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Expo/Industry events for the next few months

Marcellus-Utica Midstream
January 30 – February 1, 2018
David L. Lawrence Convention Center
Pittsburgh, PA
https://www.hartenergyconferences.com/marcellus-utica-midstream 

Emerging Opportunities Ohio River Valley Conference
February 22, 2018
Oglebay Resort
Wheeling, WV
http://emergingopportunitiesorv.com/ 

For other events visit http://www.shaledirectories.com/site/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus, Utica, Permian, Eagle Ford, Bakken and Niobrara Shale Plays 

Freezing Temperatures Chill NatGas Production.  Cold weather gripping much of the United States is denting natural gas production in the nation’s shale patches, with output of the heating fuel down more than 20 percent since last month in North Dakota’s Bakken region, according to analyst estimates.

The United States relies more on natural gas than coal for heating and has ramped up exports of liquefied natural gas.

Flows of natural gas on interstate pipelines out of North Dakota dropped to about 1 billion cubic feet per day (bcfd) on Tuesday, down from about 1.3 bcfd on Dec. 25, according to Genscape data. One bcfd is enough gas to fuel about five million U.S. homes.

“That drop is due to the freeze off we’re seeing,” said Andrew Bradford of BTU Analytics, an energy consultancy. 

Natural gas production often can be affected by water vapor in pipeline systems freezing and hindering the flow of gas. Unlike crude oil, gas must be piped immediately to a processing facility.

The National Weather Service (NWS) issued wind chill warnings for much of the United States east of the Rocky Mountains on Tuesday.

In Hettinger, North Dakota, temperatures fell to -45°F (-43°C) on Tuesday morning, one of the coldest temperatures recorded on the planet for the day, according to the NWS.

Continental Resources Inc, the second-largest producer in North Dakota, declined to detail the effect cold weather was having on its natural gas output, but said it did expect a drop.

Hess Corp and Cabot Oil and Gas Corp, two of the largest natural gas producers and processors in North Dakota and Pennsylvania, did not respond to requests for comment.

The Genscape data relies on monitoring of interstate pipelines and does not take into account natural gas that may be used in state in power plants or for other uses. Texas and Oklahoma, for example, use most of their natural gas at facilities in state.

In Texas, natural gas transport on interstate pipelines is down about 20 percent. In Oklahoma, the drop is about 22 percent, and in Pennsylvania’s Marcellus shale, the drop is about 5 percent, according to Genscape.

Natural gas demand in the lower 48 U.S. states is expected to reach an all-time high of 144.0 billion cubic feet per day on Tuesday, which would top Monday’s record 142.0 bcfd, according to Reuters data going back to 2008.

Can anyone tell me why the price of NatGas has declined Thursday and Friday? 

PA DEP Halts Mariner East 2 Pipeline.  Pennsylvania environmental officials ordered Sunoco on Wednesday to halt construction of a natural gas pipeline across the southern part of the state, citing a series of spills and leaks of drilling fluid and other “egregious and willful violations” of state law that have plagued the $2.5 billion project.

The Department of Environmental Protection said it ordered work on the Mariner East 2 pipeline to stop until Sunoco complies with the terms of its permit. DEP has issued dozens of environmental violations to Sunoco since May, contending the company has demonstrated a “lack of ability or intention” to comply with the state’s clean streams law and other environmental regulations.

“Until Sunoco can demonstrate that the permit conditions can and will be followed, DEP has no alternative but to suspend the permits,” DEP Secretary Patrick McDonnell said in a statement. “We are living up to our promise to hold this project accountable to the strong protections in the permits.”

Appalachian Storage Hub Gets Big Boost.  Plans for an underground natural gas liquids storage hub pegged as a major job creator for the chemical industry in struggling Appalachia have cleared their first big hurdle.

The Appalachia Storage & Trading Hub initiative got approval Wednesday for the first of two application phases for a $1.9 billion U.S. Department of Energy loan, the Appalachia Development Group LLC said in a news release and department spokeswoman Shaylyn Hynes confirmed. Appalachia Development Group, which is heading the project, said it also aims to secure $1.4 billion through other financing.

