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COASTAL OIL AND GAS RECEIVES ENVIRONMENTAL AWARD FROM STATE OF UTAH

 HOUSTON, May 3 /PRNewswire/ -- Coastal Oil and Gas Corporation has been honored by the State of Utah for environmental achievement in oil field restoration efforts. The Utah Board and Division of Oil, Gas and Mining presented an "Earth Day" award to Coastal for applying innovative environmental technology that proved quicker and less costly in the restoration of 97 emergency pits acquired in the Altamont Bluebell area of northeast Utah's Uinta Basin.
 As part of the restoration process, Coastal pioneered a new remediation technology that uses naturally occurring bacteria to consume the waste oil, enabling the pits to be reclaimed in a cost effective and environmentally sensitive manner. When the three-year project is complete in about a year, Coastal will have reclaimed a total of 127 pits in the area.
 The "Earth Day" award and a Resolution of Commendation was presented to Coastal Oil and Gas' Environmental and Safety Affairs Director Michael McAllister, Ph.D., on April 28 in Salt Lake City. In announcing the award, Division Director Jim Carter praised Coastal for its "continuing efforts to develop Utah's resources in a responsible manner."
 The restoration project involved introducing and maintaining high concentration cultures of the bacteria in pits containing high paraffin crude oil. Normally found in soil in much smaller quantities, the bacteria consume the oil, yielding only carbon dioxide, cell protein and water as by-products. Once the oil is depleted, the bacteria expire. Coastal was also recognized for replacing the old pits with synthetically lined pits that protect ground water quality.
 According to McAllister, who designed the project, another advantage of using bacteria is that they lowered the pour point of the crude oil to a level where up to 150 barrels of sellable product could be reclaimed from each pit. "The sales revenue from the recovered crude has enabled us to recoup some of the costs of the restoration project," explained McAllister.
 He added that using bacteria has distinct advantages over transferring the oil to a waste disposal site. "From an environmental perspective, traditional waste disposal really only moves the problem from one place to another," explained McAllister. "It is also much more expensive and makes the company potentially liable for future clean up at the disposal site."
 Coastal began developing the idea for using oil-consuming microbes about two years ago, when the technology was still considered experimental. Today, as a result of efforts like Coastal's and other applications in Prince William Sound and the Persian Gulf, bacteria oil recovery has become an accepted practice. Coastal has since used the process in larger pits along the Gulf Coast and plans similar applications in New Mexico. McAllister is also sharing information with other producers in Utah's Uinta Basin to help them apply the same technology in order to achieve environmental benefits without significant financial exposure.
 The Coastal Corporation (NYSE: CGP) is a Houston-based energy holding company. It has consolidated assets of more than $10 billion and subsidiary operations in natural gas marketing, transmission and storage, refining and marketing, oil and gas exploration and production, coal, chemicals, trucking and independent power production.
 -0- 5/4/93
 /CONTACT: Dave Scott, 713-877-3839, or Will Osterloh, 713-877-6732, both of The Coastal Corporation/
 (CGP)


CO: Coastal Corporation ST: Texas IN: OIL SU:

LD -- NY112 -- 4067 05/03/93 19:45 EDT
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Date:May 3, 1993
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