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Ohio Utica Shale

Dominion to move West Virginia natural gas to Ohio, Midwest

By Bob Downing Published: December 10, 2013

From Dominion:

RICHMOND, Va., Dec. 10, 2013 /PRNewswire/ -- Dominion (NYSE: D), one of the nation's largest energy companies, has contracted to deliver 500,000 dekatherms per day of natural gas produced in West Virginia to various interconnections with pipelines in Ohio, as producers look westward to seek new markets for Marcellus production.

The company also has closed on agreements with two natural gas producers to lease approximately 100,000 acres of Marcellus shale rights underneath several of its natural gas storage fields in West Virginia.

Dominion has farmed out nearly 80,000 acres to CONSOL Energy in Lewis and Harrison counties in its Fink-Kennedy and Lost Creek storage areas. It has also subleased nearly 9,000 acres to CONSOL Energy mainly in Gilmer and Ritchie Counties in its Racket-Newberne storage area. Dominion has also farmed out approximately 13,000 acres to Triana Energy LLC in Harrison and Taylor Counties in its Bridgeport Storage area.

In conjunction with the farmout with CONSOL, Dominion Transmission and CONSOL have executed a binding precedent agreement to transport 250,000 dekatherms per day from the Fink-Kennedy area to two different points in eastern Ohio. One is an interconnection with the Texas Eastern pipeline at Mullet, Ohio, and the other an interconnection with the Rockies Express Pipeline in Clarington, Ohio. The contract term is 15 years beginning in November 2016.

Dominion has also received commitments from various producers to transport 250,000 DT/day to interconnections in Lebanon, Ohio. These long term contracts begin in June 2014 and continue with various terms up to 21 years.

Dominion will retain the storage fields, but permit directional drilling into the much deeper Marcellus shale formation.

The farmout agreements will result in payments to Dominion of approximately $200 million over a period of nine years, and an overriding royalty interest in the natural gas produced. These projects have already been announced and support the growth plan.

CONSOL Energy Inc. is a Pittsburgh-based producer of natural gas and coal. The company is a leading producer in the Marcellus Shale and is transitioning its active exploration program into development mode in the Utica Shale. CONSOL Energy has proved natural gas reserves of 4.0 trillion cubic feet. Safety and compliance are the company's foremost values. CONSOL Energy is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. Additional information about CONSOL Energy can be found at its website, at www.consolenergy.com.

Triana Energy is an oil and gas exploration and production company headquartered in Charleston, West Virginia, with operations in the Appalachian Basin and Nova Scotia.

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 23,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,400 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.

SOURCE Dominion

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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.