Dominion Exploration & Production, Inc. said Tuesday that it will assume operation of more than 800 coal-bed methane wells located in Tuscaloosa, AL, from its partner, ConocoPhillips. Dominion said the effective date of the transaction is Dec. 31, 2002.

Currently, ConocoPhillips acts as contract operator for the 532-well Black Warrior project, which Dominion E&P has an approximately 98% working interest. In addition, ConocoPhillips operates the jointly owned Whitson project where Dominion E&P is the majority owner. Under the terms of the transaction, ConocoPhillips’ working interest in the Whitson project will increase.

“With this agreement, Dominion E&P accomplishes its objective to operate its high working interest properties in the Black Warrior Basin,” said Duane C. Radtke, CEO of Dominion E&P. “Dominion has been pleased with the relationship with ConocoPhillips and looks forward to a continued partnership while growing these assets and pursuing other opportunities in the area.”

Within the Black Warrior project, Dominion Resources Black Warrior Trust also owns an overriding royalty interest in the 532 wells subject to an overriding royalty conveyance effective June 1, 1994.

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