The project has taken eight years to reach this point, and Appalachia Development Group CEO Steve Hedrick said it would take several more years to come to fruition. It's still unclear how long the second phase of the application will take, and nothing's guaranteed.

Hedrick said the initial approval is still a win for the large-scale project. The American Chemistry Council estimates the facility could attract up to $36 billion in new chemical and plastics industry investment and create 100,000 new area jobs.

That could be life-changing for people in economically downtrodden parts of Appalachia, the northern stretches of which are drilled for natural gas in Marcellus, Utica and Rogersville Shale formations, he said.

"I'd like for them to have the opportunity to have meaningful income, in a location where they want to live, and have an opportunity to be here, be it in West Virginia, Ohio, Pennsylvania or Kentucky," said Hedrick, who noted that the hub's location hasn't been decided yet.

The project would include a piping system into the Ohio and Kanawha river valleys. Then a facility such as an ethane cracker could use the natural gas to produce ethylene, which is widely used in plastics and other chemical industries, Hedrick said. The natural gas liquids are also expected to be exported internationally for use by U.S. allies, he added.

The storage hub faces opposition from the Ohio Valley Environmental Coalition and other environmental groups, saying it would create a major petrochemical region with public health dangers and contribute to global warming.

But the proposal has drawn plenty of interest from congressional lawmakers, including U.S. Sens. Joe Manchin and Shelley Moore Capito and Rep. David McKinley of West Virginia, who hope to attract the project to their home state. Capito called it a "game-changing idea," adding that Wednesday initial approval is "a clear indication of the strength of their application."

Gov. Jim Justice joined the chorus of praise Wednesday, saying he's eager to see the project come to fruition.

In November, state officials announced an agreement with China Energy Investment Corp. Ltd. for the company to invest $83.7 billion in shale gas development and chemical manufacturing in West Virginia over 20 years. Part of the focus is on underground storage of natural gas liquids and derivatives.

During President Donald Trump's visit to Beijing, State Commerce Secretary Woody Thrasher and China Energy President Ling Wen signed the memorandum as part of the U.S.-China trade mission and an overall $250 billion of planned Chinese investments in the U.S.

"This storage hub will create jobs and develop our economy by attracting significant manufacturing and related investment to West Virginia and our neighboring states," Manchin said in a news release Wednesday. "It will also be vital in helping to secure our energy future by providing a reliable affordable supply of natural gas liquids."

Appalachia Development Group, based in Charleston, West Virginia, submitted the freshly approved first part of its federal loan application in September.

Merrion Oil & Gas to Drill on U.S. Steel Property.  A New Mexico-based oil and gas company with no experience drilling into deep, tight, shale formations like the Marcellus, is planning to drill and frack a half dozen gas wells within the industrial footprint of U.S. Steel Corp.’s Edgar Thomson steel mill.

Merrion Oil & Gas Corp. leased a 10-acre tract in July from U.S. Steel and the Union Railroad Co. LLC, owners of the site, where it plans to build a well drilling pad between Braddock Avenue and Turtle Creek that will straddle the North Versailles-East Pittsburgh border, and is just inside the eastern property line of the 145-year-old steel mill.

Ryan Davis, Merrion’s operations manager, said the company has already had a first pre-application meeting with the state Department of Environmental Protection on Nov. 2, and will submit a drilling permit application sometime during the first quarter of 2018 for the first Marcellus well.

“When we drill the other wells depends on the first well,” Mr. Davis said. “Once the first well is completed, producing and online we’ll asses it for three to six months and base our plan for additional wells on the performance of the first well.”

The well will be the first drilled in Pennsylvania by Merrion, headquartered in Farmington, N.M., and its first shale gas well anywhere, Mr. Davis said.

