gas production appeared to be peaking in the early 1970's, plans were 

made to build 52 facilities that would reformulate liquid hydrocarbons into synthetic 

natural gas (SNG). However, soon after the plans were made and construction began for 

some plants, both natural gas and petroleum product prices rose, leading to substantial 

conservation and a much lessened need for these plants. Only 14 of the 52 plants were 

completed, four of which are designed to use butane as a feedstock. All four can also 

use other natural gas liquids and/or naphtha. When using butane, imports are the 

primary source. 1985 consumption of butane for SNG was estimated by SRI at 0-1 

million barrels, a major decline from its 1978 level of 10 to 15 million barrels. (See 

Exhibit 2-5). The four plants operated at 20-25 percent of design capacity in 1985. 

1

"Butanes," SRI, p. 300.3501 U. 

2 

The Petrochemical Energy Group, Butane and the Petrochemical Industry, November 

27, 1973, p. 31. 

3

"Butanes," SRI, p. 300.3501 U. 

23 
P.29 

r 

Petrochemicals 

In 1985 petrochemical industry consumption of butanes amounted to 22 million barrels, 

or about 5 percent of total demand. (See Exhibit 2-5). The amount of n-butane was 11 

million barrels and the amount of isobutane was 13 million barrels. Though it is 

presently a small market for butane, because of changing technology and a great 

sensitivity to price, it is one that has significant market potential for butane 

manufacturers. 

Feedstocks for petrochemical plants, including butane, have witnessed a substantial 

increase in economic importance in recent years. Until the early 1970's, feedstock 

costs accounted for only 10 to 20 percent of the cost of making basic petrochemicals, 

with plant investment accounting for a major portion of the balance. Today feedstock 

costs amount to 50 to 90 percent of production costs. Producers have thus become 

price sensitive, and have responded by building plants with great flexibility in the types 

of feedstocks that can be used. Almost all olefin plant, or "steam cracker," operators 

have invested in plants that allow use of very large quantities of light feedstocks such 

as ethane and propane when prices favor them, and that can shift to heavy hydrocarbons 

if their prices are more attractive. Some can operate on any feedstock in the 

2 hydrocarbon slate, ranging from 100 percent ethane to 100 percent gas oil. 

The characteristics of demand for butane as a feedstock for each of five chemical 

sectors are discussed in the following paragraphs. 

Ethylene 

The largest petrochemical market for n-butane is steam cracking to form ethylene and 

co-products. For many olefins plants, n-butane is a supplemental feedstock that has 

accounted for no more than 4 percent of total ethylene production since 1970. 

Isobutane is not generally used as a feedstock for ethylene plants because of poor 

3 

cracking yields. 

Olefin plants are the source of many of the petrochemical industry's basic building 

blocks — ethylene, propylene, butylenes, butadiene, and benzene. Olefin plants are also 

called ethylene plants, after their, main product, or steam crackers, because the feed is 

usually mixed with steam before it is cracked. They may be also referred to as ethane, 

propane, gas oil, (or other types of feedstock) crackers. 

2 

Bruce F. Greek, "Natural Gas Liquids Remain Strong Petrochemical Feedstock," 

Chemical and Engineering News,. March 12, 1984, pp. 19-20. 

3

"Butanes," SRI, p. 300.35201Z 

24 
P.30 

Volumes of n-butane used have varied considerably from year to year. 1974 consumption of 7 million barrels grew to 12 million in 1978, and 13 million in 1981, then fell to 8 

million in 1982 and less than half a million in 1983. In 1985, butane recovered 

somewhat to 4 million barrels. 

Consumption of n-butane in olefins crackers is influenced by the price and demand for 

butane from competing markets, the value of co-products created by steam cracking 

butane, and the price of competing feedstocks. In 1979, high gasoline demand led to 

increased n-butane prices, which caused a decline in the volumes consumed by the 

petrochemical industry. By 1981, butane prices had stabilized, and increased volumes 

were consumed as an ethylene feedstock, especially during the summer when gasoline 

demand for n-butane is lower. Since 1982, relatively small amounts of butane were 

cracked because of the higher prices bid by gasoline markets, and the sharply lower 

prices for competitors of ethane and propane. Should n-butane become more available, 

market shares may increase as n-butane eplaces ethane, propane and naphtha, 

depending on its price competitiveness. 

Acetic Acid 

The U.S. acetic acid industry changed production technology and reduced its demand for 

n-butane by acetic acid producers. In 1979, of domestic capacity of 1,605,000 metric 

tons per year, 33 percent was based on an n-butane process. A total of two n-butane 

based plants were operated by two producers, Celanese Corporation and Union Carbide 

Corporation. The n-butane share of capacity then began to drop steadily as new 

capacity using a cheaper methanol based process was introduced. In 1981, n-butane 

based production was estimated at 950 million pounds, which consumed 5 million barrels 

of n-butane. In 1983, Union Carbide closed its 600 million pound per year n-butane 

based plant, dropping the n-butane share of current capacity to 16.6 percent. Celanese, 

unlike Union Carbide, has several plants and thus has the flexibility to run the butane 

plant at full capacity when prices are low and rely on other plants when the prices of 

d ; 

3 

2 

other feedstocks are more attractive. If the plant is operated at full capacity, 

n-butane use will amount to approximately 3 million barrels per year/ 

Amin K. Rafie and Sara L. Soder, "Acetic Acid," Chemical Economics Handbook, March 

1979, p. 602-5020 C. 

2 

Alan S. Brown, "Technology Shift Tightens Acetic Acid Market," Chemical Business, 

November 1984, pp. 11-14. 3 

Estimated based on process technology of 190 pounds of acetic acid per barrel of 

butane. 

25 
_B3L_ 

cost of production of methanol-based acetic acid had only slight advantage over 

hutane feedstock, depending on relative costs. While butane feedstock costs are 

L.„ h o P tna n methanol costs, the butane process produces some highly valued cosigner 

oducts such as methyl ethyl ketone, formic acid, and methanol. However, new 

apacity will likely be based on the methanol process. This is because the butane-based 

oiants are more expensive to build; the producer must have an infrastructure for 

marketing the co-products; and the price of butane has historically fluctuated widely as 

with gasoline fluctuations. 

Butadiene 

Butadiene is a chemical used primarily in the production of synthetic rubber. Other 

uses include plastics for the automobile and home construction, nylon fibers for tire 

cord, latex for carpet backing, and other applications. Supply has historically been 

provided by four sources: n-butane dehydrogenation, butylene n-butene oxidative 

dehydrogenation, by- products of the ethylene industry, and imports. Once accounting 

for more than 40 percent of domestic butadiene capacity, butane in the early 1980's 

accounted for only 10 percent. Celanese with 550 million pounds of n-butane based 

capacity is the sole remaining n-butane production facility and additional production 

2 

from n-butane is unlikely. 

Maleic Anhydride 

Maleic anhydride can be produced from several feedstocks including benzene, normal 

butanes or butylenes, and normal butane. In the 1940's, economics and prices favored 

benzene. In the 1950's, butane feedstocks became popular as a surplus of this chemical 

appeared in refineries, but soon declined when supplies tightened and prices increased. 

In 1974, Monsanto converted one fixed bed reactor to n-butane feedstock, which has a 

significant yield advantage over benzene. (The theoretical yield of maleic anhydride is 

1.26 pounds per pound of benzene, but 1.75 pounds per pound of n-butane). Additions to 

The Petrochemical Energy Group, op. cit., p. 15. 

2

"Butanes," SRI, p. 300.3502B. 

3 

Petrochemicals for the Non-Technical Person, op. cit., p. 163. 

26 
P.32 

n-butane capacity continued as Amoco, Monsanto, Denka Chemical, and Ashland 

Chemical converted capacity to butane. Total n-butane based capacity of 190 million 

pounds in 1983 represented 45 percent of domestic maleic anhydride capacity. In 1986, 

virtually all capacity was n-butane. 

The uses of maleic anhydride are many, and are growing faster than those of most other 

chemical uses of butane. About 60 percent is used to make polyester and alkyd resins 

for boat hulls, auto body parts, patio furniture, shower stalls, pipe and coatings such as 

paint, varnish, lacquer, and enamel. It is also used to manufacture plasticizers and 

2 dibasic acids, and as a base for several agricultural chemicals. 

While the maleic anhydride market is probably the fastest growing chemical market for 

butane, it is still a small one. In 1981, when maleic anhydride production totalled 304.1 

million pounds and 20 percent of capacity was based on butane, butane consumption 

amounted to only 0.3 million barrels. In 1983, assuming production of 335 million 

pounds and 45 percent of capacity and production based on butane, butane consumption 

amounted to about 0.8 million barrels. 1985 consumption was 2.6-2.7 million barrels.3 

Propylene Oxide and T-Butyl Alcohol 

The primary market for isobutane in the chemical industry is in the production of 

propylene oxide and t-butyl alcohol (TBA), the latter produced domestically by ARCO 

at a 1,020 million pound per year propylene oxide plant. Most isobutane is purchased, 

making ARCO a major influence on spot market prices. 

When the isobutane production process was first developed, TBA was a low value 

by-product and the TBA/propylene oxide ratio, which technology allowed to be adjusted 

somewhat, was minimized. In 1979, DOE approved continued use of TBA as a gasoline 

additive and octane enhancer and the value of this by-product improved. Demand for 

TBA in this use is less than supply however, so some TBA is converted to isobutylene via 

dehydration, often for subsequent conversion to MTBE. TBA is also used directly as a 

solvent, a component of industrial cleaning compounds, and as an intermediary for 

oil-soluble polyester resins. 

lnButanes," SRI, p. 300.3502C. 

2 

Petrochemicals for the Nontechnical Person, p. 165. 

3

"Butanes," SRI, pp. 300.3502C. 

27 
P.33 

Production of the other principal product, propylene oxide, now has 39 percent of 

capacity based on isobutane. Propylene oxide is consumed in polyol ethers for 

urethanes, propylene glycols, glycol ethers, and miscelleneous chemicals such as 

glycerin, isopropanolamins, and propylene carbonate. Total 1985 consumption of 

isobutane for the production of propylene oxide and TBA equalled 10.8 million barrels. 

Other Chemical Uses 

High purity butanes and propanes have been the principal substitute for fluorocarbons in 

aerosols because of their inertness and high vapor pressure. One to 1.5 million barrels 

of butanes were used in 1985 for this purpose, with isobutane the most frequently used 

isomer. About 1 million barrels of high purity butane are consumed each year for 

polymer processing. Isobutane is also consumed by Allied Chemical Corporation and 

several others as a solvent in the HDPE process. Shell consumes butane at its New 

Jersey polypropylene plant. n-Butane may be used for molecular weight control in 

some LLDPE plants. Butanes have also been used as blowing agents for polystyrene. 

Exports 

Exports of butane remained below 3 million barrels per year for each year between 1970 

and 1981, with the Netherlands the principal destination. In 1981, however, exports of 

natural gas liquids, in part butanes, rose unexpectedly to a record 12.3 million barrels as 

supplies abroad tightened. Exports rose again to 14.4 million barrels in 1982. As 

estimated by EIA, in 1985 exports resumed earlier levels at 3.4 million barrels, while 4 

million barrels were exported in 1986. 

A considerable portion of raw NGL exports represent shipment to Canadian 

fractionation facilities and subsequent reimport of the products. Exhibit 2-8 lists 

butane and natural gas liquid exports for 1967-1985. 

2.3 PRICE 

The price of butane in the United States fluctuates dramatically and is affected by 

supply/demand conditions in the domestic heating, gasoline, petrochemical, and 

petroleum refining markets, as well as by international movements in energy product 

1

"Butanes," SRI, p. 300.3502F-G. 

28 
1 

QJ 

to CO 

V 

c •t 

a a 

3 CO c «-• 

0 es,

3 ' SR-I *• ID 

7 CO 

o 

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6 

r-i 

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r-r 

at CL 

a ssu 

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<t> buta ne comp O CO ior-r n of natural gas liquids Cfl" 0t o percen 

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03 

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fe 
P.35 

prices and supplies. It is also affected by supply /demand and pricing relationships in 

competing energy product markets. Significant changes in general market equilibrium 

conditions in any of these areas will affect the domestic market price of butane. 

Before 1978, wholesale prices of butanes were typically 80-90 percent of refinery crude 

oil acquisition costs, but the relationship has since fluctuated between 70 percent and 

110 percent on an annual basis. As expected, n-butane prices closely track wholesale 

regular gasoline. Prices for n-butane on the Gulf Coast are generally about 70 percent 

of spot unleaded regular gasoline prices. 

The Natural Gas Policy Act of 1978 (NGPA) has not significantly affected the price and 

volumes of butanes extracted from natural gas. Gas processors must remove butanes 

because of potential dew point condensation in pipelines, and the higher price 

commanded by the gasoline market over equivalent Btu fuel values will make processing 

of the saturated C.s economically worthwhile. With no change in volatility 

requirements, n-Butane prices should move in a range bounded by the Btu equivalent 

fuel value with propane and approximately 85-90 percent of the wholesale gasoline 

price. 

Isobutane prices depend on the value of alkylate in gasoline. For a given alkylate value, 

isobutane varies inversely with the price of the olefinic alkylate component. Isobutane 

prices, as indicated by the spot market, were more volatile than n-butane prices until 

1982, perhaps because only 10-15 percent of marketable isobutane volumes are traded 

on the spot market. In 1985-1986, the price differential between normal-and isobutane 

3 

fluctuated between near 0 and about 7 cents per gallon. 

The federal government reported wholesale prices for several years, but contract and 

spot prices have been listed on a regular basis only since 1979 by Oil Buyers' Guide. 

Butane prices became extremely volatile after 1979 because of the world oil situation 

and the related shortage and succeeding glut in gasoline markets. In early 1980, spot nbutane prices skyrocketed to nearly 90 cents per gallon, while corresponding isobutane 

prices were $1.15 per gallon. In early 1986, n-butane prices plummeted by 50 percent 

to about 27 cents per gallon by April in response to declines in crude oil pricing. 

Isobutane also fell to 30-32 cents per gallon. No analysis was undertaken in this 

research effort to identify the complex interrelationship between crude oil, gasoline, 

and butane prices. 

lnButanes," SRI, p. 300.3502G,H,L 

2

"Butanes," SIR, P. 300.3502G 

3

"Butanes," SRI, P. 300.35021 

30 
prior to 1980, domestic butanes were under price controls similar to crude oil; the 

Department of Energy lifted controls in 1980 after regulatory reviews. The U.S. 

International Trade Commission publishes unit sales values annually but these values do 

not reflect actual prices of all butane that is traded. Exhibit 2-9 presents the 

estimates published by ITC Exhibit 2-9 provides a view of market prices in Texas. It 

should be noted that the refinery price of butanes, on an annual or seasonal basis, must 

be imputed because most refinery butanes (consumed) do not transact in the open 

market. Analysis of the refinery value of butanes is limited by lack of information on 

the implicit price of n-butane at the refinery. Market prices reflect the price at which 

refineries are willing to sell surplus butanes, not the actual value of butanes within the 

refinery operation. 

The 1986 price of butane has not been released by ITC, but movements in the monthly 

Producer Price Index as well as the July 1986 prices noted in Exhibit 2-10 indicated that 

the 1986 price might be as low as 50 percent of the 1985 price. For the analysis 

undertaken in this report, 1986 production was valued at $15.00 per barrel (all butanes). 

The 1986 prices of n-butane and isobutane were $14.36 and $16.39 per barrel, 

respectively. 

1

"Butanes," SRI, p. 300.3502J 

31 
00 

e r t OP 

3 CD 

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tOtOtOtOOO h-» t-» •-» H H 

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co cn OJ i1 oo 

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t-A tO OOCOOOCOlb I—A r-A A-A >-A *-A , 

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co -4 to to H* i—'ib •bcoi-'ojcn HO i Willi 

CO to CO CO CO 

O ib t~- r-A- H 

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;"0 io 
EXHIBIT 2-10; 

U.S. MARKET PRICES FOR BUTANES8 

(cents per gallon) 

P.38 

February 1979 

July 1979 

January 1980 

July 1980 

January 1981 

July 1981 

January 1982 

July 1982 

January 1983 

July 1983 

January 1984 

July 1984 

January 1985 

July 1985 

January 1986 

July 1986 

nContract 

28.5-29.5 

55-80 

75-85 

43.5-47 

65-68 

52-53 

48-50 

65-68 

70-71.5 

70-72 

55-56 

50-52.5 

55.5-56 

48-48.5 

58-59 

23-24 

Butane 

Spot 

31.5-32 

77-80 

86-87 

43.0-43.3 

59.3-59.5 

58.25-59 

45.8-46.5 

69.5-70 

73.5-74.5 

66.5-67 

55.5-56 

48.8-49.3 

54.5-54.8 

47.5-48.5 

57-58 

20-21 

Isobutane 

Spot 

39-40 

100-110 

110-116 

67.5-68.5 

88-89 

62.8-63.5 

51.5-53 

79.5-80 

74-76 

71-71.3 

56.5-57.3 

51-52 

53.8-54 

54.5-55.5 

58-59 

25 

At Mont Belvieu, Texas, for the first week of the month. 

Source: Oil Buyers' Guide. 

33 
P.39 

CHAPTER 3: 

THE EFFECT OF A MARKET PRICE 

REDUCTION ON BUTANE SUPPLIERS 

Butane suppliers can be divided into two broad categories: Refineries and National Gas 

Liquids (NGL) processors. Refiners consume 90 percent of butanes consumed in the 

U.S. and produce about 75 percent of domestic production. Though net purchasers of 

butanes, a portion of their production is offered for sale as production does not equal 

consumption plus storage capacity at each refining facility. The quantity offered for 

sale by refiners amounted to 37 million barrels in 1986. 

The second broad category of butanes producers are NGL processors. Since all 

production from NGL plants is consumed by other users (NGL producers are not 

consumers of butanes) NGL producers are referred to as open market producers. 

Market production, as defined by the Department of Energy and industry analysts, 

equals butanes offered for sale by refiners plus butanes produced by NGL plants plus 

imports plus inventory adjustments. The breakdown of open market butanes, 1986 is: 

Source 

Refinery Production (Sold) 

Field Production 

Imports 

Inventory Adjustment 

Total 

Million 

Barrels 

36.7 

103.8 

41.0 

(2.0) 

179.5 

Percent 

20 

58 

23 

IM 

(Source: Petroleum Supply Annual, 1986, p. 24) 

Because plant-specific estimates are not available for sales from refineries or 

inventory adjustments, the following analysis of open market butanes is confined to 

field (NGL plant) production. 

An important factor in the analysis of NGL plant operation is plant ownership. While it 

is conceptually simple to divide butanes production between refineries (that consume 

most of the butanes produced) and NGL producers (that consume no butanes), the 

distinction is misleading. When NGL plant ownership is scrutinized, it is immediately 

34 
P.40 

evident that most production of butanes by NGL plants is controlled by oil companies 

that also operate refineries. The "open market" concept of NGL plants is thus 

overshadowed with the understanding that more than 80 percent of butane production in 

NGL plants is represented by plants owned by the primary consumers, oil companies. 

Moreover, this estimate of oil company ownership is understated because many NGL 

plants that are not wholly owned by oil companies may have a large percentage of their 

stock held by an oil company. 

ANALYTICAL APPROACH 

To determine the effect of a reduction in market value of butanes on suppliers that 

could result from a change in RVP requirements, suppliers were grouped by company 

size. The initial data set was developed from estimates of production for 

approximately 800 plants. After combining plants by ownership, the list was reduced to 

114 companies shown in Exhibit 3-1. The companies are ranked by volume of butanes 

produced, the last 10 companies on the list reported that no butanes were produced. 

To determine the effect of a reduction in the price of butane on producing companies, 

1986 butanes production, from actual reported production or imputed production based 

on reported raw NGL production, was multiplied by the estimated average annual price 

of butanes (separately for isobutane and n-butane). To determine the dollar impact on 

revenues, it was assumed that a reduction in butane demand could decrease the 1986 

price up to 30 percent. Estimates of the amount of reduced revenues were made for 

each of 10, 20 and 30 percent reductions, as shown in Exhibit 3-2. 

Another approach to estimating impacts would involve estimating the petrochemical 

floor price of butanes and incrementally examining the reduction in value down to the 

All plants that could be identified as wholly owned were matched with the appropriate 

company. Thus, each company shown that is listed as having only one plant represents a 

plant that was not identified as owned by a company distinct from the plant. For those 

plants, the plant is considered to be the company and plant revenues are used to 

represent company revenues. 

35 
EXHIBIT 3-1: 

1986 BUTANE SALES BY COMPANY 

(Thousands of 1986 U.S. DoUars) 

P.41 

Cotpjny 

Value of Daily 

Butane Salt* 

Iso-C4 n-C4 

Total 

Annual 

Butane 

Revenues 

Estimated 

Plant 

Revenues 

Cotpjny 

Revenues 

tutant 

Revenues 

at a I of 

Company 

or Plant 

Revenues 

1 Phillips (1) 

2 Enon 

3 Ttiaco 

4 Shell 

5 Atoco 

6 Chevron (2) 

7 Conoco 

9 Hotnl 

9 Occidental 

10 Enron 

11 Valero 

12 Sun 

13 Mitchell 

14 ARCO 

IS Burlington North 

16 Allied-Signal (3 

17 Department of En 

IB USI 

19 Coastal 

20 CSI 

21 Hams Energy 

22 Union Pacific 

23 Tenneco 

24 Enserch 

25 HilSas Co 

26 Northvest Pi peli 

27 Unocal 

28 Sid Richardson C 

29 Koch Hydrocarbon 

30 Cabot Corp. 

31 Consolidated 6as 

32 Uestern Sas Proc 

33 Daison 

34 Tanl and Industr 

35 Hesa 

36 Kerr-KcSee 

37 Sunterra 6as Pro 

38 Placid Oil 

39 Associated 

40 Seagull 

41 BHP Petroleu* 

42 Claiborne 6asoli 

43 Colutbia Sas Tra 

44 Anadarko 

45 NAPCO Vestpan In 

46 Hunt Oil 

47 Endevco 

48 Plains Petroleui 

49 Nat'l Heliui 

40 

25 

47 

31 

31 

58 

12 

33 

29 

20 

10 

26 

33 

28 

11 

13 

3 

35 

20 

3 

I 

17 

11 

13 

2 

2 

14 

6 

7 

12 

1 

13 

15 

5 

6 

6 

3 

2 

7 

1 

1 

2 

2 

6 

3 

2 

4 

4 

2 

405.49 

120.40 

155.89 

138.42 

54.50 

115.93 

109.63 

107.64 

81.73 

68.61 

80.99 

101.90 

63.50 

24.95 

33.55 

39.16 

6.26 

39.95 

18.75 

56.45 

33.07 

30.48 

31.80 

29.09 

28.03 

4.67 

2.75 

20.05 

5.90 

17.21 

15.10 

6.37 

14.10 

14.84 

13.92 

6.19 

9.10 

9.07 

8.54 

8.45 

4.88 

7.75 

6.73 

6.54 

6.43 

6.29 

5.93 

0.00 

2.05 

440.06 

315.77 

229.62 

202.05 

242.75 

159.62 

145.92 

138.14 

141.57 

140.03 

98.10 

67.20 

81.84 

113.72 

97.07 

73.55 

106.35 

65.72 

86.82 

46.81 

68.20 

70.24 

46.61 

40.53 

39.04 

61.59 

62.37 

27.93 

38.46 

23.97 

24.83 

30.73 

21.53 

20.67 

20.95 

18.03 

12.68 

12.64 

11.90 

11.77 

12.64 

8.80 

9.38 

9.12 

8.96 

8.76 

8.26 

13.34 

11.22 

308,623.83 

159,201.63 

140,711.41 

124,268.72 

108,496.45 

100,577.44 

93,276.42 

89,709.26 

81,505.40 

76,154.97 

65,367.57 

61,722.44 

53,052.66 

50,615.65 

47,676.25 

41,139.15 

41,101.29 

38,570.20 

38,533.74 

37,692.84 

36,961.92 

36,762.02 

28,619.15 

23,411.33 

24,482.11 

24,184.55 

23,769.28 

17,514.65 

16,191.19 

15,032.15 

14,575.47 

13,540.35 

13,002.91 

12,961.12 

12,728.19 

8,840.29 

7,951.54 

7,924.11 

7,461.21 

7,382.35 

6,393.34 

6,040.39 

5,880.51 

5,715.92 

5,619.91 

5,493.05 

5,177.59 

4,868.37 

4,844.92 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

— 

---

— 

103,493.80 

— 

— 

— 

— 

— 

— 

— 

IS8,392.90 

97,736.85 

— 

146,853.42 

84,571.77 

— 

59,801.51 

88,517.30 

— 

74,028.92 

— 

— 

44,983.53 

55,458.98 

42,209.65 

41,763.50 

30,355.96 

65,460.56 

33,267.25 

— 

31,793.02 

31,075.30 

— 

— 

13,382.19 

10,015,000.00 

76,555,000.00 

32,591,000.00 

17,353,000.00 

20,231,000.00 

27,131,000.00 

11,039,000.00 

49,865,000.00 

16,237,600.00 

7,561,967.00 

1,880,125.00 

10,440,000.00 

845,801.00 

15,774,000.00 

6,941,413.00 

11,794,000.00 

NA 

15,009,000.00 

6,718,100.00 

6,345,000.00 

2,543,500.00 

6,688,000.00 

14,617,000.00 

228,034.00 

M 

NA 

8,253,000.00 

M 

NA 

1,320,106.00 

NA 

NA 

49,410.00 

NA 

359,638.00 

2,569,000.00 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

209,254.00 

NA 

NA 

114,319.00 

13,376.00 

NA 

3.1 

0.2 

0.4 

0.7 

0.5 

0.4 

0.8 

0.2 

0.5 

1.0 

3.5 

0.6 

6.3 

0.3 

0.7 

0.3 

39.7 

0.3 

0.6 

0.6 

1.5 

0.5 

0.2 

11.1 

15.5 

24.7 

0.3 

11.9 

19.1 

1.1 

24.4 

15.3 

26.3 

17.5 

3.5 

0.3 

17.7 

14.3 

17.7 

17.7 

21.1 

9.2 

17.7 

2.7 

17.7 

17.7 

4.5 

36.4 

36.2 

36 
Coipany I 

50 Davis Sas Proces < 

51 S6SI Gathering 

52 Davis, J.L. ( 

53 Arkla 

54 Resources Eitrac 

55 Oklahoma 6as Pip 

56 SP6 Eiploration 

57 Adobe Resources 

58 Bruin Petroleui 

59 Louisiana Land t 

60 Ladd Petroleui 

61 Enogei Productio 

62 Freeport-HcfloRan 

63 Hying J Inc. 

64 Vessels 6 Proces 

65 Standard 

66 Southwest Forest 

67 Ralston Processi 

68 dinerals Inc. 

69 FHP Operating Co 

70 Houston Oil I Hi 

71 Gary Energy Corp 

72 Hid-Aterica 6as 

73 Petrolane Lotita 

74 Cenei 

75 Petro-Hunt 

76 Santa Ft 

77 Parade 

78 True Oil 

79 NSL Production 

80 SONAT, Inc. 

81 Celsius Energy 

82 Michigan Consoli 

83 Fort Chadbournt 

84 Portal 

85 United Teias Tra 

86 Breckenridge 

87 Kansas Refined H 

88 Cerrito Land 

89 Serlane Petroleu 

90 Lakeville Sas As 

91 Coors Energy 

92 Eagle 

93 Brighton 

94 CNS Producing Co 

95 W Sub Ine 

96 Mountain Fuel Rt 

97 Rocky Mountain N 

98 Deisenroth Sas P 

99 Pronto 

100 Beard Oil Co. 

101 Cabin Creek 

102 Phillips, Jack L 

103 Berthoud 

104 Double U Oil 

105 Planet Engineers 

106 Mills Bennett Es 

107 Black Havk 

108 Anchor Sasoline 

109 Kentucky Hydroca 

EXHIBI T 3-1 : -(continued ) 

1986 BUTAN E SALES BY COMPAN Y 

(Thousands of 1986 U.S. Dollars) 

Value of Daily 

Butane Salts 

... 

