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Facts
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Edition
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the
W E S T
V I R G I N I A
P E N N S Y L V A N I A
N E
N O R T H C A R O L I N A
A T
V I R G I N I A
FORWARD
FOREWORD
Welcome to the fifth edition of the West Virginia Oil and Natural Gas Association (WVONGA) Gas
Facts for 2011. The data contained in this publication makes it very clear that the oil and gas
industry plays a vital role in the economic development of West Virginia and across the United
States..
The Marcellus Shale is no mystery to the oil and gas industry in the Appalachian Basin. Records
indicate that drillers have been producing gas from that geological formation for as long as 60
years. In fact, most geologists will tell you that the Marcellus Shale is the organic rich source
rock for most of the hydrocarbons that migrated to traditional reservoirs and was recovered from
the basin during the last 100 years. However, conventional drilling and production techniques
used up until 10 years ago usually did not allow for the recovery of economically viable quantities
of gas from the shale alone. Technology advances in horizontal drilling and hydraulic fracturing
have changed everything.
Beginning in the Barnett and Woodford Shales in Texas and Oklahoma, respectively, Mitchell
Energy refined techniques that allowed for the recovery of commercial quantities of gas from
tight, unconventional reservoirs such as the Marcellus Shale. Most accounts credit Range
Resources of Ft. Worth, Texas with transferring that technology to the Appalachian basin in 2006;
however, other producers in the basin have been using similar techniques to extract natural gas
from coal seams and tight sandstone and shale formations for nearly 20 years.
Regardless of who pioneered and transferred the technology, two critical components came
together to create the opportunity, namely technology and economics. First and foremost,
technology advances associated with the electron microscope allowed scientists to visualize
porosity in the rock that had previously been undetectable. Horizontal drilling technology, and
hydraulic fracturing techniques came together to allow producers to access and enhance
permeability to those microscopic pore spaces. That technology was ignited by a general increase
in world energy prices associated with the supercharged economies in China, India, and Brazil
and what has erupted is a drilling boom and discovery of possibly the largest gas reservoir in the
world known as the Marcellus shale.
Most of the industry believes that the Marcellus shale is only the beginning of a renaissance story.
This technology can and will be transferred throughout the world to many unconventional
reservoirs. Here in Appalachia other shale including the Utica, Huron, and Rhi9nestreet are also
ripe for exploration using this technology, and previously abandoned reservoirs may be candidates
for recompletion to recover vast sums of oil and gas that were left in place by obsolete technology.
West Virginia and the rest of America may be on the precipice of breaking its costly addiction to
Middle East Oil and ushering back to America the value added industries that previously
abandoned our shores in search of cheap energy and raw materials.
Lets welcome everyone back to the cradle of the American energy business and those industries
that once thrived in what we call the Appalachian Basin.
Needs signature
Jim Crews
President
1
Gas Facts
West Virginia Oil and Natural Gas Association
Table of Contents
Foreword
10
11
13
14
15
16
17
18
19
20
WVONGA Membership
51
53
Published by WVONGA
P.O. Box 3231
Charleston, WV 25332
(304) 343-1609
800-343-1609
(304) 343-5610 (fax)
wvonga@suddenlinkmail.com
www.wvonga.com
257,177,239
1,500,683
2003
393,327
5,157
195
9
7,606
1,249
18,774
3,039
240
2,291
17,387
12,900
16,939
7
8,600
427
0
4,539
109
4
37,100
5,878
117
33,828
34,334
15
42,437
61
430
68,572
3,220
3,506
46,203
18,154
2004
406,147
5,526
224
6
3,460
1,272
16,718
2,781
251
2,386
18,120
13,920
20,734
7
8,500
1,536
0
4,971
111
4
38,574
5,781
117
33,828
35,612
15
44,227
61
280
72,237
3,657
3,870
47,117
20,244
2005
425,887
5,523
227
6
3,462
1,356
22,691
2,123
316
2,321
18,946
14,175
18,838
7
8,900
1,676
0
5,751
114
4
40,157
5,449
148
33,735
36,704
15
46,654
69
400
74,827
4,092
4,132
49,335
23,734
2006
440,516
6,227
231
7
3,814
1,451
20,568
2,419
316
2,336
19,713
15,892
17,459
7
9,200
1,836
0
6,578
114
4
41,634
5,985
200
33,945
38,060
14
49,750
69
330
74,265
4,858
5,179
53,003
25,052
2007
2008
2009
452,945 *476,652 493,100
6,591
6,860
6,913
239
261
261
7
6
6
4,773
5,592
6,314
1,540
1,645
1,643
22,949 25,716 27,021
2,552
1,527
1,984
43
45
51
2,350
*525
563
19,713 17,862 21,243
16,563 16,290 17,152
18,145 19,213 18,860
7
7
7
9,712
9,995 10,600
2,315
2,343
2,320
0
0
0
6,925
7,095
7,031
186
322
285
4
*0
0
42,644 44,241 44,784
6,680
6,675
6,628
200
194
196
34,416 34,416 34,963
38,364 41,921 43,600
18
21
24
52,700 55,631 57,356
71
71
89
305
285
310
76,436 87,556 93,507
5,197
5,578
5,774
5,735
6,426
7,303
48,215 49,364 50,602
27,350 28,969 25,710
* Updated after original publication
Where
energy meets
technology.