According to Mr. Davis, the company plans to drill its Marcellus wells approximately 6,000 feet deep, into the shale, and then extend laterals between 8,500 and 10,000 feet long, horizontal to the surface. He said the company already has signed gas leases that pay signing bonuses and royalty money with most of the surface property owners, including other industrial property owners, homeowners and the Grandview Golf Course.

“We’re still working on the leases but a lot have already signed up,” he said.

Merrion received conditional use permits from East Pittsburgh Borough Dec. 19 and from North Versailles in October.

More than 21,000 people in the communities of Braddock, Braddock Hills, Chalfant, Duquesne, East Pittsburgh, Forest hills, Munhall, North Braddock, North Versailles, Rankin, Turtle Creek, Wilmerding, Whitaker and West Mifflin live within a two-mile radius of the proposed shale gas pad, said Mark Dixon, a filmmaker and environmental activist.

TransCanada Pipelines Going into Service.  TransCanada Corporation announced its Leach XPress (LXP) project was placed in-service on January 1, 2018, and that the Federal Energy Regulatory Commission (FERC) has issued a certificate of public convenience and necessity for its Mountaineer XPress (MXP) and Gulf XPress (GXP) projects on December 29, 2017. All three projects provide vital links between Appalachian natural gas supply and growing U.S. markets.

LXP comprises 160 miles (257 kilometers) of 36-inch-diameter pipeline, three compressor stations, and modifications to an existing compressor station. Representing an investment of approximately US$1.6 billion, the pipeline is capable of transporting approximately 1.5 billion cubic feet of natural gas a day (Bcf/d). Via an existing interconnect with TransCanada's Columbia Gulf Transmission System and its Rayne XPress (RXP) project which was placed into service last November, LXP will facilitate the delivery of up to an additional 1 Bcf/d to Southeast and Gulf Coast supply markets.

"Successful completion of Leach XPress is a prime example of TransCanada's North American strategy of connecting prolific and growing supply basins with markets eager to access reliable, reasonably priced sources of energy," said Russ Girling, TransCanada President and CEO. "This is truly a best-in-class pipeline and we look forward to many years of safe, reliable, and efficient operation on behalf of our customers."

At peak construction, LXP employed nearly 5,000 employees and contractors.

FERC's thorough review and approval of MXP and GXP follows three years of planning by TransCanada's project teams, along with over two years of outreach to communities and landowners along the projects' routes. Once remaining regulatory approvals are obtained, TransCanada plans to begin right-of-way preparation and construction activities on both projects, with an anticipated in-service date in late 2018.

"FERC's approval of Mountaineer XPress and Gulf XPress allows us to continue delivering on our commitment to create new outlets for our customers, transporting Marcellus and Utica shale gas to key markets in the U.S. and beyond," said Stanley Chapman III, TransCanada's Executive Vice President and President, U.S. Natural Gas Pipelines. "Our project teams are prepared to begin construction on both projects."

The MXP and GXP projects consist of combined infrastructure investment of US$3.2 billion. MXP will deliver approximately 2.6 Bcf/d of gas to the TCO Pool and Leach markets on the Columbia Gas Transmission System through the construction of 170-miles (274 kilometers) of 36-inch pipeline, three new compressor stations and upgrades to three existing compressor stations. GXP will transport approximately 0.8 Bcf/d to Southeast and Gulf Coast supply markets through the construction of seven new compressor stations, and upgrades to one existing compressor station, along TransCanada's existing Columbia Gulf System.

MXP and GXP are expected to create over 8,000 jobs during peak construction later this year. Both are underpinned by long-term, fixed-fee, firm transportation service agreements. They will be designed, constructed and operated with a core focus on safety and minimizing environmental impact.

TransCanada now has FERC Certificate Orders for all major Appalachian growth projects associated with the 2016 acquisition of Columbia Pipeline Group. Together, they represent a significant part of TransCanada's portfolio of complementary infrastructure assets and CAD$24 billion of near-term growth projects that is expected to underpin growth in the company's common dividend at the upper end of an eight to 10 percent range annually through 2020 and an additional eight to 10 percent in 2021.

