NEWS & OTHER INFORMATION
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Industry Related - Worldwide
Fluor 1997 Chemical Incident
CAD Process gets Assessed
Fluor Wins New Contract From Virginia Power
Haestad Methods Releases New CAD Versions
Monsanto and Pharmacia & Upjohn Complete Merger
Duke Energy And Phillips Close Transaction
Marsulex Signs $100 Million Contracts
Maine to New Hampshire Pipeline Goes Into Service
Lawsuit Against Deutsche Bank and Metallgesellschaft Ag
Foster Wheeler Acquires Finnish Boiler Project
Foster Wheeler To Supply CFB Boiler
Foster Wheeler Awarded Power Projects in Egypt
Lockwood Greene Awarded R&D Facility Design
Lockwood Greene Receives Engineering Excellence Award
Bechtel to Head Up Chemical Agent Disposal Facility Team
Calpine and Bechtel to Construct Delta Energy Center
Group to Execute World Class Project in Nigeria
Industry Related - Worldwide
Fluor has Actively Responded, Offered Assistance and Fully Cooperated in Investigation of 1997 Chemical Incident at Plutonium Reclamation Facility
ALISO VIEJO, Calif., April 3, 2000--Fluor Corporation, parent of the contractor responsible for overseeing the ongoing cleanup of the Department of Energy's Hanford Reservation in Richland, Washington, have reacted with surprise to a lawsuit that was filed Friday.
Company officials said they found the lawsuit surprising because, since 1997 when a vat containing a small amount of non-radioactive chemicals ruptured without causing any injuries, Fluor has offered many avenues of assistance, cooperation and communication to workers, some of whom apparently now allege they may have been negatively affected in some manner. The company continues to make medical evaluation services available, although no workers were in direct contact with the chemicals when the after-hours rupture occurred.
Fluor's attempts to assist the workers have included offers of fully paid medical examinations, including second- and third-opinion referrals to some of the most highly regarded medical centers in the world, meetings and discussions to address their concerns, and pledges of full cooperation with any of their representatives.
Since there were no deaths or injuries from the rupture, and safety officials from local governmental agencies, the federal government, and Fluor itself conducted thorough investigations following the incident, company officials continue to believe they have taken appropriate, reasonable and responsive actions to meet any possible needs of workers.
Only when Washington State's statute of limitations has drawn near has an out-of-state law firm, which is based in Minnesota, filed this lawsuit. It should also be noted that although Fluor officials have communicated with the law firm, there has been no communication since September 1998.
Fluor officials reiterated that the incident, which did not involve any plutonium or other radioactive materials, was extensively investigated. Detailed reports on that investigation have been, and continue to be, available to the public.
Officials also wanted to emphasize that the services and assistance offered to the allegedly affected workers remain available to them in the same manner as they have been available since 1997.
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Design Firm Principals Unite to Demand Better CAD Technology
Chicago. IL, April 3, 2000--After years of implementing computer-aided design (CAD) systems, architectural firms are finding that technology has not improved the design process or significantly increased productivity, reports a group of leading U.S. architects.
The CAD for Principals Council announced today the publication of its report, "AEC Principals Speak Out on CAD: A Call to Action.'' Citing inadequate technologies and incomplete implementation strategies, the report urges other design principals and architecture, engineering and construction (AEC) professionals to join an active campaign to require that computer-aided design and related software tools meet their professional and business needs.
Principals from ten prominent U.S. design firms launched the CAD for Principals Council late in 1999 to examine work processes and CAD use in the AEC professions.
"This group is unique. It's about time that corporate leaders in an industry convened to define their creative and business goals and then demand the technology they need from software suppliers. This group understands that today's process must change and that design and engineering software technologies must work together,'' said Brad Holtz, editor and publisher of "The CAD Rating Guide®'' and managing director of COFES2000: The Congress on the Future of Engineering Software. "Architects have spent way too long using technology to emulate the 200-year-old manual process. The CAD for Principals group is pushing to get the tools we need to change the process so that we can create massive bottom-line improvements.''
Led by Kristine K. Fallon, FAIA, whose consulting practice focuses on the use of CAD and other technologies in the AEC industry, the council compiled the results of interviews with principals and CAD users.
"It is extraordinary in our industry for principals to focus on technology in such a detailed way. We approached this from the point of view of the business of the firms as only principals can do. In some segments of the industry, like process plant design, CAD tools meet critical needs throughout the design and construction processes. Yet, in our profession firms are relying on CAD primarily for drafting and very limited 3D modeling and visualization. We wanted to know if the average firm just didn't take full advantage of the tools available, or if the tools themselves were inadequate. We found that both were true,'' said Fallon.
Principals and CAD users credited CAD technology for accelerating the production of drawings and documentation and for supporting the exchange of design information among groups using the same CAD tools. At the same time, council members reported that CAD had not made a positive difference in the design process or the practice of architecture. Representing a wide spectrum of successful practice, council members called CAD inadequate and expressed concern that current tools might have a negative impact on the profession. Concluding that CAD users often "are solving computer problems about how to draw, not architectural problems,'' principals observed a gap between "people who know how to put a building together and CAD technicians'' that tends to "isolate people rather than support a communicative team environment.''
The research found widespread agreement among principals that the costs of using CAD systems often outweigh the benefits. Many questioned the "ease of use'' claims from suppliers, reporting that the benefits of CAD have not compensated for the costs of the learning and relearning curves with software releases. "In terms of ease-of-use CAD is like learning hieroglyphics,'' the research reported, adding that "training time has to come down or the value has to go way, way up.''