eqt.com
Wood
Wyoming
Total
27
6
1,487
2008
$1,054,641.96
$0.00
$3,020,550.20
$921,247.07
$0.00
$197,137.82
1,092.874.07
$629,879.75
$2,996,461.95
$633,443.00
1,599,754,24
$16,662.32
$0.00
$0.00
$1,008.03
$0.00
$3,258,329.71
$1,404,872.16
$0.00
$4,641,946.23
$3,821,229.49
$2,184,563.67
$3,472,996.73
$1,319,682.62
$130,791.19
$82,968.18
$5,352,631.50
$383,249.57
$1,409.59
$2,915,686.86
$541,737.96
$0.00
$60.90
$280,461.37
$20.00
$40.75
$255,611.29
$16,610.77
$95,442.67
$982,212.12
$938,101.14
$309,258.96
$2,291,762.58
$1,026,103.46
$5,198.47
$340,623.95
$174,501.70
$1,077,098.32
$1,143,436.25
$1,392,318.20
$8,896.06
$1,001,536.44
$129,359.99
$79,794.46
$5,117,923.74
$55,649,501.15
2009
$2,325,480.00
$0.00
$4,576,314.00
$1,444,355.00
$0.00
$417,648.00
$1,770,955.00
$946,167.00
$4,950,447.00
$910,896.00
$2,397,785.00
$28,716.00
$0.00
$0.00
$3,546.00
$0.00
$5,274,630.00
$2,238,032.00
$0.00
$7,902,275.00
$5,983,509.00
$4,141,859.00
$6,504,392.00
$2,279,335.00
$322,345.00
$223,519.00
$8,212,709.00
$689,908.00
$4,347.00
$4,519,701.00
$937,498.00
$0.00
$91.00
$440,816.00
$30.00
$35,338.00
$337,584.00
$16,542.00
$160,045.00
$1,954,031.00
$1,481,821.00
$484,734.00
$4,003,421.00
$1,601,478.00
$7,035.00
$476,226.00
$330,157.00
$1,850,802.00
$2,080,398.00
$2,398,142.00
$11,534.00
$1,878,820.00
$197,406.00
$126,157.00
$8,339,400.00
$97,218,376.00
2010
$2,096,917.00
$571.00
$4,946,049.00
$1,067,287.00
$3,816.00
$854,098.00
$1,394,432.00
$953,045.00
$6,276,400.00
$1,018,717.00
$2,189,173.00
$32,445.00
$45,710.00
$14,995.00
$10,247.00
$10,709.00
$6,147,253.00
$2,823,445.00
$32.00
$8,331,547.00
$4,851,800.00
$5,214,625.00
$7,082,452.00
$1,695,805.00
$1,170,479.00
$412,809.00
$7,950,158.00
$716,170.00
$25,911.00
$5,361,926.00
$1,336,670.00
$4,116.00
$1,035.00
$416,393.00
$5,186.00
$82,835.00
$366,732.00
$77,731.00
$162,145.00
$1,983,201.00
$3,613,968.00
$313,373.00
$4,215,089.00
$1,396,493.00
$7,544.00
$585,183.00
$128,967.00
$2,078,518.00
$2,418,928.00
$2,659,381.00
$47,903.00
$2,464,108.00
$289,340.00
$176,227.00
$8,433,328.00
$105,963,417.00
more
informationabout
aboutDominion,
Dominion,visit
visit
ForFor
more
information
www.dom.com
www.dom.com
2005
2006
2007
2008
2009
374,301
353,292
347,433
347,368
343,837
36,635
685
34,748
676
34,161
663
34,275
738
34,044
698
145
229,402
155
208,218
114
309,665
109
273,181
101
241,901
Industrial
Number of Consumers
Average Consumption per Consumer
(Thousand Cubic Ft.)
2005
2006
2007
2008
2009
63,616,827
64,385,971
64,964,769
*65,073,996
65,316,682
5,198,028
577
5,274,854
537
5,308,785
568
*5,444,335
*579
5,321,150
586
206,223
31,991
193,380
32,507
198,288
33,527
*225,043
*29,600
207,443
29,730
Industrial
Number of Consumers
Average Consumption per Consumer
(Thousand Cubic Ft.)
2005
512,377
31
2006
513,416
31
2007
536,702
32
2008
528,442
32
2009
531,456
32
2005
8,268,443
250,532
1,350,689
6,667,222
394
30
44
320
2006
8,329,967
261,988
1,356,323
6,711,656
397
31
44
322
2007
8,402,216
253,410
1,347,516
6,801,291
400
31
43
326
2008
8,498,535
341,213
1,351,832
6,805,490
401
34
43
324
2009
8,655,740
397,560
1,340,633
6,917,547
409
35
43
331
10
Employees
2,460
2,608
983
890
108
64
778
926
302
422
212
1,598
3,057
120
4,814
TOTAL EMPLOYMENT
19,342
2009
255,650
1,368,168
178,365
Number of Customers
Residential
Commercial
Industrial
343,837
34,044
101
75,474
26,172
23,761
24,432
$14.75
$14.24
$ 5.55
11
252,337
140,620
80,761
64,680
62,920
57,588
42,134
35,563
30,485
29,041
13
14
15
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
25% to Municipalities 25% to Unincorporated County Areas 75% to Production Counties Total Oil and Natural Gas Severance Tax
16
Unincorporated
$8,626.15
$50,105.02
$17,826.07
$9,874.39
$11,683.99
$36,355.51
$5,792.88
$8,038.36
$5,446.15
$25,303.07
$4,490.99
$7,080.72
$18,941.38
$14,911.89
$9,767.07
$8,295.10
$28,119.00
$17,093.82
$28,214.77
$80,996.21
$10,068.39
$16,752.86
$27,556.81
$22,181.67
$15,762.20
$14,629.54
$16,730.57
$35,659.58
$15,543.43
$19,186.57
$40,284.30
$11,003.73
$11,356.25
$17,163.98
$8,641.02
$6,108.24
$3,682.78
$6,127.22
$18,193.44
$32,570.37
$48,464.66
$15,826.59
$5,278.55
$10,646.28
$8,353.73
$8,513.89
$3,481.34
$5,026.77
$14,594.88
$26,170.71
$6,803.35
$7,135.21
$4,027.85
$33,145.77
$17,892.94
Production
$96,493.67
$0.00
$170,030.10
$65,691.39
$0.00
$26,392.46
$88,407.77
$66,563.62
$286,846.49
$44,724.40
$138,465.87
$2,756.01
$0.00
$0.00
$154.66
$0.00
$294,366.13
$101,694.20
$0.00
$308,240.01
$297,691.21
$209,494.62
$284,007.51
$58,429.01
$37,753.56
