Antero wants to build a pipeline ...for WATER

Excerpt from WSJ. You need a subscription to WSJ to see the entire article as of now

Antero Resources Inc., an energy company backed by New York private-equity firms, plans to spend more than half a billion dollars on a pipeline. But the 80 miles of pipe won't transport oil or gas: They will carry water from the Ohio River to fracking sites in West Virginia and Ohio.

The proposed pipeline would slash the company's water costs by two-thirds, or about $600,000 per well, Chance Richie, a water consultant to Antero, said at an industry conference in March. The trucks that now deliver most of that water are a "very, very large expense," he said.

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Permalink Reply by bo boboski on August 14, 2013 at 9:42am

That's about all that water is good for,  why not?  maybe they can sell it to other drillers & actually make $$$ on it!

Permalink Reply by Madd man on August 14, 2013 at 10:07am

Excellent idea from a business perspective!

Permalink Reply by Jim Litwinowicz on August 14, 2013 at 10:39am

Seneca Resources  did a similar project in NW Pa a year ago.  The line was much shorter, 7-8 miles IIRC. But they had underground storage tanks and valving to load four trucks at once.  They said they would sell water to other companies working in the area and said this line would eliminate something like 200,000 truckloads over the next 10-15 years.

Permalink Reply by Mark McGrail on August 14, 2013 at 2:36pm

Jim,

Have you seen the agreements for these type of ROW's ?

Permalink Reply by searcherone on August 14, 2013 at 12:08pm

H Bale here is brief article that can be read.

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

Permalink Reply by searcherone on August 14, 2013 at 1:44pm

Also check page 18 of Antero's August presentation which shows map of waterline in WV,  This map has been in their corporate presentations during most of 2013.  Appears the Ohio River withdrawal point would be near the Tyler/Pleasants WV county line.  Anyone know exact location?  Map says it is to be finished Dec 2013.

 

http://www.anteroresources.com/wp-content/uploads/Company%20Website...

Permalink Reply by Mark McGrail on August 14, 2013 at 2:35pm

I am surprised that this didn't occur earlier, with the Ohio being so close to the areas of sale development.

What do people think about ROW for these lines. It's a different animal that gas pipeline ROW's?

Have there been any agreements offered ?

Permalink Reply by Mark McGrail on August 14, 2013 at 2:42pm

The anti shale development crowd look for every issue they can use to discredit shale development.

One of these is truck traffic.

This move by Antero proves something I have believed, that these companies will mitigate problems as a matter of business. 

I am sure that more companies will follow suit in order to reduce truck traffic.

Another anti shale complaint bites the dust.

Permalink Reply by ji on August 18, 2013 at 3:27am
How will this reduce truck traffic. Are they going to lay pipeline to every well site from pipe line terminal or will they truck it to individual fracking sites from terminal? Sounds like economic decision not traffic decision.
Permalink Reply by Ed howell on August 15, 2013 at 6:24am

I live in Tyler county and we like this idea , our only worry is if there is a leak in the pipeline .....which is buried three feet and the fluids go down to water table

Permalink Reply by Ragnars Repo on August 15, 2013 at 9:35am
It's water.
Permalink Reply by Tim Tarr on August 15, 2013 at 1:46pm
Fresh water not flow back.

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