Dominion (NYSE: D) has entered into several contracts including the delivery of 500,000 dekatherms per day of natural gas from West Virginia to various interconnections with pipelines in Ohio; and leasing about 100,000 acres, to two natural gas producers, of Marcellus shale rights under several natural gas storage fields in West Virginia.
Dominion also has farmed out nearly 80,000 acres and subleased about 9,000 acres to CONSOL Energy, a producer of natural gas and coal, in Lewis, Harrison, Gilmer and Ritchie counties. In addition, Dominion farmed out approximately 13,000 acres to Triana Energy LLC, an oil and gas exploration and production company, in Harrison and Taylor counties.
Dominion will receive approximately $200 million over nine years as a result of the farm-out agreements.
The agreement with Dominion Transmission and CONSOL also includes the transportation of 250,000 dekatherms per day from the Fink-Kennedy area to the Texas Eastern pipeline in Mullet, Ohio and the Rockies Express Pipeline in Clarington, Ohio. The 15-year contract begins November 2016.
Dominion also committed to transport 250,000 DT/day to Lebanon, Ohio starting June 2014. The commitment is up to 21 years.
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