The council studied technology issues including: support for architecture and construction from design through operations and maintenance; budget and schedule feedback; ease-of-use; quality; team support; and interoperability. Council members identified a critical need for AEC professionals to move beyond today's limited 3D modeling to the development of ``live'' parametric models that would allow faster and easier establishment of design intent and support all phases of project development.
"To date computers have eased the cumbersome task of preparing complex documents that contain enormous amounts of data. Computer tools have improved our ability to envision a three dimensional object. The next step is to seamlessly link the architects' efforts to the industry that procures, assembles, constructs, delivers, operates and occupies the buildings,'' said Steve Saunders, AIA, CAD for Principals Council member and award-winning principal at Eckenhoff Saunders Architects, Inc. in Chicago.
The council is enlisting reviewers for its report and adding members worldwide. To focus its research and develop processes for recommending change, the council is setting up three technology action committees to examine: business requirements, best practices, and technical requirements. The Council's website, www.cadforprincipals.org, offers the opportunity to review the report and join the research effort.
With the goal of improving the use and quality of CAD and other technologies for architecture and its related professions, the CAD for Principals Council features its scheduled activities, member profiles and research conclusions on its website at www.cadforprincipals.org. For a copy of the report or to join the council contact Kristine Fallon Associates, Inc. at 312/641-9339 or visit the website.
April 4, Chicago IL: AIA Chicago Information Technology PIA
5:30 - 7:00 p.m., AIA Chicago office, Suite 1049 Merchandise Mart Principals Speak Out on CAD panel discussion. Meet founding members of the CAD for Principals Council. For information: 312-670-7770 or www.aiachicago.org.
May 5, Philadelphia PA: National AIA Convention
Breakfast Meeting, hosted by Revit Technology Corporation. Report on CAD for Principals activities and findings by Robert Barnes, AIA, Kristine K. Fallon, FAIA, and John Hartray, FAIA. Register at: www.revit.com.
May 17-20, Scottsdale AZ: COFES 2000
May 18, CAD for Principals Working Group. In-depth exploration of the Council's work and the opportunity contribute to the Requirements Statement and Case Studies. For information: www.cofes.com.
June 7, Washington, D.C.: AEC/SYSTEMS 2000
1:30 p.m., Open Meeting, CAD for Principals Council. For information: www.aecsystems/aec2000.
August 14 - 18, Purgatory CO: Implementing Advanced CAD and
August 18, CAD for Principals Council. Part of a full-week seminar on CAD and related technologies conducted by Kristine Fallon and Richard Malm. For information contact: Phillip M. Bennett, Program Director, U.W. Department of Engineering, Professional Development, 800/462-0876 or 608/262-1299.
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Fluor Wins New Contract for Nuclear Plant Craft Support Services
ALISO VIEJO, Calif., April, 3 2000--Fluor Global Services, a unit of Fluor Corp. (NYSE: FLR), Monday reported that its Operations & Maintenance group has been awarded a new contract to continue its support services for Virginia Power's North Anna and Surry Nuclear Power Stations.
The new contract calls for Fluor to provide support services for Virginia Power's four nuclear units at North Anna and Surry. Fluor has been providing construction and outage support to Virginia Power's nuclear plants since 1977 at Surry and since 1984 at North Anna.
"This new and expanded contract is another validation of our lengthy record of providing value-added services to Virginia Power,'' said Fluor Global Services' Ronald G. Peterson, president, Operations & Maintenance. "We look forward to continuing to provide North Anna and Surry with cost effective modification and outage support services.''
Fluor Global Services provides operations, maintenance, and consulting services to a variety of industries worldwide. It also provides engineering, construction, operations, maintenance and integration services to United States government agencies.
With 1999 revenues of $12.4 billion, Fluor Corp. provides services on a global basis in the fields of engineering, procurement, construction, maintenance and operations, consulting and coal production. Based in Aliso Viejo, the firm is traded on the New York Stock Exchange under the symbol FLR.
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New Versions of SewerCAD, StormCAD, and WaterCAD Released
Latest Versions Bring Unparalleled Levels of Performance, Usability, and Service to Civil Engineers.
WATERBURY, Conn., April 1 -- Haestad Methods announced the simultaneous release and feature consolidation of its powerful and popular software trilogy: SewerCAD, StormCAD, and WaterCAD. The joint Version 4 release of the three products is the crowning achievement of a seven-year software development effort aimed at delivering a single, unified hydrology and hydraulics software-based modeling platform to civil engineers worldwide. The release marks a major milestone for civil engineers dedicated to building and managing water resource related infrastructure, since this platform further streamlines the way professionals analyze, design, map, manage, and plan piping systems for water distribution, sanitary sewer, and storm water collection systems.
"This event represents the culmination of over 50 man-years of effort in building a shared, object-oriented code base. The dividends from this investment are increased reliability, usability, and performance for civil engineers throughout the world,'' stated Robert Mankowski, P.E., Director of Operations for Research and Development, Haestad Methods. "Also, base lining our technology to this common code platform lays down the proper modeling foundation from which to advance improvements and enhancements into our software.''
In support of this commitment to continue developing and delivering even more new features and extensions to this modeling platform, Haestad Methods is also pleased to announce that it will provide free ``upgrade protection'' to all adopters of these latest versions. Users who purchase or upgrade to the latest version 4 modeling foundation will receive Haestad Methods ClientCare(TM) Program package entitling them to free and automatic program updates for the twelve-month period following the upgrade or purchase. ClientCare is Haestad Methods' new software maintenance and support package, designed to guarantee that users remain current with Haestad Methods technology, while enjoying the very best technical support and training services available in the industry.