Boston Is the Priciest NatGas Market in the World!!  Brutal cold brought record low holiday temps from the Midwest through New England. Boston hasn't seen such a cold spell since 1872.  Power prices in New England have exploded to $190 per megawatt-hour today, with a peak last night of $289 per mwh (versus an annual median closer to $50 per mwh). It could get worse. A snow-and-ice bomb is on its way up the eastern seaboard, bringing with it the potential for hurricane-force winds off the coast. Tallahassee, Florida this morning saw its first snow in 28 years. Ice cover on the Great Lakes is expanding rapidly. Cape Cod could get a foot of snow.

To keep America warm, power plants are burning a record amount of natural gas -- 143 billion cubic feet per day. (Compare that with 125 bcfd during the 2014 Polar Vortex.) In Boston natural gas for prompt delivery exploded in price to $35 per million British thermal units, making it the priciest gas market in the world.

Boston can't get enough methane at any price. But with prices like that, a crowded field is working to close the arbitrage. Utility company Eversource imports LNG into Boston harbor to meet winter need, but that requires a specialized port. There are fewer barriers to entry when it comes to fuel oil -- it's easy to transport, store and burn. But the drawback of generating electricity from oil is that it (usually) costs far more than methane for the same amount of energy, while its carbon intensity is as bad as coal.

Which is why it’s so troubling that as of Wednesday morning New England was relying on fuel oil for a remarkable 33% of its power supply. This shouldn't be necessary so close to one of the world's biggest natural gas fields -- the Marcellus Shale of Pennsylvania and West Virginia where drillers and frackers have grown output from just a puff a decade ago to a recent 20 billion cubic feet per day. Add to that a new boost of production from the Haynesville shale of Louisiana, up 40% in a year to 4.9 bcfd. Pricing at the more liquid Henry Hub in Louisiana is up by a third in recent weeks to around $3.50 per mmBtu -- just a tenth the price of the spikes recently seen in Boston.

In the past decade northeast demand for natural gas has surged as plentiful supplies of shale gas from the Marcellus shale in Pennsylvania have flooded into the region displacing mothballed coal plants and the closure of nuclear plant Vermont Yankee. The region wants more gas, but supply infrastructure hasn't kept up, with pipeline projects blocked by NIMBY. Last June, utilities Eversource and National Grid withdrew their plan for a $3 billion pipeline that would bring cheap gas to New England because there wasn't enough political support for getting ratepayers to foot the bill.

Enough already. Times like this are good for a reminder on what really keeps the heat on. New England's power breakdown today is 33% oil, 27% nuclear, 24% natural gas, 5% hydro and 4% coal. Of the 7% sourced from renewables, more than 80% comes from burning wood and trash, with just 1% (of that 7%) coming from solar. Solar and batteries get a lot of hype for helping to smooth summer time peaks, but for dealing with a deep freeze, it's clear the northeast needs something else -- more natural gas.

Schlumberger Buys Weatherford.  Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy. However, Weatherford got a reprieve from its much larger competitor. In March 2017, Schlumberger and Weatherford announced they had formed a joint venture called OneStim, “to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.”

However, in December, Weatherford signaled they want to/need to sell off parts of the company in order to claw their way out of a $7.9 billion debt hole. First on the chopping block? The JV with Schlumberger. Weatherford announced in late December that instead of a joint venture with Schlumberger, they’re just going to sell their U.S. pressure pumping and pump-down perforating assets to Schlumberger for $430 million in cold, hard cash.

