Pipeline project links gas wells to market
REDSTONE TWP. – Natural gas transmission lines can be seen snaking across much of Fayette County these days as Atlas America connects its new wells to the lines needed to get the gas to market. “It’s quite an extensive construction project. We have five or six different construction projects we’ve undertaken in the past few months,” said Michael Staines, the president of Atlas Pipeline.
The current project goes from Smock southwest for six or seven miles to connect with an existing system that Atlas purchased from Viking Resources in 1999. The line ultimately connects to a Texas Eastern transmission line so the gas can then be sold to a broker. Staines said the new lines are revolutionizing the delivery of gas from Fayette County.
Atlas America drilled 81 wells in Fayette County in 2001. When the gas fields were first purchased, they produced about two million cubic feet of gas a day. Staines said Atlas America’s geologists have located large pockets of natural gas and the company’s engineers have developed new ways to get to it. The company’s Fayette County gas wells are now producing 10 million cubic feet of gas a day, Staines said.
“We still have 40 wells drilled that aren’t connected to the delivery system,” Staines said. “By building this line, that will add another nine million cubic feet a day.”
Staines said the company anticipates producing a maximum of 25 cubic feet of gas a day out of Fayette County within the next few years. He said the gas production in Fayette County could go on for some time.
“We don’t anticipate finishing drilling the existing property we have for four or five years. We could be in Fayette County 10 or 20 years,” Staines said.
Staines said royalties are paid to each property owner where the gas wells are located.
“Ultimately, it’s good for the county as well,” Staines said.