$10,428.96
$252,836.77
$31,065.08
$144.84
$228,540.85
$52,306.25
$0.00
$0.00
$24,676.12
$0.00
$5,967.21
$20,620.07
$1,249.72
$10,914.63
$76,903.62
$67,000.76
$26,558.13
$196,240.80
$84,899.76
$368.30
$31,353.92
$10,929.73
$75,967.68
$158,727.80
$97,270.10
$537.96
$104,835.27
$12,645.69
$8,495.76
$308,909.93
County Total
$105,119.82
$50,105.02
$187,856.17
$75,565.78
$11,683.99
$62,747.97
$94,200.65
$74,601.98
$292,292.64
$70,027.47
$142,956.86
$9,836.73
$18,941.38
$14,911.89
$9,921.73
$8,295.10
$322,485.13
$118,788.02
$28,214.77
$389,236.22
$307,759.60
$226,247.48
$311,564.32
$80,610.68
$53,515.76
$25,058.50
$269,567.34
$66,724.66
$15,688.27
$247,727.42
$92,590.55
$11,003.73
$11,356.25
$41,840.10
$8,641.02
$12,075.45
$24,302.85
$7,376.94
$29,108.07
$109,473.99
$115,465.42
$42,384.72
$201,519.35
$95,546.04
$8,722.03
$39,867.81
$14,411.07
$80,994.45
$173,322.68
$123,440.81
$7,341.31
$111,970.48
$16,673.54
$41,641.53
$326,802.87
Municipalities
$4,216.91
$12,558.25
$3,254.32
$2,262.85
$9,323.74
$43,544.39
$466.43
$489.54
$2,057.26
$13,975.72
$1,419.95
$2,247.13
$9,501.24
$1,766.67
$17,201.14
$2,163.77
$27,164.69
$6,021.54
$6,615.12
$84,173.65
$3,899.07
$1,498.37
$3,813.20
$16,333.47
$6,810.78
$4,137.67
$27,300.07
$1,035.23
$979.92
$4,764.24
$30,512.26
$657.96
$3,187.46
$1,410.86
$6,023.23
$10,018.85
$16,935.30
$7,505.08
$3,260.11
$2,105.14
$2,377.58
$4,768.36
$2,562.50
$2,891.89
$4,726.27
$9,247.80
$553.11
$6,999.83
$820.59
$39,490.95
$3,330.26
Grand Total
$109,336.73
$62,663.27
$191,110.49
$77,828.63
$21,007.73
$106,292.36
$94,667.08
$75,091.52
$294,349.90
$84,003.19
$144,376.81
$12,083.86
$28,442.62
$16,678.56
$27,122.87
$10,458.87
$349,649.82
$124,809.56
$34,829.89
$473,409.87
$311,658.67
$227,745.85
$315,377.52
$105,624.81
$67,076.22
$31,857.69
$275,159.61
$83,058.13
$22,499.05
$251,865.09
$119,890.62
$12,038.96
$12,336.17
$46,604.34
$39,153.28
$12,733.41
$27,490.31
$8,787.80
$35,131.30
$119,492.84
$132,400.72
$49,889.80
$204,779.46
$97,651.18
$11,099.61
$44,636.17
$16,973.57
$83,886.34
$178,048.95
$132,688.61
$7,894.42
$118,970.31
$17,494.13
$81,132.48
$330,133.13
$961,528.01
$4,478,598.40
$5,440,126.41
$531,347.77
5,971,474.18
$25,014.13
$13,560.46
$6,799.19
$5,592.27
17
18
Unincorporated
$12,081.28
$70,174.15
$24,966.15
$13,829.49
$16,363.92
$50,917.40
$8,113.17
$11,258.06
$7,627.55
$35,437.99
$6,289.82
$9,916.85
$26,528.19
$20,884.72
$13,679.18
$11,617.64
$39,381.83
$23,940.60
$39,515.95
$113,438.55
$14,101.19
$23,463.07
$38,594.46
$31,066.35
$22,075.61
$20,489.28
$23,431.86
$49,942.71
$21,769.22
$26,871.59
$56,419.83
$15,411.18
$15,904.89
$24,038.87
$12,102.10
$8,554.84
$5,157.88
$8,581.43
$25,480.66
$45,616.15
$67,876.76
$22,165.79
$7,392.83
$14,910.56
$11,699.74
$11,924.05
$4,875.76
$7,040.19
$20,440.73
$36,653.16
$9,528.37
$9,993.16
$5,641.18
$46,422.02
$25,059.80
Production
$208,357.54
$0.00
$238,650.93
$75,012.38
$0.00
$17,889.49
$121,586.29
$83,192.26
$387,788.12
$63,480.95
$178,833.71
$3,393.00
$0.00
$0.00
$241.32
$0.00
$340,292.41
$126,733.13
$0.00
$418,506.51
$372,909.49
$227,384.37
$350,507.79
$120,125.14
$10,770.41
$4,815.76
$508,513.71
$40,443.37
$475.60
$282,046.39
$87,547.78
$0.00
$0.00
$34,498.56
$0.00
$1,879.20
$28,261.67
$2,192.40
$11,808.79
$83,218.68
$131,897.70
$29,521.46
$279,117.56
$108,228.77
$359.60
$41,159.74
$13,850.39
$113,411.52
$158,887.84
$134,637.88
$649.60
$122,688.02
$16,874.27
$13,684.84
$676,221.47
County Total
$220,438.82
$70,174.15
$263,617.08
$88,841.87
$16,363.92
$68,806.89
$129,699.46
$94,450.32
$395,415.67
$98,918.94
$185,123.53
$13,309.85
$26,528.19
$20,884.72
$13,920.50
$11,617.64
$379,674.24
$150,673.73
$39,515.95
$531,945.06
$387,010.68
$250,847.44
$389,102.25
$151,191.49
$32,846.02
$25,305.04
$531,945.57
$90,386.08
$22,244.82
$308,917.98
$143,967.61
$15,411.18
$15,904.89
$58,537.43
$12,102.10
$10,434.04
$33,419.55
$10,773.83
$37,289.45
$128,834.83
$199,774.46
$51,687.25
$286,510.39
$123,139.33
$12,059.34
$53,083.79
$18,726.15
$120,451.71
$179,328.57
$171,291.04
$10,177.97
$132,681.18
$22,515.45
$60,106.86
$701,281.27
Municipalities
$5,905.95
$17,588.35
$4,557.81
$3,169.20
$13,058.29
$60,985.70
$653.26
$685.63
$2,881.28
$19,573.57
$1,988.70
$3,147.21
$13,306.89
$2,474.30
$24,090.91
$3,030.46
$38,045.27
$8,433.42
$9,264.75
$117,888.74
$5,460.80
$2,098.53
$5,340.55
$35,033.34
$18,992.00
$9,522.54
$7,832.19
$22,875.68
$9,538.76
$5,794.98
$38,234.88
$1,449.89
$1,372.42
$6,672.52
$42,733.68
$921.49
$4,464.17
$1,975.97
$8,435.79
$14,031.79
$23,718.58
$10,511.17