Iso-C4 

5.48 

5.03 

4.95 

4.82 

4.64 

2.50 

! 0.29 

2.96 

i 2.91 

2.71 

? 2.50 

2.32 

> 2.06 

0.29 

1 1.83 

! 0.00 

1.41 

0.00 

I 1.23 

1.19 

S 1.15 

2 0.92 

3 0.73 

2 0.98 

1 0.00 

0.00 

0.00 

0.68 

2 0.56 

3 0.47 

1 0.44 

0.42 

1 0.39 

I 0.39 

1 0.37 

1 0.29 

2 0.29 

1 0.24 

1 0.24 

0.24 

I 0.22 

0.18 

2 0.IB 

0.16 

1 0.16 

1 0.15 

1 0.15 

5 0.13 

1 0.12 

3 0.11 

2 0.10 

1 0.07 

2 0.05 

1 0.04 

1 0.02 

1 0.00 

1 0.00 

1 0.00 

1 0.00 

2 0.00 

... 

«-C4 

7.63 

7.01 

6.89 

6.10 

3.94 

5.02 

7.04 

4.12 

4.05 

3.77 

3.49 

3.23 

2.87 

4.61 

2.54 

3.51 

1.97 

3.08 

1.72 

1.65 

1.60 

1.72 

1.89 

1.37 

1.84 

1.73 

1.67 

0.94 

0.78 

0.66 

0.62 

0.59 

0.55 

0.55 

0.52 

0.41 

0.40 

0.38 

0.33 

0.33 

0.30 

0.26 

0.25 

0.23 

0.23 

0.21 

0.20 

0.19 

0.16 

0.16 

0.14 

0.09 

0.07 

0.05 

0.03 

0.00 

0.00 

0.00 

0.00 

0.00 

Total 

Annual 

Butane 

Revenues 

4,783.27 

4,392.38 

4,320.37 

3,986.17 

3,130.97 

2,745.90 

2,674.64 

2,583.37 

2,540.79 

2,365.92 

2,187.62 

2,023.03 

1,800.16 

1,787.69 

1,594.42 

1,281.15 

1,234.39-

1,123.47 

1,076.66 

1,035.52 

1,001.23 

963.46 

957.03 . 

857.22 

670.14 

630.72 

611.01 

589.77 

490.33 

411.46 

387.46 

366.89 

342.89 

342.89 

325.74 

237.17 

250.31 

227.03 

205.73 

205.73 

188.59 

161.16 

154.30 

144.01 

144.01 

133.73 

126.87 

116.58 

102.87 

99.44 

89.15 

58.29 

44.58 

34.29 

17.14 

0.00 

0.00 

0.00 

0.00 

0.00 

Estitated 

Plant 

Revenues 

28,822.90 

24,848.60 

24,441.25 

... 

19,666.20 

12,061.06 

17,469.84 

14,625.95 

14,373.78 

... 

46,275.18 

38,089.71 

— 

4,582.05 

9,019.98 

— 

6,983.21 

4,784.42 

6,090.91 

5,858.14 

17,800.41 

7,498.93 

11,563.93 

5,319.57 

— 

2,769.26 

— 

3,336.42 

2,773.89 

2,327.74 

— 

2,075.57 

1,939.78 

1,939.78 

1,842.79 

1,500.46 

1,416.04 

791.32 

2,171.27 

1,163.87 

1,066.88 

911.70 

951.58 

814.71 

756.51 

717.72 

659.53 

581.93 

562.54 

375.39 

252.17 

193.98 

96.99 

1,558.70 

501.88 

912.50 

2,646.25 

98,002.50 

Coipany 

Revenues 

NA 

NA 

NA 

1,002,244.00 

NA 

NA 

24,105.00 

NA 

NA 

826,500.00 

NA 

NA 

770,959.00 

NA 

NA 

10,115,000.00 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

1,093,181.00 

NA 

110,100.00 

NA 

NA 

NA 

1,792,632.00 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

1,518.00 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

15,333.00 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

NA 

Butane 

Revenues 

as a I of 

Coipany 

or Plat 

(evenuts 

16.6 

17.7 

17.7 

0.4 

15.9 

22.8 

11.1 

17.7 

17.7 

0.3 

4.7 

5.3 

0.2 

39.0 

17.7 

0.0 

17.7 

23.5 

17.7 

17.7 

5.6 

12.8 

8.3 

16.1 

0.1 

22.8 

0.6 

17.7 

17.7 

17.7 

0.0 

17.7 

17.7 

17.7 

17.7 

17.1 

17.7 

28.7 

9.5 

17.7 

17.7 

17.7 

10.2 

15.1 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

0.6 

15.5 

17.7 

17.7 

17.7 

0.0 

0.0 

0.0 

0.0 

0.0 

37 
P.43 

EXHIBIT 3-1; - (continued) 

1986 BUTANE SALES BY COMPANY 

(Thousands of 1986 U.S. DoUars) 

Coipany 

110 Loveland 

U l Perry 

112 Sreeley Gas Co 

113 Peoples Nat. 

114 Pennzoi1 

Gas 

P 

1 

a 

n 

t 

i 

1 

1 

1 

1 

9 

Value of Daily 

Butane 

... 

Iso-C4 

0.00 

0.00 

0.00 

0.00 

0.00 

Salts 

... 

n-C4 

0.00 

0.00 

0.00 

0.00 

0.00 

Total 

Annual 

Butane 

Revenues 

0.00 

0.00 

0.00 

0.00 

0.00 

Est!tated 

Plant 

Revenues 

2,662.31 

11,406.25 

912.50 

410.63 

Coapiny 

Revenues 

NA 

NA 

NA 

NA 

1,921,223.00 

lutant 

Rtvenues 

at a I of 

Coipany 

or Plant 

Revenues 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 810 2,226,072.22 1,676,365.76 398,964,438.00 

NA - Not Available 

(1) Phillips Petroleui Co. does not release plant- or state-specific data, only the totals included here. 

(2) Chevron's gas capacity figures are incomplete, because its subsidiary, Warren Petroleui, does not 

release this intonation. 

(3) Allied-Signal, Inc. ovns 501 of Union Teias Petroleui Holdings, Inc. 

(Sources: Oil and Sas Journal; July 13, 1987; Moody's Industrial Manual, 1987; Coipany Annual Reports ) 

38 
EXHIBIT 3-2: 

CO 

to 

I 

2 

3 

4 

3 

6 

7 

•i 

9 

1 0 I I 1 2 1 3 14 1 3 1 * 17 1 8 19 2 0 i l 

22 2 3 . 4 - 3 2 6 

27 2 8 - 9 3 0 3 1 3 2 3 3 3 4 3 3 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 3 4 4 4 7 4 8 4 9 3 0 3 1 

V 

P 

1 

4 

n 

t 

Coapanu s 

Phillips <l ' 

Exro n 

Texac o 

SKel l 

fW: o 

Chevron (2, 

Corwc o 

•tobi l 

O CT i.J*. .t» l 

Cnr.jr> 

Vtler o 

S u n 

nitcl.el l 

«e>:o 

Burl inoton Ikjrt h 

Hill*) ii/ul • ? 

Department of F n 

•is:: 

Coasta l 

CSX 

tt»r,.i Fnercj u 

Unton Pacifi c 

Tennec o 

Enj«rc h H i Hit s C o 

tfrjrtrweit Pipel i 

Ur»>: « l 

S id RichM-tson "7 

• •>.h H'/tr.j. rl» n 

Cabot Corp . 

Conjol i.J jte>J Oa s 

Western '».»= lio c 

O m w 

FaraOwJ liv>>j.»l.r 

rtesa 

I'et r -H.;i»* e 

'i^il.ert > Ovs Ft .> 

P|*:iJ Oi l 

Assoc i at». J 

Se ago 11 

BHP Petrols* . 

Claiborne Gasol l 

ColUK—It » '-.JS lr a 

Hnadarl: o 

MflPiIO He.'tpm I n 

Hunt Oi 1 

£!>)*•«:• » 

Plains Patrol •*•« • 

•Ut' I He I i<j » 

Oavn '?»s Pro..e j 

86>I 6ltrv?r uv j 

Dffii, l.L . 

4 0 2 3 4 7 3 1 3 1 3 8 1 ? 3 3 2 9 2 0 1 0 2 6 3 3 2 8 I I 1 3 

3 

3 3 2 0 

3 

1 

17 1 1 1 3 

2 

2 

14 

6 

7 

1 2 

1 

1.3 1 3 

5 

6 

6 

3 

> 7 

1 

1 

2 

2 

6 

3 

2 

4 

4 

2 

9 

2 

6 

Estiaatec l 

Plan t 

feutnue s 

198 6 

- - -.. - -- 103,49 ? 

— - -

— — 

138.3 V 

97,73 6 

146,35 3 

84,37 1 

39.80 1 

8 8, 'il ? 

74,02: ? 

44,-':? ? 

"JS, 4-lmf 

4*.2I: P 4 1 , 76 3 

30.33 3 

63,46 0 

33,26 7 

31..-- 0 

31,07 3 

13.38 2 

2*,82 2 

24,84: ) 

24,44 1 

8 0 9 0 

:J3 4 2 

. ' 7 3 1 3 0 9 2 3 3 18 6 3 

'>'.• 9 6 3 6 2 3 0 2 3 0 1 9 9 0 6 0 2 3 

EFFECT OF REVENUES OF A BUTANE PRICE REDUCTION 

Co*pan u 

Revemje s 

198 6 

10,013,00 0 

76,555,00 0 

32,391,i>30 . 

17,353,00 0 

20,231,1)00 . 

27,131,000. 

11,039,000 . 

49,865,1)0 0 

16,237.600 . 

7.361,••67 . 

l,i*30, 123 . 

1 0, 440,"WO . 

845,301 . 

13,774,'JilO . 

6,941,413 . 

11.794,000 . 

110 

I3,'>"J9,'.«)'J . 

6,718,100 . 

6,343,nO0 . 

2,343,300 . 

6,638,000 . 

14,617,000 . 

228,034 . mi 

I IH 

8,.

>

3:<.!».ii ' 

Ill l 

110 

1,320, UV , 

110 

I IH 

49,4io . 

110 

359,630 . 

2.569,000 . 

IIH 

110 

IIH MO 

IIO 

I f l 

I f l 

209,231 . 

I IH 

110 

114,319 . 

1 3. 376 . 

I IH U H • f l 

I IH 

0 0 •» 

i ) 0 0 0 0 0 0 0 

1)1) 

1)0 0 0 

• XI 

<x> 

l.») l » 0 0 0 0 

1)1) 0 0 

•>0 

111) 

•JO 0 0 0 0 • r.) 

'»> 0 0 

IH) • -"'• III) nO 0 0 

• XI 

B ut arte 

Revenue s 

<lnous»*_* of 1986 U 

.% < ;: of Tot* l 

C'Mip an u 

or Plan t 

Revenue s 

198 6 

3 . 1 

0 . 2 

0 . 4 

0 . 7 

0 . 5 

0 . 4 

0 . 3 

0 . 2 

0 . 5 

1 . 0 

3 . 5 

0 . 6 

6 . 3 

0 . 3 

0 . 7 

0 . 3 

31. 7 

0 . 3 

0 . 6 

0 . 6 

1 . 5 

0 . 5 

0 . 2 

l l. 1 

15. 5 

24. 7 

0 . 3 

11. 9 1 ' . 1 1 . 1 

24. 4 

13. 3 

26. 3 

17. 5 

3 . 5 

0 . 3 

17. 7 

14. 3 

17. 7 

17. 7 2 1 . 1 

9 . 2 

17. 7 

2.7 

17. 7 

17. 7 

4 . 5 

36. 4 

36. 2 

16. 6 

17. 7 

17. 7 

IVVHJ- 1 

B ut an * 

Revenue s 

198 6 

Pric e 

308,623.8 3 

159,201.6 3 

140,711.4 1 

124,268.7 2 

108,496.4 5 

100,577.4 4 

93,276.4 2 

89,709.2 6 

81,305.40-

76,134.9 7 

65,367.5 7 

61,722.4 4 

53,032.6 6 

5"),615.6 3 

47,676.2 5 

41,139.1 5 

41,101.2 9 

38,570.2 0 

38,533.7 4 

37,692.8 4 

36,961.9 2 

36,762.0 2 

28,619.1 5 

25,411.3 3 

24,482.1 1 

21,184.5 3 

23,769.2 8 

17,514.6 5 

16,191.1 9 

15,032.1 5 

14,575.4 7 

13,540.3 5 

13,002.9 1 

12,961.1 2 

12,728.1 9 

8,840.2 9 

7.951.5 4 

7.924.1 1 

7,-161.2 1 

7,382.3 5 

6,393.3 4 

6,1)40.3 9 

5,880.5 1 

5,715.9 2 

5,619.9 1 

3,493.0 5 

5,177.3 9 

4,868.3 7 

4,844.9 2 

4.783.2 7 

4,392.3 8 

4,320.3 7 

Dolla r 

Cos t o f a 1 0 •/. 

Reductio n i n Pric e 

30,862. 4 

13,920. 2 

14,071. 1 

12,426. 9 

10,849. 6 

10,057. 7 

9,327. 6 

8,970. 9 

8,150. 5 

7,615. 5 

6,536. 8 

6,172. 2 

5,303. 3 

5,061. 6 

4,767. 6 

4,113. 9 

4,110. 1 

3,857. 0 

3,833. 4 

3,769. 3 

3,696. 2 

3,676. 2 

2,861. 9 

2,341. 1 

2,448. 2 

2,418. 5 

7,376. 9 

1,751. 5 

1,619. 1 

1,303. 2 

1,457. 5 

1,354. 0 

1,300. 3 

1,296. 1 

1,272. 8 

884. 0 

795. 2 

792. 4 

746. 1 

738. 2 

631. 3 

604. 0 

588. 1 

571. 6 

362. 0 

549. 3 

517. 8 

486.: ? 

484. 5 

478. 3 

439. 2 

432. 0 

. S . 

Per c 

Dro p 

Tot a 

Dollar- ) 

e n t i n 

1 

Revenue s 

0.3 1 

0.0 2 

0.0 4 

0.0 7 

0.0 5 

0.0 4 

0.0 8 

0.0 2 0 . 0 5 0 . 10 

0.3 3 

0.0 6 

0.6 3 

0.0 3 0 . 0 7 

0.0 3 

3.9 7 

0.0 ) 

0.0 6 

0.0 6 0 . 15 

0.0 3 

0.0 2 1 . 11 

1.3 1 

2.4 7 0 0 3 1 . l i 

1.9 1 0 . I I 

2.4 4 

1.5 3 

2.6 3 

1.7 5 

0.3 5 

0.0 3 

1.7 7 1 4 ? 1 . 7 7 

1.7 7 2 . I I 0 . >2 

1.7 7 0 2 7 

1.7 7 1 . 7 7 0 . 4 3 

3.6 4 

3.6 2 

1.6 6 

1.7 7 I 7 7 

Dolla r 

Cos t o f a 2 0 •/. 

Reduct io n 

in Pric e 

61,724. 8 

31,840. 3 

2 8, 142. 3 

24,853. 7 

21,699. 3 

2 0, 115. 5 

18,655. 3 

17,941. 9 

16,301. 1 

15,231. 0 

13,073. 5 

12,344. 5 

10,610. 5 

1 0. 123. 1 

9,5.35. 2 

8,227. 8 

8,220. 3 

7.714. 0 7 . 71)6. 7 

7,538. 6 

7 .3 '2. 4 

7,352. 4 5 . 723 . 0 

5,082. 3 

4.896. 4 

4 .8 J6. '• 

4,753. 9 

3,502. 9 

3,238. 2 

3.0i)6. 4 

2,915. 1 

2.7o3. 1 

2,6'XJ. 6 

2.592. 2 

2,545. 6 1 , 763 . 1 

1,590. 3 

1.584. 8 

1,492. _ 

1.476. 5 

1.273. 7 

1.208. 1 

I. 176. 1 

1, 143. 2 

1, 124. 0 

l.0'8. 6 

1.035. 5 

973. 7 

9.79. 0 

956. 7 

378. 5 

864. 1 

Ptr.: 

Dro p 

-rn t i n 

Tota l 

Revenue s 

0.6 2 

0.0 4 

0.0 9 0 . 14 0 . 11 

0.0 7 0 . 17 

0.0 4 0 . 1 0 

0.7 0 

0 7 0 0 . 1 2 

1.2 5 

0.0 6 

1.1. 14 

0.0 7 

7.9. 1 

0.0" . 

0.1 1 0 . 1 2 

0.2 > 0 . 11 

0.0 4 

2-2 1 

3.0 9 

4.r > 

1J.1V> 

2.3 9 

3.8 3 

0.2 ) 4 - 8 7 

3.0 6 

5.2 6 

3.5 0 

0.7 1 

0.0 7 

3.5 4 

2-3 6 

3.5 1 

3.5 1 

4.2 1 

1.8 5 

.3.5 4 

0.5 5 

.3.5 4 

3.3 4 

0.9 1 

7.2 8 

7.2 4 

3.3 7 

3.5 4 

3.3 4 

Do 1 ta r 

Cos t 

•>f a 

30 7. 

Reductio n i n Pric e 

92.587. 1 

4 7, 76i). 5 

42,213. 4 

37,280. 6 

32,543. 9 

3 0, 173. 2 

27.932. 9 

26,912. 8 

2 4, 4'. 1. 6 

22,846. 5 

19,610. 3 

18,516. 7 

15,9|5. 3 

15.134. 7 

14.307. 9 

17,34 1. 7 

12.330. 4 

11,571. 1 

1 1 , 360. 1 

1 I.3i.i7. 9 I 1,0:33. 6 

11,028. 6 

8.505. 7 

7,623. 4 7 . 344. 6 

7.753. 4 7 . 1 (". a 3 . 254. 4 

4,837. 4 

4,509. 6 

4,372. 6 

4.062. 1 

3,-x». 9 

3,833. 3 

3.813. 5 

2.652. 1 

2,335. 5 

2.S77.2 

2.233. 4 

2.214. 7 

t,''l3. 0 

1,312. 1 1 . 764. 2 

1.714. 3 

l,6:i6. 0 

1,647. 9 

1,553. 3 

1.460. 5 

1,433. 5 

1 .4 33. 0 

1.317. 7 

1.296. 1 

Percen t 

Or.vp i n 

lots I 

Revem*e s 

0.9 2 

i).i) 6 

0.1 3 

0.2 1 0 . 1 6 0 . I I 

0.2 5 

0.1) 3 0 . 1 5 

0.3 0 1 . 0 4 0 . 1 3 

1.8 3 0 . 1 0 

0.2 1 0 . 1 0 

II ? | 

0.0 0 0 . 1 7 

0.1 3 

0.4 4 0 . 1 6 

0.0 6 

3.7-14 

4.6 4 7 . Ar0.0 9 

3.5 8 5 . 7 4 

' J. 3 4 

7.3 1 

4.5 9 7 . 8 * 

5.2 5 1 . 0 6 0 . U l 

5.3 0 

4.2> 

5.3- j 

5.3 0 6 . 3 2 2 . 7 7 

5.3 0 

0.3 2 

5.3 M 

3.3 0 

1.3 6 

10.- v 

10.3 6 

4.9 0 

5.3o 

5.3 0 

} 
EXHIBIT 3-2: — (continued) 

Coapany 

3 3 ftrUta 

5 4 Resource? ExM ac 

35 Ok I aftoaa Gas Pi p 

St. SPG E»p>'.« atio n 

3 7 Ffck4>e Resources 

3 6 Bi •!)•• F'eiroleua 

3 9 Louisian a Land t> 

6 0 Ladd P«-t> oleu a 

61 Encvex Pioducti o 

6 2 Freep w ». McfloRan 

6 3 Flyin g J Inc . 

64 Ve*seI s ft F'I c« s 

t>5 Standat d 

tut, Southwel l Fw es t 

6 7 Ralsto n Pr<-cesri 

t>8 Hine t al s Inc . 

6 9 r w Op*-, 4i.ii.ci Co 

70 Hourlo n Oi I 4 Hi 

71 bm y Enei yy Cw p 

72 r1id-rt»ei ic a 0- F 

7;: Petrol-if - Lcwiiia 

74 te.** : 

73 le> i n-Hm.i 

7t. <.»,>a Te 

77 Parad e 

7H Ti •«• Oi 1 

79 Mt*. Pi <«)>„:• in, 

6 0 «tt*H , IK . 

81 (*l?lu f Fi t*-i yy 

8 2 Hicriiy_ti l'H,r<.li 

8 3 fo, t, Chadt-im i,*-

84 If . I a l 

8 5 Lk.itc-d t»-sas Ti a 

ft*. l»-ecte<« idy*. 

67 )«,? » (••••i ii.ed II 

8t: t e. i 11 <> I aiid 

6 9 6ei la * I*ir,.,l« i 

90 l_l-e" i 1 1«- Oi? Hs 

91 Cow s Fi « cm 

9 2 Cattle 

93 l » i^ii- m 

94 CMC. l l • <+._: I IKl • o 

ST. MM <:_t. Ine 

9*. Mountai n Fuel P«-

9 7 Rocku Mountain II 

9*3 CieiSM . ...•!• C-_r P 

9 9 Pi mi( i 

H *i t'-eai d I.Ii I to . 

ICH CatOn t i **•. 

ICi_ Phi I I ten . .'act 

103 Be. thoud 

104 OouM e tl "i l 

F1 

a 

i i 

t 

s 

7 

1 

1 

2 

1 

5 

2 

2 

, 4 

i 2 

1 

2 

3 

1 

1 

2 

1 

5 

2 

3 

i 2 

1 

1 

1 

1 

2 

3 

1 

1 

1 

2 

1 

i 1 

2 

1 1 

I 

i 1 

1 

1 

r. 

1 

I 

1 

1 

1 6 

» 1 

i 

,? 

1 

2 

1 

1 

EFFECT OF REVENUES OF A BUTANE PRICE REDUCTION 

Esti*-ate>J 

Plan t 

Pevemjes 

1986 

19,666.2 0 

12.iJ6l.0 6 

17,469.8 4 

14,625.9 5 

14,373.7 8 

46,275.1 3 

38,iW9.7 l 

4,582.0 3 

9,019.9 8 

6.983.2 1 

4,784.4 2 

6.091).9 ( 

5,358.1 4 

17,300.4 1 

7,498.9 3 

11,563.9 3 

5,3 1 '.5 7 

7,769.2 6 

3,336.4 2 

2,773.:» 9 

2 , J27.74 

2.U75.5 7 

1,939.7 3 

1 ,939.7 8 

1.342.7 9 

l,50>>.46 

I,4I6.I X 

791.3 2 

2,171.2 7 

1,163.8 7 

1.066.3 8 

911.7 0 

•51.5 8 

314.7 1 

756.5 1 

:\r.?2 

6 5 '.5 3 

531.9 3 

•>62.54 

375. 39 

252.1 7 

l>3.9 8 

•V.. 9 9 

Coapany 

Revenues 

1986 

1,1)02,744 . 

I I H 

I I H 

2 4 , 105. 

I I H 

I I H 

826,500 . 

H H 

H H 

770,959 . 

I I H 

I I H 

1 0 , I15,i)00 . 

H H 

I I H 

H H 

H H 

I I H 

H H 

I f ) 

I I H 

l,i)93 , 181 . 

H H 

1 in , 100. 

H H 

N H 

I I H 

1.792.632 . 

I I H 

H H 

I IH 

I IH 

H H 

I IH 

lilt 

I I H 

H H 

I I H 

I I H 

1.513 . 

I I H 

H H 

I I H 

H H 

t i n 

o n 

III) 

15,3 3 3. 

I I H 

H H 

I I H 

I f ) 

Oi) 

0 0 

0 0 

0 0 

i » 

0 0 

0 0 

' X I 

, III) 

.' ".'I 

B u t .ane 

Revervjes 

« s 

(Thousands o f 

a 7. of Tota l 

Company 

o r 

Re-. 

Plan t 

•enues 

1986 

0 . 4 

15. 9 

22. 8 

11.1 

17. 7 

17. 7 

0 . 3 

4 . 7 

5 . 3 

0 . 2 

39. 0 

17.7 

. 0 

17.7 

23. 3 

17. 7 

17. 7 

5 . 6 

12. 8 

8 . 3 

16.1 

0 . 1 

22. 8 

0 . 6 

17.7 

17. 7 

17. 7 

. 0 

17.7 

17.7 

17.7 

17. 7 

17. 1 

17. 7 

28. 7 

9 . 5 

17. 7 

17.7 

17.7 

10. 2 

15.1 

17.7 

17.7 

17.7 

17. 7 

17. 7 

17.7 

0 . 6 

15. 5 

17.7 

17. 7 

17. 7 

ftonual 

Butane 

Revenues 

1986 

Pric e 

3 , 

3 , 

2 

2 

2 , 

2 , 

2, 

2 

2 

., 

1 , 

1 , 

I , 

1 

1, 

1 , 

1 , 

1 , 

,986.1 7 

,130.9 7 

,745.9 0 

,674.6 4 

,585.3 7 

,340.7 9 

,365.9 2 

,187.6 2 

,023.0 3 

,800.1 6 

,787.6 9 

,394.4 2 

,281.1 3 

,234.3 9 

,123.4 7 

,076.6 6 

,035.3 2 

,001.2 3 

963.4 6 

957.0 3 

857.2 2 

670.1 4 

630.7 2 

611.0 1 

589.7 7 

490.3 3 

411.4 6 

387.4 6 

366.3 9 

342.8 9 

342.3 9 

325.7 4 

257.1 7 

250.3 1 

227.0 3 

205.7 3 

205.7 3 

188.5 9 

161.1 6 

154.3 0 

144.0 1 

144.0 1 

133.7 3 

126.8 7 

116.5 8 

102.3 7 

99.4 4 

3 9 . 15 

38.2 9 

44.3 8 

34.2 9 

17. 14 

Doll . 

Cos t 

o f a 

10 V. 

1986 U 

• r 

Reductio n 

i n Pric e 

398. 6 

313. 1 

274. 6 

267. 5 

258. 5 

234. 1 

236. 6 

218. 8 

202. 3 

180. 0 

178. 8 

139. 4 

128. 1 

123. 4 

112. 3 

107. 7 

103. 6 

100. 1 

96. 3 

93. 7 

85. 7 

67. 0 

63. 1 

61. 1 

59. 0 

49. 0 

41. 1 

38. 7 

36. 7 

34. 3 

34. 3 

32. 6 

23. 7 

23. 0 

22. 7 

20. 6 

20. 6 

18. 9 

16. 1 

13.4 

14. 4 

14. 4 

13.4 

12. 7 

11. 7 

10. 3 

9.' ' 

3 . 9 

5 . 8 

4 . 5 

3 . 4 

1 . 7 

. S . Ooi lars ) 

Percen t 

Drop 

Tot a 

• i n 

1 

Revenues 

0.0 4 

1-59 

2.2 3 

1 . 11 

1.77 

1.77 

0.0 3 

0.4 7 

0.5 3 

0.0 2 

3.9 0 

1.77 

. 0 0 

1.77 

2.3 5 

1.77 

1.77 

0.5 6 

1.23 

0-8 3 

1.61 

0.0 1 

2.2 3 

0.0 6 

1.77 

1.77 

1.77 

. O n 

1.77 

1 . 77 

1.77 

1.77 

1 . 71 

1.77 

2.8 7 

0.9 5 

1.7 7 

1.77 

1.77 

1.02 

1.51 

1.77 

1.77 

1.77 

1 r: 

t . 7? 

