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Oklahoma Drilling Driving Potential New Intrastate Pipe

Increasing gas drilling activity in Oklahoma has prompted OGE Energy Corp. subsidiary Enogex LLC to float an open season for the proposed Heartland Crossing pipeline project, which would provide new firm transport capacity from the region.

"Enogex believes that with the increased drilling of natural gas wells in and around Oklahoma, additional transportation capacity needs to be developed," said Enogex COO Keith Mitchell. Heartland Crossing would transport gas received in Oklahoma from gathering systems, processing plant tailgates and pipeline interconnects to delivery points in within the state.

"We are proposing to use existing pipeline infrastructure and, where necessary, to build new capacity to help our Oklahoma customers and those throughout the region move gas to attractive markets," Mitchell said.

Enogex's system -- with interconnects to gathering systems, processing plant tailgates and pipeline interconnects in Oklahoma -- allows for the receipt and delivery of increasing quantities of gas production now being brought on stream in Oklahoma and surrounding areas. Heartland Crossing would take advantage of Enogex's existing capabilities to move increasing production in the area to regional and national markets, including growing markets east of the Mississippi River.

Enogex is holding an open season through June 6 to solicit interest in Heartland Crossing. With a potential design capacity of up to 1 Bcf/d, the pipeline is expected to begin in western Oklahoma and connect to markets on the Enogex system, including delivery to interconnects in Bennington, OK. It could be in service by early 2010. Open season results will determine the scope and cost of the project, the company said.

Open season information is available from Michael Walker at (405) 530-7429 or Christy Spraggs at (405) 557-5287, as well as www.enogex.com under the "notices" tab.

The Enogex intrastate system spans 2,318 miles and interconnects with numerous intrastate and interstate pipelines. It has two gas storage facilities providing approximately 23 Bcf of working capacity.

Growing production in Oklahoma has prompted producer Newfield Exploration to take additional capacity in the Midcontinent Express Project, an interstate pipeline that would move gas out of the region (see related story).

Earlier this month Enogex said it would provide gathering, processing and transportation for Chesapeake Energy Corp. production in the Colony Granite Wash play in Custer and Washita counties in the Anadarko Basin of western Oklahoma (see NGI, April 21). In February Enogex held a binding open season for new intrastate service targeting Woodford Shale production (see NGI, Feb. 25). "We are beginning to execute agreements with shippers; however, at this point those agreements are still under confidentiality agreements," a spokesman told NGI last week.

Also in February Enogex completed construction on the first phase -- 22 miles -- of a new 30-mile pipeline to connect its Hughes, Coal and Pittsburgh county gathering system with the 30-inch diameter Enogex mainline to Bennington, OK, and the 24-inch Enogex mainline to Wilburton, OK (see NGI, Feb. 11). The project creates additional gathering capacity of 125 MMcf/d for customers desiring low-pressure services with the potential to double this amount with incremental compression investments.

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