$4,565.92
$2,948.35
$3,329.90
$6,678.30
$3,588.89
$4,050.22
$6,619.33
$12,951.93
$774.66
$9,803.55
$1,149.27
$55,308.70
$4,664.17
Grand Total
$226,344.77
$87,762.50
$268,174.89
$92,011.07
$29,422.21
$129,792.59
$130,352.72
$95,135.95
$398,296.95
$118,492.51
$187,112.23
$16,457.06
$39,835.08
$23,359.02
$38,011.41
$14,648.10
$417,719.51
$159,107.15
$48,780.70
$649,833.80
$392,471.48
$252,945.97
$394,442.80
$186,224.83
$51,838.02
$34,827.58
$539,777.76
$113,261.76
$31,783.58
$314,712.96
$182,202.49
$16,861.07
$17,277.31
$65,209.95
$54,835.78
$11,355.53
$37,883.72
$12,749.80
$45,725.24
$142,866.62
$223,493.04
$62,198.42
$291,076.31
$126,087.68
$15,389.24
$59,762.09
$22,315.04
$124,501.93
$185,947.90
$184,242.97
$10,952.63
$142,484.73
$23,664.72
$115,415.56
$705,945.44
$1,346,659.76
$6,272,547.81
$7,619,207.57
$744,174.60
$8,363,382.17
County
Barbour
Berkeley
Boone
Braxton
Brooke
Cabell
Calhoun
Clay
Doddridge
Fayette
Gilmer
Grant
Greenbrier
Hampshire
Hancock
Hardy
Harrison
Jackson
Jefferson
Kanawha
Lewis
Lincoln
Logan
Marion
Marshall
Mason
McDowell
Mercer
Mineral
Mingo
Monongalia
Monroe
Morgan
Nicholas
Ohio
Pendleton
Pleasants
Pocahontas
Preston
Putnam
Raliegh
Randolph
Ritchie
Roane
Summers
Taylor
Tucker
Tyler
Upshur
Wayne
Webster
Wetzel
Wirt
Wood
Wyoming
TOTALS
Unincorporated
$10,402.52
$60,423.05
$21,496.96
$11,907.80
$14,090.06
$43,842.14
$6,985.80
$9,693.68
$6,567.66
$30,513.68
$5,415.81
$8,538.85
$22,841.95
$17,982.67
$11,778.38
$10,003.30
$33,909.50
$20,613.91
$34,024.99
$97,675.62
$12,141.75
$20,202.74
$33,231.54
$26,749.50
$19,008.08
$17,642.18
$20,175.87
$43,002.89
$18,744.27
$23,137.63
$48,579.97
$13,269.71
$13,694.82
$20,698.53
$10,420.45
$7,366.09
$4,441.16
$7,388.99
$21,939.98
$39,277.53
$58,444.90
$19,085.73
$6,365.56
$12,838.65
$10,074.00
$10,267.13
$4,198.25
$6,061.92
$17,600.37
$31,560.00
$8,204.35
$8,604.56
$4,857.30
$39,971.42
$21,577.60
$1,159,533.75
Production
$126,874.60
$0.00
$194,970.29
$80,226.18
$0.00
$13,987.44
$110,697.61
$77,067.15
$304,933.36
$73,417.94
$181,433.29
$3,807.27
$0.00
$0.00
$25.35
$14.45
$369,171.63
$112,758.12
$0.00
$391,931.43
$376,181.81
$225,167.87
$320,047.80
$101,649.69
$5,997.13
$2,985.56
$353,553.30
$35,502.39
$390.36
$245,068.09
$57,659.86
$0.00
$0.00
$34,513.26
$0.00
$10.14
$23,618.30
$2,671.68
$12,608.09
$85,020.87
$90,395.99
$31,884.89
$235,628.22
$108,028.82
$522.17
$41,661.11
$15,872.91
$92,633.56
$148,591.37
$121,391.72
$532.31
$98,650.48
$15,969.19
$12,711.74
$462,448.68
$5,400,885.47
County Total
$137,277.12
$60,423.05
$216,467.25
$92,133.98
$14,090.06
$57,829.58
$117,683.41
$86,760.83
$311,501.02
$103,931.62
$186,849.10
$12,346.12
$22,841.95
$17,982.67
$11,803.73
$10,017.75
$403,081.13
$133,372.03
$34,024.99
$489,607.05
$388,323.56
$245,370.61
$353,279.34
$128,399.19
$25,005.21
$20,627.74
$373,729.17
$78,505.28
$19,134.63
$268,205.72
$106,239.83
$13,269.71
$13,694.82
$55,211.79
$10,420.45
$7,376.23
$28,059.46
$10,060.67
$34,548.07
$124,298.40
$148,840.89
$50,970.62
$241,993.78
$120,867.47
$10,596.17
$51,928.24
$20,071.16
$98,695.48
$166,191.74
$152,951.72
$8,736.66
$107,255.04
$20,826.49
$52,683.16
$484,026.28
$6,560,419.22
Municipalities
$5,085.29
$15,144.35
$3,924.47
$2,728.82
$11,243.75
$52,511.40
$562.49
$590.35
$802.41
$17,422.17
$1,712.35
$2,709.88
$11,457.82
$2,130.47
$20,743.33
$2,609.35
$34,437.15
$7,261.55
$7,977.37
$101,507.46
$4,701.99
$1,806.93
$4,598.45
$29,596.78
$6,399.41
$8,199.33
$6,743.87
$19,696.98
$8,213.30
$4,989.72
$42,875.47
$1,248.42
$1,181.71
$5,745.34
$36,795.60
$793.45
$3,039.43
$1,701.39
$7,263.58
$12,082.00
$20,422.76
$9,050.57
$3,931.47
$2,538.65
$2,867.20
$5,750.31
$3,090.20
$3,487.41
$5,699.54
$11,152.18
$1,471.42
$8,441.29
$989.57
$47,623.24
$4,016.06
$640,767.25
Grand Total
$142,362.41
$75,567.40
$220,391.72
$94,862.80
$25,333.81
$110,340.98
$118,245.90
$87,351.18
$312,303.43
$121,353.79
$188,561.45
$15,056.00
$34,299.77
$20,113.14
$32,547.06
$12,627.10
$437,518.28
$140,633.58
$42,002.36
$591,114.51
$393,025.55
$247,177.54
$357,877.79
$157,995.97
$31,404.62
$28,827.07
$380,473.04
$98,202.26
$27,347.93
$273,195.44
$149,115.30
$14,518.13
$14,876.53
$60,957.13
$47,216.05
$8,169.68
$31,098.89
$11,762.06
$41,811.65
$136,380.40
$169,263.65
$60,021.19
$245,925.25
$123,406.12
$13,463.37
$57,678.55
$23,161.36
$102,182.89
$171,891.28
$164,103.90
$10,208.08
$115,696.33
$21,816.06
$100,306.40
$488,042.34
$7,201,186.47
19
Barbour County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Vitruvian Exploration, LLC
Texas Keystone, Inc.