1. 77 

0 0 6 

1.55 

1.77 

1. 77 

1.77 

Ooi I 

Cost 

of a 

2 0 7. 

» r 

Reductio n 

i n Pric e 

797. 2 

626. 2 

549. 2 

534. 9 

517. 1 

508. 2 

473. 2 

437. 5 

404. 6 

360. 0 

337. 5 

318. 9 

256. 2 

246. 9 

224. 7 

215. 3 

207 . 1 

200. 2 

192. 7 

191.4 

171.4 

134. 0 

126. 1 

172.2 

113. 0 

>8. 1 

32. 3 

77. 5 

73. 4 

68. 6 

68. 6 

6 5 . 1 

51. 4 

5 0 . 1 

45. 4 

4 1 . 1 

41. 1 

37. 7 

32. 2 

30. 9 

28. 8 

28. 8 

26. 7 

25. 4 

23. 3 

20. 6 

19. 9 

17.8 

11.7 

8 . 9 

6 . 9 

3 . 4 

Percent 

Dr.jp t n 

Tota l 

Revenues 

0.O8 

3 . 18 

4.5 5 

2.2 2 

3.5 4 

3.5 4 

0.O6 

0.9 5 

1.0 6 

0.O 5 

7.8 0 

3.5 4 

.•X) 

3.3 4 

4. 70 

3.5 4 

3.5 4 

1. 12 

2.5 7 

1.6 6 

3.2 2 

0.0 1 

4.5 6 

0 . I t 

3.5 4 

3.3 4 

3.5 4 

. i>i 

3.5 4 

3.5 4 

3.5 4 

3.3 4 

3.4 3 

3.5 4 

5. 74 

I . •>• • 

3.5 4 

3.5 4 

3.5 4 

2.0 ) 

3.0 3 

3.3 4 

3.5 4 

3.5 4 

3.5 4 

3.5 4 

3.3 4 

0 . 12 

3 l l 

3.5 4 

3.3 4 

3.3 4 

Ooi 1 

Cost 

o f a 

3 0 7. 

a r 

Reductio n 

i n Pric e 

1 ,195. 8 

939 . 3 

8<;3.8 

802. 4 

775. 6 

762. 2 

709. 8 

636. 3 

606. 9 

540. 0 

536. 3 

4 78. 3 

384. 3 

3.0. 3 

337. 0 

323 . 0 

310. 7 

300. 4 

289. 0 

287 . 1 

257 . 2 

201. 0 

189. 2 

133. 3 

176. 9 

147. 1 

123. 4 

1 16. 7 

ll. l 1 

1M2.9 

102. 9 

•7. 7 

.'?. 1 

75. 1 

6 8 . 1 

•71. 7 

6 i . ;• 

56. 6 

•13 3 

46 3 

•13.2 

•13.2 

4 0 I 

3 3 . 1 

3 5 . 0 

3 0 . 9 

.'9. 3 

26 7 

17. 5 

13. 4 

10. 3 

3 . 1 

Percen t 

Drop in 

Tota l 

Re.ienues 

0 . 12 

4 . 78 

6.8 3 

3.3 3 

5.3 0 

5.3 U 

0.0 9 

1.4 2 

1.5 9 

0.0 7 

11.7 0 

5.3 0 

- 0 O 

5 . JO 

7.0 4 

5.3 0 

5.3 0 

1.6 9 

3.3 5 

2.4 8 

4.8 3 

0.0 2 

6.8 3 

0 . 17 

5. 3>> 

5 3>J 

5.3 0 

0.0 1 

5.3 " 

5.3 u 

5.3i> 

5. 3D 

5 . 14 

5.3i) 

3.6 1 

2.8 4 

5 . 3 0 

5. 3 M 

5 . ?IJ 

J. 03 

4. 5-1 

5.3-1 

5.3 0 

5. 3u 

5.3 0 

5.3 0 

5. ?•• 

'•. 17 

4 66 

5.3 0 

5. ?.l 

5 30 
EXHIBIT 3-2; — (continued) 

EFFECT OF REVENUES OF A BUTANE PRICE REDUCTION 

1 

COMp-t'UJ 

P 

1 

a 

ti 

t 

P 

105 Pla»ie» Enginee* s 

106 Hill? E'WieM 

107 Black Hank 

106 fktct-icr Gasol • 

109 Kentucky Hue* 

110 Lovelanlll Perry 

Es 

tie 

oca 

112 Greeley Gar Co 

113 People? Hat. 

114 Petnzoi 1 

Gas 

Estimated 

Plant 

Revenues 

1986 

1 1,598.70 

1 501.38 

1 912.50 

1 2,646.25 

_ 98,002.50 

1 2,662.31 

1 11,406.25 

1 912.50 

1 410.63 

<. 

Company 

Revenues 

1986 

HR 

HR 

nn 

HR 

HR 

HR 

m 

HR 

Hfl 

1,921,223. 

B'J t ane 

Revenues 

as 

Co 

or 

<Thousands 

* :: ofTotal 

npany 

Plant 

Revenues 

1986 

00 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Rnnual 

Butane 

Revenues 

1986 

Pr i >;e 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

jf 1936 U.S. 

Dollar 

Cost 

of 

10 

Re 

in 

a 

y 

*JCt ion 

Price 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Perc 

Drop 

Tota 

Oo 1 I -r s > 

ent 

in 

1 

Revenues 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.0'J 

0.00 

0.00 

Oo liar 

Cost 

of 

20 

3 

7. 

Redu.:t 

in Pr i 

ion 

:e 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Dolla r 

Percen t Los t Percen t 

Dro p i n o f a Dro p i n 

Tota l 30 7. Iot a I 

Revenues Reductio n Revenue s 

i n Pric e 

0.013 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0. 0 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

To»al 8 1 0 1,676,365.7 6 398,964,438.0 0 2,226,072.22 

NR = Mot Hvailabl e 
P.47 

theoretical floor price. This approach was undertaken previously , and recent market 

performance has demonstrated that the petrochemical floor price is a moving target 

subject to extreme fluctuations. Because the petrochemical floor price is closely 

aligned to the price of crude and the price of butane is also closely linked with the price 

of crude, analyzing one in terms of the other represents a hazardous, circular path of 

analysis. While the relative price relationships in a stable marketplace can be expected 

to be stable, the hazard of estimating actual prices is indicated by review of the 1985 

estimates of the petrochemical floor price: $20.26 per barrel. The 1986 price of 

butane was $15.00 per barrel and theoretically the 1986 petrochemical floor price was 

lower than $15.00 per barrel. However, there are a number of indications that the 1986 

price levels represented a bottoming out of the petrochemical floor price, specifically, 

the 1986 price of propane was approximately equal to the 1986 price of butanes. 

Moreover, the 1986 prices for all fuels were so low that producers were crippled as they 

attempted to recover operating costs from the difference between the prices received 

for their products and the cost of their feedstock. Thus, the reader is referred to the 

previous study for an analysis of relative energy product prices in a stable marketplace 

and cautioned that 1985 prices did not represent stable prices for petrochemical 

feedstock nor a healthy industry environment. 

To summarize the effect of price reductions on 1986 companies at 1986 prices, Exhibit 

3-3 groups all companies by percentage decrease in revenues for each of 10, 20 and 30 

percent reductions. At a 30 percent reduction, 79 percent of all butanes are produced 

by companies that lose less than one percent of total revenues. It should be noted that 

most of the companies that lose more than 3 percent of total revenue (14 percent of 

production) represent single plant companies, i.e., plants that could not be identified 

from secondary sources as being part of a larger company. Some of these plants may 

actually be part of a larger company. Additionally, a large number of the independent 

(plant-specific companies) producers that are not wholly owned by large companies are 

in many instances owned in part by larger companies. For example, perusal of Moody's 

information indicates that Phillips owns partial interest in 18 plants; Shell, 22 plants; 

Kerr McGee, 18 plants; Occidental, 40 plants; and Unocal, 29 plants. While secondary 

Jack Faucett Associates, "The Butane Industry: An Overview and Analysis of the Effects 

of Gasoline Volatility Control on Prices and Demand," 1985. 

42 
P.48 

EXHIBIT 3-3: 

LOSS OF REVENUES BY NUMBER OF COMPANIES AND PERCENT OF 

TOTAL BUTANE PRODUCTION FROM A 10, 20, AND 30 PERCENT 

PRICE REDUCTION 

Magnitude of Price Reduction 

Loss of 

Revenues 

< 1 X 

1-1.99 X 

2-2.99 X 

3-3.99 X 

4-4.99 X 

5-5.99 X 

6-6.99 X 

7-7.99 X 

8-8.99 X 

9-9.99 X 

10-10.99 X 

11-11.99 X 

Total 

m t m 10 X iititt 

Coi -

panies 

43 

49 

8 

4 

104 

X of Butane 

Production 

86.0 

8.7 

2.8 

2.5 

100.0 

m m * 20 X tftm 

Coi -

panies 

36 

6 

6 

44 

6 

2 

0 

4 

104 

X of Butane 

'roduction 

83.1 

2.8 

2.5 

6.3 

2.2 

0.6 

• . . 

2.4 

99.9 

m m t 30 X m m 

Coi 

pam 

-

es 

32 

7 

3 

• 5 

8 

37 

3 

4 

1 

0 

2 

2 

104 

X of Butane 

Production 

79.3 

6.4 

0.3 

2.1 

2.5 

4.1 

0.4 

2.5 

0.0 

0.0 

0.4 

1.9 

99.9 

43 
information and limited resources prevented the comprehensive analysis of ownership, 

it is clear that most NGL production of butanes is owned by large companies and most 

of the large companies are directly involved in the oil industry (fully integrated oil 

companies or large independent producers). 

To demonstrate the extent of ownership by type of company, Exhibit 3-4 classifies the 

30 largest butane producers. TTiese producers in total produce 90 percent of all 

butanes. Of the top 30 producers, 14 are integrated oil companies and 9 are large 

independents. These two categories control 78 percent of total butane production from 

NGL processors. Total production by oil companies includes this production plus 

production from the remaining NGL producers that are wholly owned by oil companies 

plus the extensive partial ownership of other companies. In summary, it is likely that 

the oil industry owns more than 85 percent of all butanes production in the United 

States. 

SUMMARY 

The open market supply (including imports and inventory changes) of butanes was 179.5 

million barrels in 1986. Of this total, 20 percent was produced by refineries and an 

estimated 49 percent was produced by NGL plants owned by oil companies. Of the 

remaining 31 percent, 23 percent was imported leaving only an estimated 8 percent 

(14.4 million barrels) of total U.S. supply produced by U.S. companies other than oil 

companies. Within that 8 percent is the U.S. Department of Energy production of 1.8 

million barrels in 1986. 

For the majority of butane-producing companies, the effect of a reduction in the price 

of butane on total revenues is trivial and in the short term, unavoidable. Specifically, 

most production is undertaken by large oil companies and the inability of these 

companies to offset price decreases in one product by increasing the price of another 

product is the underlying basis of the tremendously decreased profits earned in 1986 

compared to prior years. To the extent that a decrease in the value of n-butane 

reduces the value of the wellhead price of raw natural gas, the owners of natural gas 

wells may suffer decreases in revenues. In hydrocarbon production, products compete 

directly and indirectly with each other and prices are determined on a relative Btu 

basis, conditioned by purchasers ability to substitute different products. When a 

relative price decline for butane is considered in the framework of 1986 production and 

44 
P.50 

EXHIBIT 3-4: 

1986 PRODUCTION OF BUTANES BY THE TOP 30 PRODUCERS 

BY COMPANY CLASSIFICATION 

(Thousands of Gallons per Day) 

Classification 

Integrated Oil Companies 

Rank Coipany 

Large Independent 

Producers of Oil Sr Gas 

1 Phillips Petroleui Co. 

2 Exxon Corp. 

3 Texaco, Inc. 

4 Shell Oil Co. 

5 Aioco Corp. 

6 Chevron Corp. 

8 Mobil Corp. 

9 Occidental Petroleui Corp. 

12 Sun Co. 

14 Atlantic Richfield Corp. 

19 Coastal Corp. 

21 flaxus Energy, Inc. 

23 Tenneco, Inc. 

27 Union Oil Coipany of California 

7 E.I. Du Pont de Neiours, Inc. (Conoco) 

10 Enron Corp. 

11 Valero Energy Corp. 

13 Hitchell Energy and Developient Co. 

24 Enserch Corp. 

25 Hi I Gas Co. 

28 Sid Richardson Carbon . Gasoline Co. 

29 Koch Hydrocarbon Co. 

30 Cabot Corp. 

Total 

IsoButane 

664.7 

197.4 

255.6 

226.9 

89.3 

190.1 

176.5 

134.0 

167.0 

40.9 

30.7 

54.2 

52.1 

4.5 

Total 

Nora.l 

Butane 

814.9 

584.8 

425.2 

374.2 

449.5 

295.6 

255.8 

262.2 

124.5 

210.6 

160.8 

126.3 

86.3 

115.5 

1 

Total 

Butane 

1,479.6 

782.1 

680.8 

601.1 

538.9 

485.7 

432.3 

396.2 

291.5 

251.5 

191.5 

180.5 

138.4 

120.0 

'ercent of 

Total Cumulative 

'roduction Percent 

13.69 

7.24 

6.30 

5.56 

4.99 

4.49 

4.00 

3.67 

2.70 

2.33 

1.77 

1.67 

1.28 

1.11 

179.7 

112.5 

132.8 

104.1 

47.7 

45.9 

32.9 

9.7 

28.2 

270.2 

259.3 

181.7 

151.6 

75.0 

72.3 

51.7 

71.2 

44.4 

449.9 

371.8 

314.4 

255.7 

122.7 

118.3 

84.6 

80.9 

72.6 

4.16 

3.44 

2.91 

2.37 

1.14 

1.09 

0.78 

0.75 

0.67 

Pipeline Companies 

Corporations not Concentrated in Hydrocarbon 

Production 

Government 

26 Northwest Pipeline Corp. 

15 Burlington Northern, Inc. 

16 Allied-Signal, Ine 

18 USX Corp. 

20 CSX Corp. 

22 Union Pacific Resources Co. 

7.7 

55.0 

64.2 

65.5 

92.5 

50.0 

114.1 

179.8 

136.2 

121.7 

86.7 

130.1 

121.7 

234.8 

200.4 

187.2 

179.2 

180.0 

1.13 

2.17 

1.85 

1.73 

1.66 

1.67 

17 U.S. Departlent of Energy 

Total: Top 30 Producers 

Total: All Companies 

10.3 196.9 207.2 1.92 

3,322.5 6,429.0 9,751.5 90.24 

3670.2 7136.1 10,806.4 

60.80 

17.31 

1.13 

4.02 

5.06 

1.92 

(Source: Oil and Gas Journal, July 13, 1987.) 45 
P.51 

revenues, a decrease in the market price of butanes will result in a short-term decrease 

(slight) in revenues of the oil and gas industry. The longer run response will be to 

modify production processes so as to maximize profits in light of a relatively lower 

market value for butanes. 

While today NGL plant butane production is largely controlled by the oil industry, the 

industry may choose to divest this ownership if faced with a drop in the value of nbutane. In any case, the burden of revenue maximization will be felt most directly at 

the plant level, and it will be incumbent on NGL plants to maximize revenues from the 

process stream. If plants are able, they will seek to purchase raw natural gas at a lower 

price to reflect the lower value of the NGL product stream. If contractual agreements 

limit the flexibility of pricing arrangements, the NGL plants will be compelled to 

reconfigure their production and product slates to balance all products, including 

butanes, to maximize revenues. 

Butanes may be marketed as primary feedstock or in combination with other feedstocks 

to the customer base. In time, butanes can be expected to recover some part of their 

value in alternative uses. One additional use that may increase is in MTBE. To produce 

MTBE, n-butane can be intentionally isomerized to produce isobutane for subsequent 

dehydration to isobutylene. Isobutylene is reacted with methanol to product MTBE. 

EPA currently allows MTBE to be blended with gasoline up to 11 percent. Especially in 

nonattainment areas, use of oxygenates including MTBE is being promoted and tested. 

If allowable RVP is reduced, MTBE with a blending number of about 110 and a blending 

RVP of 6.7 psia may offer a good substitute for butane (octane blending value = 92, RVP 

= 52 psi). The short-term substitution of MTBE for n-butane will be controlled by the 

ability to produce sufficient volumes of isobutylene and the relative cost of producing 

MTBE compared to other octane enhancers, e.g., toluene, benzene and xylenes. TTie 

supply and price of isobutylene, produced from n-butane or other sources (olefin 

production, catalytic cracking, tertiary butyl alcohol, isobutane) most likely will 

determine the role of MTBE as a substitute for n-butane. Moreover, modelling by 

Arthur D. Little as described in Hydrocarbon Processing, May 1987, Volume 66, No. 5, 

assumes that refiners will make processing and investment changes to absorb potential 

butane supply. Hie model assumes that if butane prices were at distillate parity, 

refiners would absorb 30 to 80 percent of potential surplus supply (from RVP 

restriction). If butane were at fuel oil value, refiners would absorb all incremental 

supply. These estimates reflect use of isobutane (intentionally isomerized from 

46 
P.52 

n-butane) and use of oxygenates (including MTBE) to reduce RVP. (Isomerization alone 

increases n-butanes octane by 10 to 20 numbers with an increase in RVP of only 0.5 to 

1.0 psi.) 

47 
CHAPTER 4: 

RATES OF RETURN IN THE REFINING INDUSTRY 

extend the analysis presented in this report from the short term effects on revenues 

f a potential decline in the market value of butanes, it is useful to examine the rate of 

eturn on investment of the refining industry. The rate of return, in combination with 

normal replacement and technological advancement will affect the refinery industry's 

ability to react to a change in the demand for butanes. Because refinery machinery and 

equipment is designed and configured to optimize profits for any period, adjustment 

time will be required to operationally react to a change in butane market conditions. 

The refinery industry rate of return is suitable for study because data is available on 

this industry and the processing equipment used by refineries offer many similarities to 

that used in the processing of natural gas and fractionation of natural gas liquids into 

products including butane. 

SURVEY OF PERFORMANCE MEASURES COMMONLY EMPLOYED 

Perusal of current literature covering petroleum industry performance reveals that the 

number of measures actually used is limited. Interest is focused on the following rates: 

return on net plant 

return on gross plant 

return on invested capital 

return on employed capital 

return on (average) total capital 

return on net investment in place 

return on total investment 

return on total assets 

* 

return on shareholder's equity. 

Those marked with a star (*) are the most commonly used measures. 

48 
P.54 

These rates are determined almost exclusively using net income, although two major 

sources of information do give pre-tax figures. As such, they must be viewed as 

numbers which provide a historical record, first, of periodic changes in price and in net 

income and, second, of the effectiveness of the business's operating activities, rather 

than rates of return appropriate for capital decision making. 

Complete, accurate measures of performance of the refining industry are not available 

from secondary sources. While there are companies that engage only in petroleum 

refining activities, these do not form a representative sample of the refining industry. 

This latter industry is not a separate entity, but a collection of "segments" of much 

larger and diversified, integrated firms. Most publicly available data measure the 

performance of the petroleum industry as an integrated whole. 

There are two sources that attempt to present petroleum industry financial data by 

industry segment. The first includes all publications presenting information by Standard 

Industrial Classification (SIC) (e.g. - Dun and Bradstreefs Industry Norms and Common 

business Ratios; Robert Morris Associates' Annual Statement Studies; Standard and 

Poor's Aggregate File Compustat Tape). Petroleum Refining is SIC 2911 and because 

the largest integrated petroleum companies are also the largest refiners, these oil 

companies are classified in SIC 2911. Thus, the rate of return for SIC 2911 is that 

employed in most analyses to compare the oil industry with all other industries. In fact, 

however, SIC 2911 presents, not a complete picture of the refining industry, but a 

distorted one of the petroleum industry. For this reason industry analysts analyze 

representative samples of the largest integrated oil companies in place of a subset of 

SIC 2911. 

The second source of segmented industry data is the Energy Information 

Administration's Performance Profiles of Major Energy Producers (Annual). Having 

access to confidential information, the EIA is better able than any other organization to 

accomplish one of its main objectives: to allow economic and financial analysis of the 

EIA, Performance Profiles of Major Energy Producers; U.S. Dept. of Commerce, 

Quarterly Financial Report for Manufacturing, Mining and Trade Corporations. 

49 
P.55 

energy industry to be performed by industry segment. Industry segments are presented 

as though each were a separate entity (with recognized limitations) with its own 

income statement, entering into transactions with other segments and third parties. 

ANALYSIS OF THE INDUSTRY BY REPRESENTATIVE SAMPLES 

At least four organizations measure the performance of the petroleum industry by 

examining aggregated information from samples of the largest integrated oil 

companies. These are: 

• The Chase Manhattan Bank (Chase) 

• Carl H. Pforzheimer <5c Co. (Pforzheimer) 

• The American Petroleum Institute (API) 

• The Energy Information Administration (EIA) 

Because each uses similar measures of petroleum industry performance, comparison of 

these is possible. 

The company samples employed by each differ in such a way that it is best to 

concentrate on the data supplied by the latter two organizations. The Chase sample (26 

companies from 1968 to 1971, 24 companies from 1971 to 1982, 22 companies in 1983, 

and 18 companies in 1984 — the last year available) covers 18 of the largest U.S. oil 

companies, two other U.S. oil companies and five large international oil companies 

domiciled abroad. The Pforzheimer reports coverage has varied between 41 and 44 

firms over the seventeen-year period. It includes two large foreign companies. Thus, 

both give more weight to foreign firms than do either of the other two reports, wherein 

coverage is limited to U.S. companies. 

The segments are intended for presentation as separate entities. Their income 

statements present sales and purchases to and from affiliated parties as well as to and 

from other segments. "Because the segments are, in actual fact, not separate entities, 

but are part of an integrated firm, two special classifications are defined which allow 

reconciliation of consolidated company figures with those of segments. The first 

is...the nontraceable classification which captures assets, liabilities, revenues and 

expense items which exist only in the corporate context and cannot reasonably be 

attributed to the activities of a segment." "The second is the eliminations 

classification which is necessary to prevent double counting of intersegment 

transactions when the segments are consolidated into total company figures." 

50 
P.56 

Exhibit 4-1 identifies the companies in each sample. While there are differences in the 

samples chosen by EIA and API the two are similar enough to justify comparison of the 

results. Exhibit 4-2 demonstrates that the market share of refining capacity held by 

companies in the EIA sample is large enough to assume that their refining segments 

represent the refining industry. 

PRESENTATION OF THE DATA 

Company-wide Data 

The company-wide data available from each of the 4 samples gives a good indication of 

the rates of return for the entire oil industry. These rates are primarily measured after 

income taxes, though the EIA presents income statements that include pretax income, 

thereby enabling the calculation of pretax rates of return. 

Company-wide measures are usually calculated based on net income. The following is a 

graphic comparison of those rates of return used by each of the sample analyses. 

1. Net Income/Shareholders' Equity 

According to the rate of return accruing to stockholders on their 

investment, it is clear from Exhibits 4-3 and 4-4 that there is a 

fundamental consensus on the profitability to investors of investment in 

the oil industry. In the literature, this is the most common rate 

measured. A long run expectation on this measure of return of 13 percent 

appears supported by all the data. The high returns realized for the 1979-

1981 period are not representative. 

2. Net Income/Total Assets 

These estimates, presented in Exhibits 4-5 and 4-6 measure both the 

productivity of assets in terms of income production and the effectiveness 

of management in employing the available resources. Once again, there is 

only slight variation between the samples. This variation is explained by 

the differing definitions of total assets used by each organization. API 

51 
P.57 

EXHIBIT 4-1: 

COMPARISON OF THE COMPANIES CONSTITUTING THE API AND THE EIA SAMPLES 

(1986) 

Aierican Petroleui 

Institute 

Aierada Hess Corp. 

Aierican Petrofina, Inc. 

Ashland Oil, Ine 

Atlantic Richfield Co. 

Chevron Corporation 

Conoco, Inc. (1) 

Diaiond Shairock Corp. 

Exxon Corporation 

Kerr-Mc6ee Corporation 

Marathon Oil Co. (2) 

Hobil Corporation (3) 

Murphy Oil Corporation 

Occidental Petroleui Corp. 

Pennzoil Coipany 

Phillips Petroleui Co. 

Shell Oil Coipany 

Standard Oil Coipany 

(Aioco Corp. since 1985) 

Standard Oil Coipany (Ohio) 

Sun Coipany, Inc. 

Texaco, Inc. 

Unocal Corporation 

Energy Information 

Administration 

Aierada Hess Corp. 

Aierican Petrofina, Inc. 

Ashland Oil, Ine 

Atlantic Richfield Co. 

Burlington Northern, Inc. 

Chevron Corporation 

Cities Service Oil Coipany (4) 

Coastal Corporation 

E.I. du Pont de Neiours . Co. 

Exxon Corporation 

Getty Oil Coipany (5) 

Gulf Oil Coipany (5) 

Kerr-HcGee Corporation 

Hobil Oil Corporation 

Occidental Petroleui Corp. 

Phillips Petroleui Co. 

Shell Oil Coipany 

Standard Oil Coipany (Indiana) 

(Aioco Corp. since 1985) 

Standard Oil Coipany (Ohio) 

Sun Coipany, Inc. 

Tenneco, Inc. 

Texaco, Inc. 

Unocal Corporation 

Union Pacific Corp. 

United States Steel Corp. 

(1) Subsidiary of Du Pont. Not directly included in 1985 

(2) Subsidiary of U.S. Steel 

(3) Data are for Hobil Oil Corporation 

(4) Occidental Petroleui acquired Cities Service in 1982. Hovever, 

Occidental did not consolidate Cities Service's operations until 

Deceiber, 1982. 

(5) In 1984, Chevron Corporation acquired Gulf Oil Corp.; Hobil Corp. 

acquired Superior Oil Co.; and Texaco acquired Getty Oil Coipany. 

None of the acquisitions vere consolidated for the entire year of 

1984, and all acquired companies lade financial reports for 1984. 

The three acquired coipanies are included as separate companies 

for 1984 and all prior years. Beginning vith the 1985 reporting 

year, these tergers vere coiplete, and 22 coipanies nov coiprise 

the saiple used by the Energy Information Administration (EIA). 

52 
P.58 

EXHIBIT 4-2: 

DOMESTIC REFINERY CONFIGURATION FOR EIA COMPANIES 

AND FOR THE DOMESTIC INDUSTRY (1980 and 1985) 

Crude Octane, Unleaded Percentage of Heavy/Sour Percentage of 

Distillation Distillation Distillation Crude Distillation 

Capacity (1) Capacity (2) Capacity Capacity (3) Capacity 

1985 

All EIA Coipanies 

Domestic Industry 

EIA Coipany Share (X) 

1980 

All EIA Coipanies 

Domestic Industry 

EIA Coipany Share (X) 

12,614 

16,127 

78.2 

15,085 

19,404 

77.7 

8,888 

11,023 

80.6 

9,649 

11,843 

81.5 

70.5 

68.4 

— 

64.0 

61.0 

~ 

4,507 

5,300 

85.0 

4,272 

4,933 

86.6 

35.7 

32.9 

— 

28.3 

25.4 

~ 

(1) Crude distillation capacity in thousand barrels per streai day 

(2) Includes catalytic reforiing, fresh feed catalytic cracking, 

hydrocracking, and alkylation capacities 

(3) Includes hydrotreating and hydrorefining capacities exclusive of 

pretreated catalytic refoner feed, naptha desulfurization, and 

naptha olefin or aromatics saturation 

(Source: EIA Performance Profiles, 198S.) 