OH 3rd Qtr. Production Numbers.  Belmont County was the No. 1 Utica Shale drilling county in Ohio for natural gas in the third quarter of 2017, according to production data compiled by the Ohio Department of Natural Resources. Total Q3 production in Belmont County was 208.47 billion cubic feet (Bcf). Second was Monroe County with 85.98 Bcf, followed by Jefferson County with 41.66 Bcf, Harrison with 38 Bcf, and Carroll County with 34.95 Bcf. The most productive well in Q3 for natural gas was an Ascent Resources Utica well in Belmont County’s Wheeling Township. It produced zero oil and 2.34 Bcf of natural gas. Eight of the 10 most productive wells in Ohio for natural gas in the third quarter were in Belmont County. The other two were in Monroe County. In Q3, Ohio produced 460.56 Bcf of natural gas, an 18.5% increase from Q2 2017. It also produced 4.17 Bbls of oil, an increase of nearly 3% from Q2. 

China Importing Record Amounts of U.S. NatGas.  China’s imports of liquefied natural gas from the U.S. jumped in November as the country purchased a record volume of the fuel to meet surging demand for heating and industrial use.

Shipments from the U.S. totaled 407,325 metric tons last month, up from nothing one year earlier, and 57% higher than October’s shipments, making the U.S. the third-biggest supplier to China, behind Australia and Qatar.

“U.S. exports are ramping rapidly up, while China is the fastest growing importer,” Kerry Anne Shanks, a Singapore-based analyst at Wood Mackenzie, told Bloomberg. “LNG trade between the two countries will continue to grow.”

China is struggling with a winter natural gas shortage after demand surged this year amid President Xi Jinping’s fight against smog, which focused on cutting the use of coal in favor of natural gas, Bloomberg reported.

The country’s rising need has helped push spot LNG prices to $10.90 per million British thermal units (MMBtu), the highest in three years, according to industry publication World Gas Intelligence.

Increasing U.S. oil and gas supplies to China has been a goal for President Trump’s administration, with energy dominating the $250 billion in deals revealed between the countries during his visit to Beijing last month.

Those included agreements between Cheniere Energy Partners and China National Petroleum, as well as China Petrochemical, known as Sinopec Group, and Alaska Gasoline Development Corp, Kallanish Energy reports.

“The U.S. has benefited from a temporary gap that has arisen this year with Chinese gas demand surging,” said Sophie Lu, an analyst at Bloomberg New Energy Finance in Beijing. “Since October, China has accounted for a quarter of U.S. shipments of LNG exports, especially buying uncontracted volumes from the spot market.”

China’s natural gas use could almost triple from last year, to about 600 billion cubic meters by 2040, and it could overtake the U.S. as the world’s largest consumer by 2050, according to Sanford C. Bernstein & Co.

Permian Surpasses 1973 Production Record.  The Permian Basin in West Texas/southeastern New Mexico hit a new oil-production record of 815 million barrels (MMBbl), according to preliminary 2017 data — smashing the previous peak of 790 MMBbl for all of 1973, according to new analysis from IHS Markit.

The 2017 production milestone does not just crawl past the previous 1973 peak – it smashes the 44-year-old previous production record by more than 25 MMBbl, the analytics-consulting firm said.

“The magnitude of the rebound in Permian Basin liquids production is unprecedented,” said Reed Olmstead, director, Energy Research and Analysis, IHS Markit.

The Permian Basin is on track to add more than two million barrels per day (MMBPD) in new production since 2007, according to Olmstead, Kallanish Energy learns.

New COO at Gulfport Energy.  Gulfport Energy has a new chief operating officer, Donnie Moore, a vice president at Noble Energy, who assumes his new post on Jan. 8, Kallanish Energy reports.

Michael G. Moore, CEO and president, said, “Donnie has demonstrated exceptional management and technical leadership throughout his career and I believe his proven track record will play a vital role in Gulfport’s future success.

“He holds significant experience across all facets of the business, in his most recent positions managing multi-billion-dollar capital programs and also leading the development of the asset across multi-disciplinary teams within the organization, resulting in production growth of over five times in a two and half year period,” he said, in a statement.

Moore was most recently in charge of Noble’s Texas operations for the Eagle Ford and Delaware Basin assets. Prior to that, Moore directed the company's operations in the Marcellus Shale in the Appalachian Basin, the DJ Basin in Colorado, the Gunflint discovery in the deepwater Gulf of Mexico and the Mid-Continent play in Oklahoma.