Dominion E & P
Energy Corporation of America
Petroleum Development Corp.
Major Oil Producers in the County
MLX Operating, Inc.
Rubin Resources Co.
Lippizan Petroleum, Inc.
Texas Keystone, Inc.
Energy Corporation of America
20
Berkeley County
1,822
21
280
78
8,253,842
5,644
$109,336.73
Mcf.
3,580,978
889,049
628,303
568,423
521,328
0
0
0
0
0
0
$62,663.27
Barrels
1,003
814
795
681
662
Braxton County
Boone County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Cabot Oil & Gas Corporation
EQT Production Company
Energy Corporation of America
Chesapeake Appalachia, LLC
Dominion Exploration & Production
Major Oil Producers in the County
Cabot Oil & Gas Corporation
Simcon Oil & Gas Corp.
Energy Corporation of America
1,173
1
687
26
26
8,646,871
8,646,871
11,603
11,603
$191,110.49
$191,110.49
Mcf.
2,380,355
1,803,625
1,130,808
1,021,285
920,859
Barrels
9,142
2,342
119
1257
13
546
7
2,638,185
3,492
$77,828.63
Mcf.
638,429
354,546
266,525
237,793
197,163
Barrels
1,122
573
455
317
206
21
Cabell County
Brooke County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
0
0
51
4
0
0
$21,007.73
22
459
3
322
5
600,658
145,630
$106,292.36
Mcf.
107,359
107,359
69,085
59,581
59,581
56,148
56,148
46,686
46,686
Barrels
145,378
252
Calhoun County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Prime Operating Company
Dominion Transmission Inc
XTO Energy, Inc.
EQT Production Company
Rogers & Son
Major Oil Producers in the County
Prime Operating Co
Buckeye Oil Producing Co.
Rogers & Son
Triad Resources, Inc.
XTO Energy, Inc
Clay County
2,390
292
685
16
3,794,758
102,963
$94,667.08
Mcf.
356,867
306,791
287,534
267,294
242,924
Barrels
11,928
11,114
6,446
6,021
5,427
1,014
348
660
15
2,780,948
64,923
$75,091.52
Mcf.
904,813
353,343
298,084
213,419
159,487
Barrels
42,725
13,689
13,689
1,824
1,275
1,094
23
Doddridge County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
24
Fayette County
3,205
206
682
70
15,254,143
118,410
$294,349.90
562
0
193
0
2,336,244
933
$84,003.19
Mcf.
2,369,625
2,263,903
2,103,514
1,884,796
1,101,406
Mcf.
1,078,048
465,757
385,683
128,439
94,641
Barrels
22,008
21,416
9,329
6,399
4,975
Barrels
912
21
Gilmer County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Grant County
3,139
106
929
48
6,743,058
87,401
$144,376.81
Mcf.
1,975,819
502,963
399,014
392,209
334,734
Barrels
23,468
10,558
5,492
3,630
2,803
20
0
10
1
151,276
0
$12,083.36
Mcf.
151,276
25
Greenbrier County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Hampshire County
0
0
25
4
0
0
$28,442.62
26
0
0
16
0
0
0
$16,678.56
Hancock County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Buckeye Oil Producing Co.
G.O.W. Resources
Chaney, Jerry C.
Chester First Un. Methodist Church
Hardy County
5
0
62
0
8,336
91
$27,122.87
Mcf.
5,560
2,596
120
60
0
0
11
0
0
0
$10,458.87
Barrels
69
22
27
Source: API
Jackson County
Harrison County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
30
2,982
65
696
146
15,791,959
82,444
$349,649.82
1,192
52
1,009
22
3,556,545
31,484
$124,809.56
Mcf.
3,901,385
2,177,988
1,641,684
1,082,997
791,226
Mcf.
1,696,620
710,852
261,070
213,182
133,115
Barrels
18,208
14,420
8,398
7,724
4,738
Barrels
16,731
4,238
3,473
2,481
2,471
Jefferson County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Kanawha County
0
0
0
0
0
0
$34,829.89
2,972
401
1588
47
15,421,053
121,859
$473,409.87
Mcf.
3,277,762
2,847,096
2,308,233
1,836,164
1,834,012
Barrels
51,973
21,088
9,429
8,425
7,763
31
Lewis County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
3,220
71
823
64
14,281,759
58,254
$311,658.67
1,855
207
762
24
10,672,938
70,726
$227,745.85
Mcf.
6,011,811
2,085,673
678,245
559,324
490,974
Mcf.
6,311,756
1,350,226
1,145,327
835,883
404,128
Barrels
15,551
7,663
5,974
5,356
3,626
Barrels
47,200
6,606
4,477
2,558
1,978
32
Lincoln County
Marion County
Logan County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
1,452
2
366
79
17,756,418
1,913
$315,377.52
Mcf.
3,217,236
2,805,080
1,731,343
398,369
Barrels
1,423
320
157
13
704
12
704
63
3,986,291
22,229
$105,624.81
Mcf.
1,471,408
961,494
382,639
240,284
238,140
Barrels
8,151
3,640
2,592
2,505
1,621
33
Mason County
Marshall County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
34
98
11
561
104
4,488,082
10,112
$67,076.22
149
39
130
6
483,644
8,049
$31,857.69
Mcf.
2,489,593
1,806,018
99,815
38,099
33,713
Mcf.
187,697
159,903
86,520
41,115
6,181
Barrels
7,040
1,833
488
333
256
Barrels
7584
442
23
McDowell County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Mercer County
1,674
0
144
59
21,722,980
0
$275,159.61
257
0
43
4
1,506,139
0
$83,058.13
Mcf.
6,214,729
5,318,553
4,046,341
2,653,208
770,888
Mcf.
1,196,449
100,659
85,945
47,355
40,396
Barrels
Barrels
35
Mineral County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2008 Gas Production in Mcf.
2008 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Chesapeake Appalachia, LLC
Kimble, Estyl B
Kimble, Edgar P
McDonald, Eleanor
Mingo County
1
0
46
0
8,982
0
$22,499.05
Mcf.
8,790
72
60
60
36
1,337
5
287
69
14,068,194
4,896
$251,865.09
Mcf.
6,084,372
5,471,325
662,182
583,498
296,671
Barrels
4,413
465
18
Monroe County
Monongalia County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
272
22
793
20
3,895,389
49,778
$119,890.62
Mcf.