53 
P.59 

EXHIBIT 4-3: 

OIL COMPANY NET INCOME AS A PERCENTAGE OF STOCKHOLDERS' EQUITY 

(After Tax, 1968-1986) 

1968 

1969 

1970 

1971 

1972 

1973 

1974 

1975 

1976 

1977 

1978 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

Median (1968-85) 

API 

Sample (1) 

12.5 

11.3 

10.9 

10.4 

9.8 

15.0 

18.6 

12.8 

14.0 

13.4 

13.7 

20.9 

22.8 

18.8 

13.1 

12.4 

11.1 

10.0 

13.0 

Chase 

Sample (2) 

11.7 

11.0 

10.4 

10.9 

9.7 

15.5 

19.2 

12.4 

13.5 

13.8 

13.1 

24.0 

22.4 

16.7 

12.2 

12.9 

12.3 

— 

12.9 

Pforzheimer 

Sample (3) 

12.0 

11.4 

10.7 

10.8 

9.7 

15.6 

19.0 

13.1 

14.3 

13.9 

13.5 

24.0 

22.5 

17.7 

11.5 

12.0 

12.5 

10.6 

12.8 

EIA 

Sample 

12.6 

12.8 

18.8 

21.1 

18.1 

11.9 

11.4 

12.1 

10.5 

Median (1977-85) 15.1 14.2 15.4 14.4 

(1) Net Income as a percentage of stockholders' equity 

(2) Net income as a percentage of beginning of year 

stockholders' equity 

(3) Net income as a percentage of average common equity 

(4) Net income as a percentage of stockholders' equity 

(Source: Sovell, E., API, 1986.) 

54 
P.60 

EXHIBIT 4-4: 

24.0 

c 

v 

u 

-

o 

a. 

Oil Company Rates of Return 

Net Income/Stockholders' Equity 

1985 

O EIA API Chas Pforzheimer 

55 
P.61 

EXHIBIT 4-5: 

OIL COMPANY NET INCOME AS A PERCENTAGE OF AVERAGE TOTAL ASSETS 

(1968-1986) 

API Chase Pforzheimer EIA 

Sample (1) Sample (2) Sample (3) Sample (4) 

1968 

1969 

1970 

1971 

1972 

1973 

1974 

1975 

1976 

1977 

1978 

1979 

1980 

1981 

1982 

1983 

1984 

1985 

Median (1968-85) 

Median (1977-85) 

8.3 

7.4 

7.1 

6.7 

6.3 

9.1 

10.5 

7.0 

7.5 

7.2 

7.3 

10.5 

11.1 

9.5 

6.9 

6.7 

6.1 

5.3 

7.3 

7.8 

7.4 

6.8 

6.2 

6.3 

5.5 

8.6 

10.0 

6.0 

6.4 

6.4 

6.1 

11.0 

10.2 

7.5 

5.6 

6.0 

5.6 

"" 

6.4 

6.5 

7.3 

6.6 

5.1 

6.0 

5.3 

8.4 

9.6 

6.1 

6.6 

6.4 

5.9 

10.5 

9.6 

7.5 

5.1 

5.0 

5.1 

3.9 

6.3 

6.6 

5.4 

6.4 

8.3 

9.3 

8.1 

5.3 

5.2 

5.0 

4.0 

6.3 

(1) Net income plus after-tax interest as a percentage of 

average total assets 

(2) Net income plus income applicable to minority interests as a percentage 

of average total assets 

(3) Net income as a percentage of average total assets 

(4) Net income as a percentage of year-end total assets 

(Source: E. Sovell, API, 1986; EIA, Performance Profiles, 1977-1985.) 

56 
f 

EXHIBIT 4-6: 

12.0 

c 

t> 

_ 

c 

a 

Oil Company Rates of Return 

Net Income/Average Total Assets 

1983 1984 1985 

Chase Pforzheimer 

57 
T" 

P.63 

adds after-tax interest to net income in order to make the rate more 

independent of financing. As stated by API, since interest is tax 

deductible, this treatment makes returns over time more comparable. 

The result is a higher rate of return on total assets. A long run 

expectation of about 7 percent appears reasonable for this measure. 

The Effect of Inflation 

Because growth in nominal net income may be the result of inflation, reflecting no 

increase in purchasing power, changes in price should be considered. According to API, 

there has been considerable controversy about an appropriate method of converting net 

income expressed in current dollars to constant dollars. Using the current cost method 

prescribed by the Financial Accounting Standards Board, nineteen of the 21 companies 

in the API sample disclosed in their 1985 annual reports the effects of general inflation 

from 1981 to 1985. The results as they appear in API's Financial Trends of Leading U.S. 

Oil Companies, 1968-1985 are presented in Exhibit 4-7. The real rate of return of 4-5 

percent is indicated for this period. 

EIA Performance Measures 

Access to confidential information allows the EIA to analyze more complete financial 

data for each of its sample companies. The size of the sample of companies analyzed 

suggests that the published conclusions can be viewed as representative. The following 

section presents a summary of the EIA data. 

The EIA gives four rates of return applicable to the oil industry as a whole: 

• Net Income/Total Assets; 

• Net Income/Shareholders' Equity; 

• Net Income/Net Investment in Place (net property, plant and equipment 

plus investments and advances to unconsolidated affiliates); and 

• Net Income plus Interest/Net Investment in Place. 

These rates of return have also been calculated for pretax income for this study. The 

results are presented in Exhibit 4-8 and graphed in Exhibit 4-9 to 4-11. Exhibits 4-9 to 

4-11 demonstrate the relationship of pretax income and net income compared to 

58 
cn 

to 

^ 

EXHIBIT 4-7: 

NOMINAL AND DEFLATED RETURN ON STOCKHOLDERS' EQUITY 

Leading Oil Companies 

20 

15 H 

c 

a> 

10 H 

5H 

0-L 

Nominal 

Deflated 

1981 1982 1983 1984 

i — 

1985 

(Source: E. Sowell, API, 1986, p. 21) 
EXHIBIT 4-8: 

PERFORMANCE PROFILES OF MAJOR ENERGY PRODUCERS, 1977-1985 

(Billions of Current U.S. Dollars) 

P.65 

•.-.- • •«• > 551 1532 1383 1934 1585 

?::: n Inccse 

Se: Intone 

Total Assets 

Pretax Incose/Tctal Asset; 

Se: Incoie-'Total Assets 

* - zrz'r, y ', y ar c ' J^K'- M 

Pretax Incoae/itarrhclders' :o>ity 

S°* I~cc_e/Shareholders' E*-'':? 

He: Investment in Piece il! 

Pretax Incoae/Kec In-estieit in Plate 

Set Income/Net hvesuent is Place 

25.0 

U . ' 

236.6 

11.3 

5.4 

100.5 

r . i 

. _. c 

134.3 

9.4 

M. * 

13.5 

il*. l 

13.9 

5.4 

108.6 

2".3 

12.8 

147.8 

20.4 

9.4 

48.7 

4. - t J 

_2<! . T 

3.3 

124.9 

18.8 

169.9 

28.: 

13.3 

66.5 

. A 2 . . 

t . . -

5.3 

UM 

i -. Z 

202.6 

15.3 

35.6 

272.5 

3.i 

165.3 

18.1 

240.8 

24.3 

12.5 

45.2 

21.8 

411.9 

5.2 

183.9 

24.6 

11.9 

282.5 

16.0 

7.7 

47.4 

21.9 

421.8 

5.2 

192.5 

24.5 

11.4 

296.3 

16.0 

7.4 

• i 1 : 

1. . 3 

... ^ 

tec .7 

1 . . J 

175.5 

27.: 

12.1 

305.1 

15.4 

5.9 

45.6 

17.4 

453.4 

4.: 

165.5 

26.5 

10.5 

315.4 

13.3 

5.5 

Set Intone - Interest; 12.4 15.5 13.' 15.3 11.9 11.5 12.0 11.4 

[iiiiiiiiiiiuiuttiiiiiititiittiiitiittiiiiiiitiiiiiiitiiitutiiiiiiniititittfttiitiiiiiiiiittiitiittiitiiuiiiiii u 

Petrcieus: 

Set Contribution :: Se: 12.5 13.1 13.3 15.2 16.6 12.5 11.3 10.4 10.5 

" - *,- r a .' * * -! b c f T. p y - '.-, *';:•» a - ")'• 

IllllllUllllttttlltllltlltltltltltlUlltllllUtlllttlltlllllttlllltUlllllllltltllllUIIXItltltlttltltlllllUtllllll l 

Domti c ?.eiir.i^;/Mariaciag: 

Set Coacribucion tc Set 7.2 7.5 5.8 10.1 4.4 5.0 4.3 3.3 5.5 

Inccae/Investaent in Place 

itiiiiuiitiutiiiiiiiiiiiiiiuuitiiiiiitiiiiiiiitiiiiiittiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiitiiiuiiiiiiiii u 

il' Set investaent is place is tie total cf: ii! net property, plant * 

equipaent, and di ! ::.7eit«ients « advances to unconsolidated affiliates 

i2! Contribution of the seoaent to total net incoie 

(Source: Ener;y Intonation Adiinistration! 

60 
EXHIBIT 4-9: 

o 

Q. 

Oil Company Rates of Return, 1977-198 5 

5 0 0 

• 0.0 -

30.0 -

20.0 -

10.0 

0.0 

Income/Shareholders' Equity 

1977 1978 

i r 

1979 1980 1984 1985 

D Pretax Inoome + Net Income 

61 
P.67 

EXHIBIT 4-10: 

Oil Company Rates of Return, 1977-198 5 

26.0 -r 

c 

o 

o 

_ 

e 

a 

1977 

Inoome/Total Assets 

1978 1979 1980 1981 1982 1983 1984 1985 

Pretax Income Net Income 

62 
P.68 

EXHIBIT 4-11: 

Oil Company Rates of Return, 1977-1985 

Income/Net Invxsstmcnt in Ploce 

35.0 

30.0 -\ 

25.0 -\ 

20.0 H 

15.0 H 

10.0 -i 

5.0 H 

0.0 -\ 1 984 1985 

1977 

a Pretax Income 

-t- Net Income 

63 
P.69 

shareholders' equity, total assets, and net investment in place, respectively. In all cases 

the paths are similar though the relative position of net income to pretax income is 

lower when pretax income is higher. 

A change in corporate income tax rates or other tax provisions such as depletion 

allowances, depreciation sschedules, etc., will effect both the after tax return and the 

pretax return. Taxes are transfer payments that shift revenues to and from the private 

sector. If taxes are changed, firms will adjust output in an attempt to maintain ROI. 

The effect of the output changes will be a change in consumer surplus or total welfare. 

These interactions are complex and difficult to measure other than in theory. To date, 

no research uncovered by this study has evaluated the rate of return in the oil industry, 

adjusting for annual changes in tax rates or rules. 

Performance By Segment 

Tlie EIA breaks its sample companies, first, by their various activities (Petroleum, Coal, 

Nuclear, Other Energy, and Nonenergy) and, second, by segment of activity (Petroleum 

becomes: Domestic Production, Domestic Refining/Marketing, Rate Regulated 

Pipeline, Foreign Production, Foreign Refining/Marketing, and International Marine). 

Of particular relevance to the present study are the data for the petroleum industry and 

for the domestic refining/marketing segment. The EIA presents only data for net 

income (determined as the net contribution of the segment to total net income) and 

gives only one rate of return: Net Contribution to Net Income/Net Investment in Place, 

shown in Exhibit 4-8. This exhibit points out the difference in the rates of return 

realized by different segments of a diversified company. Refining shows rates of return 

that average only about half of those realized by the petroleum industry as a whole. 

Thus, project decisions within the refining sector of a company will have to compete for 

limited resources with other operations that generate higher profits per unit of 

investment. This relationship should lead to refinery investment limited to the 

investment required to preserve output capabilities. 

Indeed, it is the low risk associated with refinery investments that makes low returns 

acceptable. Major oil companies are fully integrated to ensure that their natural 

resources can be transported, refined, and delivered to consumers. If any link in this 

64 
P.70 

chain were not sufficient to satisfy consumer needs, the high risk of exploration and 

development ventures could not be justified. It has been the investment philosophy of 

the integrated oil industry to ensure that enough capacity exists at each link that the 

retail outlet win never be without products for sale. 

Exhibit 4-12 illustrates the data by segment and compares it to data for the entire 

sample of companies. It is important to note that the rate of return for petroleum 

activities as a whole is consistently higher than for the integrated industry and much 

higher than the return from the refining segment. 

Exhibit 4-13 demonstrates that for the companies included by EIA, all measures move 

similarly. The relationship of stockholders' equity and net contributions to net income 

to net investment in place are particularly closely aligned. 

65 
P.71 

EXHIBIT 4-12: 

Oil Company Rates of Return, by Segment 

26.0 

Not wvoomo^ NBC tfi^pifTwnt In Piooo 

1977 1»78 1»7» 

LEGEND: 

f j - Oil Mustry. 

•f - Petroleum Segment s Domestic Refining/Marketingt 

Net Contribution to Total Net Income 

Net Investment in Place. 

66 
P.72 

EXHIBIT 4-13: 

c 

o 

o 

_ 

e 0. 

Oil Company Rates of Return, 1977-1985 

Comparison of * DA Measures 

1977 1978 1979 1980 1981 1982 1983 1984 1985 

LBGENDi 

D « Total Aaets. 

•+- = Stockholder's Equity. 

V

 s Investment in Place. 

_i\ » Net Contributions to Total Net Income 

Net Investment in Place. 

67 
P.73 

Conclusions 

By all measures, the rate of return for the oil industry are consistent and strong. 

Discounting the unusually high returns from 1979-1981, the industry returned a healthy 

10-12 percent after tax return from 1977-1985. After adjustment for inflation, the 

return on equity still held to a 4 percent average. However, the data for the refining 

segment indicate that its return is significantly less, about half of that evidenced by the 

overall return for integrated companies. TTiis would imply that investment in refining 

activities is limited to the level required to maintain the efficiency of the capital 

stock. Efficiency in this context is defined as the ability to refine within competitive 

operating cost levels. 

68 
r 

CHAPTER 5: 

THE TYPICAL ECONOMIC LIFE OF 

REFINERY PROCESSING EQUIPMENT 

The typical functional life of major processing equipment in the refining industry is 

upwards of 40 years. The pipes, compressors, pumps and boilers that comprise 

equipment are durable components and with proper care and maintenance seldom 

require replacement. A chief engineer at Ford/Bacon/Davis spoke with praise of 1918 

crude distillation unit that is still in operation. In this chapter, the discussion of 

economic life is divided into descriptions of mechanical life, design life and useful life. 

Each of these aspects of economic life can be examined separately and each is different 

for refinery equipment. 

Mechanical life refers to the expected longevity of the common mechanical components 

of refinery equipment. Refinery equipment consists largely of pipes, compressors, 

pumps and boilers. These components are durable, and the mechanicl life is governed 

by the particular process characteristics. TTie corrosiveness of the process liquids in 

combination with the thickness of metals in the equipment and the corrosion allowances 

(included in design) determine the useful lives of these components. With proper care 

and maintenance, useful life of refinery equipment generally surpasses an acceptable 

range for the equipment's economic life. 

The estimated design life of a processing unit is determined by (1) the requirements of 

refinery investors and management, (2) the type of crude that will be processed and (3) 

the rate of corrosion expected. The type of processing unit does not generally impact 

design life as all units are made of similar components. For example, isomerization 

units, hydrotreators and reformers can be converted into each other through the 

reconfiguration of components and change of catalysts. Delayed coking units, however, 

cannot be converted. Because of the generally high degree of process unit flexibility, 

the design life of a new facility is considered for the facility rather than for the 

individual processing units within a facility. 

Mike Lawrence; Ford/Bacon/Davis, personal communication. 

69 
P.75 

Estimates of design life were collected from various sources and include: 

1. In a study done for the Environmental Protection Agency, "The Effects of 

Restrictions in the Sulphur and Aromatics Content of Highway Diesel 

Fuel," Bonner and Moore concluded that the design life of new refining 

facilities is 13 years, with a maintenance factor of 4 percent per year. 

2. An engineer with M.W. Kellogg, who worked previously for Tenneco, said 

that Tenneco always used 16 2/3 years for purposes of financing and 

2 

depreciation. 

3. Gary and Handwerk, in the 1984 textbook, Petroleum Refining: 

Technology and Economics, state that useful design life of a refinery (the 

estimate used in calculating the internal rate of return on an investment) 

is between 10 and 20 years. They allow for maintenance costs of between 

3 

3 and 8 percent per year. 

4. The Internal Revenue Service, in its Asset Guideline Classes, gives 16 

years as the asset guideline period for petroleum refining. Ttie lower and 

upper limits in the IRS's asset depreciation range are 13 and 19 years, 

respectively, with 7 percent presented as the annual asset guideline repair 

4 

allowance. 

Useful life refers to the lifespan of the technology itself. Although an engineer creates 

a processing unit is built with an intended design life of 20 years or more, this is done 

with the knowledge that the unit will not last that long because internal changes, made 

in order to avoid technological obsolescence, are inevitable. The real life expectancy 

of a unit is measured by the life of the technology itself. In its original form, a process 

routinely becomes obsolete in 5-7 years. 

Referred to by Terry Higgins, National Petroleum Reserch Associations. 

Ralph Ragsdale, M.W. Kellogg. 

3 

Gary, James H. and Glenn E. Handwerth, Petroleum Refining Technology and 

Economics, Marcel Dekker, Inc., New York, 1984, Chapter 16. 

4 

IRS, Asset Guideline Classes, Revenue Procedure 83-35 (1983-1 CB 745), pp. 199-201. 

70 
rr 

The name of the process remains, but the process itself changes. For example, over the 

last 20 years, Reforming has changed from Thermal Reforming to Catalytic Reforming 

using first chemical and then precious metal catalysts. Soon after the introduction of 

the latter, bi-metallic catalysts were used. These had to be periodically regenerated. 

The latest technology uses a bi-metallic catalyst on a continuously regenerating basis. 

The original reformers, designed to last perhaps 20 years, have had to undergo 5 

technological tranformations during that 20 year period. 

TTiough the lifespan of any given unit is short, the bulk of the changes required to alter 

the process do not require investment in new processing units. Re-vamping and upgrading are normally sufficient to maintain the efficient operation of a unit. Investors 

select for no more than 3 to 5 year payback periods for process changes, thereby 

limiting the capital investment to less than major system changes. 

While the processes in their original form become obsolete, the machinery itself can 

always be used in other ways. Refinery processing units are seen to be extremely 

adaptable. Richard Corbett, Refinery Editor, Oil <5c Gas Journal, commented that the 

response required to meet possible restrictions on the Reid Vapor Pressure of gasoline 

could be characterized by the following actions in order of likelihood: 

1. adjusting the processes' parameters 

2. varying feedstocks 

3. re-vamping and up-grading process units 

4. making new investments. 

In his view new investment will probably not be necessary to met the proposed 

restrictions. 

In summary, the mechanical components of processing equipment are constructed to 

last 40 years or more, the design life is 10-20 years with a liberal allowance for 

maintenance and the useful life is approximately 5-7 years (equal to the life of the 

technology). It is also true that the mechanical components are frequently retained 

through process changes and units are designed with the expectation of process changes. 

The capital investment in the mechanical components is long term, however, additional 

funds are required (1) to periodically change processes (or certain aspects of processes), 

(2) to reconfigure the mechanical components and (3) to cover process change license 

costs. Maintenance costs for refinery equipment are significant and essential to 

minimize capital replacement costs. 

71 
P.77 

APPENDIX A: 

SUPPLEMENTARY INFORMATION 

72 
P.78 

Gas Processing Coipanies and Plants : 1986 Capacities and Products Exhibit A-l 

RN cfd Production (1,000 gallons per day) 

Coipany 

Exxon 

Hobil 

Location, 

by Census 

Code 

63 

59 

72 

72 

72 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

63 

47 

72 

72 

72 

72 

72 

72 

72 

72 

34 

73 

73 

73 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

8as 

Gas Through- Process 

Capacity 

40 

90 

950 

600 

100 

15 

80 

293 

150 

125 

25 

115 

40 

30 

960 

165 

925 

30 

100 

20 

65 

95 

60 

165 

135 

10 

210 

310 

950 

55 

125 

500 

300 

150 

125 

23 

90 

34 

18.5 

50 

20 

70 

11 

140 

25 

1.2 

35 

320 

5.5 

90 

15 

200 

28 

put Hethoi 

30 67 

34.7 67 

523 67 

110 . 

84 1 

7.3 . 

49 7 

so ; 

126 . 

90 J 

6.9 3f 

112 ; 

26.6 . 

22 7 

275 . 

20 . 

638 ; 

30 ; 

42 

20 

23 

54 

21 ; 

131 

65 

NR I 

100.2 

265 

300 

14 

27 

354 

135 

50 

104 

3.4 

52.1 

13.7 

2.3 

37.8 

1.2 

39.7 

1.3 

105 

11.8 

0.8 

13.5 

200 

4.1 

84 

13.8 

85 

12.7 

Iso- NorialLP-Gas 

Ethane Propane ButaneButane 

16 

105.4 

220.3 

49.1 

0 

0 

0 

0 

0 

0 

> 0 

18.2 

' 9.1 

' 0 

> 351.3 

! 0 

! 455.8 

! 0 

' 0 

i 0 

r 0 

i 0 

I 0 

1 0 

0 

> 0 

1 0 

1 0 

2 0 

1 0 

1 0 

7 0 

7 100 

7 0 

7 0 

2 0 

7 0 

2 0 

2 0 

7 0 

3 0 

1 0 

3 0 

7 0 

7 0 

3 0 

1 0 

7 182 

7 1.5 

7 77.7 

2 4 

7 0 

3 0 

49.1 

100.8 

137.5 

30.6 

0 

0 

0 

0 

0 

0 

11.1 

45.2 

9.2 

0 

132.6 

0 

184.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

39 

0 

0 

9.4 

0 

8.8 

0 

0 

0 

1 

0 

0 

0 

0 

0 

82 

2.2 

0 

4.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

21.4 

4 

0 

44.9 

60.2 

96 

14.5 

0 

0 

0 

0 

0 

0 

0 

28.2 

4.7 

0 

0 149.7 

0 

65 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

14 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

26 

0.6 

0 

1.5 

0 

0 

o • 

55.4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

8.6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

21 

1 

0 

1.8 

0 

0 

Nix 

0 

0 

0 

0 

Raw Debut. 

NGL 

Nix 

0 

0 

0 

0 

0 170.5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.8 

223 

70.8 

118 

95.3 

44 

0 

0 

19.9 

0 

40.6 

0 

66.5 

61.2 

65.1 

0 101.3 

0 

0 

70.5 

17 

0 128.6 

0 

0 

0 

0 

0 

0 

0 

0 

1.2 

35.8 

168 

231 

21 

23.6 

0 176.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

50.4 

70.1 

11 

156 

28.9 

12.5 

53.2 

0 

0 185.6 

0 0 

16.7 144.6 

0 

0 

0 

0 

0 

24.4 

12.6 

13 

0 

0 

0 165.9 

0 

0 

0 

90.9 

0 131.7 

Nat. 

Gaso. Other 

33.8 

34.7 

96.4 

15.5 

0 

0 

0 

0 

0 

0 

0 

54.4 

9.7 

0 

0 

0 

146.6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

23 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

54 

1.4 

0 

5.3 

0 

0 

0 

0 

0 

0 

1.1 

0 

0 

0 

0 

0 

40.5 

0 

0 

0.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

12.5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1.1 

6 

1.7 

0.4 

0.5 

0 

0.5 

0 

66.9 

0 

0 

0 

6.1 

0 

0 

0 

0 

0 

73 
P.79 

^(^5a s Processing lo.pames 

j 

! Coipany 

1 

1 

t 

1 

I Texaco 

t 

! 

j 

1 

j 

; 

! 

1 

i 

J 

1 

: 

1 

i 

! Chevron 

and Plants 

Location, 

by Census 

Code 

74 

74 

74 

63 

93 

93 

93 

93 

93 

93 

93 

84 

47 

47 

72 

72 

72 

72 

72 

72 

72 

85 

85 

73 

73 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

94 

: 1936 Capacities and Products -.xiiiO u r.-i — V-oiUhiasju ; 

1 

NN cfd 

6as 

Gas ThroughCapacity put 

56.7 89.1 

125 54 

235 119 

35 34.2 

20 7.5 

4 2.3 

18 0.3 

60 32.7 

2 0.8 

18 9.8 

20 15.6 

4.5 0.4 

30 6.9 

25 8.3 

30 13.4 

600 189 

40 6.7 

737.5 300 

660 266 

900 277 

65 25 

25 6.2 

105 72.5 

14 1.1 

30 18.4 

15 3.4 

15 0.1 

114 102.4 

100 79.43 

12.5 12.5 

30 10 

15 4.7 

50 30.8 

150 79 

5 3 

23 21 

12 1.3 

190 188.6 

20 14 

5 3.8 

10 0.6 

26 0.7 

23 12.1 

25 10.6 

10 1.5 

55 32.1 

42 11.8 

50 41.5 

15 4.1 

20 0 

30 30.4 

! Production (1,000 gallons per day) 

Raw Debut. 

Process Iso- NonalLP-Gas NGL Nat. 

