Operations Overview

Our gathering systems are a network of pipelines that connect to wellheads and then transport dry natural gas directly to interstate pipelines. Since wells produce at progressively lower field pressures as they deplete, our compression services allow remaining reserves to be produced against the higher pressure in the connecting gathering system. In a mechanical process, we compress natural gas to a higher pressure, allowing it to flow into a high-pressure gathering system.

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Asset Overview
Washington County System
Greene County System

Asset Overview

We have secured dedications from Rice Energy under a 15-year, fixed-fee contract for gathering and compression services. These dedications cover approximately 63,000 gross acres of Rice Energy’s current acreage position in Washington and Greene counties, Pennsylvania. This contract also includes any future acreage Rice Energy acquires within these counties, other than in select areas subject to pre-existing third-party dedications.

In addition, we have secured dedications from third-party customers under fixed-fee contracts for gathering and compression services in Washington County, Pennsylvania. These dedications include approximately 21,000 gross acres, and any future acreage they may acquire within areas of mutual interest of approximately 66,000 acres.

Our initial assets and year end 2015 projected throughput capacity consist of:

  • A 3.3 MMDth/d high-pressure dry gas gathering system and associated compression in Washington County, Pennsylvania, with connections to the Dominion, TCO, EQT and TETCO interstate pipelines; and
  • A 840 MDth/d high-pressure dry gas gathering system in Greene County, Pennsylvania, with connections to Dominion, TCO and NFGS interstate pipelines.

Our initial assets are located within highly concentrated acreage positions in the dry gas core of the Marcellus Shale in southwestern Pennsylvania. We believe that the combination of the location and available capacity of our initial assets will accommodate future production growth of Rice Energy and third parties. This will provide us with the opportunity to significantly increase our throughput through additional well connects with minimal capital expenditures.

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Washington County System

Rice Energy began constructing the Washington County gathering system in January 2010, in connection with commencing horizontal development of its Marcellus Shale acreage. Since 2010, Rice Energy has expanded the Washington County gathering system through a combination of organic growth and third-party acquisitions. In April 2014, Rice Energy completed the acquisition of the Momentum Assets from M3 Appalachia Gathering LLC. The Momentum Assets included a 28-mile, 6- to 16-inch gathering system in eastern Washington County providing gathering services to third-party producers. The acquisition also included permits and rights of way necessary to construct our 18-mile, 30-inch gathering system extension and TETCO connection, which we completed in November 2014.

During 2015, we expect to complete construction of the Washington County gathering system with the addition of approximately 20 miles of high-pressure pipeline in central Washington County. Upon completion of construction, we expect that the Washington County gathering system will consist of a network of 92 miles of 6- to 30-inch gathering pipelines for a total of approximately 3.3 MMDth/d of capacity to collect natural gas from Rice Energy and third-party producers. In addition, substantially all of Rice Energy’s drilling locations within our designated area in Washington County will be within two miles of the completed system and, as a result, we expect that we will connect substantially all of such drilling locations to this gathering and compression system for minimal cost.

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Greene County System

As of year end 2014, our Greene County gathering system consists of a network of 9.7 miles of 6- to 16-inch gathering pipelines that collect natural gas from Rice Energy and has a capacity of approximately 420 MDth/d. During 2015, we expect to expand the Greene County gathering system by constructing an additional 9.6 miles of high-pressure pipeline increasing the total system mileage to 19.3 miles of gathering pipelines with an aggregate capacity of approximately 840 MDth/d. In addition, substantially all of Rice Energy’s drilling locations within our dedicated area in Greene County will be within two miles of the completed system, and, as a result, we expect that we will connect substantially all of such drilling locations to this gathering and compression system for minimal cost.