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Ohio Utica Shale

PVR Partners to build gas-collection pipeline for Hess in Ohio

By Bob Downing Published: September 3, 2013

Pennsylvania-based PVR Partners LP announced today that will build a 45-mile natural gas-collection pipeline in eastern Ohio for Hess Corp.

The pipeline system will be built in Belmont, Harrison and Jefferson counties.

It is scheduled to be operational in late 2014.

The cost estimates are $125 million to $150 million.

Here is the company's statement:

RADNOR, Pa., Sept. 3, 2013 /PRNewswire/ -- PVR Partners, L.P. (NYSE: PVR) ("PVR") today announced that it has entered into a definitive agreement with Hess Corporation (NYSE: HES) ("Hess") to construct, own and operate a 45-mile natural gas trunkline and associated gathering pipelines and facilities servicing Hess's lean gas production in the Utica Shale in eastern Ohio.

In addition to providing committed volumes of gas to the project, the agreement establishes an area of mutual interest ("AMI") covering portions of Belmont, Jefferson and Harrison Counties where Hess holds a substantial acreage position. PVR will construct a minimum 20-inch diameter trunk line with an expected minimum capacity of 450 million cubic feet per day and connections to the Texas Eastern and Rockies Express interstate pipelines, with possible future connections to other interstate systems. Additionally, PVR will construct gathering pipelines, compression stations, dehydration facilities and other related facilities to gather Hess's production from the dedicated acreage. The services will be provided solely on a volumetric fee basis, with no direct commodity price exposure. The project is expected to begin operations in late 2014 and PVR anticipates contracting with additional producers for capacity and gathering services as construction of the system progresses.

PVR expects the total capital investment for the trunkline, initial gathering lines, compression stations and dehydration facilities to be in the range of $125-150 million, and expects to invest approximately $10 million during the remainder of 2013, and approximately $50 million during the first half of 2014 and $50 million during the second half of 2014, with the balance in 2015.

Bill Shea, President and Chief Executive Officer of PVR's general partner, said; "PVR is pleased to announce this strategic expansion of our midstream business into the Utica Shale and we welcome the opportunity to serve Hess Corporation, a world-class energy provider. We believe Hess's selection of PVR as their midstream provider in the Utica Shale is another validation of our growing reputation for supplying reliable high-quality midstream services to meet the needs of shale gas producers. We have done so successfully in the Marcellus Shale region, and we expect to duplicate that success in the Utica Shale."




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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.