Method Ethane Propane ButaneButane Nix Nix Gaso. Other 

2 0 0 0 0 0 0 0 0 

7 0 0 0 0 0 117.6 0 0 

2 18.4 18.3 0 12 0 0 12 0 

3 0 45.1 18.3 21.8 0 0 17.7 0 

1 0 11.5 0 0 0 10.3 0 0 

3 0 0 0 0 0 2.3 0 0 

3 0 0 0 0 0 0.2 0 0 

3 0 19.7 0 0 0 39.2 0 0 

6 0 0 0 0 0 0 0.3 0 

2 0 5.9 4.5 0 0 0 7.2 0 

2 0 19.4 6.6 15.2 0 0 13.9 0 

3 0 0 0 0 0 10 0 0 

1 0 5.9 0 0 0 5.8 0 0 

2 0 9.2 0 0 0 8.8 0 0 

67 0 0 0 0 0 20.2 0 0 

67 0 0 0 0 0 195.5 0 0 

2 0 1.9 0 1.2 0 0 1.8 0 

267 107.1 65.1 20.2 16.9 0 0 43.9 0 

267 77.2 96.5 30.7 25 0 0 52.4 0 

67 0 0 0 0 0 533.4 0 0 

2 0 0 0 0 0 16.3 0 0 

6 0 0 0 0 0 72.8 0 0 

7 176.7 112.9 11.4 33.8 0 0 48.9 2 

7 0 0 0 0 0 5.3 0 0 

2 0 0 0 0 0 0 0 0 

7 0 0 0 0 0 11 0 0 

6 0 0 0 0 0 0 0 0 

7 188.8 130 8.8 43.2 0 0 50.8 2.2 

7 0 0 0 0 0 264.8 0 0 

7 0 0 0 0 0 61.9 0 0 

67 0 0 0 0 0 32.5 0 0 

3 0 0 0 0 0 14.1 0 0 

7 104.4 127.9 15.1 47.9 0 0 50.3 

1 0 0 0 0 0 26.8 0 0 

3 0 0 0 0 0 51 0 0 

67 0 0 0 0 0 67.2 0 0 

2 0 0 0 0 0 8.1 0 0 

7 0 0 0 0 0 415.7 0 0 

67 0 0 0 0 0 12.4 0 0 

6 0 0 0 0 0 14.1 0 0 

3 0 0 0 0 0 3.1 0 0 

7 0 0 0 0 0 1.8 0 0 

67 0 0 0 0 0 12.6 0 0 

7 0 0 0 0 0 41.9 0 0 

3 0 00 0 010 0 

17 0 0 0 0 0 152.4 0 0 

7 0 12.4 0 0 0 29.3 0 0 

2 0 12.4 0 0 0 13.2 0 0 

67 0 0 0 0 0 19.7 0 0 

1 0 OOOOOO O 

3 0 2.9 0 0 0 12.1 0 0 

74 
P.80 

r gas Procesj.ng •J.oipanies and Plants: 1986 Capacities and Products Exhibit A-i — (continued) 

NN cfd Production (1,000 gallons per day) 

Coipany 

Warren 

(Chevron) 

Aioco 

Location, 

by Census 

Code 

93 

93 

93 

93 

93 

93 

93 

93 

93 

84 

74 

74 

74 

87 

83 

72 

72 

72 

72 

85 

85 

85 

85 

44 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

71 

84 

84 

84 

Gas 

6as ThroughCapacity 

23 

3.5 

15 

10 

60 

5 

7 

16 

3 

10 

50 

33 

46 

38 

150 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

NR 

28 

12 

37 

250 

put 

6.7 

2.5 

9.2 

6.1 

54 

1.4 

0.6 

11.7 

0.9 

6 

9 

16 

26 

7 

110 

8.1 

19.8 

66.9 

347.1 

50 

59 

27 

12 

31 

7.1 

15.9 

24.3 

23.6 

11 

. 10 

5 

36.5 

6.2 

2.4 

7.9 

22 

8.9 

105 

10 

8.9 

1.8 

24 

1.5 

0.8 

1.8 

7 

25.1 

3.1 

23.9 

53.9 

Process Iso- NorialLP-6as 

Method Ethane Propane ButaneButane 

3 

3 

3 

3 

2 

3 

3 

3 

3 

2 

2 

2 

3 

53 

2 

2 

1 

7 

2 

7 

7 

6 

6 

7 

7 

2 

7 

2 

7 

7 

7 

2 

7 

7 

6 

6 

7 

27 

7 

2 

7 

7 

7 

7 

3 

7 

7 

7 

7 

7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

167 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.9 

0 

0 

0 

46.1 

0 

0 

4.3 

0 

0 

5.8 

10 

0 

0 

0 

0 

0 

0 

117.8 

0 

0 

0 

0 

62.6 

0 

4.1 

0 

0 

0 

0 

4.6 

11.8 

0 

0 

0 

0 

9.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

8.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

34.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.7 

0 

0 

0 

0 

0 

0 

4.7 

0 

0 

2.6 

0 

19.4 

0 

0 

0 

0 

0 

38.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

5.3 

7.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Nix 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

10.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Raw Debut. 

NGL 

Nix 

0 

3.7 

15.9 

8.7 

45.4 

3.4 

0.3 

15.4 

1.4 

21 

0 

O 

87.5 

0 

0 

40.1 

32.1 

88.2 

53.3 

253 

245 

201 

73 

60.3 

16.6 

12.9 

80.6 

53.8 

60.1 

20.1 

0 

0 

91 

4.1 

45.3 

83 

16.1 

451 

66 

8.1 

0.5 

90 

19.4 

1.2 

1.5 

12 

24.6 

8 

87.4 

84.5 

Nat. 

6aso. Other 

1.9 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

5.2 0 

5.3 0 

26.8 36.9 

2.5 0 

142.8 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 8.1 

0 0 

0 0 

0 0 

0 0 

2.3 0 

15.6 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

2.9 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0.3 

0 10 

0 0 

75 
P.81 

6** 

eSSing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

Coipany 

Shell 

Location, 

by Census 

Code 

47 

72 

34 

85 

73 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

83 

83 

83 

83 

83 

83 

93 

93 

93 

72 

72 

72 

72 

72 

72 

72 

72 

72 

72 

34 

64 

64 

64 

43 

43 

43 

73 

74 

74 

74 

74 

NN cfd 

Gas 

Gas ThroughCapacity 

400 

297 

180 

42 

80 

55 

145 

25 

20 

60 

12 

60 

32 

100 

15 

5 

25 

175 

57 

10 

50 

• • • 

65 

14 

17 

60 

275 

3.6 

50 

20 

195 

18 

1200 

120 

1250 

295 

100 

830 

130 

1850 

350 

15 

4 

100 

1.9 

0.4 

1.2 

4.5 

0.5 

70 

30 

70 

put 

404.4 

113.7 

115.2 

40.3 

13.4 

38.9 

46.5 

2.1 

1.2 

47.6 

NR 

37.6 

32 

16.6 

25.1 

4 

17.4 

122 

50.2 

9.6 

8.8 

i • a 

25.2 

7 

11.9 

49.1 

139 

0.1 

34 

3 

112 

11 

512 

48 

587 

207 

33 

447 

31 

847 

207 

6 

4 

58 

1 

0.3 

1 

2 

0.1 

45 

12 

27 

1 

1 

Process 

Production (1,0 100 gal Ions per day) 

Raw Debut. 

Iso- NonalLP-Gas 

Method Ethane Propane ButaneButane 

2 

2 

7 

7 

2 

7 

7 

5 

2 

7 

3 

2 

7 

3 

7 

3 

7 

7 

7 

7 

3 

3 

2 

4 

2 

2 

7 

1 

2 

2 

7 

2 

2 

7 

2 

2 

7 

27 

2 

2 

27 

3 

3 

• • • 

3 

3 

4 

3 

3 

2 

7 

7 

76 

0 

0 

0 

77.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

72 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

16.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1.5 

0 

0 

0 

0 

64.9 

0 

58.6 

46.5 

0 

0 

0 

0 

0 

0 

0 

16.8 

0 

0 

0 

0 

48 

40.4 

109 

0 

0 

4 

13.2 

0 

18.4 

0 

0 

0 

12.9 

0.9 

0 

0 

0 

0 

0 

0 

0 

0 

2.8 

0 

0 

3.3 

0 

0 

0 

1.2 

0 

3.2 

0.1 

28.5 

0 

0 

0 

0 

0 

0 

0 101.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

11.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

21 

0 

0 

0 

0 

0 

0 

0 

19.2 

0 

0 

0 

0 

57.8 

10.6 

88.7 

0 

0 

0 

11.2 

0 

16 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

4.1 

0 

0 

0 

0 

0 

0 

0.1 

0 

0 

0 

Nix 

NGL 

Mix 

0 141.3 

0 

0 

0 

0 

0 

77.9 

96.5 

0 

29.3 

82.6 

0 107.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.1 

13.8 

16.1 

0 

16.9 

0 

140 

9 

0 

0 

0 

99 

0 

12.3 

0 

0 

0 

41 

0 126.3 

0 

31.4 

26.7 

0.9 

0 

0 

0 135.4 

0 3.8 

0 319.5 

0 45.8 

0 607.6 

0 112.7 

0 46.4 

0 584.9 

9.3 0 

0 567.7 

0 627.7 

0 

0 

0 

0 

1.4 

0 

6.1 

0 

41 

0 

0 

4.9 

0 

0 

0 

5.5 

0 

0 

0 

25 

0 183.3 

Nat. 

Gaso. Other 

0 

0 

0 

21.6 

0 

0 

0 

0.1 

0 

0 

0 

11.2 

0 

17.5 

0 

0 

0 

44 

0 

0 

0 

0 

0 

1.3 

4.7 

0 

0 

17.1 

0 

53.5 

8.8 

0 

1.9 

0 

41 

0 

79.7 213.3 

0 

0 

0 

9 

0 

19.3 

0 

0.8 

41.7 

0 

0 

7.3 

0 

0 

0 120.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.1 

0 

0 

7.2 

0 

0 

0 

0.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
P.82 

gaS Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

Coipany 

Cities Service 

(Occidental) 

ARCO 

Location, 

by Census 

Code 

74 

74 

74 

74 

74 

74 

71 

47 

47 

47 

47 

47 

47 

47 

46 

85 

85 

44 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

94 

93 

.93 

72 

73 

73 

73 

73 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

m cfd 

Gas Th 

Capacity 

90 

285 

10 

55 

40 

190 

25 

100 

550 

30 

66 

168 

89 

5 

1.5 

25 

8 

11 

400 

12 

40 

50 

100 

27 

10 

7 

12 

2 

30 

85 

12 

3300 

20 

6.9 

97 

0.5 

15 

15 

10 

3 

20 

12 

5 

265 

• ia 

15 

50 

15 

12 

Gas 

roughput 

48 

122 

5 

25.1 

24 

72 

23 

25 

372.5 

23 

20.4 

76 

70 

2.4 

0.7 

19 

3 

6.9 

178 

5 

6.7 

37 

84 

22 

9 

3.6 

8.9 

0.5 

16 

67 

5.8 

0 

12.2 

3 

36.3 

0.2 

12 

6 

2.1 

3.1 

9.1 

3.9 

1.6 

307.5 

• a • 

6.8 

9.8 

14.4 

4.5 

1 

1 

Process 

Production (1,000 gall ons per day) 

Raw Debut. 

Iso- NorialLP-Gas 

Method Ethane Propane ButaneButane 

• • • 

2 

3 

6 

2 

2 

26 

36 

• • i 

2 

2 

2 

3 

7 

I 

3 

3 

1 

3 

3 

37 

3 

3 

7 

7 

5 

77 

0 

113.2 

0 

36.8 

43.5 

130 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.1 

15.6 

0 

0.5 

1.4 

3 

1.8 

0.9 

210.6 

0 

7.5 

10.4 

32.4 

0 

0 

70.8 

0 

26.8 

41.9 

173.1 

6 

0 

0 

0 

21 

0 

0 

0 

0 

0 

0 

1.1 

76 

0 

. 0 

0 

0 

0 

0 

0 

0 

0 

17 

0 

17.5 

0 

27.2 

0 

8.8 

0.1 

17.6 

12 

1.9 

2.5 

14.4 

2.3 

2.8 

156.9 

1.2 

7.8 

4.9 

25.4 

0.3 

0 

16.4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

16 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.6 

0 

0 

0.1 

2.6 

1.9 

0.3 

0.4 

1.7 

0.4 

0.5 

0 

0 

1.2 

1.1 

4.3 

0 

0 

18.2 

0 

0 

20.5 

0 

6 

0 

0 

0 

5.3 

0 

• 0 

0 

0 

0 

0 

3.4 

36 

0 

0 

0 

0 

0 

0 

0 

0 

0 

17 

0 

8.8 

0 

7.5 

0 

5 

0.1 

7 

6 

0.9 

1.2 

5.8 

1.1 

1.5 

87.1 

1.5 

3.6 

1.4 

9.6 

0.4 

Nix 

0 

0 

11.4 

33.5 

0 

227 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

85 

0 

0 

93 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

N6L 

Nix 

0 

0 

0 

0 

0 

0 

0 

49 

368 

30 

0 

103 

91 

10.7 

3.8 

105 

9 

0 

0 

14.4 

16 

118 

491 

0 

24 

10 

0 

2.5 

0 

186 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Nat. 

iaso. Other 

0 

61 

3.8 

0 

17.7 

0 

9 

0 

0 

0 

20 

0 

0 

0 

0 

0 

0 

0 

29 

0 

0 

0 

0 

0 

0 

0 

0 

0 

11 

0 

9.5 

0 

9 

0.4 

5.8 

0.2 

8.9 

9.8 

0.9 

1 

7.8 

1.4 

1.8 

73 

2.4 

4.2 

2.6 

8.4 

0.9 

0 

0 

0 

0 

• 0 

0 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

8.6 

0 

0 

0 

7 

116 

0 

0 

0 

0 

56 

0 

0 

0 

0 

0 

0 

0 

0.2 

0.6 

0 

0.2 

1 

0.1 

0 

0 

0 

0.1 

0 

4.5 

0 
P.83 

S(,s processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l —(continued) 

KHcfd Production (1,000 gallons per day) 

Coipany 

Location, 

by Census 

Code 

74 

74 

74 

74 

74 

74 

74 

74 

83 

Gas 

Gas ThroughCapacity 

18 

35 

12 

90 

15 

6.5 

15 

40 

31 

put 

3.6 

9.2 

7.4 

32.7 

5.2 

1.4 

3.8 

14.6 

10.1 

Process 

Method Ethane Propane 

2 

6 

3 

3 

1 

3 

7 

2 

3 

0 

46.1 

5.8 

0 

0.9 

0 

17.1 

0 

0 

0.9 

62.5 

7.4 

22.5 

3.5 

0 

18.4 

3.6 

20.2 

Iso- NonalLP-Gas 

tutaneButane 

0 

0 

1.2 

18.1 

0 

0 

4.5 

0 

0 

0.7 

42.6 

3.6 

0 

4.4 

0 

5.4 

3.3 

10.9 

Nix 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Raw Debut. 

NGL 

Nix 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Nat. 

Gaso. 

1 

32.8 

4.6 

14.6 

6 

0 

5.3 

3.6 

9.1 

Other 

0.1 

1.1 

0.1 

0 

0.4 

0.2 

0.1 

0.5 

0.8 

83 30 11.1 

Tenneco 

Conoco 

(E.I. Du Pont) 

72 

72 

72 

72 

72 

72 

72 

74 

74 

74 

74 

72 

72 

72 

85 

85 

73 

73 

73 

73 

74 

74 

74 

50 

100 

225 

200 

225 

35 

70 

55 

60 

22.5 

145 

45 

180 

950 

50 

500 

30 

75 

30 

30 

5 

14 

10 

26.9 7 

84.7 7 

136 7 

73.2 7 

116.2 7 

4.3 . 

62.4 ; 

NR ; 

57.5 7 

22 / 

36.1 ; 

32.5 

169.4 

334.1 2' 

20 

500 

25.2 

61.6 

29.8 

14.2 

1.7 

10 

7.7 

0 

0 

0 

0 

0 

0 

0 

• 0 

' 0 

0 

! 0 

1 12.4 

' 148.2 

f 132.8 

f 42.5 

J 0 

7 21.3 

7 56.7 

7 21.5 

7 8.4 

3 0 

7 17.3 

. 0 

0 

0 

40.8 

0 

39.4 

3.5 

29.4 

0 

0 

0 

5.4 

5.5 

73 

68.6 

36.6 

0 

29.7 

34.6 

19.4 

6.5 

4.4 

18.2 

10 

0 

0 

19 

0 

17.3 

0 

0 

0 

0 

0 

0 

0 

23.7 

26 

5.2 

0 

4 

6.4 

2.5 

1 

0 

2.8 

0 

0 

0 

17.7 

0 

16.3 

3.4 

20 

0 

0 

0 

4 

3.4 

18.1 

18.1 

12.2 

0 

11.8 

8.2 

6.8 

2.5 

5.7 

7 

6.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

41.6 

0 

0 

82.2 

0 

0 

0 

16.9 

74.4 

30.9 

0 

0 

0 

0 

0 

1680 

0 

0 

0 

0 

0 

0 

0 

0 

97.7 

41 

0 

0 

0 

40.0 

0 

32.5 119.1 

2.5 

13.2 

0 

0 

0 

4.2 

0 

33.1 

41.5 

9.7 

0 

13.6 

10.2 

7 

3.2 

3.7 

7.1 

6.2 

0 

0 

0 

0 

0 

0 

6.3 

2.8 

0 

4.1 

0 

1.1 

0.1 

0.7 

0.1 

0 

0.1 

0 

Sun 

93 

84 

84 

72 

72 

72 

72 

72 

34 

34 

34 

34 

NR 

12 

18 

22 

50 

20 

32 

25 

7.4 

9.7 

3 

10 

21.3 

3.9 

3.9 

20.8 

32 

9.5 

18.9 

8.7 

6.1 

5 

0.4 

3.2 

2 

2 

2 

6 

2 

2 

2 

2 

3 

a il 

3 

6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

5.2 

12.1 

3.6 

9.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

7.6 

9.8 

3.7 

0 

32.6 

16.2 

43.6 

12.2 

5 

3.5 

0.6 

15.3 

0 

0 

0 

17.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

78 
P.84 

gas Processing Coipanies and Plants: i98a Capacities and Products 

L.l,,U|l . 1-

Coipany 

Location, 

by Census 

Code 

34 

73 

73 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

83 

NH cfd 

Sas 

6as Through- Process 

Capacity 

1.5 

15 

65 

200 

NR 

15 

20 

NR 

70 

35 

50 

92 

40 

10 

put Method 

0.7 3 

18.8 7 

44 7 

74.5 7 

5.1 2 

14.3 2 

7.3 2 

1.2 3 

35.7 67 

28.7 2 

44.7 7 

94.5 2 

24.4 2 

11.8 2 

! Production 

Ethane Propane 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

40.4 

4.5 

0 

5.6 

0 

54.6 

0 

95.1 

37.4 

6.4 

10.3 

(1,000 gall 

Iso- 1 

ons per day) 

Raw 0 

tonal LP-Gas 

lutaneButane 

0 

0 

0 

9.9 

0 

0 

0 

0 

50.2 

0 

69.6 

0 

0 

0 

0 

0 

0 

20.4 

0 

0 

3.8 

0 

0 

0 

0 

33.2 

8.2 

0 

Nix 

0 

0 

NGL 

Nix 

1.6 

65.4 

0 194.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

4.1 

35.8 

0 

7.9 

0 

41.9 

0 

36.4 

0 

6.7 

ebut. 

Nat. 

6aso. Other 

0 0 

0 0 

0 0 

25.7 124.9 

0 0 

0 1.5 

2 0 

0 0 

39.1 182.7 

0 0 

83.8 261.3 

0 67 

5.1 25.3 

0 0 

Standard 

Phillips 

73 

73 

73 

45 

30 

15 

33 

30 

10 

6 

7 

7 

0 

0 

0 

0 

6.5 

0 

0 

0 

0 

0 

6.5 

0 

168 

0 

50 

0 

0 

0 

0 

11 

0 

0 

45 

0 

Marathon 

(USX) 

Texas Oil & Gas 

(USX) 

94 

93 

72 

72 

34 

46 

85 

74 

74 

74 

74 

87 

83 

83 

84 

72 

73 

73 

73 

73 

73 

73 

73 

73 

73 

74 

74 

52 

80 

200 

65 

38 

2 

210 

21 

3.3 

55 

72 

1 

6.5 

0.5 

5 

30 

50 

75 

90 

115 

75 

20 

25 

40 

75 

6 

75 

14 

49 

62 

23 

3.8 

1.3 

63.6 

18 

2.8 

7 

36 

1.4 

5 

0.2 

0.7 

30.3 

29 

13.4 

23.1 

57.1 

35.5 

0.6 

0.2 

1.7 

24.6 

1.8 

56.7 

7 0 

1 0 

7 0 

7 27 

2 0 

3 0 

7 0 

3 0 

3 0 

1 0 

37 0 

3 0 

3 0 

3 0 

3 0 

3 0 

7 0 

7 0 

7 0 

27 0 

7 0 

2 0 

7 0 

7 0 

7 0 

3 0 

7 0 

79 

0 

17.9 

0 

12.2 

22.5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2,7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

5.1 

0 

9.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

26.3 

0 

52 

0 

0 

2.7 

0 104.B 

4.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

8 

1.6 

52.1 

4.2 

14.5 

4 

0.4 

26.1 

58.8 

22 

47.6 

0 120.4 

0 

0 

0 

0 

0 

0 

0 

79 

1.1 

0.3 

2.6 

43.5 

2.8 

127 

0 

13.5 

0 

8.1 

20.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

11.2 

0 

0 

11 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.6 

0.3 

0.5 

0.3 

4.1 

0 

0 

0.4 

1.4 

0 

0.6 
P.85 

1

^Kr&i. Processing Coipanies 

j Coipany 

t 

Unocal 

j 

j 

i 

Enron 

i 

| 

i 

i 

Coastal 

t 

ana Plants 

Location, 

by Census 

Code 

74 

74 

74 

74 

74 

74 

74 

74 

63 

93 

93 

93 

93 

93 

93 

84 

73 

74 

74 

74 

87 

83 

84 

59 

47 

47 

47 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

83 

43 

73 

72 

87 

1;3S Capacities and Products Exhioit A- L — veununuea , 

HH cfd ! Production (1,000 gallons per day) 

Gas Raw Debut. 

Gas Through- Process Iso- NorialLP-Gas N6L Nat. 

Capacity put Hethod Ethane Propane ButaneButane Nix Nix 6aso. Other 

30 12.7 2 0 0 0 0 0 39.3 0 0 

75 25.3 7 7.1 0 0 8.6 0 0 6 0.3 

165 64.4 7 0 0 0 0 0 42.1 0 0 

20 1.1 7 0 0 0 0 0 1.7 0 0 

30 11.7 2 0 0 0 0 0 11.4 0 0.2 

100 32 7 0 0 0 0 0 16.8 0 30.9 

30 14.2 2 0 0 0 0 0 37.5 0 0 

25 8.9 7 0 0 0 0 0 25.1 0 1 

57 39.3 3 0 59.6 0 47.6 0 0 24.2 0 

35 11.5 1 0 12 0 10.2 0 0 13.3 0 

0.6 0.5 7 0 0 0 0 0 0 0 0.3 

70 64.3 7 0 40.6 0 10.8 0 0 26.1 0 

3 2.3 3 0 0 0 0 0 4.6 0 0 

17 11.2 7 0 0 0 0 18.7 0 7.2 0 

20 5.8 1 0 6.8 0 0 0 20.2 0 0 

5 0.7 3 0 0 0 0 0 0.4 0 0 

10 3.4 3 0 4.3 0 0 0 4 0 0.2 

13 4.3 6 0 0 0 0 0 36.2 0 0 

40 13 1 0 11.6 0 8.6 0 4.7 0 0 

15 8.7 2 0 7.2 0 10.1 0 0 11.1 0 

80 53.7 3 0 20.9 0 14 0 0 17.2 0 

15 13.4 7 0 13.7 0 7.1 0 0 5.2 0 

6 3.3 3 0 3.5 0.2 1.5 0 0 1.4 0 

700 654 2 0 50.2 16.4 17.9 0 0 43 0 

540 507.1 7 193.5 0 0 0 0 0 0 0 

950 892.5 2 0 506 70.6 138.2 0 0 117.6 0 

520 138 6 0 0 0 0 0 0 0 0.3 

35 5 1 0 0 0 0 0 0 0 0.2 

35 26 7 0 9.3 7.6 0 0 5.7 0 

70 40 2 0 22.8 0 21 0 0 8.5 0.6 

18 18 7 0 0 0 0 0 48.6 0 0 

15 13.9 7 0 0 0 0 0 28.4 0 0 

15 8 3 0 13.6 0 10 0 0 6.3 0 

10 9 3 0 0 0 0 0 48.1 0 0 

5 3 3 0 0 0 0 0 17.9 0 0 

10 2.9 6 0 0 0 0 0 13 0 0 

80 64 2 8.2 17.1 0 14.3 0 0 8.4 0.3 

30 3 5 0 0 0 0 0 0 0.3 0 

55 57 2 0 10.6 0 20.8 0 0 11.6 0 

35 6 1 0 0.5 0 0.4 0 0 1.3 0 

60 32 2 0 8.6 0 7.4 0 0 6.8 0.1 

64.4 64.3 3 0 0 0 0 0 113 0 0 

12 3 3 0 6.1 0 0 6.3 0 0 0.9 

200 143 7 0 0 0 0 0 197.1 0 0 

250 183 7 0 0 0 0 0 182.8 0 0 

40 15 3 0 16.8 0 10.5 0 0 19.9 0 

80 
P.86 

aas Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

Coipany 

NN cfd 

Location, 6as 

by Census Gas ThroughCode Capacity put 

Production (1,000 gallons per day) 

Process Iso- NorialLP-6as 

Hethod Ethane Propane ButaneButane Nix 

Raw Debut. 

N6L Nat. 

Nix Gaso. Other 

Enserch 

Diaiond Shairock 

(Maxus Energy) 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

6 

30 

18 

14 

50 

20 

4.5 

20 

18 

3 

5 

80 

65 

375 

2.3 

17.6 

10.5 

2.2 

36.2 

14.6 

3 

15.8 

21.5 

1.4 

2.8 

42.9 

59.6 

275.6 

2 0 

7 0 

7 0 

3 0 

7 0 

5 0 

3 0 

7 0 

3 0 

3 0 

3 0 

7 0 

7 0 

27 0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

244.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

47.1 

0 

0 

0 

0 

. 0 

0 

0 

0 

0 

0 

0 

0 

0 

115.1 

0 2.8 

0 84.1 

0 41.9 

0 4 

0 140.2 

0 1.8 

0 4.5 

0 90.5 

0 117.7 

0 6.4 

0 2.6 

0 144 

0 100.6 

0 110.5 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 0 

0 390.8 

Chaiplin 

(Union Pacific) 84 

73 

73 

73 

74 

74 

74 

74 

74 

74 

74 

87 

87 

83 

83 

83 

83 

1.7 

35 

12 

10 

35 

6 

60 

380 

85 

35 

15 

10 

80 

65 

60 

3 

25 

1.6 

19.7 

7.1 

8.9 

21.2 

2.3 

58.2 

281 

60.2 

14.8 

7.8 

2.6 

46.7 

57 

43 

0.5 

20 

3 

2 

6 

6 

6 

3 

7 

7 

7 

3 

3 

3 

7 

2 

7 

3 

7 

0 

0 

0 

0 

0 

0 

0 

240.6 

64.7 

0 

0 

0 

0 

0 

0 

0 

7.7 

0 

0 

0 

0 

0 

0 

0 

103.1 

28.6 

0 

0 

5.2 

34.9 

16.8 

0 

0 

13 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.9 

0 

0 

0 

0 

0 

0 

0 

0.3 

20.2 

0 

0 

0 

0 

30.7 

0 

0 

4.8 

0 

0 

0 

0 

0 

0 

0 

3.8 

75.7 

32.4 

44.1 

90.1 

1.7 

81.2 

0 203.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

62.5 

42.1 

14.3 

31.3 o 

0 

47.7 

0.7 

0 

0 

0 

0 

0 

0 

0 

0 

91 

45.3 

0 

0 

0 

21.6 

0 

0 

6.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Kerr-HeGee 

Mesa 

72 

44 

73 

74 

74 

74 

47 

85 

12.5 

6 

12 

35 

43.5 

24 

242 

6 

NR 

NR 

NR 

NR 

NR 

NR 

49 

1.5 

2 

3 

2 

7 

7 

2 

2 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

6.6 

0 

18.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

4 

0 

13.4 

0 

0 

0 

0 

0 

0 

31.7 

0 

0 

0 

0 

0 

11.7 

2.3 

0 

20.3 

94.7 

28.8 

65.1 

8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

01 
P.87 

gas Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

NN cfd Production (1,000 gallons per day) 

Coipany 

Pennzoil 

Arlda 

Mitchell 

Location, 

by Census 

Code 

73 

73 

73 

Sas 

Gas ThroughCapacity put 

15 7.2 

25 9.9 

80 42.8 

74 

55 

80 

Process Iso- NonalLP-6as 

Nethod Ethane Propane ButaneButane Mix 

7 0 0 0 0 0 

2 0 15.3 1.4 5.1 0 

27 0 0 0 0 0 

Raw Debut. 

N6L 

Hix 

9.7 

0 

123 

Nat. 

Gaso. 

