Replies to This Discussion

Permalink Reply by Jason on July 28, 2014 at 12:22am

Todd, I wonder if the large compressor station on the south side of the Bavington exit is the first compressor station shown on this map. It's right inside Washington county and a straight shot toward Hancock/Brooke to the west.

Just a thought.

Permalink Reply by Gail Morrow on September 11, 2014 at 7:03am

Hi, I haven't been on here for a while.  Changed my last name back to my maiden name so I'll explain who I am.  I got the group together for leasing out on Wylie Ridge then everyone signed with Chesapeake much to my dismay.  To my first point:  The Rover Pipeline is supposedly coming thru within 2500 feet of my property but they are requesting to survey my property along with some of my neighbors property because there may be an issue with someone having a family grave site in the way of the pipeline.  My understanding is this would cause them to divert to an alternate path rather than disturb a burial site.

The next thing I wanted to discuss is that I have heard that there was a lot of people who signed for the Chesapeake deal and have never gotten paid and are still not leased.  If this is true, I would really like for them to contact me so that I can get them together in a group and see what we can do.  It's not that far away before those of us that were forced into extensions are going to be ready to get new contracts and I honestly believe that none of us want to deal with Chesapeake.

The final issue for those of us in Hancock who have been so quiet is; if there are any of you out there that are thinking about just selling your lease rights, please contact me.  I have a resource who will pay the most for your lease rights.  I have researched and this group does not purchase to resell, they buy straight out as an investment.  They will purchase just a portion if you need cash now say 1/3 or 1/2 of your mineral rights.  I have decided to sell some of mine because of Chesapeake not paying me for my mineral rights and holding me under my Range lease that was suppose to expire in 2012 and they gave me $2000 more than the highest other bidder and were the only ones who weren't forceful or deceitful in anyway.  The other companies excuse for not paying more were: The one I particularly like was and I quote, "They have not found any wet gas anywhere near you in Washington or Beaver Counties so we can't pay you more than that."  ?"%?? And what does that have to do with the price of tea in China?!  Is it because there's a boarder line between PA and WV and a river between WV and Ohio that the prices are different? 

Permalink Reply by Todd on September 14, 2014 at 5:39am

Gail,

Thanks for contributing to the forum. When is your lease extension due to expire? 2017?

I hope that other folks begin to contribute more.

Todd

Permalink Reply by Todd on July 28, 2014 at 6:22am

Jason,

I think so - that processing plant is called Hillman and there is a tiny park called Hillman state park off of Old Rt 22:
http://www.rattlesnakepeak.net/wp-content/uploads/2010/08/Bavington...

Permalink Reply by Todd on September 7, 2014 at 3:14pm

Yep Jason,

Thank you for finding these detailed maps!

http://www.energytransfer.com/documents/FERC_Hillman_Lateral_Combin...

Pages 3 & 4 - Appears that the Hillman Natural Gas Processing Plant will originate in Florence, PA at Hillman State Park across Old Steubenville Pike from the Star Pointe Industrial Complex 

Hillman Lateral - 36''

http://www.energytransfer.com/images/county_rover_map_01.jpg

 

Permalink Reply by Todd on September 7, 2014 at 3:39pm

　

"ET Rover Pipeline will supply natural gas to manufacturing businesses located throughout the United States, utilities that will use it to generate electricity, and to distributors who sell it to heat homes and businesses throughout the Midwest, Gulf Coast and Great Lakes Region. Additionally, from the Canadian distribution hub located in Dawn, Canada, natural gas will be supplied back to the United States for consumption in the Northeastern United States, Great Lakes Regions, as well as Canadian Providences. Natural gas pipelines such as ET Rover create a safe mechanism to move this crucial energy source into the national supply chain and open market, price is kept in balance and the United States becomes more independent of foreign energy."

Permalink Reply by Todd on December 2, 2014 at 4:59pm

Energy Transfer Partners Analyst Day Presentation 11-18-14

Of interest, please see maps and info pertaining to the Rover Pipeline on pages 8, 15, 16, 38, 39 and 41 of the attached presentation by Energy Transfer Partners.

Gas from the area will be able to reach national and international markets via interconnect at the Midwest Hub in Defiance, Ohio -- in service date of December 2016.

Permalink Reply by Todd on December 2, 2014 at 5:24pm

http://ir.energytransfer.com/phoenix.zhtml?c=106094&p=irol-pres...

Couldn't get my downloaded file to upload so here's the link instead.

Permalink Reply by Gary on January 26, 2015 at 9:38am

Looks like they have big plans....

Energy Transfer Partners Buys Regency Energy for $25B
+

Bookmark Big news in the midstream (pipelines and processing plants) world. Today, Energy Transfer Partners (ETP) announced they are merging with and buying Regency Energy Partners in a deal with a total value of $24.8 billion–$18 billion in stock and cash, and $6.8 billion in assumed Regency debts. You may recognize both names, as both companies are active in the Marcellus and Utica Shale…

In December, ETP filed an application with the Federal Energy Regulatory Commission to build an 830-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). ETP is also the parent company of Sunoco Logistics, which recently completed an ethane pipeline from the Marcellus to Canada (Mariner West) and is on the cusp of opening a propane/ethane pipeline from western PA to Philadelphia, called Mariner East (see Mariner East Pipeline Passes Test in Lebanon, PA).

