Columbia Gas Transmission sold its Project Penny gatheringpipeline and compressor facilities in Pennsylvania and New York toNorse Pipeline for $21.5 million. Norse is an affiliate of SchansonEnergy LLC, the energy investment arm of Schanson CapitalManagement of Los Angeles, and Nornew Inc., an integrated oil andgas exploration company focused mainly on the Appalachian Basin andthe Maritime provinces in Atlantic Canada. Norse Pipeline’sdomestic operations are based in Houston and Jamestown, NY. ProjectPenny consists of seven compressor station locations and about 341miles of gas pipeline in northwestern Pennsylvania and southwesternNew York. Constructed in the late 1970s and early 1980s, theProject Penny facilities have no direct connection to ColumbiaTransmission’s other pipeline facilities and are not necessary forthe company to provide its core services of interstate gastransportation and storage. The purchase of Project Penny makesNorse Pipeline the largest gas gatherer in the northern AppalachianBasin, with access to about 6,500 gas wells in New York andPennsylvania and the capacity to gather more than 100,000 Mcf/d.

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