1,942,498
1,297,188
349,496
89,481
73,361
Barrels
45,968
1,512
1,397
458
323
0
0
10
0
0
0
$12,038.96
Morgan County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
0
0
7
0
0
0
$12,336.17
37
Nicholas County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
38
Ohio County
353
0
311
8
1,261,451
627
$46,604.34
Mcf.
331,568
293,591
118,445
83,421
81,832
Barrels
458
76
67
26
2
0
33
10
84
0
$39,153.28
Mcf.
60
24
Pleasants County
Pendleton County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
T & F Exploration, LP
Saga Petroleum, LLC of Colorado
Chesapeake Appalachia, LLC
3
0
10
1
113,922
0
$12,733.41
Mcf.
107,880
5,729
13
685
168
484
13
715,991
31,969
$27,490.31
Mcf.
309,264
62,121
52,230
47,449
32,385
Barrels
16,542
3,401
2,455
2,072
1,567
39
Preston County
Pocahontas County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Major Gas Producers in the County
Cabot Oil & Gas Corporation
5
0
17
2
2,646
0
$8,787.80
Mcf.
2,646
40
134
0
93
30
911,667
28
$35,131.30
Mcf.
255,790
218,775
141,754
115,684
47,372
Barrels
18
10
Raleigh County
Putnam County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
786
1
323
16
3,957,056
9,643
$119,492.84
Mcf.
2,104,493
638,816
440,437
120,486
99,093
Barrels
8,177
1,144
164
149
9
707
0
339
3
10,797,211
0
$132,400.72
Mcf.
4,924,556
2,747,741
925,397
781,041
511,130
Barrels
41
Randolph County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
42
Ritchie County
607
2
165
24
625,864
141
$49,889.80
4,614
432
1,352
81
8,183,959
181,690
$204,779.46
Mcf.
383,378
74,196
49,606
41,485
36,222
Mcf.
1,066,526
780,085
772,176
543,637
394,078
Barrels
74
58
9
Barrels
29,759
19,546
18,901
14,389
11,540
Summers County
Roane County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
1,213
799
1,093
13
3,252,892
102,924
$97,651.18
Mcf.
1,304,901
329,591
245,330
206,259
200,694
Barrels
64,386
9,931
7,071
3,354
2,791
3
0
5
0
17,726
0
$11,099.61
Mcf.
17,726
43
Taylor County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Tucker County
606
0
145
43
2,111,288
482
$44,636.17
Mcf.
818,681
278,539
215,962
131,024
109,157
Barrels
307
106
22
22
17
44
28
0
42
1
548,009
0
$16,973.57
Mcf.
28,3001
165,110
73,849
18,686
6,955
Barrels
Tyler County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Upshur County
630
112
332
36
1,747,080
11, 326
$83,886.34
Mcf.
444,035
385,099
351,718
119,423
98,863
Barrels
7,548
816
765
719
228
2,208
8
569
83
7,708,175
18,778
$178,048.95
Mcf.
2,874,522
1,259,638
781,668
588,447
427,299
Barrels
5,409
3,676
2,705
2,259
1,599
45
Webster County
Wayne County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
46
1,025
49
642
5
5,478,413
27,270
$132,688.61
Mcf.
2,524,086
1,437,912
614,672
303,288
172,755
Barrels
10,278
7,019
3,190
2,131
1,500
7
0
58
5
27,743
0
$7,894.42
Mcf.
20,602
7,141
Wetzel County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
Wirt County
722
146
633
96
9,602,540
66,503
$118,970.31
423
138
350
3
415,627
30,829
$17,494.13
Mcf.
6,075,114
946,247
818,767
486,668
399,730
Mcf.
65,118
61,089
47,996
40,625
29,831
Barrels
17,052
16,531
8,804
4,618
4,195
Barrels
3,453
3,424
3,381
3,339
3,290
47
Wyoming County
Wood County
Active Gas Wells
Active Oil Wells
Plugged Wells
Well Permits Issued in 2010
2009 Gas Production in Mcf.
2009 Oil Production in barrels
Total Severance Taxes received
291
191
510
27
253,288
15,639
$81,132.48
Mcf.
108,386
33,659
21,801
21,142
20,211
Barrels
3,097
2,139
1,205
1,030
993
48
1,781
0
359
6
20,595,915
0
$330,133.13
Mcf.
6,693,048
6,110,508
3,597,580
1,522,422
1,434,939
WVONGA Membership
A.George Mason, Jr., PSC
AB Resources
Acacia Environmental Group
Aggreko, LLC
Alfred Construction, Inc.
Alpha Hunter Drilling, LLC
Alta Energy, LLC
Antero Resources Appalachian Corp.
Antler, Inc./Antler Welding
Apex Pipeline Services Inc
Appalachian Production Services
Arnold Agency
Arvilla Oilfield Services LLC
Babst, Calland, Clements & Zomnir, P.C.
Basic Systems, Inc.
BB&B Oil & Gas Services
BBU Services of WV
Bi-Con Services, Inc.
Bigard & Huggard Drilling, Inc.
BJ Services
Blue Dot Services Inc.
Bowles Rice McDavid Graff & Love PLLC
BrickStreet Insurance
Bruce Allen
Cabot Oil and Gas
Caiman Energy
Canaan Valley Gas Company
Cenergy, LLC
Chancellor Insurance Agency, Inc.
Charles Ryan & Associates
Chesapeake Energy/ Chesapeake Appalachia
Chief Oil & Gas
Commercial Insurance Services of WV
Consol Energy (CNX Gas)
Contractor Services Inc.
Creston Well Service
CTL Engineering of WV
DAC Energy, LLC/Drilling Appalachian Corp
Devonian Industries
Dinsmore & Shohl LLP
Dominion
Dorward Energy Corporation
E & H Manufacturing Inc
East Resources, Inc.
Eastern Oil Well Service Company
Energize West Virginia
Energy Management & Services Co.
Energy Transfer Partners
Enerplus Resources USA Corp.
Environmental Regulatory Service
Group, Inc.
Environmental Resources Mgmt, Inc.
EQT/ Equitrans
Fox Engineering PLLC
Ramsey Insurance
R&B Petroleum, Inc.
Reed Smith LLP
Regional Economic Developing Partnership
Reinforced Aggregates Company
Reliable Environmental Transport, Inc.
Richard R. Carr
R. L. Laughlin & Company, Inc.
Robert C. Byrd Institute
Robey Excavating, LLC
Robinson & McElwee PLLC
S&A Property Research, LLC
Schlumberger Technology Corp.