According to Keith Hodsden, P.E., Director of Technical Support, Haestad Methods, "Haestad Methods' ClientCare Program is the natural result of the long-standing support commitment we've historically made for our clients. The relationship with our user base has solidified and matured to the point where our role is becoming increasingly service-oriented. Haestad Methods is transitioning from a vendor of shrink-wrapped engineering software, to a full-scale solutions provider for civil engineers. Our relationship with our customers is vital, long-term, and constant. ClientCare embodies this relationship.''
SewerCAD, StormCAD, and WaterCAD share identical interface technology. This architectural foundation enables Haestad Methods to aggressively upgrade entire product lines simultaneously, while providing end users with a common set of graphical tools and user interface components for each application. Many civil engineers specializing in hydrology and hydraulics systems will work on projects in the overlapping areas of potable water, wastewater, and storm water. Consequently, this exclusive ``learn one, learn them all'' implementation effectively and efficiently leverages the modeler's experience and training effort across multiple projects.
Information contained in a GIS database is essential for the management of our public works and engineering infrastructure. As an ESRI® Business Partner, Haestad Methods software offers seamless GIS interoperability and database support. This integration gives managers and end users a ready-to-use solution that can be used as is, or tailored to meet specific business and operational needs. By combining the software packages with ClientCare, the latest service from Haestad Methods, users can receive free upgrades, unlimited support, and benefit from preferred pricing on all Haestad Methods software, books, and training.
The Version 4 generation of products brings superior levels of performance to the end user, including improved model query generation, which allows the user to utilize persistent selection sets for pipes and nodes by attribute query. All three products yield substantial improvements in calculation speed, which has tripled, and much quicker updating of background files, model validation and file open and save. All three products can run as Stand-Alone Windows products or, directly inside AutoCAD® 2000. A major new feature is the cost analysis design tool that lets the modeler automatically generate cost estimates for all design alternatives under consideration. The aerial viewing tool in each product provides rapid, vibrant pans and zooms. The ability to relabel an entire system of pipes and inlets via powerful automated batch labeling is another common feature.
WHAT'S NEW WITH WATERCAD?
New to WaterCAD, Haestad Methods powerful program that helps civil engineers design and analyze water distributions systems, is the ability to perform detailed cost estimates using an integrated cost analysis modeling subsystem, which allows the user to compare capital cost alternatives. Users can also copy and paste tables and graphs from WYSIWYG reports to other Windows applications. This newest version of WaterCAD includes numerous additions and enhancements which include: fire flow enhancements, integrated selection sets, user data extensions, polyline to model conversion, interactive drawing review, customizable window colors, and pop-up annotation tool tips.
WHAT'S NEW WITH SEWERCAD?
The latest version of SewerCAD, Haestad Methods advanced sanitary sewer modeling program, enables the user to define data that allows the extension of the model with any custom data field, and can be used for filtering, sorting, color coding, annotation, and all other operations provided for standard data. Organizing and streamlining your input, profiling, and reporting steps are now easier with persistent user-defined groups of pipes and structures by pipe run, type, or any other attribute.
WHAT'S NEW WITH STORMCAD?
New to StormCAD, Haestad Methods complete storm sewer design and analysis program, are comprehensive system travel time options such as end average, distributed average, normal, or full flow velocity. Analyzing and designing of storm sewers can be done using either Gradually Varied Flow (GVF) calculations, or capacity-based calculations. In minutes, you'll now be able to size pipes based on full or partially full flow criteria, automatically offset inverts to account for energy differentials, incorporate drop manholes to preserve velocity and/or slope constraints, design catch basins using constant or varying sump depths, freely mix and vary design criteria throughout the system, and automatically adjust the number of barrels against allowable rise range criteria.
ABOUT HAESTAD METHODS
Founded in 1979, Haestad Methods has become the leader in providing hydrologic and hydraulic solutions to the civil engineering community. Haestad Methods has the largest globally installed user base of water resource software in the world with over 35,000 client sites, and 110,000 end users in over 160 countries. Haestad Methods produces software for culvert design, water distribution, storm water and sanitary sewer modeling, water surface profiling, and inlet design.
SewerCAD, StormCAD, and WaterCAD are registered trademarks, and ClientCare is a trademark of Haestad Methods. Haestad Methods is a registered trade name of Haestad Methods, Inc. AutoCAD is a registered trademark of Autodesk Inc. ESRI is a registered trademark of ESRI Inc. All other brand names, product names, or trademarks are used solely for the purpose of identification and belong to their respective holders.
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Monsanto and Pharmacia & Upjohn Complete Merger - Pharmacia Corporation to be Launched on April 3, 2000
ST. LOUIS, and PEAPACK, N.J., March 31, -- Monsanto Company (NYSE: MTC) and Pharmacia & Upjohn (NYSE: PNU) today announced that they have satisfied all conditions required to complete their merger. The companies today filed a "Certificate of Merger'' with the Secretary of State of Delaware, to create a new company called Pharmacia Corporation. Pharmacia will begin trading on the New York and Stockholm Stock Exchanges on Monday, April 3, 2000 under the ticker symbol "PHA''.