0 

4.7 

0 

Other 

0 

0 

0 

36.9 7 0 0 107 

71 

72 

72 

73 

74 

74 

74 

20 

60 

3 

10 

3 

125 

20 

11.7 

10.9 

1.3 

0.4 

0.6 

59.7 

4.5 

2 

1 

3 

5 

3 

1 

5 

0 

0 

0 

0 

0 

0 

0 

9.7 

0 

0 

0 

0 

9.5 

0 

3.4 

0 

0 

0 

0 

4.5 

0 

4.7 

0 

0 

. 0 

0 

6.6 

0 

0 

2.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

5.4 

2.5 

0.3 

0.1 

0.2 

16.7 

0.8 

2.9 

0.8 

0 

0 

0 

0 

0 

72 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

5 

15 

20 

20 

150 

20 

20 

20 

15 

15 

15 

40 

15 

15 

15 

20 

10 

10 

30 

15 

15 

15 

20 

2 

115 

10 

20 

20 

20 

15 

5 

5 

75 

0.5 3 

10.5 7 

13.9 7 

0.4 7 

124.7 7 

16.6 7 

16.6 7 

13.3 7 

9.2 7 

9.1 7 

6.6 

3.4 ; 

10.9 

10.9 

10.9 

2.4 

4.9 

4.9 

14.8 

8.2 

5.6 

5.6 

7.4 

2.3 

85.8 

5.4 

1.5 

8.8 

7.5 

9.2 

1.2 

3.6 

42.1 7 

9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

7 0 

7 0 

7 0 

7 0 

7 0 

1 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

7 0 

2 0 

7 0 

3 0 

3 0 

6 0 

0 

0 

0 

0 

125.9 

16.7 

16.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

20 

2.6 

2.6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

21.6 

2.9 

2.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.7 

37.2 

51.3 

1.4 

0 266.4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

35.4 

35.4 

47.7 

38.8 

43.2 

26 

9.9 

43 

43 

43 

6.5 

25.1 

25.1 

75.1 

48.3 

17.4 

17.8 

23.4 

5.1 

82.7 

20.2 

10.6 

3S.2 

16.6 

27.7 

4.5 

16.2 

46.2 

0 

0 

0 

0 

66.1 

8.8 

8.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.6 

0.8 

0.1 

9.1 

9.1 

1.2 

1.2 

0 

0.6 

0 

0.4 

0 

0.3 

0.3 

0.3 

0 

0.3 

0.3 

0.8 

1.2 

0.1 

0.1 

0.2 

0.2 

0 

0.5 

0 

0.1 

0 

0.1 

0.2 

0 

0 
P.88 

Sas Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

Coipany 

MH cfd 

Location, 6as 

by Census Gas ThroughCode Capacity put 

Production (1,000 gallons per day) 

Process Iso- NonalLP-Gas 

Method Ethane Propane ButaneButane Nix 

Raw Debut. 

N6L Nat. 

Mix Gaso. Other 

Valero 

73 

73 

74 

74 

74 

74 

74 

74 

74 

74 

85 

14.1 

400 

90 

7.5 

190 

40 

150 

300 

44 

68.3 

13.6 : 

338.7 

74 

1.8 

117.6 

51.1 

150.3 

247.1 

29.3 

18.5 

! 10.4 

7 242.2 

7 64 

7 2.1 

I 22.6 

7 94.4 

1 101.6 

1 181.2 

7 38.3 

26.1 

15.3 

137.8 

25.2 

2.5 

34 

87.4 

71.5 

82.7 

24.1 

5.4 

2.1 

34.3 

9 

0.4 

8.9 

10 

18.1 

26.6 

3.7 

10.1 

6.8 

41.8 

7.5 

0.9 

8.6 

27.5 

25.5 

23.1 

7.4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

10 

5.7 

63.5 

17.3 

1 

17.8 

19.7 

34.7 

44.4 

7.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Union Texas Pet. 

(Allied-Signal) 72 

72 

72 

72 

73 

73 

73 

74 

74 

74 

74 

74 

74 

20 

20 

70 

160 

130 

25 

37 

40 

20 

30 

25 

10 

6 

8.9 

6.4 

26.7 

89 

95.9 

10.3 

23.9 

36 

17.5 

18 

24 

6.6 

2.7 

1 0 

2 0 

2 0 

2 0 

27 91.1 

67 9.1 

27 55.2 

7 74.2 

7 6.8 

7 12 

7 62.2 

7 11.4 

7 1.4 

2.9 

0.8 

9.4 

39.3 

95.8 

7.2 

42.4 

69.5 

15.1 

10.4 

59.6 

10.4 

3.8 

1 

0.3 

2.5 

11.9 

15.1 

1.4 

5.6 

8.6 

4.9 

1.5 

9.3 

1.5 

0.6 

1.1 

0.3 

3.3 

14 

35.7 

3.2 

15.4 

25.7 

4.8 

4.1 

22.6 

4.1 

1.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.8 

1 

8.4 

25.2 

60.6 

3.9 

19.4 

28.5 

5.8 

4.3 

22.9 

5.8 

2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Associated 

Anadarko 

71 

84 

84 

84 

84 

72 

74 

30 

15 

20 

24 

15 

55 

5 

27 

9.9 

12.6 

20.6 

11.3 

30 

2.5 

2 

3 

36 

3 

37 

2 

6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 4.4 

0 27.4 

0 36.1 

0 45.8 

0 35.4 

0 51 

0 17.5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

47 

47 

47 

47 

73 

73 

20 

16 

4 

11 

10 

25 

7.8 

4 

1.2 

7.2 

3.2 

8.7 

2 0 

2 0 

3 0 

2 0 

7 0 

2 0 

3.4 

2.1 

0 

3.1 

0 

9.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 141.3 

0 4.3 

0 2.9 

0 5.7 

0 4.4 

0 8.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Daison 

84 

84 

84 

22 

9 

1.5 

16 

9 

1 

7 

7 

3 

0 

0 

0 

40 

15 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

35 

10 

2.8 

0 

0 

0 

0 

0 

0 
P.89 

6i 5 Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l —(continued) 

MM cfd ! Production (1,000 gallons per day) 

Coipany 

ANR Pipeline 

(Coastal) 

Location, 

by Census 

Code 

72 

72 

73 

74 

74 

74 

74 

74 

74 

74 

74 

74 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

34 

Gas 

Gas ThroughCapacity 

80 

2 

70 

1 

3 

30 

10 

30 

10 

30 

3 

100 

500 

300 

220 

40 

50 

385 

300 

32 

1000 

450 

40 

50 

50 

300 

270 

100 

put 

14.5 

0.5 

32 

0.8 

0.8 

14 

5 

6 

6 

26 

2 

20 

114 

88 

116 

16 

16 

134 

110 

24.4 

186 

125 

7 

11 

18 

80 

157 

37 

Process Iso- NonalLP-Gas 

Method Ethane Propane ButaneButane 

2 

3 

7 

4 

3 

7 

1 

3 

1 

7 

4 

1 

5 

1 

3 

1 

1 

5 

5 

3 

1 

1 

1 

1 

1 

1 

3 

1 

0 

0 

0 

0 

0 

25 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

20 

0 

0 

10 

0 

0 

0 

58.6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3.5 

0 

0 

0 

0 101.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Nix 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Raw Debut. 

NGL 

Mix 

12 

1.5 

95 

4 

1.8 

32 

0 

0 

0 

130 

0 

35 

96.5 

0 

0 

0 

0 

0 

0 

1.3 

0 

0 

0 

0 

0 

0 

0 

0 

Nat. 

Gaso. Other 

0 

0 

0 

0 

0 

0 

0 

0 

6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1.3 

0 

14.8 

0 

0 

0.9 

0.8 

0 

0 

0 

0 

0 

0 

0 

11 

0 

Santa Fe 

93 15 5.3 8.7 0 3.1 

CSX Oil . Sas 

72 

72 

72 

175 

1350 

40 

162 

1030 

30 

7 0 0 0 0 

27 332 252.1 82.7 71.2 

7 0 0 0 0 

0 

0 

0 

119 

0 

34 

0 

165 

0 

0 

0 

0 

Cenex 

44 0.7 1.1 0 3.4 

Western Gas Processors 

84 

43 

44 

44 

44 

83 

1.5 

2.5 

6 

65 

4 

32.5 

0.3 

2 

4 

44 

4 

30 

3 

3 

3 

27 

3 

3 

0 

0 

0 

0 

0 

0 

0 

10.7 

0 

39.2 

0 

0 

0 

3.9 

0 

0 

0 

0 

0 

0 

0 

32.2 

0 

0 

0 

7.4 

0 

0 

0 

0 

2 

4.6 

0 

0 

13.3 

39 

0 

2.4 

0 

35.6 

0 

0 

0 

0 

2.6 

10.3 

0.7 

1.9 

«4 
o O) CL 

itinued) (con 

1 

r-t 

1 

< *-> iibi 

3 

1/1 ** 

" • 3 and Pro in tu Capaciti ts: 1986 c= rocessing Coapanies and Pla; o_ in 

<__) 

>^ «a cu allons f O O g 

<-> 

— oductior Q -

«»V J -

I C -T-. 

Ut. _ o Of 

C__i o c 

1 

m 

*9 CO 

__: Locatioi 

at. _ i 

to - E 1 LP-Gas 

• 

o Iso- in Proces 

i 

_«_ Througl in 

ro CD in _a by Cens 

_, — C t 

Ot • • 

JC o uo 

. A * <_• . u

o o 

o U

t oo 

ro 

to X o o/> C J 

M O O Ol c o o MS 

3 CO 

OJ = 0 0 — 1 _ » 

3 CO Propane 

8.3 

0 

c 

-fc* U J - o e

n e n 

Metho 

J -» -^- ir> 

3 • O L r«~ 

>sin u o 

.** Capaci 

CO CO 

Coipany Code 

8 8 

o o < > OD 

o 

o C J —^ 

o 17.1 

<_> CO CO 

<_> 

•—> CO CO 

o 

o 

— VO _> 

o 

o 

o 

o VO 

OT> 

—t- c o CO 

o 1.6 

o 

o 

o 

o CO 

o CO CO u o CO o o 

0.1 1.9 

o 

o C l 

o 

o 

— 

o CO VO C J CO oo 

o 

o a o 

— 

o 

o 

o 

o o > C J CO 

V_S _C^ l CO a o 

essing 

U If Energy Gathering And Pro 

z. 

to 

o 

o r~ 

•«* • 

o 

o 

o 

o 

o CO 

—t-

CO —f (Chevron) 8 

o 

o CM CO 

o 

o 

<_• 

o o > CO C J CO uo CO 

—t-

CO 

o 

o 

o vO 

o 

o 

o 

o 

t"~ CO 

•^- v o C l 

o 

o 

—t-

— 

o 

o 

o 

o _> CO 

©"« CO 

o CO 

o 

o v o 

o 

o _> 

o 

o CO vO 

o r

-

o CO 

o 

o 

r*-

CO 

o 

o 

o 

o 

o CO VO CO 

o CO 

o 

o o o C J 

o o > 

o 

o _> 

r-~ u o —r C l 

• « • 

o 

o VO 

o-> —f 

o 

o 

o 

o 

o c * 

r^-

CO 

IS-

CO 

—r-

<=> 

o -* CO CO 

o 

o 

o 

o 

o 

r~-

a o VO C J 

o 

—t-

wo 

o 

o v o CO C J 

o 

o 

o _> 

o r^ 

— oo _> u o 

o 

o "» CM 

o 

o 

o 

<=> 

o r ^ 

—r- —^ u o 

• - . u o 

Paso Natural 6as U J 

o o o 

o o o 

yr <z> ao . <m> r-m 

eo wo 

o o o o o o 

<-> o o 

o o o 

o o o —> C J CM u o cr» C l —r *_• r*» o y c o C J CO oo —r uo uo O * CM UO UO CM wo wo uo Burlington Northern) 8 8 8 

y—r 

O 

O 

"»• VO 

o 

o 

o 

o 

o _ A VO 

r*~ 

m.A 

r-. uo CO 

o 

o uo "» 

o 

o 

o 

o 

o CO 

—y 

-.-

o —f CO r^ 

o o 

o*» O 

CO VO o - r CM o o VO O 

o r^ o O 

r~. o 

o v o wo o oo 

r** 

—-> —r 

• *• r ^ 

r-» o 

VO CM 

OO o 

VO CO 

•«• —r 

r*- r*~ 

o 

o o o r ^ 

o 

o 

— 

o •^ 

• « • 

—"• 

o —> 

f*~ o o 

Paso Hydrocarbons U J 

o v o CO 

o 

o 

o 

o 

o 

o 

r~. wo 

o a o 

o o ^ 

— i-Burlington Northern) 7 

o o > 

o 

o VO CM CM 

o 43.4 47.8 

t^» 

o CM —r c » 

o 

o CM CO r— 

o 

o 

o 

o 

o 

t»^ a o 

o C J c^--

och Hydrocarbon 

-.-

o 

o 

ay 

ay —r 

^ 

o 

o 16.8 

o C J u o uo CM a o 

o 8.1 

o 

o CO 

o CO VO 

o CO CO uo 

c% 

o 3.4 uo 

o 

o 8.3 

—to 69.7 

o 

r>-

— u o 

o 1— 

o 

o 

r^. uo t— 

o 

o 

o 

o 

o 

-

—f OD OO CM 

O 

o u o 

o 

o 

o 1.5 

o CO CO CM 

o 

o 

o-> —f 

o 

o 

o 

o 

o CO CO CO u o 

o 

o a a 

—t^ 

o 2.9 

o CM 

o CO 

— wo CM 

* • « OO 

trolane Loiita o> o _ 

o 

o wo 

o 

o 

o 

o 

o 

• « • 

c 

o —f CO 

C7* 

o 

o 

o CM 

o 

o 

o 2.8 

<m> CO wo VO —r CO 

o»> 

i n 0 0 

bot Corp 

•0 C J 
P.91 

1^5 Processing >,o«pan:es ano slants; iv86 Capacities and Products Exhibit A-l —(continued) 

Coipany 

Nat. Gas Pipeline 

Departient of Energy 

Berthoud 

Brighton 

Cabin Creek 

Celsius Energy 

Cerrito Land 

Coors Energy 

Greeley Gas Co 

Loveland 

NcHoRan 

(Freeport-HcHoRan) 

NGL Production 

Northwest Pipeline 

Planet Engineers 

Location, 

by Census 

Code 

73 

85 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

71 

74 

93 

93 

93 

84 

84 

84 

84 

84 

84 

84 

84 

84 

73 

84 

84 

83 

84 

83 

84 

NH cfd 

Gas 

6as ThroughCapacity 

20 

60.5 

40 

20 

35 

11.5 

20 

24.5 

15 

23 

40 

33.5 

850 

80 

94 

100 

100 

2.5 

2.5 

1.5 

10 

40 

8 

5 

6 

8 

36 

20 

20 

30 

300 

400 

7.5 

put 

7.6 

0.9 

14.7 

14.6 

10.3 

10 

6.9 

18.8 

4.6 

0.7 

10.5 

27.7 

400 

50 

47.2 

106.4 

108.1 

0.3 

1 

0.2 

4.9 

15 

5.7 

2.3 

2 

4.5 

21.5 

4.5 

7.6 

21.1 

176 

210 

2.4 

• 

i 

'roc ess 

Production (1,000 gall ons per day) 

Raw Debut. 

Iso- NonalLP-Gas 

Method Ethane Propane ButaneButane 

7 

7 

2 

7 

57 

7 

7 

7 

7 

2 

2 

7 

3 

7 

1 

3 

3 

3 

3 

3 

3 

2 

3 

3 

3 

2 

7 

3 

3 

5 

7 

27 

2 

86 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

39.7 

89.4 

90.9 

0 

0 

0 

0 

6 

0 

0 

3.9 

9.5 

0 

0 

0 

0 

84 

86 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

' 0 

32.6 

73.5 

74.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

42 

60 

0 

Nix 

0 

0 

0 

0 

0 

0 

0 

NGL 

Nix 

22.4 

5.7 

18.6 

49.6 

18.8 

53.2 

36.3 

0 104.9 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

0 

7.6 

0 

0 

0 

0 

0 

0 

0 

6 

2.7 

26.5 

93.7 

15 

170 

28.4 

65 

66 

1 

4.2 

1.7 

10.7 

6 

4.7 

0 

0 

0 

52.5 

2.9 

6.7 

2.4 

0 

119 

0 

Nat. 

iaso. Other 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

4.4 

0 

0 

0 

0 

0 

27 

30 

2.4 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0.3 

0.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
g35 Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

MHcfd Production (1,000 gallons per day) 

Coipany 

Rocky Mountain NG 

Vessels 6 Processing 

Location, 

by Census 

Code 

84 

84 

84 

84 

84 

84 

84 

Gas Raw Debut. 

Gas Through- Process Iso- NonalLP-6as N6L Nat. 

Capacity put Method Ethane Propane ButaneButane Nix Mix Gaso. Other 

NR 

5 

15 

15 

15 

4 

30 

1.2 

2.2 

3.5 

1 

8.1 

2.2 

22 

0 11.5 

0 35 

KM Energy 

(Plains Petroleui) 47 75 62 3 2.2 33.8 0 18.5 0 0 4.3 0 

47 150 99.8 1 0 0 0 2 0 0 12.8 0 

83 80 43.2 1 0 13 0 4.2 0 0 3.1 0 

83 5 1.6 1 0 2.4 0 0 2.7 0 0 0 

Kansas Refined Heliui 

Nat'l Heliui 

Northern Nat. Gas 

(Hobil) 

Peoples Nat. Sas 

Kentucky Hydrocarbon 

Bruin Petroleui 

Claiborne Gasoline 

47 

47 

47 

85 

47 

61 

61 

72 

72 

24 

1000 

200 

220 

4.5 

17 

478 

168.9 

75.1 

0.1 0.4 0.7 0 0 1.2 0 

1.2 0 15.5 0 52.2 0 0 

0 35.4 

0 127.1 

0.9 

0 0 

0 0 

20 

51 

40 

NR 

16.3 

49.2 

35 

33.6 

27 

367 

• a • 

2 

0 

0 

0 

0 

0 

0 

0 

27 

0 

0 

0 

12.7 

0 

0 

0 

16.3 

0 

0 

0 

0 

0 

0 

25 

0 

0 31.1 

0 183.7 

0 0 

0 120.3 

Davis, J.L. 

72 

72 

85 

74 

74 

74 

15 

7.5 

12 

12 

15 

8 

8 

3 

6 

5 

4 

4 

6 

6 

7 

2 

7 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

10 

12 

42 

40 

10 

12 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Davis Gas Processing 

74 

74 

74 

74 

74 

74 

12 

8 

10 

2 

16 

8 

9.5 

3.5 

3.5 

0.2 

8.5 

3 

2 

3 

2 

3 

2 

3 

0 

0 

0 

0 

0 

0 

0 

7 

3.5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

48 

8 

3.5 

1 

48 

5 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
SJ5 Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

HH cfd ! Production (1,000 gallons per day) 

Location, Gas Raw Debut. 

by Census 6as Through- Process Iso- NonalLP-Gas N6L Nat. 

Coipany Code Capacity put Nethod Ethane Propane ButaneButane Hix Nix 6aso. Other 

74 6 3.5 2 0 0 0 0 0 0 0 0 

74 5 2 3 0 0 0 0 0 4 0 0 

74 8 3.5 2 0 0 0 0 0 22 0 0 

TMP Operating Co. 

Louisiana Land k Exploration 

72 21 13 7 0 0 0 0 0 30.2 0 0 

72 125 80 7 0 0 0 0 0 55 0 0 

Petro-Hunt 

Placid Oil 

72 25 5.4 0 3.2 

(S0NAT) 

Flying J Inc. 

43 30 20.8 9.7 0 7.8 0 7.3 

2.7 

72 

72 

Resources Extraction & Processing 

72 

Sid Richardson Carbon & 6asoline 

Lakeville Gas Associates 

Michigan Consolidated 

Southern Nat. Gas 

72 

74 

74 

74 

74 

74 

34 

34 

64 

217.5 

400 

200 

15 

15 

12 

60 

120 

40 

20 

15 

750 

207 

61.7 

200 

3.2 

8.1 

7.1 

31.9 

89.5 

16.7 

4 

12.5 

282 

2 

7 

7 

7 

3 

6 

7 

7 

7 

2 

3 

5 

0 

0 

64.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

24.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

7.6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

7.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 159.7 

0 

0 

0 

0 

0 

0 

71.4 

0 

5.6 

16.2 

70 

103 

0 237.5 

0 

0 

0 

0 

78.5 

5.5 

10 

11.3 

0 

0 

16 

0 

0 

0 

0 

0 

0 

0 

0 

0 

23.3 

0 

0 

100 

1.9 

O.l 

1.3 

1.4 

0 

0 

0 

0 

True Oil 

Ninerals Inc. 

Sunterra Gas Processing 

Beard Oil Co. 

43 

44 

85 

85 

85 

85 

85 

73 

73 

4 

10 

45 

6 

100 

85 

85 

1 

3 

0.8 

1.3 

19 

2.5 

78.6 

12.3 

41.7 

0.4 

1 

3 

3 

7 

6 

2 

7 

7 

3 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 4.1 

0 10.2 

0 30.2 

0 1.2 

0 135.6 

0 26.4 

0 69.9 

0 0.3 

0 2.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

88 
P.94 

6as Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

HN cfd Production (1,000 gallons per day) 

Coipany 

CNG Producing Co. 

Location, Gas Raw Debut, 

by Census 6as Through- Process Iso- NonalLP-Gas N6L Nat. 

Code Capacity put Method Ethane Propane ButaneButane Hix Hix Gaso. Other 

Deisenroth 6as Products 

Enogex Production Corp. 

73 

73 

0.7 

O.f 

3 0 4.2 

Ladd Petroleui 

Hid-Aierica Gas Line Corp. 

Oklahoia Gas Pipeline Co 

73 

73 

73 

73 

73 

74 

73 

73 

73 

73 

250 

3 

15 

10 

40 

23 

5 

6 

3 

60 

103 

1.9 

13.5 

0.9 

30.9 

17 

2.3 

2.1 

1.1 

35 

2 

3 

7 

3 

7 

12 

3 

3 

3 

7 

0 

0 

0 

0 

0 

0 

0.7 

1 

0.5 

9.8 

50 

0 

0 

0 

0 

0 

1.8 

2.5 

1.3 

19 

0 

0 

0 

0 

0 

0 

0.4 

0.5 

0.3 

4.1 

0 

0 

0 

0 

0 

0 

1.2 

1.6 

0.7 

9.3 

40 

0 

0 

0 

0 

74.3 

5.6 

7.8 

3.3 

0 

0 

5 

42 

12 

63.8 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

1.5 

2.1 

0.5 

11.7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Adobe Resources Corp. 

Anchor Gasoline Corp 

BHP Petroleui 

Black Hawk 

Breckenridge 

Bruin 

74 

74 

16 

67 

11.4 

NR 

0 75.4 

5 0 0.8 

74 

74 

74 

74 

74 

74 

74 

18 

1.5 

7 

20 

4 

12 

4 

13 

0.7 

3.2 

18 

4 

1 

1 

6 

34 

1 

7 

3 

3 

3 

43.2 

0 

0 

0 

0 

0 

0 

58.2 

0 

0 

0 

0 

0 

0 

8 

0 

0 

0 

0 

0 

0 

23.4 

0 

0 

0 

0 

0 

0 

0 

2 

0 

0 

0 

0 

0 

0 

0 

7.3 

43.1 

4 

2 

0 

22.6 

0 

0 

0 

0 

0 

0 

0.9 

0 

0 

0 

0 

0 

0 

Double U Oil 74 0.4 0 0.5 

Eagle Petroleui Corp. 

Endevco 

74 

74 

74 

74 

74 

74 

1.5 

1.5 

30 

20 

130 

30 

0.5 

0.5 

26 

11 

100 

24 

3 

3 

7 

7 

1 

7 

89 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2 

2.5 

56 

20 

0 

75 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
r}ii Processing coipanies and Plan;s: 1386 Capacities and Products Exhibit A- l — ^continued) 

HH cfd ! Production (1,000 gallons per day) 

Location, Gas Raw Debut, 

by Census 6as Through- Process Iso- NonalLP-Gas N6L Nat. 

Coipany Code Capacity put Nethod Ethane Propane ButaneButane Hix , Hix Gaso. Other 

Fariland Industries Ine 

74 

74 

74 

74 

83 

74 

74 

15 

35 

50 

10 

7 

4 

4 

13.6 

31.5 

24.1 

3.9 

1.8 

2 

3 

7 

7 

7 

3 

3 

3 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

4.2 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

94.2 

98.7 

160 

20.7 

4.4 

4 

6 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Fort Chadbourne Corp 

Gerlane Petroleui 74 12 3 2 0 0000 6 

66SI Gathering 74 30 18.7 7 0 0 0 0 0 128.1 

Houston Oil & Hinerals 

74 

74 

74 

74 

5 

1 

105 

18 

3.5 

0.8 

38 

10 

3 

4 

5 

3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

8.4 

1.2 

0 

2 

0 

0 

6.6 

0 

0 

0 

0 

0 

74 50 17 7 0 0 0 0 0 17.6 0 20 

Hunt Oil Co 

HAPC0 Uestpan Inc. 

Hills Bennett Estate 

Parade 

Periian 

(Occidental) 

Perry 

Phillips, Jack L. 

Portal 

Pronto 

Seagull 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

74 

87.5 

10 

100 

60 

100 

8 

3 

5 

5 

100 

7 

2.2 

1 

2 

0.8 

250 

67 

3 

13.4 

35 

1 

1.5 

1.7 

2 

2 

0 

1 

3.4 

0.1 

1.8 

0.2 

194 

2 

3 

2 

2 

2 

2 

3 

3 

3 

7 

3 

3 

3 

3 

3 

7 

90 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 157.5 

0 

0 

0 

0 

1.1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

2.7 

39.4 

122 

2.5 

0 

17.2 

6 

11 

0 

1.3 

9.5 

0.6 

2.1 

0.2 

0 215.3 

0 

0 

0 

0 

0 

0 

0 

0 

0 

25 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 
gas Processing Coipanies and Plants: 1986 Capacities and Products Exhibit A-l — (continued) 

HH cfd ! Production (1,000 gallons per day) 

Location, 6as Raw Debut, 

by Census 6as Through- Process Iso- NonaILP-6as N6L Nat. 

Coipany Code Capacity put Nethod Ethane Propane ButaneButane Nix Hix Gaso. Other 

Southwest Forest 6as Gathering 

74 16 6 7 0 0 0 0 0 36 0 0 

SP6 Exploration 

74 5 3 6 0 0 0 0 0 7.3 0 0 

74 60 21.5 2 0 27.1 0 12.3 0 0 7.9 12 

United Texas Transmission 

74 40 10.6 7 0 0 0 0 7.5 0 0.1 

ViiGas Co 

74 65 32 37 0 0 0 0 0 146.2 23.1 0 

74 200 129 7 0 0 0 0 0 567.8 20.5 0 

W Sub Ine 

Gary Energy Corp 

74 

87 12.5 1.3 

23 11.3 

0 0 

0.6 

13.8 

0 0.8 

0 0 

0 3.9 

0 0 0.8 

0 23.5 0 

Mountain Fuel Resources Inc. 