Seneca Technologies
Southern Public Service Company
Southern WV Community & Technical
College
Spectra Energy
Spilman Thomas & Battle
ST Pipeline
Steptoe & Johnson PLLC
Sun Energy Services, LLC
Superior Well Services
T & F Exploration, LP
The Dickirson Corporation
Thrasher Engineering, Inc.
Toothman Rice, PLLC
Trans Energy, Inc.
TRC Engineers, Inc.
Triad Engineering, Inc.
Triana Energy
Trinity Consultants
Union Drilling, Inc.
United Waste Water Services
Universal Well Services, Inc
Utility Brokers USA
Vermeer of West Virginia
Viking Energy
Viking Well Service, Inc.
Waco Oil & Gas Co. Inc.
Walker Machinery Co.
Weatherford USA/ Weatherford
International Ltd.
Weavertown Environmental Group
Welch Gas Cooperative Association
Wells Fargo Insurance Services
West Virginia Community & Technical
College System
West Virginia Petroleum Council
WVU Petroleum & Natural Gas Engr. Dept.
Wild Well Control Inc
Williams Company, Inc.
Wonder Well Service, Inc.
XTO Energy
51
DELIVER
NATURAL GAS CAN
ChesapeakeAd
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our air becomes healthier, our economy becomes stronger and our nation becomes more secure. Were proud to
be the countrys second-largest producer of natural gas, and we realize its remarkable potential. Its the cleanest
traditional fuel, producing far fewer CO2 emissions and other pollutants. It powers vehicles for 50% less cost than
gasoline. And theres a 200-year supply under our very own soil. Thats something we can all champion. chk.com
NYSE: CHK
BCF Billion Cubic Feet. Gas measurement approximately equal to one trillion (1,000,000,000,000) Btus
British Thermal Unit (BTU) The Btu is a unit of measurement for energy. It represents the amount of heat that is necessary to raise the temperature of one
pound of water by 1 degree, Fahrenheit.
Casing A casing is used to line the walls of a gas well to prevent collapse of the well, and also to protect the surrounding earth and rock layers from being
contaminated by petroleum, or the drilling fluids.
Coal Bed Methane Prior to the mid-1980, methane from coal seams was classified as an uneconomic resource one of vast potential, but low value due to poor
recovery rate and high associated water production. By applying new production technologies to this resource, coal bed methane has become the single largest new
source of gas supply in the past decade. Current estimates show approximately 100 Tcf of coal bed methane that appears to be economically recoverable in the
lower 48 states alone.
CNG Compressed natural gas.
Co-Firing Refers to the injection of natural gas with pulverized coal or oil into the primary combustion zone of a boiler. Cofiring is not new technology, but efforts to
determine optimal natural gas injection levels for both environmental and operational benefits are relatively recent. Co-firing only produces a mild increase in
production costs, but benefits plants by offering cleaner overall operation. Slag that builds up inside boilers is reduced, and precipitators, which capture soot and ash
from coal or oil firing, foul up less frequently.
Compression Natural gas is compressed during transportation and storage. The standard pressure that gas volumes are measured at is 14.7 Pounds per Square inch
(psi). When being transported through pipelines, and whcn being stored, gas is compressed to save space. Pipelines have compressing stations installed along the
line (one about every 100 miles) to ensure that the gas pressure is held high while the gas is being transported. Current pipelines can compress natural gas to nearly
1500 psi, but most tend to operate at closer to 1000 psi.
Cubic Foot A unit of measurement for volume. It represents an area one foot long, by one foot wide, by one foot deep. Natural gas is measured in cubic feet, but the
measurements are usually expressed in terms of Bcf, Tcf, Mcf or Quads.
FERC Federal Energy Regulatory Commission. The federal agency that regulates interstate gas pipelines and interstate gas sales under the Natural Gas Act. Successor
to the Federal Power Commission, the FERC is considered an independent regulatory agency responsible primarily to Congress, but it is housed in the Department
of Energy.
Firm Service Contract A type of contracted service where the distributor agrees to provide the buyer with uninterrupted supply of gas. This type of contract is
usually more expensive, and is used primarily by those firms who cannot afford to risk loss of fuel for any period of time.
Flaring The burning of gas in the field as a means of disposal when there is no market for the gas and the operator cannot use the gas for a non-wasteful purpose.
Flash point The temperature and other conditions at which a given substance will ignite.
41 Formation A formation refers to either a certain layer of the earths crust, or a certain area of a layer. It often refers to the area of rock where a petroleum
reservoir is located.
Fracturing Fracturing refers to a method used by producers to extract more natural gas from a well by opening up rock formations using hydraulic or explosive
force. Advanced fracturing techniques are enhancing producers ability to find and recover natural gas, as well as extending the longevity of older wells.
Futures market A market trading in contracts to buy or sell oil at a fixed price by a certain date.
Gathering lines Pipes used to transport oil or gas from the wellhead to the next destination
Gathering system The gathering lines, pumps, auxiliary tanks and all other equipment used to transport oil or gas from the wellhead.
Hydrocarbon An organic compound containing only carbon and hydrogen. Hydrocarbons often occur in petroleum products, natural gas and coals.
Hydrochlorofluorocarbons - Hydrochlorofluorocarbons, or HCFCs to most, are gaseous compounds that meet current environmental standards for minimizing
stratospheric ozone depletion.
Horizontal Drilling Horizontal Drilling, heralded today as causing the greatest change in the industry since the invention of the rotary bit, is the most rapidly
growing movement in the petroleum industry. Essentially, in addition to the vertical shaft in an oil or gas well, special equipment allows producers to extend
horizontal shafts into areas that could not otherwise be reached. This technique is especially useful in offshore drilling, where one platform may service many
horizontal shafts, thus increasing efficiency. Horizontal wells can be categorized as short (extending only 20-40ft from vertical), medium (300-700ft from vertical)
or long (1000 4500ft from vertical) radius. The larger radius wells are typically found offshore.
Injection well A well employed for the disposal of salt water produced with oil or other waste.
Interruptible Service Interruptible service contracts allow a distributing party to temporarily suspend delivery of gas to a buyer in order to meet the demands of
customers who purchased firm service. Interruptible service is less expensive than firm service, and is used by customers who can either accommodate interruption,
or switch to alternative fuels temporarily.
Just and Resonable Rates Requirement of section 4(a) of the Natural Gas Act that rates be set at the lowest reasonable level that recovers a pipelines costs. The
rates must not be unduly discriminatory, preferential or otherwise unlawful.