Pharmacia Corporation will have one of the strongest sales forces in the global pharmaceutical industry, an expansive product portfolio, a robust new product pipeline, and an annual pharmaceutical R&D budget of more than $2 billion. Pharmacia Corporation will also have one of the world's leading fully integrated agricultural businesses.
Pharmacia Corporation's corporate and pharmaceutical business headquarters will be in Peapack, New Jersey. The agricultural business headquarters will be in St. Louis and will retain the Monsanto name.
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Duke Energy And Phillips Close Transaction, Launch New Gas Gathering And Processing Company
Duke Energy Field Services Closes on Additional Transactions
DENVER, Apr. 3, Duke Energy (NYSE: DUK - news) and Phillips Petroleum (NYSE: P - news) announced today they have closed the transaction that combines Duke Energy's gas gathering and processing business with Phillips' Gas Gathering, Processing and Marketing (GPM) unit into a new company, named Duke Energy Field Services (DEFS). The combination strengthens the company's national leadership position in natural gas liquids production (about 400,000 barrels per day) and natural gas gathering and processing. The transaction is expected to be accretive immediately to both Duke Energy and Phillips.
In connection with the combination, DEFS will borrow approximately $2.75 billion of short-term debt. The proceeds of the debt will be used to make one-time cash distributions of approximately $1.2 billion to both Duke Energy and Phillips and to pay $325 million and $20 million to Duke Energy and to Phillips respectively as reimbursement for the acquisition of additional assets since the Combination Agreement was signed in December 1999.
Jim W. Mogg, previously president and chief executive officer of Duke Energy's gathering and processing business, assumed the position of chairman, president and chief executive officer of the new company. Michael Panatier, president and chief executive of GPM prior to the combination transaction, has been appointed vice chairman of the new company.
"As the natural gas industry continues to grow and consolidate, customer service and economies of scale will be critical factors in determining which companies are the ultimate winners,'' said Mogg. "The fact that DEFS and GPM have complementary strategic objectives and assets gives the combined company greater flexibility to meet and exceed customer needs and to successfully pursue future opportunities.
"The employees of the new DEFS have the demonstrated skill sets and expertise to optimize and rationalize assets, as well as the strategic ability to acquire and integrate new assets moving forward,'' Mogg added. "That makes all the difference in an industry where innovation and an entrepreneurial spirit set the standard.''
"This combination clearly demonstrates Duke Energy's ability to maximize value from its existing business units and assets,'' said Richard B. Priory, chairman, president and chief executive officer of Duke Energy. ``We will continue to pursue opportunities that propel Duke Energy toward its goal of becoming the world's premier global energy merchant.''
Jim Mulva, chairman and chief executive officer of Phillips Petroleum Company, said, "this transaction is an integral step in Phillips' strategy to position each of our business lines for growth and improve our return on capital employed, while maintaining Phillips' diversification and strength through integration. In addition, this transaction makes GPM part of a much larger, more competitive asset base.''
Duke Energy Field Services Acquires Conoco/Mitchell Energy Assets
Also today, DEFS announced it has completed the acquisition of companies holding certain gathering and processing assets in central Oklahoma from Conoco Inc. and Mitchell Energy & Development Corp. This transaction is significant in that the assets acquired lie adjacent to and between DEFS' current assets, providing future integration opportunities.
In the transaction, DEFS obtained 100-percent ownership interest in Goldsby, Cashion/Mustang, Carney and Hennessey plants and associated gathering systems. DEFS also obtained a 42-percent ownership interest in the Dover Hennessey system operated by ExxonMobil. DEFS purchased Conoco's interests in these assets for cash. In exchange for Mitchell's interests in the Oklahoma gathering and processing assets, DEFS transferred to Mitchell its interests in the assets of the UP Bryan Plant, Ferguson-Burleson County Gas Gathering System and Austin Chalk Natural Gas Marketing Services joint ventures that operate in central Texas.
Duke Energy Contributes TEPPCO General Partner to DEFS
Duke Energy also announced it completed the transfer of Texas Eastern Products Pipeline Company, the General Partner of TEPPCO Partners, L.P., to DEFS today. TEPPCO Partners, L.P. (NYSE: TPP) is a publicly traded master limited partnership that, through its operating companies, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States and is a crude oil gathering, transportation, storage and marketing company operating primarily in Texas and Oklahoma.
Phillips is an integrated petroleum company engaged in oil and gas exploration and production worldwide; gas gathering, processing and marketing in the United States; refining, marketing and transportation operations primarily in the United States; chemicals and plastics manufacturing and sales around the globe; and technology development. Founded in Bartlesville, Okla., in 1917, Phillips had 15,900 employees and $15 billion of assets at the end of 1999, and $14 billion of revenues for the year.
DEFS, headquartered in Denver, Colo., is the nation's largest producer of natural gas liquids, one of the largest natural gas gatherers and marketers and one of the largest NGL marketers. The company operates in 11 states, including Wyoming, Colorado, Kansas, Oklahoma, New Mexico, Texas, Louisiana, Alabama and Mississippi, and along the Gulf Coast and in northwestern Alberta, Canada. DEFS now owns and operates 70 plants and 57,000 miles of pipeline.
Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of nearly $22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK.
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Marsulex Signs $100 Million Contracts and Letters of Intent
TORONTO, ONTARIO--Marsulex Inc. (TSE:MLX) today announced it has signed several new agreements in the U.S. and Canada for its technology-driven environmental compliance outsourcing services.