Prior to joining Noble Energy in 2007, Moore held a variety of roles with ARCO Oil and Gas, Vastar Resources and BP America from 1989 to 2007, and brings to Gulfport over 28 years of operations and subsurface leadership experience.

New Leadership at Enlink Midstream.  EnLink Midstream companies have a new president and CEO, as Michael J. Garberding has been named to the posts, Kallanish Energy reports.

The companies also selected Eric Batchelder to be executive vice president and chief financial officer. In addition, Barry E. Davis is the new executive chairman.

Davis has transitioned from his role as chairman and CEO to executive chairman, a newly created position in which he will continue to guide the company's long-term strategy.

Davis has served as CEO since EnLink was created in 2014, following the merger of Crosstex Energy and Devon Energy. Prior to that, Davis founded Crosstex in 1996.

"I look forward to continuing to serve EnLink as Executive Chairman, guiding EnLink's long-term strategy while working closely with Mike and the rest of our outstanding leadership team," Davis said in a statement.

Garberding is responsible for developing and leading EnLink's corporate strategy. Additionally, as part of this transition, he has joined the boards of directors for both ENLK and ENLC.

Previously, he served as EnLink's chief financial officer since 2011, and president and CFO since 2016. Garberding has more than 25 years of leadership experience in the energy industry and has held several executive-level positions within EnLink and its predecessors since 2008.

Batchelder has joined EnLink as executive vice president and CFO. In his new role, he is responsible for EnLink's economic strategy and oversees financial forecasting and reporting, as well as capital markets activity.

Batchelder brings more than 15 years of financial leadership experience in the energy sector, most recently as managing director, Energy Investment Banking at RBC Capital Markets. Prior to RBC, Batchelder spent 10 years at Goldman Sachs and seven years at Arthur Andersen.

Apache Will Be Moving Permian NatGas to the Gulf.  Texas-based Apache Corp. announced last week it had secured 500 million cubic feet of natural gas transport capacity on the proposed Gulf Coast Express Pipeline, Kallanish Energy reports.

The pipeline will connect the Waha Hub near Coyanosa, Texas, in the Permian Basin in West Texas and New Mexico, to Agua Dulce, Texas, near the Gulf Coast.

It will provide Houston-based Apache with access to natural gas users and markets, including LNG exports and Mexico users.

Apache has also secured an option for up to a 15% equity stake in the pipeline.

Its announcement came on the same day that the three companies behind the pipeline announced the final investment decision.

CDL Drivers Needed in the Permian.  When the price of oil collapsed in 2014 and disrupted drilling operations all across Texas’s massive Permian Basin shale formation, truckers were among those hardest hit. Rendered unnecessary by the slump in output, they were fired in scores. Now, three years later, with oil prices inching back higher and production in the Permian soaring once again, the drillers want the truckers back. The feeling, though, isn’t mutual. The pain of the 2014 bust remains fresh for many who went on to find driving gigs in other industries and, what’s more, they worry that companies will remain tightfisted with pay as they re-hire. The result is a growing trucker shortage that threatens to limit just how high drillers can push production.

The problem is most acute in the western fringe of the Permian -- known as the Delaware Basin -- where shale companies are moving back into aggressively as prices climb. Given the off-the-beaten-path location of these wells amid the sprawling 75,000-square mile Permian, the need for truckers to haul the oil over primitive roads to pipelines is greater than in more centrally located spots.

Comments on CNBC indicate that worker shortage in the Permian could keep the rig count down in that shale play.