87 120 77.7 0 0 0 0 3.7 0 0 

Coluibia Gas Transmission Corp 

55 35 32 

55 120 120 

2 0 0 0 0 0 41.5 0 0 

2 0 0 0 0 0 130 0 0 

Consolidated Gas Transmission Corp 

55 150 118.6 3 210.1 129.6 22.1 41.8 0 41.3 0 0 

Inexco 

(Louisiana Land . Ex 83 25 2 0 15 0 0 0 14 0 0 

Ralston Processing Associates 

83 6 1 

83 NA NA 

2 0 4 0 4 0 0 4 0 

2 0 1.5 0 1.7 0 0 2 0 

91 
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1 1 J_!N(_<OKUIuJ<<QJZ<U ) < < < < U U U Q O Iv O I M H H H _ 

V 
P.98 

jas Processing Coipanies: Capacity, 1986 Production and Revenues Exhibit A-2 

Coipany 

1 Phillips (1) 

2 Exxon 

3 Texaco 

4 Shell 

5 Aioco 

6 Chevron (2) 

7 Conoco 

8 Nobil 

9 Occidental 

10 Enron 

11 Valero 

12 Sun 

13 Hitchell 

14 ARCO 

15 Burlington Northern 

16 Allied-Signal (3) 

17 U.S. Dept of Energy 

18 USX 

19 Coastal 

20 CSX 

21 Haxus Energy 

22 Union Pacific 

23 Tenneco 

24 Enserch 

25 Hi 1Sas Co 

26 Northwest Pipeline 

27 Unocal 

28 Sid Richardson 

29 Koch Hydrocarbon 

30 Cabot Corp. 

31 Consol. Gas Trans. 

32 Western Gas Proc. 

33 Daison 

34 Fariland Industries 

35 Hesa 

36 Kerr-HeSee 

37 Sunterra Gas Proc. 

38 Placid Oil 

39 Associated 

40 Seagull 

41 BHP Petroleui 

42 Claiborne Gasoline 

43 Coluibia Gas Trans. 

44 Anadarko 

45 HAPCO Hestpan Inc. 

46 Hunt Oil 

47 Endevco 

48 Plains Petroleui 

49 Nat'l Heliui 

50 Davis Gas Proc. 

51 G6SI Gathering 

52 Davis, J.L. 

P 

1 

a 

n 

t 

HHcfd 

Gas 

6as Throughs Capacity 

40 

25 

47 

31 

31 

58 

12 

33 

29 

20 

10 

26 

33 

28 

11 

13 

3 

35 

20 

3 

1 

17 

11 

13 

2 

2 

14 

6 

7 

12 

1 

13 

15 

5 

6 

6 

3 

2 

7 

1 

1 

3,334.5 

5,373.0 

4,475.5 

7,379.1 

2,603.0 

649.7 

1,919.0 

4,747.9 

2,805.5 

3,253.4 

1,320.6 

822.6 

822.0 

4,153.9 

1,916.0 

593.0 

294.0 

1,962.3 

4,589.0 

1,565.0 

375.0 

917.7 

1,187.5 

333.5 

265.0 

700.0 

380.6 

262.0 

182.0 

343.0 

150.0 

224.5 

401.5 

117.0 

448.0 

put 

2,000.0 

2,620.5 

1,963.1 

3,531.6 

1,484.8 

1,366.5 

1,206.2 

2,537.5 

1,539.4 

2,547.0 

1,091.8 

539.4 

478.7 

531.6 

813.3 

365.9 

261.7 

732.1 

1,583.4 

1,222.0 

275.6 

652.6 

619.3 

230.4 

161.0 

386.0 

232.1 

156.5 

99.5 

127.3 

118.6 

109.9 

153.6 

74.9 

147.3 

133.0 NR 

270.0 

617.5 

164.0 

250.0 

18.0 

2 NR 

2 

6 

3 

2 

4 

4 

2 

9 

2 

6 

155.0 

86.0 

260.0 

97.5 

210.0 

310.0 

1,000.0 

75.0 

30.0 

69.5 

132.6 

268.7 

113.9 

194.0 

13.0 

33.6 

152.0 

32.1 

49.4 

70.0 

161.0 

206.6 

478.0 

37.2 

18.7 

30.0 

Production 

Ethane 

1,225.2 

654.2 

341.8 

149.8 

167.0 

461.1 

383.6 

0.0 

201.7 

775.3 

0.0 

0.0 

354.1 

126.3 

323.4 

0.0 

34.1 

0.0 

332.0 

0.0 

313.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

210.1 

0.0 

25.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

43.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

2.2 

0.0 

0.0 

0.0 

0.0 

- 1,000 gallons per day 

Propane 

700.9 

675.8 

365.5 

428.0 

210.2 

306.5 

164.8 

138.6 

642.2 

506.6 

284.5 

159.3 

425.1 

205.2 

366.6 

220.0 

52.6 

81.5 

252.1 

244.7 

201.6 

118.5 

0.0 

0.0 

170.0 

176.7 

0.0 

97.2 

0.0 

129.6 

85.7 

85.0 

4.2 

15.3 

25.5 

0.0 

0.0 

0.0 

0.0 

58.2 

27.0 

0.0 

18.4 

0.0 

0.0 

0.0 

49.2 

1.2 

10.5 

0.0 

0.0 

93 

Isobutane 

90.4 

115.6 

16.4 

11.1 

34.8 

71.6 

42.1 

16.0 

94.8 

118.5 

132.0 

25.2 

40.9 

0.0 

64.2 

0.0 

2.7 

0.0 

82.7 

47.1 

2.9 

36.3 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

22.1 

3.9 

0.0 

0.0 

1.4 

0.0 

0.0 

0.0 

0.0 

0.0 

8.0 

12.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Norial 

Butane 

453.6 

205.0 

42.9 

326.4 

51.3 

100.1 

44.4 

76.5 

231.5 

159.2 

69.3 

27.4 

210.6 

93.2 

136.2 

180.8 

22.9 

112.4 

71.2 

115.1 

56.0 

61.4 

0.0 

0.0 

102.0 

108.4 

0.0 

56.0 

0.0 

41.8 

46.6 

3.5 

0.0 

5.1 

17.4 

0.0 

0.0 

0.0 

0.0 

23.4 

16.3 

0.0 

0.0 

0.0 

0.0 

0.0 

24.7 

15.5 

0.0 

0.0 

0.0 

LP-6as 

Nix 

0.0 

0.0 

387.8 

0.0 

7.6 

0.0 

16.7 

178.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

4.3 

6.3 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

18.7 

0.0 

0.0 

0.0 

0.0 

7.4 

0.0 

0.0 

0.0 

31.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

2.7 

0.0 

0.0 

0.0 

0.0 

Raw 

NGL 

Hix 

1,295.1 

2,174.7 

3,271.1 

1,215.9 

2,412.4 

1,680.0 

2,087.7 

1,833.4 

274.7 

221.8 

544.6 

1,226.1 

0.0 

854.7 

0.0 

159.4 

975.7 

477.7 

153.0 

110.5 

731.4 

246.0 

741.1 

714.0 

119.0 

70.1 

510.8 

150.3 

438.4 

41.3 

101.7 

359.1 

378.0 

332.8 

157.8 

231.9 

231.1 

217.6 

215.3 

0.0 

0.0 

171.5 

166.7 

163.9 

160.2 

151.0 

0.0 

52.2 

139.5 

128.1 

126.0 

Debut. 

Nat. 

6aso. 

391.1 

287.2 

93.0 

202.4 

20.8 

135.3 

95.7 

78.5 

205.2 

0.0 

173.0 

83.7 

219.5 

447.6 

190.6 

0.0 

48.4 

19.9 

165.0 

0.0 

164.0 

191.1 

0.0 

43.6 

57.0 

104.3 

0.0 

61.5 

0.0 

0.0 

58.0 

6.0 

0.0 

4.7 

0.0 

0.0 

0.0 

0.0 

0.0 

22.6 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

20.2 

0.0 

0.0 

0.0 

0.0 

Other 

54.9 

4.2 

0.0 

521.9 

8.1 

15.3 

83.2 

190.6 

1.5 

0.0 

662.7 

28.1 

10.0 

0.0 

0.0 

0.0 

62.8 

29.7 

0.0 

390.8 

0.0 

259.1 

0.0 

0.0 

0.0 

0.5 

104.7 

0.0 

0.0 

0.0 

31.8 

0.0 

0.0 

0.0 

0.0 

0.0 

23.3 

0.0 

0.0 

0.9 

120.3 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 

Products 

8,047.2 
P.99 

oas Processing Conpanies: Capacity, 1986 Production and Revenues Exhibit A-2 — (continued) 

Coipany 

53 Arkla 

54 Resources Extraction 

55 Oklahoia Gas P L 

56 SP6 Exploration 

57 Adobe Resources 

1 58 Bruin Petroleui 

1 59 Louisiana Land it Exp. 

1 60 Ladd Petroleui 

61 Enogex Production 

62 Freeport-HcHoRan 

63 Flying J Inc. 

64 Vessels 6 Processing 

i 65 Standard 

j 66 Southwest Forest Sas 

67 Ralston Processing 

68 Minerals Inc. 

j 69 FHP Operating Co. 

70 Houston Oil & Min. 

71 Gary Energy Corp 

72 Nid-Aierica Gas Line 

73 Petrolane Loiita 

74 Cenex 

75 Petro-Hunt 

76 Santa Fe 

77 Parade 

78 True Oil 

79 N6L Production 

80 SONAT, Inc. 

81 Celsius Energy 

82 Michigan Consolidated 

83 Fort Chadbourne Corp 

84 Portal 

85 United Texas Trans. 

86 Breckenridge 

87 Kansas Refined Heliui 

88 Cerrito Land 

89 Gerlane Petroleui 

90 Lakeville Gas Assoc. 

91 Coors Energy 

92 Eagle 

93 Brighton 

94 CNG Producing Co. 

95 WW Sub Ine 

96 Mountain Fuel Res. 

97 Rocky Mountain N6 

98 Deisenroth 6as Prod. 

99 Pronto 

100 Beard Oil Co. 

101 Cabin Creek 

102 Phillips, Jack L. 

103 Berthoud 

104 Double U Oil 

P 

1 

a 

n 

t 

HHcfd 

Gas 

Gas Throughs Capacity 

7 

1 

1 

2 

1 

5 

2 

2 

4 

2 

1 

2 

3 

1 

1 

2 

1 

5 

2 

3 

2 

1 

1 

1 

1 

2 

3 

1 

1 

1 

2 

1 

1 

2 

1 

1 

1' 

1 

1 

2 

1 

1 

1 

1 

6 

1 

3 

2 

1 

2 

1 

1 

241.0 

200.0 

60.0 

65.0 

16.0 

80.0 

150.0 

63.0 

278.0 

44.0 

30.0 

34.0 

90.0 

16.0 

6.0 

51.0 

21.0 

179.0 

35.5 

14.0 

54.0 

3.0 

25.0 

15.0 

3.0 

14.0 

70.0 

750.0 

10.0 

15.0 

8.0 

2.2 

40.0 

7.0 

24.0 

40.0 

12.0 

20.0 

8.0 

3.0 

2.5 

2.0 

2.0 

120.0 

50.0 

1.0 

3.8 

4.0 

1.5 

7.0 

2.5 

1.0 

put 

89.1 

200.0 

35.0 

24.5 

11.4 

59.0 

86.0 

47.9 

119.2 

26.0 

20.8 

24.2 

73.0 

6.0 

1.0 

21.5 

13.0 

69.3 

12.6 

5.5 

23.5 

0.7 

8.0 

5.3 

1.7 

2.1 

33.2 

282.0 

4.9 

12.5 

5.0 

3.4 

10.6 

3.2 

17.0 

15.0 

3.0 

4.0 

5.7 

1.0 

1.0 

0.7 

1.0 

77.7 

16.0 

0.8 

2.1 

1.4 

0.2 

1.0 

0.3 

0.4 

Production -

Ethane Pr 

0.0 

64.2 

9.8 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

2.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

94 

1,000 

opane 

19.2 

24.3 

19.0 

27.1 

0.0 

0.0 

15.0 

0.0 

50.0 

9.5 

9.7 

0.0 

6.5 

0.0 

5.5 

0.0 

0.0 

0.0 

14.4 

5.6 

2.8 

1.1 

5.4 

8.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.1 

6.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

gallons per day 

Isobutane 

7.9 

7.6 

4.1 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

1.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.4 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Norial 

Butane 

11.3 

7.3 

9.3 

12.3 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

7.8 

0.0 

6.5 

0.0 

5.7 

0.0 

0.0 

0.0 

0.8 

3.5 

0.0 

3.4 

3.2 

3.1 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

LP-Gas 

Nix 

2.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

74.3 

40.0 

7.6 

0.0 

0.0 

.218.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

16.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Raw 

NGL 

Mix 

0.0 

0.0 

0.0 

7.3 

75.4 

74.1 

69.0 

63.8 

59.0 

52.5 

7.3 

46.5 

0.0 

36.0 

0.0 

31.4 

30.2 

29.2 

23.5 

0.0 

25.0 

0.0 

0.0 

0.0 

17.2 

14.3 

12.0 

11.3 

10.7 

10.0 

10.0 

9.5 

7.5 

7.3 

0.0 

6.0 

6.0 

5.5 

4.7 

4.5 

4.2 

4.2 

3.9 

3.7 

3.4 

3.0 

2.9 

2.6 

1.7 

1.3 

1.0 

0.5 

Debut. 

Nat. 

Gaso. 

26.0 

16.0 

11.7 

7.9 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

11.0 

0.0 

6.0 

0.0 

0.0 

6.6 

0.8 

4.1 

0.0 

0.0 

2.7 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

1.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 

Other Products 

3.7 

0.0 

0.0 

12.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

45.0 

0.0 

0.0 

0.0 

0.0 

20.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.1 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.3 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.1 

0.0 

0.0 

0.0 

i 
P.1 

Bas Processing Companies: Capacity, 1986 .Production and Revenues Exhibit A-2 — (continued) 

Coipany 

105 Planet Engineers 

106 Hills Bennett Estate 

107 Black Hawk 

108 Anchor Gasoline Corp 

109 Kentucky Hydrocarbon 

110 Loveland 

111 Perry 

112 Greeley Gas Co 

113 Peoples Nat. 6as 

114 Pennzoil 

Total 

P 

1 

a 

n 

t 

s 

- 1 

9 

HHcfd 

Gas 

Gas ThroughCapacity 

7.5 

8.0 

1.5 

67.0 NR 

71.0 

6.0 

100.0 

5.0 

4.5 

9.0 

put 

2.4 

1.5 

0.7 

65.5 

2.0 

0.0 

2.3 

3.0 

5.0 

810 67,885.3 35,523.7 0.0 

Production 

Ethane 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

6,199.3 

- 1,000 

Propane 

3.0 

0.0 

0.0 

0.0 

0.0 

3.9 

0.0 

0.0 

0.0 

0.0 

7,941.3 

gallons 

Isobutane 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

1,114.6 

per day 

Noraal 

Butane 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

3,383.0 

LP-Gas 

Nix 

0.0 

1.1 

2.0 

5.0 

0.0 

0.0 

0.0 

2.0 

0.9 

0.0 

Raw 

NGL 

Mi x 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

1,031.0 29,014.4 

Debut. 

Nat. 

Gaso. 

2.4 

0.0 

0.0 

0.8 

0.0 

4.4 

25.0 

0.0 

0.0 

2.0 

3,718,5 

Total 

Other Products 

0.0 

0.0 

0.0 

0.0 

214.8 

0.0 

0.0 

0.0 

0.0 

0.0 

2,900.4 8,047.2 

(1) Phillips Petroleui Co. does not release plant- or state-specific data, only the totals 

included here. 

(2) Chevron's gas capacity figures are incoiplete. because its subsidiary, Uarren Petroleui, does not 

release this information. 

(3) Allied-Signal, Inc. ovns 50Z of Union Texas Petroleui Holdings, Inc. 

(Source: Oil and Gas Journal; July 13, 1987; Moody's Industrial Manual, 1987; Selected 

Coipany Annual Reports.) 

95 
P.2 

I >'ta Processing •.'•"'ipanies.- Capacity, i386 Production and Revenues 

Exhibit A-2 — (continued) 

Coipany 

1 Phillips (1) 

2 Exxon 

3 Texaco 

4 Shell 

5 Aioco 

6 Chevron (2) 

7 Conoco 

8 Mobil 

9 Occidental 

10 Enron 

11 Valero 

12 Sun 

13 Mitchell 

14 ARCO 

15 Burlington Northern 

16 Allied-Signal (3) 

17 U.S. Dept of Energy 

18 USX 

19 Coastal 

20 CSX 

21 Haxus -Energy 

22 Union Pacific 

23 Tenneco 

24 Enserch 

25 Nil Gas Co 

26 Northwest Pipeline 

27 Unocal 

28 Sid Richardson 

29 Koch Hydrocarbon 

30 Cabot Corp. 

31 Consol. Gas Trans. 

32 Western Gas Proc. 

33 Oaison 

34 Fariland Industries 

35 Mesa 

36 Kerr-Hc6ee 

37 Sunterra Gas Proc. 

38 Placid Oil 

39 Associated 

40 Seagull 

41 BHP Petroleui 

42 Claiborne Gasoline 

43 Coluibia Gas Trans. 

44 Anadarko 

45 MAPCO Uestpan Inc. 

46 Hunt Oil 

47 Endevco 

48 Plains Petroleui 

49 Nat'l Heliui 

50 Davis Gas Proc. 

51 66SI Gathering 

52 Davis, J.L. 

P 

1 

a 

n 

t 

s 

40 

25 

47 

31 

31 

58 

12 

33 

29 

20 

10 

26 

33 

28 

11 

13 

3 

35 

20 

3 

1 

17 

11 

13 

2 

2 

14 

6 

7 

12 

1 

13 

15 

5 

6 

6 

3 

2 

7 

1 

1 

2 

2 

6 

3 

2 

4 

4 

2 

9 

2 

6 

Ethane 

froa 

Raw NGL 

2,525.3 

406.4 

682.4 

1,026.5 

381.6 

757.0 

527.2 

655.1 

575.3 

86.2 

69.6 

170.9 

384.8 

0.0 

268.2 

0.0 

50.0 

306.2 

149.9 

48.0 

34.7 

229.5 

77.2 

232.6 

224.1 

37.3 

22.0 

160.3 

47.2 

137.6 

13.0 

31.9 

112.7 

113.6 

104.4 

49.5 

72.8 

72.5 

68.3 

67.6 

0.0 

0.0 

53.8 

52.3 

51.4 

50.3 

47.4 

0.0 

16.4 

43.8 

40.2 

39.5 

Propane 

froi 

Raw NGL 

2,642.6 

425.3 

714.1 

1,074.2 

399.3 

792.2 

551.7 

685.6 

602.1 

90.2 

72.8 

178.8 

402.6 

0.0 

280.7 

0.0 

52.3 

320.4 

156.9 

50.2 

36.3 

240.2 

80.8 

243.4 

234.5 

39.1 

23.0 

167.7 

49.4 

144.0 

13.6 

33.4 

117.9 

124.1 

109.3 

51.8 

76.2 

75.9 

71.5 

70.7 

0.0 

0.0 

56.3 

54.7 

53.8 

52.6 

49.6 

0.0 

17.1 

45.8 

42.1 

41.4 

Iso-C4 

froa 

Raw N6L 

664.7 

107.0 

179.6 

270.2 

100.4 

199.3 

138.8 

172.5 

151.4 

22.7 

18.3 

45.0 

101.3 

0.0 

70.6 

0.0 

13.2 

80.6 

39.5 

12.6 

9.1 

60.4 

20.3 

61.2 

59.0 

9.8 

5.8 

42.2 

12.4 

36.2 

3.4 

8.4 

29.7 

31.2 

27.5 

13.0 

19.2 

19.1 

18.0 

17.8 

0.0 

0.0 

14.2 

13.8 

13.5 

13.2 

12.5 

0.0 

4.3 

11.5 

10.6 

10.4 

n-C4 

froi 

Raw NGL 

814.9 

131.2 

220.2 

331.3 

123.1 

244.3 

170.1 

211.4 

185.7 

27.8 

22.5 

55.2 

124.2 

0.0 

86.6 

0.0 

16.1 

98.8 

48.4 

15.5 

11.2 

74.1 

24.9 

75.0 

72.3 

12.1 

7.1 

51.7 

15.2 

44.4 

4.2 

10.3 

36.4 

38.3 

33.7 

16.0 

23.5 

23.4 

22.0 

21.8 

0.0 

0.0 

17.4 

16.9 

16.6 

16.2 

15.3 

0.0 

5.3 

14.1 

13.0 

12.8 

9 6 

C5 • 

froi 

Raw NGl 

1,399.6 

225.3 

378.2 

568.9 

211.5 

419.6 

292.2 

363.1 

318.9 

47.8 

38.6 

94.7 

213.3 

0.0 

148.7 

0.0 

27.7 

169.7 

83.1 

26.6 

19.2 

127.2 

42.8 

128.9 

124.2 

20.7 

12.2 

88.8 

26.1 

76.2 

7.2 

17.7 

62.5 

65.7 

57.9 

27.4 

40.3 

40.2 

37.8 

37.4 

0.0 

0.0 

29.8 

29.0 

28.5 

27.9 

26.3 

0.0 

9.1 

24.3 

22.3 

21.9 

Total 

Ethane 

1,631.6 

1,336.6 

1,368.3 

531.4 

924.0 

988.3 

1,038.7 

575.3 

287.9 

844.9 

170.9 

384.8 

354.1 

394.5 

323.4 

50.0 

340.3 

149.9 

380.0 

34.7 

542.5 

77.2 

232.6 

224.1 

37.3 

22.0 

160.3 

47.2 

137.6 

223.1 

31.9 

137.7 

118.6 

104.4 

49.5 

72.8 

72.5 

68.3 

67.6 

43.2 

0.0 

53.8 

52.3 

51.4 

50.3 

47.4 

2.2 

16.4 

43.8 

40.2 

39.5 

Total 

Propane 

1,126.2 

1,389.9 

1,439.7 

827.3 

1,002.4 

858.2 

850.4 

740.7 

732.4 

579.4 

463.3 

561.9 

425'. 1 

485.9 

366.6 

272.3 

373.0 

238.4 

302.3 

281.0 

441.8 

199.3 

243.4 

234.5 

209.1 

199.7 

167.7 

146.6 

144.0 

143.2 

119.1 

202.9 

128.3 

124.6 

77.3 

76.2 

75.9 

71.5 

70.7 

58.2 

27.0 

56.3 

73.1 

53.8 

52.6 

49.6 

49.2 

18.3 

56.3 

42.1 

41.4 

Total 

Iso-C4 

197.4 

255.6 

226.9 

89.3 

190.1 

179.7 

176.5 

134.0 

112.5 

132.8 

167.0 

104.1 

40.9 

55.0 

64.2 

10.3 

65.5 

30.7 

92.5 

54.2 

50.0 

52.1 

47.7 

45.9 

7,7 

4.5 

32.9 

9.7 

28.2 

24.8 

10.4 

23.1 

24.3 

22.8 

10.2 

14.9 

14.9 

14.0 

13.9 

8.0 

12.7 

11.0 

10.7 

10.5 

10.3 

9.7 

0.0 

3.4 

9.0 

8.2 

8.1 

Total 

n-C4 

584.8 

425.2 

374.2 

449.5 

295.6 

270.2 

255.8 

262.2 

259.3 

181.7 

124.5 

151.6 

210.6 

179.8 

136.2 

196.9 

121.7 

160.8 

86.7 

126.3 

130.1 

86.3 

75.0 

72.3 

114.1 

115.5 

51.7 

71.2 

44.4 

46.0 

56.9 

39.9 

38.3 

38.8 

33.4 

23.5 

23.4 

22.0 

21.8 

23.4 

16.3 

17.4 

16.9 

16.6 

16.2 

15.3 

24.7 

20.8 

14.1 

13.0 

12.8 

1 

1 

Total 

C5 • 

671.3 

669.6 

1,049.7 

935.8 

456.1 

442.8 

558.7 

766.0 

254.5 

38.6 

930.4 

325.1 

229.5 

596.3 

190.6 

27.7 

285.2 

139.0 

191.6 

410.0 

291.2 

493.0 

128.9 

167.8 

77.7 

135.7 

193.5 

87.6 

76.2 

7.2 

114.9 

68.5 

65.7 

62.6 

59.1 

40.3 

63.5 

37.8 

37.4 

23.5 

120.3 

29.8 

29.0 

28.5 

27.9 

26.3 

22.9 

9.1 

24.3 

22.3 

21.9 

Value 

Ethane 

555.56 

358.96 

294.06 

301.03 

116.90 

203.29 

217.43 

228.52 

126.57 

63.34 

185.88 

37.60 

84.65 

77.90 

86.79 

71.15 

11.00 

74.86 

32.98 

83.60 

7.63 

119.35 

16.98 

51.16 

49.29 

8.22 

4.84 

35.26 

10.38 

30.27 

49.07 

7.02 

30.29 

26.10 

22.98 

10.89 

16.01 

15.95 

15.02 

14.86 

9.50 

0.00 

11.84 

11.51 

11.32 

11.06 

10.42 

0.48 

3.60 

9.63 

8.84 

8.70 
P.3 

•Jas ,-rocessing U'apanies: lapacicy, jjSfa F'rC'Cuc;;on one Revenues 

Exhibit A-2 — (continued) 

