FOR IMMEDIATE RELEASE                                         ENR
THURSDAY, FEBRUARY 27, 1997                        (202) 514-2008
                                               TDD (202) 514-1888

                                 
      PENNZOIL PRODUCTS COMPANY AND EUREKA PIPE LINE COMPANY
              AGREE TO PAY $867,000 IN PENALTIES FOR
             WEST VIRGINIA AND PENNSYLVANIA OIL SPILLS

     WASHINGTON, D.C. -- Pennzoil Products Company and its
subsidiary Eureka Pipe Line Company agreed to pay $867,000 in
penalties for the more than 100 small oil pipeline spills that
polluted waters in West Virginia and western Pennsylvania, the
United States announced today.  Pennzoil Products also agreed to
take immediate action to reduce the incidence of oil pipeline
spills, particularly those caused by external corrosion on the
pipes.

     Pennzoil Products Company is a subsidiary of the Houston-
based Pennzoil Company.  Eureka Pipeline Company is a subsidiary
of Pennzoil Products.  Both companies are located in Vienna, West
Virginia.   

     "The Department of Justice and the Environmental Protection
Agency are committed to fair and vigorous enforcement of the
Nation's environmental standards," said Michael McCabe, EPA
Regional Administrator.  "We will not tolerate illegal oil
pollution of any of America's waterways." 

     "This settlement should significantly reduce future
Pennzoil/Eureka pipeline spills and stands as an example of what
strong environmental enforcement can accomplish," said Lois
Schiffer, Assistant Attorney General in charge of the Justice
Department's Environment and Natural Resources Division.
  
     In an amended complaint, filed along with the settlement
late yesterday in U.S. District Court in Parkersburg, West
Virginia, the United States alleged that 106 unlawful oil spills
occurred between 1993 and 1996, many of which were caused by
corrosion on Pennzoil's pipelines.  The largest of these was a
10,500 gallon pipeline spill from Eureka's facility in Roane
County, West Virginia on February 11, 1993.  The original
complaint was filed in March 1996.  The proposed settlement, if
approved by the court, would settle the suit.

     Pennzoil Products also agreed to perform a set of corrective
measures, including, the removal of 19-miles of pipelines from
active service, the pressure testing of all of its active
pipelines for detection of corrosion-related problems, conduct
regular visual inspections of its entire active oil production
facilities, and create a review committee to study and repair
pipeline corrosion.  

     The 2 3/8-inch diameter pipelines transport oil from wells
in West Virginia to storage tanks in both West Virginia and
western Pennsylvania.  Most of the oil pipeline spills were small
and Pennzoil cleaned up each one shortly after they occurred.

     The proposed settlement, known as a consent decree, will be
published in the Federal Register.  Any person may submit written
comments concerning the proposed decree during the 30 day comment
period to the Assistant Attorney General, Environment and Natural
Resources Division, U.S. Department of Justice, 950 Pennsylvania
Avenue, N.W., Washington, D.C. 20530. 
 
     Civil Action Number:  6:96-0282
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97-088