Replies to This Discussion

Permalink Reply by Drill Pipe on June 10, 2014 at 9:50pm

I am far from the county action. Could this reflect incomplete developement of
transmission infrastructure?

Permalink Reply by David Augenstein on June 10, 2014 at 10:57pm

This is quite strange. Sounds like this entire hype is coming back to bite the players-- do I hear bankrupcy? Somebody is going to take a big fall. Maybe this is why CHK is selling/assigning leases to small companies

Permalink Reply by James Foster on June 12, 2014 at 2:51pm

Infrastructure in Columbiana includes two pipelines complete for western and central wells. Kensington Cryogenic processes wet gas then sends liquids to Scio. Eastern wells no pipeline. I speculate they are mostly dry gas. NW of county abandoned after Sanor Farm well. Liquids being taken by railcar from Columbiana. Frack sands come by rail to same depot in Columbiana. What other infrastructure could we have? New Middleton cryo plant is one twp from eastern Columbiana. The pipeline for their liquids to go to Kensington then on to Scio is near completion. New storage yard on 30 just west of pipeyard near Depot Rd. We have more infrastructure then wells right now.

Permalink Reply by John Zoellers on June 27, 2014 at 1:14pm

no wet gas in pipeline going to Kensington plant they process dry gas wet gets trucked

Permalink Reply by James Foster on June 29, 2014 at 1:35pm

This is not correct. The tanks at the well sites that are gathered by Millport and Teegarden and other pipelines have condensate, water, and a few have oil.  We are in a well unit gathered by the Millport and know several people in this area in well units.  None of these wells are dry gas.  Dry gas that is the right percentage of methane needs little processing and this can be done at well head.   Everything going to Kensington is wet gas. There would be no reason to even have the Kensington Plant if you had dry gas.  A cryogenic plants purpose to separate dry gas from wet gas by cooling it.  So the gas going to Kensington is wet gas. NGL's are separated then sent to Scio Harrison.

Kensington separates out dry gas including ethane ... but will be adding a process to separate ethane which can then be made into ethylene for plastics industry ... which goes into one of two nearby pipeline a Dominion line and the Tennessee Pipeline for sale to consumers.  Because it still has ethane in it  pipeline companies  blend the Kensington-processed natural gas with leaner natural gas from other sources to meet pipeline safety standards. 

The lucrative liquids removed from the natural gas are transported via a 24-inch high-pressure pipeline to a separate processing plant 35 miles away in Harrison County.

The facility in Harrison County includes a fractionation plant to separate the liquids, a storage facility for 870,000 barrels of liquids and a rail yard for shipping the liquids. The fractionation plant can handle 45,000 barrels per day. With expansions, it will be capable of handling 135,000 barrels per day. 

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/utica-...

Permalink Reply by Kathleen on June 12, 2014 at 6:17pm

CHK missed the sweet spot which is south. They did not list this areas acreage for sale when they could have had buyers and needed (needs) cash. Either they are coming back before leases expire or they are looking to trade. IMO
There is also a lot of held by production land in this county so there's no rush on those leases.
One huge test of what their plans will be is when the first round of ALOV leases start expiring.

Permalink Reply by James Foster on June 12, 2014 at 6:50pm

Is that is next year? Spring 2015?

Permalink Reply by Kathleen on June 13, 2014 at 8:49am

Hi,

Its April-may 2016 for the first round of leasing at the $2200 mark but the leases were recorded in the summer of 2011.