MarkWest Energy Partners Signs Agreements with Antero Resources to Expand Sherwood Processing Complex to 1 Bcf/d

Press Release, Mark West Energy Partners, Business Wire, November 7, 2013

NOTE: The Sherwood Processing Complex is visible south of US Route 50 about five miles east of West Union, in Doddridge County, WV.

DENVER — MarkWest Energy Partners, L.P. announced the completion of long-term, fee-based agreements with Antero Resources for the development of an additional cryogenic gas processing plant at the Partnership’s Sherwood complex in Doddridge County, West Virginia. 

Under terms of the agreements, MarkWest will construct a fifth 200 million cubic feet per day (MMcf/d) processing facility that is expected to begin operations in the third quarter of 2014. Upon completion of the new plant, the Sherwood complex will have 1 billion cubic feet per day (Bcf/d) of total processing capacity.

Antero is a premier producer in the Northeast and is aggressively developing their acreage position throughout the rich-gas Marcellus. The Sherwood complex currently consists of two plants with 400 MMcf/d of capacity and is operating near full utilization. By the end of this year, MarkWest will bring online a third 200 MMcf/d plant at the complex and is quickly moving forward with the construction of a fourth plant by the second quarter of 2014.

Antero’s natural gas liquids (NGLs) recovered at the Sherwood complex are currently being delivered to MarkWest’s Houston complex in Washington County, Pennsylvania for fractionation and marketing. The Houston complex is the largest fractionation facility in the Northeast and provides extensive logistics services, including storage and the delivery of purity products to market by truck, rail and pipeline. 

In addition, the Houston complex offers Marcellus producers the first large-scale de-ethanization facility in the Northeast capable of producing purity ethane for delivery to Mariner West, and ultimately to the ATEX and Mariner East projects.

“We are delighted to further expand our strong relationship with Antero and develop additional processing capacity at the Sherwood complex to support their highly successful drilling program,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “The ability to offer producers fully integrated midstream services throughout northern West Virginia and southwest Pennsylvania is critical to unlocking the abundant rich-gas reserves of the Marcellus Shale.”      

MarkWest Energy Partners, L.P. is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the gathering, transportation, fractionation, storage and marketing of natural gas liquids; and the gathering and transportation of crude oil. 

MarkWest has a leading presence in many unconventional gas plays including the Marcellus Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale and Granite Wash formation.

SOURCE: MarkWest Energy Partners, L.P.

See also: www.EcoWatch.com and  www.FrackCheckWV.net

Delegate Tim Manchin (D-Marion) was co-chair of the WV Select Committee on Marcellus Shale. In December, the Governor scrapped the Committee’s “Marcellus shale framework bill” in order to serve the last minute whims of the oil and gas industry.  A Marcellus bill with major modifications was passed.

According to newspaper reports, Delegate Manchin is now thinking of a bargain with the industry, as for example, an increase in the natural gas severence tax in exchange for a state law that mineral and land owners be required to participate in “pooling” so large tracts of contiguous land would be available to the drilling companies.

The WV severence tax is now at 5% on produced natural gas. Manchin suggested an increase to 5.5 or 6%, with the additional tax income being used for the state’s highways and other infrastructure. Manchin said the state could match that additional money to grow the infrastructure fund and convince the public that forced pooling is a good idea.

If the State moves to approve forced pooling, gas companies would be allowed to combine properties where owners refuse to lease their mineral rights with adjoining properties when leases have been obtained. The companies could then remove gas from all the properties in that unit, even if some property owners refused lease agreements. Gas companies would not be permitted to build roads or pipelines on properties taken to complete a unit, and they also would not be allowed to drill wells on those sites.

Manchin said that the Marcellus shale bill passed last month by West Virginia lawmakers was “a good bill – a bill worth voting for,” but said the bill should have required drillers to report how many of their employees are West Virginia residents. Many others have found faults with the bill that was passed.