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PLAINS RESOURCES AND ARCO PIPE LINE COMPANY ENTER INTO CRUDE OIL TANKAGE LEASE

 HOUSTON, Jan. 5 /PRNewswire/ -- Plains Terminal & Transfer Corporation, a unit of Plains Resources Inc. (AMEX: PLX), and ARCO Pipe Line Company, a unit of Atlantic Richfield Company (NYSE: ARC), today jointly announced an agreement whereby Plains will provide ARCO Pipe Line with up to 500,000 barrels of crude oil tankage at Plains' new Cushing, Okla., storage facility.
 Under the agreement, ARCO Pipe Line initially leased 300,000 barrels of space from Plains and has the option to increase this arrangement by up to 200,000 additional barrels. The initial term of the agreement is for one year with annual renewal options.
 Steve Beck, vice president of ARCO Pipe Line, said the agreement is part of ARCO's long-term plan to increase the capacity of its Texas City-to-Cushing pipeline. "This additional tankage capacity will improve ARCO's ability to maintain the integrity of segregated grades of crude throughout the receipt, terminalling and redelivery process and will enable ARCO to more effectively manage shipments of foreign crude into the mid-continent region," Beck said.
 ARCO Pipe Line's Texas City-to-Cushing pipeline system is the largest pipeline delivering crude oil directly from the Gulf Coast into Cushing. ARCO is also a principal delivery point for the light, sweet, crude oil contract traded on the New York Mercantile Exchange.
 Harry N. Pefanis, president of Plains Terminal & Transfer, said he expected the portion of the facility leased to ARCO to be placed in service during the first quarter of 1993 and the remainder of the facility to be fully operational by June 1993. "The tankage subject to the ARCO agreement represents approximately 25 percent of the initial 2 million barrels of capacity currently under construction in Cushing," Pefanis said.
 Plains' storage facility, located directly south of ARCO Pipe Line's existing Cushing terminal facility, will be connected to substantially all of the major crude carriers in the interchange area and will have on-site X-ray diffraction and distillation units to test and verify the quality of crudes received and delivered. Pefanis said the Plains terminal will be the only Cushing storage facility capable of directly receiving and delivering crude oil at the maximum throughput rates of the connecting carriers.
 While storage capacity for the current phase under construction is 2 million barrels, Pefanis stated that the Plains facility is designed to be expanded to over 10 million barrels as needed. Over the last several years Plains has acquired control over a large, strategic land position located adjacent to the Cushing interchange. This land position provides Plains with unique expansion capability.
 Plains Terminal & Transport and Plains Marketing & Transportation are subsidiaries of Plains Resources, an independent oil and gas exploration and production company headquartered in Houston. During 1992, it was ranked by The Oil and Gas Journal as 106th among the largest publicly traded oil and gas companies in the United States.
 -0- 1/5/93
 /CONTACT: Nancy J. Kerby of Plains Resources Inc., 713-654-1414, or Harry N. Pefanis, president of Plains Terminal & Transfer Corporation, 713-652-0716/
 (PLX ARC)


CO: Plains Resources Inc.; Atlantic Richfield Company ST: Texas IN: OIL SU:

CK -- NY035 -- 1645 01/05/93 10:37 EST
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Publication:PR Newswire
Date:Jan 5, 1993
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