In Canada, Marsulex has signed 10-year outsourcing contracts to provide technology-driven environmental compliance services to Petro-Canada [NYSE:PCZ - news] and Shell Canada. The agreements, which extend long-term existing relationships, will generate fees of approximately $100 million, plus additional income produced by the marketing of added value by-products.
Marsulex also announced it has signed three Letters of Intent to deliver its unique, full-service solutions to three new U.S. customers. Under these agreements, Marsulex will design, build and own compliance facilities with a total value of $175 million.
All of the agreements use the Company's proprietary environmental compliance technologies.
"By combining our proven, proprietary technologies with a unique, value-added outsourcing capability, Marsulex is in an exceptional position to drive growth and value for our shareholders,'' said David Gee, President and Chief Executive Officer.
The Petro-Canada and Shell deals follow Marsulex's successful commercialization of new proprietary technology at its Montreal-based facility. Marsulex will provide sulphur extraction and recovery services for the customers' two oil refineries in Montreal, Quebec, to ensure environmental compliance as well as reduced operating costs. The agreements are effective January 1, 2001.
The new U.S. projects employ three of its proprietary air quality technologies: two reduce emissions of sulphur dioxide gas--one of the principal causes of acid rain--while the third adds value to particulate emissions, which would otherwise be disposed of at a cost to customers. Marsulex expects to finalize the agreements within the next six months.
"These agreements expand our markets and accelerate our growth,'' said Mr. Gee. "They also further improve our quality of earnings by providing guaranteed service fee revenue with higher margins, as well as decreasing commodity price risk.''
Marsulex continues to demonstrate its success in developing technology-driven, outsourced environmental compliance solutions to meet increasing demand from major industrial customers. Marsulex estimates that the North American market opportunity for its services is over US$1.25 billion.
With the new outsourcing agreements, Marsulex advances its strategy to capture a dominant position in the rapidly expanding North American market. Tougher environmental regulations, combined with the growing trend to outsource non-core services and the need to reduce operating costs, are fuelling demand for full-service environmental compliance solutions by customers in the power generation, oil refining and pulp and paper industries.
Marsulex's value-added, turnkey solutions benefit customers by achieving regulatory compliance, reducing operating costs and improving returns.
Marsulex will fund the projects now under Letter of Intent from internally generated cash flow and non-recourse financing. No new borrowing is expected at Marsulex, and the Company has retained Chase Bank to assist with the structuring of the non-recourse financing. The agreements are subject to permitting, definitive agreements and approval by the parties' Boards of Directors.
Marsulex is a global provider of technology-based environmental compliance solutions. Its provides full-service outsourcing of environmental compliance activities including the ownership and operation of compliance assets and the guaranteed removal of by-products. Marsulex trades on the Toronto Stock Exchange under the symbol MLX.
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Maine to New Hampshire Pipeline Goes Into Service
HALF MOON BAY, Calif., April 3, Complying with stringent regulatory requirements for crossing 425 sensitive streams, nearly 2,000 wetland areas, and numerous protected species and cultural resource areas did not delay the Maritimes & Northeast Phase II Pipeline Project, spanning approximately 200 miles through Maine.
Maritimes success, during the construction phase, was due in part to the integrated environmental compliance, training, and inspection services provided by Essex Environmental, a woman-owned business headquartered in this small coastal California town.
"The project faced many challenges,'' says Jayne Battey, founder and CEO of Essex. "With the many sensitive areas and issues, the project was subject to intense scrutiny by local, state, and federal agencies.''
"The organization that Essex brought in developing, managing, and implementing the Environmental Compliance Program during construction of the Maritimes Project was one of the keys to the successful compliance and completion of the project,'' says Gus McLachlan, Maritimes' Environmental Manager.
Essex has continued to monitor the project, on a limited basis, throughout the winter months and will assist Maritimes with final spring repairs and revegetation efforts.
The 200-mile long section, on which Essex provided environmental compliance, training, and inspection services throughout construction, is part of a 650-mile pipeline that will bring natural gas from the Sable Offshore Energy Project in Nova Scotia to markets in the Atlantic Canada and the Northeast United States regions.
Founded in 1988, Essex Environmental provides environmental planning, training, and management services to the construction, development, and utility industries. Headquartered in Half Moon Bay, California, the firm's services include environmental management and inspection, environmental permitting, environmental training, and restoration planning and management throughout North America.
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Federal Court Refuses to Dismiss $220 Million Lawsuit
WASHINGTON, April 3, A federal judge in New York has affirmed the right of 17 independent petroleum marketers who entered into long-term hedging contracts as protection against escalating fuel prices to sue for breach of the contracts. The case is important to large petroleum consumers, such as airlines, who often use "forward'' petroleum contracts to hedge against escalating petroleum prices, says William Bode, Esq. of Bode and Beckman, LLP.
U.S. Federal Court Judge Lewis Kaplan ruled on March 30 that the statute of limitations did not prevent the 17 marketers in the lawsuit, Cary Oil Co. Inc v. MG Refining and Marketing, Inc. et al., from suing for breach of their long term "forward'' petroleum contracts with MG Refining and Marketing Company, Metallgesellschaft AG's (MGAG) U.S. subsidiary. The Court noted that, as alleged in the lawsuit, MGAG and Deutsche Bank representatives stripped MGRM's president of responsibility for the hedge positions, and MGAG directed its agents, including MG Corp. and MGRM, to provide false financial information to the Commodity Futures Trading Commission (CFTF), to encourage the CFTC to issue untrue finding, and to consent to the CFTC order declaring the contracts illegal.''