Landman Employed by an oil or gas company to oversee landowner relations. A landmans duties would include, but not be limited to: securing of leases, lease
amendments, pooling and unitization agreements and title defects.
Line loss The amount of gas lose in the distribution system.
LNG Liquefied Natural Gas.
Local Distribution Company A retail gas distribution company that delivers natural gas to end users.
53
MCF Thousand Cubic Feet MCF stands for one thousand cubic feet. Its a unit of measure that is more commonly used in the low volume sectors of the gas
industry, such as stripper well production.
Methane Methane, commonly known as natural gas (or CH4 to a scientist), is the most common hydrocarbon gas. It is colorless and naturally odorless, and burns
efficiently without many byproducts. Natural gas only has an odor when it enters your home because the local distributor who sells it to you adds it as a safety
measure.
Most Efficient Recovery (MER) The MER, or most efficient recovery rate, is based on the most oil and gas that can be extracted for a sustained period of time
without harming the formation. Generally, most wells cannot produce oil and gas for 24 hours a day, 7 days a week, or the rock formation could be damaged, which
would result in less oil and gas being produced in the long run.
Muds Used in drilling to lubricate the drilling bit in rotary drilling rigs. These fluids cool the bit, remove cuttings and debris, and coat the wellbore with a cake. Most
fluids have a clay base, and are customized for the specific formations that are encountered at a given site. The cake that forms from the fluids serves to coat the
walls of the wellbore until a steel casing can be put in place to prevent collapse.
Natural Gas Act The Natural Gas Act was passed in 1938, giving the Federal Power Commission (now the Federal Energy Regulatory Commission or FERC)
jurisdiction over companies engaged in interstate sale or transportation of natural gas. The act instituted federal oversight of rates charged by interstate gastransmission companies, and also limited certification authority. Nobody was allowed to build an interstate pipeline to deliver gas into a market already served by
another gas pipeline without first obtaining a Federal Power Commission certificate.
Natural Gas Resource Base An estimate of the amount of natural gas available, based on the combination of proved reserves, and those additional volumes that
have not yet been discovered, but are estimated to be discoverable given current technology and economics. Current estimates for the resource base in the lower
48 states range from 900 to 1,300 Tcf.
Nitrogen Oxides (NOx) Acid deposition, commonly called acid rain, occurs when sulfur dioxide (SO2) and, to a lesser extent, NOx emissions are transformed in
the atmosphere and return to the earth as dry deposition or in rain, fog or snow. Highway vehicles autos, trucks and buses account for nearly 30 percent of all
NOx and non-methane hydrocarbons emitted annually in the United States. Burning any fossil fuel produces NOx, and it is difficult to generalize with respect to the
relative NOx emissions of the various fuel types for different applications. However, the substitution of new high efficiency gas equipment can offer significant
NOx reductions, relative to older and less-efficient equipment. For example, replacing a coal-fired electricity-generating unit with a new gas-fired combined-cycle
unit can reduce NOx by some 95 percent.
Off Peak Period The period of time during a day, week, month or year when gas use on a particular system is not at its maximum.
Oil patch refers to an area where there is substantial oil and gas exploration and development operations.
Peak Use Period The period of time when gas use on a particular system is at its maximum. This is the period when gas supply is most likely to be suspended for
interruptible service customers. Distributors also employ techniques such as peak shaving to soften the impacts of high demand on the pipelines.
Permeability Permeability is the measure of how easily a fluid can pass through a section of rock. If fluid can pass relatively easily through a given layer, then the
permeability is said to be high. However, if a layer effectively blocks fluids, or no fluids can flow through the layer at all, then the layer is said to be impermeable.
Such layers are known as traps.
Producer a natural gas producer is generally involved in exploration, drilling and refinement of natural gas. There are independent producers, as well as integrated
producers, which are generally larger companies that produce, transport and distribute natural gas.
Proved Resources The part of the Natural Gas Resource Base that includes the working inventory of natural gas volumes that have already been discovered and
are readily available for production and delivery. Out of an estimated 900 to 1,300 Tcf of gas in the resource base in the lower 48 states, about 155 Tcf are proved
resources.
Reburning Natural gas reburning is an effective and economic means of reducing NOx emissions from all types of industrial and electric utility boilers. Gas reburn
may be used in coal or oil boilers, and it is even effective in cyclone and wet-bottom boilers, for which other forms of NOx control are either not available or very
expensive. A reburn application which entails the injection of natural gas into a coal-fired boiler above the primary combustion zone representing 10 to 200
percent of the total fuel mix can produce NOx reduction in the 50 to 70 percent range and SO2 reductions in the 20 to 25 percent range.
Separator Tank These tanks are usually located at the well site. They are used to separate oil, gas and water before sending each off to be processed at different
locations.
Spot Market A product of deregulation, the spot market is a method of contract purchasing whereby commitments by the buyer and seller are of a short duration at a
single volume price. The duration of these contracts is typically less than a month, and the complexity of the contracts is significantly less than their traditional
market counterparts.
Spot Purchase Natural gas purchased on the spot market, which involves short-term contracts for specified amount of gas, at a one-time purchase price.
Stripper Wells Stripper wells are natural gas wells that produce less than 60,000 cubic feet of gas per day. Ohio, West Virginia, Texas, Kentucky and New Mexico
all have significant numbers of stripper wells. In 1994 there were 159,369 stripper wells in the United States, and they produced 940,420,777 Mcf.
Trillion Cubic Feet A volume measurement of natural gas, approximately equivalent to one Quad. See also Btus, Bcf, Mcf.
Unbundled Services Unbundling, or separating, pipeline transmission, sales and storage devices, along with guaranteeing open access to space on the pipelines
for all gas shippers. Also see Bundled Service.
Underground Gas Storage The use of sub-surface facilities for storing gas that has been transferred from its original location for the primary purpose of load
balancing. The facilities are usually natural geological reservoirs, such as depleted oil or gas fields or water-bearing sands on the top by an impermeable cap rock.
There are currently more than 400 underground storage facilities spread across 27 states and Canada, which together can hold more than 3 quads of gas.
Wellhead The assembly of fittings, valves and controls located at the surface and connected to the flow lines, tubing and casing of the well so as to control the flow
from the reservoir.
Wellhead Price The cost of oil or gas as it comes from the well, excluding cleaning, compression, transportation and distribution charges.
Wheeling In the natural gas industry, wheeling refers to the movement of gas in and out of short-term storage at hubs.
Zone rates Rates designed to reflect the variation in pipeline costs based on distance between supply and delivery points.
54
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