Coipany 

53 Arkla 

54 Resources Extraction 

55 Oklahoia Gas P L 

56 SPG Exploration 

57 Adobe Resources 

58 Bruin Petroleui 

59 Louisiana Land & E.xp. 

60 Ladd Petroleui 

61 Enogex Production 

62 Freeport-McHoRan 

63 Flying J Inc. 

64 Vessels G Processing 

65 Standard 

66 Southwest Forest 6as 

67 Ralston Processing 

68 Minerals Inc. 

69 FHP Operating Co. 

70 Houston Oil & Min. 

71 Gary Energy Corp 

72 Hid-Aierica Gas Line 

73 Petrolane Loiita 

74 Cenex 

75 Petro-Hunt 

76 Santa Fe 

77 Parade 

78 True Oil 

79 NGL Production 

80 SONAT, Inc. 

81 Celsius Energy 

82 Michigan Consolidated 

83 Fort Chadbourne Corp 

84 Portal 

85 United Texas Trans. 

86 Breckenridge 

87 Kansas Refined Heliui 

88 Cerrito Land 

89 6erlane Petroleui 

90 Lakeville Gas Assoc. 

91 Coors Energy 

92 Eagle 

93 Brighton 

94 CN6 Producing Co. 

95 UU Sub Ine 

96 Mountain Fuel Res. 

97 Rocky Mountain NG 

98 Deisenroth Gas Prod. 

99 Pronto 

100 Beard Oil Co. 

101 Cabin Creek 

102 Phillips, Jack L. 

103 Berthoud 

104 Double U Oil 

P 

1 

a 

n 

t 

s 

7 

1 

1 

2 

1 

5 

2 

2 

4 

2 

1 

2 

3 

1 

1 

2 

1 

5 

2 

3 

2 

1 

1 

1 

1 

2 

3 

1 

1 

1 

2 

1 

1 

2 

1 

1 

1 

1 

1 

2 

1 

1 

1 

1 

6 

1 

3 

2 

1 

2 

1 

1 

Ethane 

froi 

Raw N6L 

0.0 

0.0 

0.0 

2.3 

23.7 

23.3 

21.7 

20.0 

18.5 

16.5 

2.3 

14.6 

0.0 

11.3 

0.0 

9.9 

9.5 

9.2 

7.4 

0.0 

7.8 

0.0 

0.0 

0.0 

5.4 

4.5 

3.8 

3.5 

3.4 

3.1 

3.1 

3.0 

2.4 

2.3 

0.0 

1.9 

1.9 

1.7 

1.5 

1.4 

1.3 

1.3 

1.2 

1.2 

1.1 

0.9 

0.9 

0.8 

0.5 

0.4 

0.3 

0.2 

Propane 

froi 

Raw NGL 

0.0 

0.0 

0.0 

2.4 

24.8 

24.3 

22.7 

21.0 

19.4 

17.2 

2.4 

15.3 

0.0 

11.8 

0.0 

10.3 

9.9 

9.6 

7.7 

0.0 

8.2 

0.0 

0.0 

0.0 

5.6 

4.7 

3.9 

3.7 

3.5 

3.3 

3.3 

3.1 

2.5 

2.4 

0.0 

2.0 

2.0 

1.8 

1.5 

1.5 

1.4 

1.4 

1.3 

1.2 

1.1 

1.0 

1.0 

0.9 

0.6 

0.4 

0.3 

0.2 

Iso-C4 

froi 

Raw NGL 

0.0 

0.0 

0.0 

0.6 

6.2 

6.1 

5.7 

5.3 

4.9 

4.3 

0.6 

3.8 

0.0 

3.0 

0.0 

2.6 

2.5 

2.4 

1.9 

0.0 

2.1 

0.0 

0.0 

0.0 

1.4 

1.2 

1.0 

0.9 

0.9 

0.8 

0.8 

0.8 

0.6 

0.6 

0.0 

t 0.5 

0.5 

0.5 

0.4 

0.4 

0.3 

0.3 

0.3 

0.3 

0.3 

0.2 

0.2 

0.2 

0.1 

0.1 

0.1 

0.0 

n-C4 

froi 

Raw NGL 

0.0 

0.0 

0.0 

0.7 

7.6 

7.5 

7.0 

6.5 

6.0 

5.3 

0.7 

4.7 

0.0 

3.5 

0.0 

3.2 

3.1 

3.0 

2.4 

0.0 

2.5 

0.0 

0.0 

0.0 

1.7 

1.4 

1.2 

1.1 

1.1 

1.0 

1.0 

1.0 

0.8 

0.7 

0.0 

0.6 

0.6 

0.6 

0.5 

0.5 

0.4 

0.4 

0.4 

0.4 

0.3 

0.3 

0.3 

0.3 

0.2 

0.1 

0.1 

0.1 

C5 • 

froi 

Raw N6L 

0.0 

0.0 

0.0 

1.3 

13.1 

12.9 

12.0 

11.1 

10.3 

9.1 

1.3 

8.1 

0.0 

6.3 

0.0 

5.5 

5.3 

5.1 

4.1 

0.0 

4.3 

0.0 

0.0 

0.0 

3.0 

2.5 

2.1 

2.0 

1.9 

1.7 

1.7 

1.7 

1.3 

1.3 

0.0 

1.0 

1.0 

1.0 

0.8 

0.8 

0.7 

0.7 

0.7 

0.6 

0.6 

0.5 

0.5 

0.5 

0.3 

0.2 

0.2 

0.1 

Total 

Ethane 

0.0 

64.2 

9.8 

2.3 

23.7 

23.3 

21.7 

20.0 

18.5 

16.5 

2.3 

14.6 

0.0 

11.3 

0.0 

9.9 

9.5 

9.2 

7.4 

2.2 

7.8 

0.0 

0.0 

0.0 

5.4 

4.5 

3.8 

3.5 

3.4 

3.1 

3.1 

3.0 

2.4 

2.3 

0.0 

1.9 

1.9 

1.7 

1.5 

1.4 

1.3 

1.3 

1.2 

1.2 

1.1 

0.9 

0.9 

0.8 

0.5 

0.4 

0.3 

0.2 

Total 

Propane 

19.2 

24.3 

19.0 

29.5 

24.8 

24.3 

37.7 

21.0 

69.4 

26.7 

12.1 

15.3 

6.5 

11.8 

5.5 

10.3 

9.9 

9.6 

22.1 

5.6 

11.0 

1.1 

5.4 

8.7 

5.6 

4.7 

3.9 

3.7 

3.5 

3.3 

3.3 

3.1 

2.5 

2.4 

0.1 

8.0 

2.0 

1.8 

1.5 

1.5 

1.4 

1.4 

1.3 

1.2 

1.1 

1.0 

1.0 

0.9 

0.6 

0.4 

0.3 

0.2 

Total 

Iso-C4 

7.9 

7.6 

4.1 

0.5 

4.9 

4.8 

4.4 

4.1 

3.8 

3.4 

' 0.5 

3.0 

0.0 

2.3 

0.0 

2.0 

1.9 

1.9 

1.5 

1.2 

1.6 

0.0 

0.0 

0.0 

1.1 

0.9 

0.8 

0.7 

0.7 

0.6 

0.6 

0.6 

0.5 

0.5 

0.4 

0.4 

0.4 

0.4 

0.3 

0.3 

0.3 

0.3 

0.3 

0.2 

0.2 

0.2 

0.2 

0.2 

0.1 

0.1 

0.1 

0.0 

Total 

n-C4 

11.3 

7.3 

9.3 

13.0 

7.6 

7.5 

7.0 

6.5 

6.0 

5.3 

8.5 

4.7 

6.5 

3.6 

5.7 

3.2 

3.1 

3.0 

3.2 

3.5 

2.5 

3.4 

3.2 

3.1 

1.7 

1.4 

1.2 

1.1 

1.1 

1.0 

1.0 

1.0 

0.8 

0.7 

0.7 

0.6 

0.6 

0.6 

0.5 

0.5 

0.4 

0.4 

0.4 

0.4 

0.3 

0.3 

0.3 

0.3 

0.2 

0.1 

0.1 

0.1 

1 

l 

Total 

C5 • 

31.9 

16.0 

11.7 

21.2 

13.1 

12.9 

12.0 

85.4 

50.3 

16.7 

1.3 

8.1 

274.0 

6.3 

6.0 

5.5 

5.3 

31.7 

4.9 

20.8 

4.3 

0.0 

2.7 

0.0 

3.0 

2.5 

2.1 

2.0 

1.9 

1.7 

1.7 

1.7 

1.4 

1.3 

1.2 

1.0 

1.0 

1.0 

0.8 

0.8 

1.0 

0.7 

0.7 

0.6 

0.6 

0.5 

0.5 

0.5 

0.4 

0.2 

0.2 

0.1 

Value 

Ethane 

0.00 

14.12 

2.16 

0.50 

5.21 

5.12 

4.76 

4.40 

4.07 

3.62 

0.50 

3.21 

0.00 

2.49 

0.00 

2.17 

2.08 

2.02 

1.62 

0.48 

1.73 

0.00 

0.00 

0.00 

1.19 

0.99 

0.83 

0.78 

0.74 

0.69 

0.69 

0.66 

0.52 

0.50 

0.00 

0.41 

0.41 

0.38 

0.32 

0.31 

0.29 

0.29 

0.27 

0.26 

0.23 

0.21 

0.20 

0.18 

0.12 

0.09 

0.07 

0.03 

97 
P.4 

rising Coapanies: Capacity, 1986 Production and Revenues Exhibit A-2 — (continued) 

Coipany 

105 Planet Engineers 

106 Mills Bennett Estate 

107 Black Hawk 

108 Anchor Gasoline Corp 

109 Kentucky Hydrocarbon 

110 Loveland 

111 Perry 

112 Greeley Gas Co 

113 Peoples Nat. Gas 

114 Pennzoil 

Total 

Ethane 

froi 

Propane 

froi 

Iso-C4 

froi 

n-C4 

froi 

C5 • 

froi 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 

Raw NGL Raw NGL Raw NGL Raw NGL Raw N6L Ethane 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total Total 

Propane Iso-C4 

3.0 

0.0 

0.0 

0.0 

0.0 

3.9 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 

n-C4 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

Total 

C5 • 

2.4 

1.1 

2.0 

5.8 

214.8 

4.4 

25.0 

2.0 

0.9 

2.0 

Value 

Ethane 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

810 11,630.6 12,170.9 3,061.5 3,753.3 6,446.2 15,304.3 17,469.3 3,005.5 6,321.2 12,696.3 3922.73 

98 
P.5 

-recessing Coipari.es: Capacity, 1986 Producti'^n and Revenues Exhibit A-2 -- (continued) 

(1,000 t 

Coipany 

1 Phillips (1) 

2 Exxon 

3 Texaco 

4 Shell 

5 Aioco 

6 Chevron (2) 

7 Conoco 

8 Mobil 

9 Occidental 

10 Enron 

11 Valero 

12 Sun 

13 Mitchell 

14 ARCO 

15 Burlington Northern 

16 Allied-Signal (3) 

17 U.S. Dept of Energy 

18 USX 

19 Coastal 

20 CSX 

21 Maxus Energy 

22 Union Pacific 

23 Tenneco 

24 Enserch 

25 Uil6as Co 

26 Northwest Pipeline 

27 Unocal 

28 Sid Richardson 

29 Koch Hydrocarbon 

30 Cabot Corp. 

31 Consol. 6as Trans. 

32 Uestern Gas Proc. 

33 Daison 

34 Fariland Industries 

35 Mesa 

36 Kerr-He Gee 

37 Sunterra 6as Proc. 

38 Placid Oil 

39 Associated 

40 Seagull 

41 BHP Petroleui 

42 Claiborne 6asoline 

43 Columbia Gas Trans. 

44 Anadarko 

45 HAPC0 Uestpan Inc. 

46 Hunt Oil 

47 Endevco 

48 Plains Petroleui 

49 Nat'1 Heliui 

50 Davis Gas Proc. 

51 6GSI Gathering 

52 Davis, J.L. 

P 

1 

a 

n 

t 

s 

40 1 

25 

47 

31 

31 

58 

12 

33 

29 

20 

10 

26 

33 

28 

11 

13 

3 

35 

20 

3 

1 

17 

11 

13 

2 

2 

14 

6 

7 

12 

1 

13 

15 

5 

6 

6 

3 

2 

7 

1 

1 

2 

2 

6 

3 

2 

4 

4 

2 

9 

2 

6 

(1,000 $/day) 

Value 

'ropane 

,215.60 

518.05 

639.37 

662.26 

380.55 

461.11 

394.77 

391.17 

340.71 

336.91 

266.54 

213.14 

258.49 

195.55 

223.50 

168.64 

125.28 

171.58 

109.65 

139.08 

129.25 

203.22 

91.67 

111.95 

107.86 

96.18 

91.87 

77.16 

67.42 

66.22 

65.85 

54.78 

93.35 

59.03 

57.31 

35.57 

35.03 

34.91 

32.87 

32.52 

26.77 

12.42 

25.91 

33.65 

24.76 

24.20 

22.81 

22.63 

8.44 

25.90 

19.35 

19.03 

Value 

Iso-C4 

405.49 

120.40 

155.89 

138.42 

54.50 

115.93 

109.63 

107.64 

81.73 

68.61 

80.99 

101.90 

63.50 

24.95 

33.55 

39.16 

6.26 

39.95 

18.75 

56.45 

33.07 

30.48 

31.80 

29.09 

28.03 

4.67 

2.75 

20.05 

5.90 

17.21 

15.10 

6.37 

14.10 

14.84 

13.92 

6.19 

9.10 

9.07 

8.54 

8.45 

4.88 

7.75 

6.73 

6.54 

6.43 

6.29 

5.93 

0.00 

2.05 

5.48 

5.03 

4.95 

Value 

n-C4 

Value 

(1,000 $/day) 

Total 

Daily 

Butane 

Total 

Daily o 

NGL 

C5 + Revenues Revenues 

440.06 1,749.53 

315.77 

229.62 

839.07 

837.05 

202.05 1,312.17 

242.75 1 

159.62 

145.92 

138.14 

141.57 

140.03 

98.10 

67.20 1 

81.84 

113.72 

97.07 

73.55 

106.35 

65.72 

86.82 

46.81 

68.20 

70.24 

46.61 

40.53 

39.04 

61.59 

62.37 

27.93 

38.46 

23.97 

24.83 

30.73 

21.53 

20.67 

20.95 

18.03 

12.68 

12.64 

11.90 

11.77 

12.64 

8.80 

9.38 

9.12 

8.96 

8.76 

8.26 

13.34 

11.22 

7.63 

7.01 

6.89 

,169.72 

570.10 

553.50 

698.38 

957.47 

318.10 

48.22 

,163.03 

406.31 

286.88 

745.32 

238.25 

34.65 

356.50 

173.73 

239.51 

512.52 

364.01 

616.23 

161.12 

209.73 

97.12 

169.62 

241.93 

109.55 

95.31 

8.98 

143.61 

85.57 

82.18 

78.23 

73.93 

50.42 

79.37 

47.31 

46.81 

29.38 

150.38 

37.29 

36.24 

35.63 

34.83 

32.83 

28.63 

11.35 

30.33 

27.85 

27.39 

9 9 

845.54 4,366.24 

436.17 2,152.24 

385.51 2,156.00 

340.46 2,615.91 

297.25 1,964.42 

275.55 1,510.05 

255.55 1 ,421.24 

245.78 1,563.86 

223.30 1,648.06 

208.64 

179.09 

169.10 1 

145.35 

138.67 

130.62 1 

112.71 

112.61 

105.67 

105.57 

103.27 

101.27 

100.72 

78.41 

69.62 

67.07 

66.26 

65.12 

47.99 

44.36 

41.18 

39.93 

37.10 

35.62 

35.51 

34.87 

24.22 

21.79 

21.71 

20.44 

20.23 

17.52 

16.55 

16.11 

15.66 

15.40 

15.05 

14.19 

13.34 

13.27 

13.10 

12.03 

11.84 

926.39 

679.73 

,582.86 

894.80 

699.00 

,186.23 

590.74 

283.54 

708.62 

421.33 

565.46 

750.67 

787.31 

803.29 

393.86 

433.95 

267,77 

331.45 

402.34 

231.70 

232.99 

163.84 

242.51 

244.83 

202.82 

193.39 

144.61 

123.24 

151.94 

115.64 

114.42 

83.17 

179.34 

91.14 

97.06 

87.10 

85.14 

80.25 

65.08 

36.66 

78.97 

68.08 

66.96 

'ercent 

f Iiputed 

N6L 

Revenues 

19.4 

20.3 

17.9 

13.0 

15.1 

18.2 

18.0 

15.7 

13.5 

22.5 

26.3 

10.7 

16.2 

19.8 

11.0 

19.1 

39.7 

14.9 

25.0 

18.3 

13.5 

12.8 

9.8 

17.7 

15.5 

24.7 

19.6 

11.9 

19.1 

17.7 

24.4 

15.3 

14.6 

17.5 

18.0 

16.7 

17.7 

14.3 

17.7 

17.7 

21.1 

9.2 

17.7 

16.1 

17.7 

17.7 

17.7 

20.5 

36.2 

16.6 

17.7 

17.7 

per 

Year) 

Total 

Annual 

Butane o 

'ercent 

f Total 

Revenues Revenues 

308,623.83 

159,201.63 

140,711.41 

124,268.72 

108,496.45 

100,577.44 

93,276.42 

89,709.26 

81,505.40 

76,154.97 

65,367.57 

61,722.44 

53,052.66 

50,615.65 

47,676.25 

41,139.15 

41,101.29 

38,570.20 

38,533.74 

37,692.84 

36,961.92 

36,762.02 

28,619.15 

25,411.33 

24,482.11 

24,184.55 

23,769.28 

17,514.65 

16,191.19 

15,032.15 

14,575.47 

13,540.35 

13,002.91 

12,961.12 

12,728.19 

8,840.29 

7,951.54 

7,924.11 

7,461.21 

7,382.35 

6,393.34 

6,040.39 

5,880.51 

5,715.92 

5,619.91 

5,493.05 

5,177.59 

4,868.37 

4,844.92 

4,783.27 

4,392.38 

4,320.37 

3.1 

0.2 

0.4 

0.7 

0.5 

0.4 

0.8 

0.2 

0.5 

1.0 

3.5 

0.6 

6.3 

0,3 

0.7 

0.3 

0.3 

0.6 

0.6 

1.5 

0.5 

0.2 

11.1 

0.3 

1.1 

26.3 

3.5 

0.3 

2.7 

4.5 

36.4 

1986 

Revenues 

(thousands) 

10,015,000.00 

76,555,000.00 

32,591,000.00 

17,353,000.00 

20,231,000.00 

27,131,000.00 

11,039,000.00 

49,865,000.00 

16,237,600.00 

7,561,967.00 

1,880,125.00 

10,440,000.00 

845,801.00 

15,774,000.00 

6,941,413.00 

11,794,000.00 

15,009,000.00 

6,718,100.00 

6,345,000.00 

2,543,500.00 

6,688,000.00 

14,617,000.00 

228,034.00 

8,253,000.00 

1,320,106.00 

49,410.00 

359,638.00 

2,569,000.00 

209,254.00 

114,319.00 

13,376.00 
P.6 

Gas Processing Coipames: Capacity, 1986 Production and Revenues Exhibit A-2 — (continued) 

(1,000 $ 

Coipany 

53 Arkla 

54 Resources Extraction 

55 Oklahoia 6as P L 

56 SPG Exploration 

57 Adobe Resources 

58 Bruin Petroleui 

59 Louisiana Land i Exp. 

60 Ladd Petroleui 

61 Enogex Production 

62 Freeport-McMoRan 

63 Flying J Inc. 

64 Vessels G Processing 

65 Standard 

66 Southwest Forest Gas 

67 Ralston Processing 

68 Minerals Inc. 

69 FMP Operating Co. 

70 Houston Oil & Min. 

71 Gary Energy Corp 

72 Hid-Aierica Gas Line 

73 Petrolane Loiita 

74 Cenex 

75 Petro-Hunt 

76 Santa Fe 

77 Parade 

78 True Oil 

79 NGL Production 

80 S0NAT, Inc. 

81 Celsius Energy 

82 Michigan Consolidated 

83 Fort Chadbourne Corp 

84 Portal 

85 United Texas Trans. 

86 Breckenridge 

87 Kansas Refined Heliui 

88 Cerrito Land 

89 Gerlane Petroleui 

90 Lakeville Gas Assoc. 

91 Coors Energy 

92 Eagle 

93 Brighton 

94 CN6 Producing Co. 

95 UU Sub Ine 

96 Mountain Fuel Res. 

97 Rocky Mountain NG 

98 Deisenroth 6as Prod. 

99 Pronto 

100 Beard Oil Co. 

101 Cabin Creek 

102 Phillips, Jack L. 

103 Berthoud 

104 Double U Oil 

P 

1 

a 

n 

t 

s 

7 

1 

1 

2 

1 

5 

t 

L 

2 

4 

2 

1 

2 

3 

1 

1 

2 

1 

5 

2 

3 

2 

1 

1 

1 

1 

2 

3 

1 

1 

1 

2 

1 

1 

2 

1 

1 

1 

1 

1 

2 

1 

1 

1 

1 

6 

1 

3 

2 

1 

2 

1 

1 

(1,000 $/day) 

Value 

Propane 

8.83 

11.18 

8.74 

13.57 

11.39 

11.19 

17.32 

9.64 

31.91 

12.30 

5.56 

7.02 

2.99 

5.44 

2.53 

4.74 

4.56 

4.41 

10.17 

2.58 

5.06 

0.51 

2.48 

4.00 

2.60 

2.16 

1.81 

1.71 

1.62 

1.51 

1.51 

1.44 

1.13 

1.10 

0.05 

3.67 

0.91 

0.83 

0.71 

0.68 

0.63 

0.63 

0.59 

0.56 

0.51 

0.45 

0.44 

0.39 

0.26 

0.20 

0.15 

0.08 

Value 

Iso-C4 

4.82 

4.64 

2.50 

0.29 

2.96 

2.91 

2.71 

2.50 

2.32 

2.06 

0.29 

1.83 

0.00 

1.41 

0.00 

1.23 

1.19 

1.15 

0.92 

0.73 

0.98 

0.00 

0.00 

0.00 

0.68 

0.56 

0.47 

0.44 

0.42 

0.39 

0.39 

0.37 

0.29 

0.29 

0.24 

0.24 

0.24 

0.22 

0.18 

0.18 

0.16 

0.16 

0.15 

0.15 

0.13 

0.12 

0.11 

0; 10 

0.07 

0.05 

0.04 

0.02 

Value 

n-C4 

6.10 

3.94 

5.02 

7.04 

4.12 

4.05 

3.77 

3.49 

3.23 

2.87 

4.61 

2.54 

3.51 

1.97 

3.08 

1.72 

1.65 

1.60 

1.72 

1.89 

1.37 

1.84 

1.73 

1.67 

0.94 

0.78 

0.66 

0.62 

0.59 

0.55 

0.55 

0.52 

0.41 

0.40 

0.38 

0.33 

0.33 

0.30 

0.26 

0.25 

0.23 

0.23 

0.21 

0.20 

0.19 

0.16 

0.16 

0.14 

0.09 

0.07 

0.05 

0.03 

Value 

(1,000 */day) 

Total 

Daily 

Butane 

Total -ercent 

Daily of Iiputed 

NGL 

C5 + Revenues Revenues 

39.88 

20.00 

14.63 

26.46 

16.39 

16.11 

15.00 

106.75 

62,83 

20.91 

1.59 

10.11 

342.50 

7.83 

7.50 

6.83 

6.57 

39.60 

6.11 

26.00 

5.44 

0.00 

3.38 

0.00 

3.74 

3.11 

2.61 

2.46 

2.33 

2.17 

2.17 

2.07 

1.76 

1.59 

1.50 

1.30 

1.30 

1.20 

1.02 

0.98 

1.29 

0.91 

0.85 

0.80 

0.74 

0.65 

0.63 

0.57 

0.49 

0.28 

0.22 

0.11 

1 00 

10.92 

8.58 

7.52 

7.33 

7.08 

6.96 

6.48 

5.99 

5.54 

4.93 

4.90 

4.37 

3.51 

3.38 

3.08 

2.95 

2.84 

2.74 

2.64 

2.62 

2.35 

1.84 

1.73 

1.67 

1.62 

1.34 

1.13 

1.06 

1.01 

0.94 

0.94 

0.89 

0.70 

0.69 

0.62 

0.56 

0.56 

0.52 

0.44 

0.42 

0.39 

0.39 

0.37 

0.35 

0.32 

0.28 

0.27 

0.24 

0.16 

0.12 

0.09 

0.05 

59.63 

53.88 

33.04 

47.86 

40.07 

39.38 

43.57 

126.78 

104.36 

41.77 

12.55 

24.71 

349.00 

19.13 

13.11 

16.69 

16.05 

48.77 

20.55 

31.68 

14.57 

2.34 

7.59 

5.68 

9.14 

7.60 

6.38 

6.01 

5.69 

5.31 

5.31 

5.05 

4.11 

3.88 

2.17 

5.95 

3.19 

2.92 

2.50 

2.39 

2.61 

2.23 

2.07 

1.97 

1.81 

1.59 

1.54 

1.38 

1.03 

0.69 

0.53 

0.27 

NGL 

Revenues 

18.3 

15.9 

22.8 

15.3 

17.7 

17.7 

14.9 

4.7 

5.3 

11.8 

39.0 

17.7 

•1.0 

17.7 

23.5 

17.7 

17.7 

5.6 

12.8 

8.3 

16.1 

78.4 

22.8 

29.5 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

17.1 

17.7 

28.7 

9.5 

17.7 

17.7 

17.7 

17.7 

15.1 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

17.7 

15.5 

17.7 

17.7 

17.7 

per 

Year) 

Total 

Annual 

Butane o 

Percent 

f Total 

Revenues Revenues 

3,986.17 

3,130.97 

2,745.90 

2,674.64 

2,585.37 

2,540.79 

2,365.92 

2,187.62 

2,023.03 

1,800.16 

1,787.69 

1,594.42 

1,281.15 

1,234.39 

1,123.47 

1,076.66 

1,035.52 

1,001.23 

963.46 

957.03 

857.22 

670.14 

630.72 

611.01 

589.77 

490.33 

411.46 

387.46 

366.89 

342.89 

342.89 

325.74 

257.17 

250.31 

227.03 

205.73 

205.73 

188.59 

161.16 

154.30 

144.01 

144.01 

133.73 

126.87 

116.58 

102.87 

99.44 

89.15 

58.29 

44.58 

34.29 

17.14 

0.4 

11.1 

0.3 

0.2 

0.0 

0.1 

0.6 

0.0 

10.2 

0.6 

1986 

Revenues 

(thousands) 

1,002,244.00 

24,105.00 

826,500.00 

770,959.00 

10,115,000.00 

1,093,181,00 

110,100.00 

1,792,632.00 

1,518.00 

15,333.00 
P.7 

6as Cofipames: Capacity, i'?86 Production and Revenues Exhibit A-2 — (continued) 

(1,000 $ 

Coipany 

105 Planet Engineers 

106 Mills Bennett Estate 

107 Black Hawk 

108 Anchor Gasoline Corp 

109 Kentucky Hydrocarbon 

110 Loveland 

111 Perry 

112 6reeley Sas Co 

113 Peoples Nat. Sas 

114 Pennzoil 

Total 

P 

1 

a 

n 

t 

s 

9 

810 

(1,000 

Value 

Propane 

1.38 

0.00 

0.00 

0.00 

0.00 

1.79 

0.00 

0.00 

0.00 

0.00 

9251.93 

*/day) 

Value 

Iso-C4 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

2239.43 

Value 

n-C4 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

Value 

C5 • 

3.00 

1.38 

2.50 

7.25 

268.50 

5.50 

31.25 

2.50 

1.13 

2.50 

3854.06 17621.14 

(1,000 

Total 

Daily 

Butane 

Revenues 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

$/day) 

Total 

Daily 

NGL 

Revenues 

4.38 

1.38 

2.50 

7.25 

258.50 

7.29 

31.25 

2.50 

1.13 

2.50 

6092.35 36929.79 

Percent 

of Iiputed 

N6L 

Revenues 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

per 

Year) 

Total 

Annual 

8utane 

Revenues 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

16.5 2,226,072.22 

Percent 

of Total 

Revenues 

0,0 

1986 

Revenues 

(thousands) 

1,921,223.00 

0.6 398,964,438.00 

101 
r 

P.8 

Sources of Inforiation Used in Detenining Supply of and 

Prices of Natural Gas Liquids 

Supply and Disposition of Natural Gas Liquids, 1986 

(Thousand Barrels) 

Field 

Coiiodity Production Percent 

Natural Gas Liquids 564,401 100.00 

Pentanes Plus 98,165 17.39 

Liquefied Petroleui 6ases 466,236 82.61 

Ethane 177,115 31.38 

Propane 185,343 32.84 

Norial Butane 57,156 10.13 

Isobutane 46,622 9.26 

(Source: Energy Inforiation Administration, Petroleui Supply Annual 1986, p. 24. 

Producer Price Indices, 1986 

Liquefied Petroleui 6ases 

Ethane 

Propane 

Butane 

Other Nat. Gas Liquids 

Annual 

1985 

541.9 

96.7 

150.3 

224.6 

89.7 

Averages 

1986 

383.2 

83.2 

118.2 

143.7 

53.9 

Difference 

(I) 

-29.3 

-14.0 

-21.4 

-36.0 

-39.9 

(Source: U.S. Department of Labor, Producer Price Indexes, 1986) 

Natural 6as Liquids Prices 

Ethane 

Propane 

Norial Butane 

Isobutane 

Pentanes Plus 

1985 $ 

per lb. 

0.07 

0.11 

0.11 

0.13 

0.22 

lb./gal. 

3.144 

4.220 

4.865 

4.686 

5.693 

1985 $ 

per gal. 

0.22 

0.46 

0.54 

0.61 

1.25 

1985 * 1986 $ 

per bbl. per bbl.t 

9.24 7.95 

19.50 15.33 

22.48 14.39 

25.59 16.38 

52.60 31.61 

* 1986 prices are iiputed using the producer price indices. 

(Source: U.S. International Trade Coiiission, Synthetic Organic Cheiicals: 

United States Production and Sales, 1985; Bland, U.F. and Robert L. Davidson, 

editors, Petroleui Processing Handbook, McGraw-Hill, New York, 1967.) 

Exhibit A-3 

102