"We are gratified by Judge Kaplan's decision and disappointed that Metallgesellschaft and Deutsche Bank have such a callous view of their commercial responsibilities,'' commented William H. Bode, the attorney for the plaintiffs.
"While seeking to expand significantly their U.S. business dealings, Deutsche Bank and Metallgesellschaft appear indifferent to the requirements of U.S. law and, indeed, have been willing to sell out Wall Street and appear willing to sacrifice the U.S. derivatives industry to defeat the claims of a few small petroleum marketers,'' Bode says.
Don Stephenson, President of plaintiff Cary Oil Company, said, "Of course, we are pleased with the federal court's ruling. The flexie contracts were sold to us as prudent hedging tools. The contracts were meant to protect our supply and pricing position in the event of the very markets we are confronting today. MG Refining and Marketing told us that Metallgesellschaft was standing behind the contracts. Instead, Metallgessellschaft and Deutsche Bank took steps to repudiate these hedging contracts. Needless to say, our heating oil and gasoline inventory position today would be vastly improved if the contracts had been honored.''
"We entered into these contacts in good faith to protect ourselves and our thousands of customers from price hikes caused by OPEC or unrest in the Middle East,'' commented Rick Merritt, CEO of Merritt Oil Company, a marketer of gasoline and diesel fuel oil in Mobile, Alabama, one of the plaintiffs in the suit. "We would love to have those contracts in place today. We are extremely disappointed that the MG parties repudiated our contract.''
The Court explained that, "This case comes in the aftermath of the near collapse of the German metals and engineering conglomerate, Metallgesellschaft AG ('MGAG) in late 1993. Reportedly faced with crippling trading losses from over-exposure in the oil futures market, MGAG nearly was forced into bankruptcy before its creditors, including Deutsche Bank AG, stepped in with an emergency loan and rescue package. Although this bailout averted financial disaster, the fallout continues and includes this case.''
The petroleum marketers allege that during the 1993-1994 financial disaster, MGAG and Deutsche Bank retained Morgan Stanley to perform a valuation of MGAG's exposure under the long-term "flexie'' contracts. MGAG also later obtained a valuation from Dr. Stephen Ross of Yale University, one of the world's premier experts in options valuation. As alleged in the complaint, Morgan Stanley and Professor Ross computed that the "flexie'' contracts had a negative value to MGAG of up to $0.23 per gallon. According to the petroleum marketers, Deutsche Bank and MGAG took steps to breach the ``flexie'' contracts seeking to end their exposure under the contracts.
The 10-year "forward'' contracts entered into in 1973 by the petroleum marketers required the MGAG parties to deliver to the marketers approximately 715 million gallons of petroleum products at any time requested by the marketers. The contracts also included a "blow-out'' option, giving the marketers the option to ``cash-out'' the contracts by electing to receive the difference between the NYMEX posting for gasoline and $0.62 per gallon. The NYMEX price for gasoline has recently topped $0.90 per gallon.
In January 1999, MGAG settled a similar case against 18 other petroleum marketers in a case titled Knight Petroleum, Inc. et al. v. MG Refining and Marketing. Mr. Bode served as attorney for the plaintiffs in that case as well. The settlement occurred shortly after then federal court Judge Sonia Sotomayor, now on the Second Circuit Court of Appeals, ruled against MGAG's contention that the same flexie contracts were invalid ``futures'' contracts under the Commodity Futures Act. Judge Sotomayor found, contrary to MGAG's position, that the flexie contracts were valid "forward'' contracts.
MGAG's position in that case raised a storm among leading Wall Street financial institutions concerned that an adverse ruling by Judge Sotomayor could threaten the $20 billion derivatives industry. The powerful International Swaps and Derivatives Association went so far as to criticize MGAG's litigation position in testimony before Congress on legislation seeking to rein-in the reach of the CFTC.
The prospect is again raised that Deutsche Bank/MGAG in the Cary Oil case will again ask the Court to rule on the scope of "forward'' contracts.
The Plaintiffs in the Cary Oil case include: Cary Oil Company, Cary, North Carolina; Corbin Fuel Company, Inc., Bel Air, Maryland; Higginson Oil Company, Inc., Mackey, Indiana; Merritt Oil Company, Inc., Mobile, Alabama; Raymer Oil Company, Inc., Statesville, North Carolina; RK Distributing, Inc., Oklahoma City, Oklahoma; Wise Oil & Fuel, Inc., Cambridge, Maryland; Ports Petroleum Company, Inc., Wooster, Ohio; Guttman Oil Company, Inc., Belle Vernon, Pennsylvania; Ferrel Fuel Company, Inc., Aberdeen, Maryland; Fauser Oil, Inc., Elgin, Iowa; Dalton Petroleum, Inc., Hayti, Missouri; Premier Petroleum, Inc., Baltimore, Maryland; M.M. Satterfield Oil Company, Inc., Conway, Arkansas; Erickson Oil Products, Inc., Hudson, Wisconsin; Fox Fuel Company, Inc., Willow Grove, Pennsylvania; and Abbott Oil Company, Inc., Augusta, Georgia.
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Foster Wheeler to Supply Boilers for Finnish Project
CLINTON, N.J., February 21, 2000Foster Wheeler Corporation announced today that its subsidiary, Foster Wheeler Energia Oy, was awarded a contract by Vattenfall Oy to supply a bubbling fluidized-bed boiler and two natural gas-fired auxiliary boilers for a new Vattenfall Oy power plant in Myllykoski, Finland.