In 2013, Regency Energy Partners bought out PVR Partners for $5.6 billion (see Marcellus/Utica Midstreamer PVR Bought by Regency Energy for $5.6B). Regency owns a number of gathering lines in the northeast.

According to the press release, together (presumably under the ETP banner), the company becomes the second-largest master limited partnership (MLP) in the country.

The press release does not say whether or not Regency’s name will go away. Reading between the lines, it appears to us that Regency CEO Mike Bradley will not stay on after the merger. He’s quoted as saying he’s honoroed “to have been able to lead some of the finest people in the industry.” Sure sounds like a swan song to us.

Here’s the announcement from today:

Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) (“Regency”) today announced they have entered into a definitive merger agreement.

This merger will be a unit-for-unit transaction, plus a one-time cash payment to Regency unit holders, that collectively implies a value for Regency of approximately $18.0 billion, including the assumption of net debt and other liabilities of $6.8 billion. The transaction is expected to close in the second quarter of 2015.

Under the terms of the merger agreement, which has been approved by the Boards of Directors and Conflicts Committees of both ETP and Regency, the unitholders of Regency will receive 0.4066 ETP common units and a cash payment of $0.32 for each common unit of Regency, implying an all-in price for Regency common units of $26.89 per unit based on ETP’s closing price on January 23, 2015. The consideration to be received by Regency common unitholders represents an approximately 13% premium to the closing price of Regency’s common units of $23.75 on January 23, 2015, and an approximately 15% premium to the volume weighted average price of Regency’s common units for the last 3 trading days ending January 23, 2015.

In addition, Energy Transfer Equity, L.P. (NYSE: ETE), which owns the general partner and 100% of the incentive distribution rights (IDRs) of both Regency and ETP, has agreed to reduce the incentive distributions it receives from ETP by a total of $320 million over a five year period. The IDR subsidy will be $80 million in the first year post closing and $60 million per year for the following four years.

The proposed merger has been discussed with the ratings agencies and it is anticipated that the merger will have no impact to ETP’s credit ratings and that Regency’s ratings will be put on review for upgrade.

Pro forma for the merger, ETP will be the second largest MLP and will be well diversified both geographically, with operations in substantially all major producing areas in the United States, and across business lines, with a unique franchise across the energy midstream value chain.

This merger will create substantial cost savings, capital efficiencies and valuable ancillary benefits for both Regency’s and ETP’s unitholders. It will also strengthen the overall growth platform for the combined company.

ETP and Regency expect to capitalize on the full breadth of the combined gathering and processing platforms in several prolific producing regions, including the Permian Basin and Eagle Ford Shale. Among the numerous benefits of this merger is the likelihood of further liquids volume growth for Lone Star, which is ETP and Regency’s NGL joint venture, and also the expected increase in natural gas volumes into ETP’s intrastate pipeline system. The exciting opportunities from this merger include not only the broader midstream footprint in Texas, but also the Marcellus and Utica shale plays in Appalachia, where Regency’s extremely attractive and well-positioned operations and growth projects complement ETP’s Rover interstate gas pipeline (currently under construction), which will create over 3 Bcf/day of natural gas takeaway capacity from these plays. The presence of ETP and Regency in these shales will also be complemented by the significant activity of Sunoco Logistics Partners, L.P, (NYSE: SXL), another member of the Energy Transfer family, as it builds on its asset base in that area. Overall, ETP intends to become a major player in the Marcellus and Utica shales and believes that pro forma this merger, it is ideally positioned to achieve that goal in the near term.

“I am very proud of the entire team at Regency and am honored to have been able to lead some of the finest people in the industry,” said Mike Bradley, Regency’s Chief Executive Officer. “Together, we have built Regency into one of the largest gathering and processing MLPs in the U.S. over the last several years. In light of the current volatility in commodity prices and the changes in the capital markets, it became apparent over the last several months that Regency needed more scale and diversification, along with an investment grade balance sheet, to continue its growth. As a result, the combination with ETP became a logical transaction, as we believe that this merger will create significant immediate and long-term value for our unitholders. The merger will also allow Regency and ETP to consolidate our complementary midstream operations in the Permian and West Texas areas. The ability to bring those operations together under one roof is expected to create tremendous value for the unitholders of the combined partnerships.”

Advisors

Latham & Watkins LLP acted as legal counsel to ETP. Baker Botts L.L.P. acted as legal counsel to Regency. Barclays acted as financial advisor and Richards Layton & Finger acted as legal counsel to ETP’s conflicts committee. J.P. Morgan Securities LLC acted as financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to Regency’s conflicts committee.

Required Approvals

Completion of the merger is subject to customary closing conditions, including approval of the respective ETP and Regency unitholders and observation of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, if applicable. The required threshold for approval of each partnerships unitholders is a simple majority of issued and outstanding units. Under the terms of the merger agreement, ETE and ETP have agreed to vote their respective Regency common units and Class F units in favor of the merger.*