Dakota Access Pipeline Boon to the Bakken.  North Dakota oil production returned to near-record levels in 2017, which one industry leader credited in part to the Dakota Access Pipeline. “It has been a game-changer,” said Ron Ness, president of the North Dakota Petroleum Council. The pipeline system connecting North Dakota with Gulf Coast markets has lowered transportation costs, making the price for Bakken crude more competitive. Justin Kringstad, director of the North Dakota Pipeline Authority, said before Dakota Access began service in June, the price for a Bakken barrel was about $7 to $8 lower than the West Texas Intermediate price. From June through October, the most recent data available, the average discount was $5 a barrel, Kringstad said. “That means getting more and more revenue out of each barrel,” said Ryan Rauschenberger, North Dakota tax commissioner. State tax revenues have increased about $43.5 million for the first five months that Dakota Access operated, according to Kringstad’s analysis. That does not include the impact of increased revenue for oil producers and royalty owners.

Drilling Picking Up in the Niobrara.  Figures show oil and gas drilling activity in western Colorado is at its highest pace in several years, with no signs of slowing down in 2018. The Daily Sentinel reports Colorado Oil and Gas Conservation Commission data through Dec. 8 shows drilling had begun on 113 wells so far this year in Mesa County, the most since 225 well starts there in 2008, the peak year of drilling activity in western Colorado’s Piceance Basin. Garfield County has had 277 well starts this year through Dec. 8, up from 161 for all of last year. Garfield and Mesa rank second and third statewide in drilling activity, far behind the 1,203 well starts so far this year in Weld County. Colorado has seen 1,741 well starts through Dec. 8 of this year. 

Andeavor Buys Rangeland Energy II in the Permian.  Andeavor announced it has agreed to acquire 100% of the equity in Rangeland Energy II and its assets in the Permian Basin in West Texas and New Mexico for an undisclosed price, Kallanish Energy reports.

The assets being acquired include assets in the Delaware and Midland basins, including a newly built crude oil pipeline, three crude oil storage terminals and a frack-sand storage and truck-loading facility.

Andeavor, with offices in San Antonio, said it plans to integrate the acquired 110-mile crude oil pipeline with ultimate throughput capacity of 145,000 barrels per day (BPD) and crude oil storage terminals with its nearby Conan Crude Oil Gathering System, currently under construction.

Once fully integrated, the combination of the two systems will provide producers access to multiple markets by connecting to existing takeaway pipeline systems, the company said, in a statement.

The combined system also supports Andeavor's development of additional gathering systems in the area, as well as enhancing commercial opportunities by providing direct access to the Midland market hub.

Andeavor said it expects to drop-down the pipeline assets to Andeavor Logistics at a later date. The acquisition is expected to close early in the first quarter.

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PA Permits December 21, 2017 to January 4, 2018

            County                                       Township                                          E&P Companies

  1. Bradford                                       Monroe                                              Chesapeake
  2. Bradford                                       Monroe                                              Chesapeake
  3. Greene                                         Wayne                                               Rice
  4. Sullivan                                       Cherry                                                Chesapeake
  5. Sullivan                                       Cherry                                                Chesapeake
  6. Sullivan                                       Cherry                                                Chesapeake
  7. Tioga                                            Liberty                                                Shell
  8. Tioga                                            Liberty                                                Shell
  9. Tioga                                            Liberty                                                Shell
  10. Tioga                                            Morris                                                 Shell
  11. Tioga                                            Morris                                                 Shell
  12. Tioga                                            Morris                                                 Shell
  13. Tioga                                            Morris                                                 Shell

OH Permits for weeks December 23 & 30, 2017

              County                                   Township                                          E&P Companies

  1. Belmont                                       Colerain                                             Ascent
  2. Jefferson                                     Mt. Pleasant                                      Ascent
  3. Jefferson                                     Mt. Pleasant                                      Ascent
  4. Jefferson                                     Mt. Pleasant                                      Ascent
  5. Monroe                                        Sunsbury                                          Gulfport
  6. Monroe                                        Green                                                 Eclipse
  7. Monroe                                        Green                                                 Eclipse
  8. Monroe                                        Green                                                 Eclipse
  9. Monroe                                        Green                                                 Eclilpse
  10. Noble                                           Beaver                                               Gulfport
  11. Noble                                           Beaver                                               Gulfport

Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149

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