Under terms of the contract, valued at approximately $16 million, Foster Wheeler Energia Oy will supply an 80 MWth biofueled bubbling fluidized-bed boiler and two 45 MWth natural-gas fired auxiliary boilers for the plant, which will produce heat and power for a paper mill of Myllykoski Paper.
The Foster Wheeler bubbling fluidized-bed boiler will be fueled primarily by bark, forest residue and sludge from the paper mill.
Work on the project will start immediately and it is scheduled for completion early in 2001.
The power plant will be built and owned by Vattenfall Oy, a Finnish subsidiary of Vattenfall AB, Sweden's largest utility company.
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Foster Wheeler to Supply CFB Boiler for Power Plant Project in Sweden
CLINTON, N.J., February 14, 2000Foster Wheeler Corporation announced today that its subsidiary, Foster Wheeler Energia Oy, was awarded a contract by Vattenfall AB, Sweden's largest utility, to supply a biofueled circulating fluidized-bed boiler for a new power plant in Munksund, Sweden.
Under terms of the contract, valued at approximately $17 million, Foster Wheeler Energia Oy will supply a 98 MWth circulating fluidized-bed boiler that will be fueled primarily by bark and some paper reject from an SCA Packaging Munksund AB manufacturing facility in Munksund.
The power plant, which will be built and owned by Vattenfall AB, will produce heat and power for the SCA Packaging factory.
The project will start immediately and is scheduled for completion by the end of 2001.
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Foster Wheeler Awarded $100 Million Egypt Contract
Foster Wheeler Corporation announced today several of its subsidiaries were awarded contracts which in the aggregate are valued at more than $100 million by Electricité de France (EdF) to supply and erect four steam generators and auxiliary components at two power plants in Egypt.
The new plants, which are expected to go into full operation in 2003, will be located at sites in Port Said and Suez Gulf. Each plant will be rated to produce 700 MW of electricity.
The Foster Wheeler natural circulation, conventional steam generators for the new power plants, rated at a nominal 350 MW each, will burn natural gas and oil.
Electricité de France will own and operate the power plants for 20 years. After that, the facilities will be transferred to the Egyptian Electricity Authority (EEA).
In announcing the contract award, Elias Gedeon, Vice President of Sales and Marketing for Foster Wheeler Energy International, said: "We are extremely delighted to receive this important order from Electricité de France. This is Foster Wheeler's second major power plant project in Egypt and we are pleased to contribute to the growing power generation market in that country."
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Lockwood Greene Awarded R&D Facility Design
St. Louis, Missouri, March 17, 2000 - Lockwood Greene announced today it has been awarded a contract for the detailed design of Sigma Aldrich's new Life Sciences Technology Facility to be built in St. Louis. The 140,000 square-foot facility will be the home to world-class research and development for many of the country's best scientists. The projected construction completion is set for the end of 2001.
"We are extremely pleased to be selected as a member of a world-class team with Sigma Aldrich, HOK and McCarthy Construction on a project of this scope and magnitude," said Lenny Burns, General Manager, St. Louis office. The total cost of the contract was not released.
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Lockwood Greene Receives Engineering Excellence Award
Atlanta, GA, February 28, 2000--Lockwood Greene today announced it has been awarded the American Consulting Engineers Council of Georgia's Engineering Excellence Award for consulting, engineering and construction management services for the Evergreen Nylon Recycling Plant in Augusta, Georgia. The award is given annually to firms that demonstrate the highest degree of merit and ingenuity in providing a major contribution to technical, economic and social advancement.
This project was chosen in part because the facility is a first-of-its-kind production plant that will recycle post-consumer carpet in order to produce Caprolactam, the raw material used to make Nylon 6. Nylon 6 is used in applications such as residential and commercial carpet, engineering plastics, automotive parts, sporting goods, films and packaging. The innovative new process engineered into the plant will produce 100 million pounds of Caprolactam annually. The plant is also a model of energy efficiency, saving enough energy to heat and cool 100,000 medium-size homes for a year.
The challenges of completing the project included the adaptation of technologies proven only in a small-scale pilot plant, and the use of an integrated team to build this first-of-its-kind facility with an ambitious schedule and a tight budget. Lockwood Greene provided project design, procurement and construction management, from the conceptual design phase to the final construction phase. This project met Evergreen's expectations by substantially accomplishing their technical, budgetary and scheduling goals.
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Bechtel to Head Up Chemical Agent Disposal Facility Team
There's a deadline for putting to rest the specter of chemical warfare in the United States: April 2007. By then all of the nation's chemical agents must be destroyed, according to an international treaty. Bechtel is helping keep the agenda on schedule. The U.S. Department of Defense has selected a team headed by Bechtel to develop a facility that will destroy 1,623 tons of lethal mustard agent stored at the Aberdeen Proving Ground in Maryland. Under the seven-year, $306 million agreement, the team will build the installation, train its personnel, pilot-test the process, detoxify the agent, and close down the facility. Disposal work should be complete by October 2004. Aberdeen is the latest in a series of assignments under which Bechtel is assisting the governments of the United States and the former Soviet Union in destroying chemical weapons, dismantling intercontinental ballistic missile silos, and storing fissile material.
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Calpine and Bechtel Receive License to Construct Delta Energy Center
February 9, 2000San Jose-based Calpine Corporation [NYSE:CPN] and San Francisco-based Bechtel Enterprises announced that the California Energy Commission (CEC) has approved plans to construct the Delta Energy Center in Pittsburg, Calif. The $450 million, natural gas-fired facility will generate 880-megawatts of clean, reliable electricity for the greater Bay Area in mid-2002in time to help offset anticipated system strains in northern California.
