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Permalink Reply by Jack Straw on August 30, 2012 at 7:30am

In your favor, 1000 acres is a large land position.

I assume that you are HBP (held by production) due to existing shallow production.

Who are you leased with? Some companies are currently more active than others.

 

To answer your questions - what type of "transmission line" are you referring to?

 

If you are referring to a gathering line for shallow gas wells, it is a low pressure pipeline.

Marcellus/Utica gas requires a high pressure pipeline.

If there is an existing ROW for a gathering line for the shallow gas, it is likely possible to extend the width of the ROW to accommodate a second (high pressure) line.

 

If you are referring to an interstate or intrastate pipeline that already transmits gas that has been compressed to high pressure, then Marcellus/Utica gas could potentially utilize that transmission line.

 

A complete answer to your question requires more detailed knowledge of the nature of the existing pipeline.

 

All IMHO,

                 JS

 

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Permalink Reply by CB on August 30, 2012 at 7:35am

The transmission line is not a high pressure line, and is not inter/intrastate.  I believe it is just a gathering line for the shallow gas.  Interesting points.  Either way, I would think that existing line would be somewhat attractive.

I have heard that the drilling companies are skipping some areas (for now) because they don't have a way to move the gas, and are leaning toward properties that have a transmission line (few and far between) or ones where putting a line in is relatively easy and can serve the larger area.

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Permalink Reply by Jack Straw on August 30, 2012 at 7:47am

RE : "I would think that existing line would be somewhat attractive."

The existance of a (low pressure) gathering line might have little or no influence.

Choice of site for a Marcellus/Utica well pad location would not likely take into account the presence or absence of an existing low pressure gathering line. 

 

All IMHO,

                   JS

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