The CECs 4-to-0 vote to approve Delta Energy Centers Application for Certification completes a stringent yearlong environmental review process. The CECthe lead state regulatory agency for the projectdetermined that the Delta Energy Center will have no significant adverse environmental impacts. Calpine and Bechtel filed the application with the CEC in December 1998.
"Delta Energy Center will help stem projected electrical supply shortfalls and help modernize Californias aging and constrained electric power infrastructure," said Bob Hepple, Calpine vice president of project development and director of projects for the Calpine/Bechtel Bay Area power program. "In addition, it will provide Californians with significant environmental and cost saving benefits."
"On behalf of Calpine and Bechtel, I would like to commend the outstanding efforts of our project development team, led by Project Manager Doug Buchanan, and the support of the Pittsburg and Antioch communities," continued Hepple.
Bechtel will build the energy facility in an industrial area to the north of Highway 4 in Pittsburg, Calif. Construction is scheduled to begin in June 2000. The project will employ up to 250 local union workers during peak construction and 25-to-30 full time operations jobs.
Utilizing state-of-the-art environmental control technology, the Delta Energy Center will emit 90% less emissions than the average gas-fired utility power plant in the U.S. In addition, it will be 40% more fuel-efficient, significantly lowering costs and conserving natural resources.
Calpine will operate Delta Energy Center when it enters commercial operation. The facility will provide electricity and steam for use at the nearby Dow Chemical Company facility and will also power homes and businesses throughout Pittsburg and the greater Bay Area.
Based in San Jose, Calif., Calpine Corporation is a leading U.S. power company dedicated to providing customers with reliable and competitively priced electricity. Calpine currently has interests in approximately 14,000 megawatts of capacity in operation, under construction or in announced development in 18 statesenough energy to power 14 million households. Calpine has headquarters in San Jose, Calif., with regional offices in Houston, Texas; Pleasanton, Calif.; and Boston, Mass. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. To learn more about Calpine, visit its website at www.calpine.com.
Bechtel Enterprises is the development, financing and ownership affiliate of Bechtel Group, Inc., a premier global engineer-contractor. It has developed more than 50 projects in the power generation, water and wastewater, transportation, pipeline and telecommunications sectors. Bechtel celebrated its centennial year of service in 1998 and has been a part of the San Francisco Bay Area since 1904. Bechtel has been at the center of energy development since the 1940s, having built more than 450 power stations with a total generating capacity exceeding 250,000 megawatts.
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Four Industry Leaders Unite to Execute World Class Project in Nigeria
Bonny Island, Rivers State, Nigeria Four major companies have joined forces to design and build one of the world's largest liquefied natural gas plants in a remote area of Africa. Called TSKJ, the partnership represents Technip Group of France, Snamprogetti of Italy, Kellogg Brown & Root of the United States, and JGC Corporation of Japan. The project site, located offshore Port Harcourt in Bonny Island, has the 10th largest proven gas reserves (3,500 billion cubic meters) in the world. When completed, the total complex will be able to produce more than 8.6 million tons of liquefied natural gas per year.
The first phase of the project, completed Fall 1999, included engineering, procurement, and construction of a two-train LNG plant, a 218-kilometer gas transmission system, and a residential area with 375 housing units for staff. Together, the two trains have the capacity to produce 5.9 million tons of LNG per year. Separately, each train is one of the largest in the world when measured by capacity.
Currently under way, the second phase of the project consists of designing and building a third train with associated facilities. The third train adds another 2.5 million tons per year of capacity for the huge complex.
To execute such a massive undertaking in a remote, underdeveloped area in Africa, Nigeria Liquefied Natural Gas Limited selected the team of TSKJ. Industry leaders in their own right, each company has more than 40 years of worldwide experience and references in the hydrocarbon processing business.
The Technip Group is the leading engineering and construction organization in France, and ranks number two in Europe. Created in 1958, Technip has annual revenues of $US 2 billion and a permanent staff of 6,400. It is the sixth leading full-service engineering and construction company in its core business. Technip designs and builds industrial and service facilities with a primary focus on the hydrocarbons and petrochemicals industries.
Snamprogetti, established in 1956, is the international engineering contractor and technology company of the Italian ENI Group. Snamprogetti operates in more than 100 countries around the world, providing a wide range of services from feasibility studies to turnkey projects. Around the world, Snamprogetti has built 70 grass roots plants (refineries, petrochemical and gas plants) and more than 78,000 kilometers of oil and gas pipeline. Headquartered in San Donato, Milanese, the company has offices in Fano and Rome.
Kellogg Brown & Root is an international, technology-based engineering and construction company providing a full spectrum of industry-leading services to the hydrocarbon, chemical, energy, forest products, manufacturing, and mining and minerals industries. Founded in 1919, Halliburton Company is the world's leading diversified energy services, engineering, construction, maintenance and energy equipment company. In 1998, Halliburton's consolidated revenues were $17.4 billion and it conducted business with a workforce of approximately 100,000 in more than 120 countries.
JGC is Japan's leading engineering and construction company. Founded in 1928, JGC has completed more than 2,000 projects of significant size in more than 50 countries. JGC constructed nearly half of the refineries in Japan. Its services include all phases of design through construction for process plants, industrial, and social service facilities. JGC employs some 2,848 people.
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