New TVA Electric Plant May Unlock STAT's Gas Potential
This on www.tennoil.com August News Letter
NEW TVA ELECTRIC PLANT MAY UNLOCK STAT'S GAS POTENTIAL- The recent announcement by TVA of plans to build a natural gas-fired electric plant in Rogersville, may lead to the development of Tennessee's substantial natural gas potential, according to TOGA president, Scott Gilbert.
In a news release from TOGA headquarters, Gilbert said, "TVA will need up to 160 million cubic feet of natural gas a day for the plant scheduled to come on line in late 2011. Tennessee is now producing about 16 million cubic feet of gas, but has immense potential for to produce a great deal more gas. At this time, we are producing oil and gas from just 11 eastern and middle Tennessee counties, but there is reason to believe that most other eastern and middle Tennessee counties have potential for the production of gas or oil," he added. Gilbert noted that while there are several shallow and deep horizons capable of producing oil and gas in Tennessee, the most potential lies in a shale formation, called the Chattanooga Shale.
"The Chattanooga Shale lies like a blanket under the entire Cumberland Plateau and Highland Rim of eastern and middle Tennessee and in scattered locations in the rest of East Tennessee, at a depth of less than 1,000 feet to more than 4,000 feet." Said Gilbert, lead geologist for Vinland Energy. He noted that the shale gets deeper as you travel east. This rock formation, called the Chattanooga Shale in Tennessee is similar to the Marcellus Shale of New York and Pennsylvania and the Huron Shale of Eastern Kentucky. All three are Devonian Shales and underly almost the entire Appalachian Basin from New York to Alabama.
"Geologists agree that as a resource, the shale is huge, but the challenges are many. Shales are different from conventional source rocks and we are just now learning how to unlock the shale's potential," he added. Gilbert noted that the "shale play" started with the Barnett Shale play in Texas nearly a decade ago. The Barnett field is proven to have 2.5 trilling cubic feet of natural gas and is estimated to contain as much as 30 trillion cubic feet.
"The economic success of the Barnett Shale which began production in 1999, has spurred companies to search for other sources of shale gas including the Antrim Shale in Michigan, the Fayetteville Shale in Arkansas, the Haynesville shale in Louisiana as well as the Marcellus Shale in Pennsylvania and now the Chattanooga Shale in Tennessee.
"The Chattanooga Shale is not as deep as the Marcellus. Deeper wells have higher pressure, which generally result in more production but also higher costs, Gilbert pointed out. However, the Chattanooga is certainly worth exploring for and producing. Several Tennessee companies already have commercially successful Chattanooga Shale wells, both vertical and horizontal. Now with a very large potential market for our gas to TVA, we lack only the infrastructure, which will come with the additional leasing and drilling we anticipate," Gilbert predicted.
The proposed natural gas plant is to be located beside the John Sevier coal fired power plant, which supplies electricity to upper east Tennessee. The purpose is to reduce the emissions from the existing plant. The large majority of the coal currently burned in the John Sevier Plant is imported from neighboring states. The new gas fired plant will allow the State of Tennessee to provide homegrown, clean burning natural gas. Which result in more jobs and an increased taxes going into state coffers in the form of severance tax from the production of the gas.
You may also want to look at www.citizensgas.org Future Expansion
Citizens Gas Utility District - Future Expansion
Rural Development Project Road Phases
Citizens Gas Utility District of Scott & Morgan Counties has filed an application for financial
assistance with USDA Rural Development for a Natural Gas Distribution System expansion
project in Scott and Morgan Counties. Citizens Gas Utility District is currently waiting approval
from USDA Rural Development. Below is a listing of the roads for Natural Gas Distribution
System expansion.
Morgan County
Phase One
- Hwy. 62 compressor to Fentress County line
- Barnett Bridge Road
Phase Two
- Miester Hills
- Twin Bridge Road
- Rome Road
Phase Three
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Citizens Gas Utility District - Future Expansion
- Genesis Road
Phase Four
- Catfish Farm Road
- Fairview Road
- Millcreek Road
- Hwy. 62 to Montgomery Road
- Catoosa Road
- Island Ford Road
- Chestnut Ridge Road
- Abigail Trail
- Clarence Lee Road
- Frankfort Road
- Lee Road
- Fritts Road & David Miller Road
- Cassell Road
- Back Petros Road
- Pea Ridge Road
- White Oak Road
- Burrville Road
- French Hamby Road
- Ross Williams Road
- Jr. Cox Road
- Clear Creek Church Road
- Finish out Ridge Road
- Granville Howard Road
- Clyde Cooper Road
- Bill Hamby Road
- Big John Road
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Citizens Gas Utility District - Future Expansion
- Peacock Road
- Doc Huling Road
- Charlie Jones Road
Scott County
Phase One
- Bud West Lane
- Lucust Lane
- Forest Lane
- Dexter Laxton/Ralph Hughett Lane
- Ditney Trail
Phase Two
- Rob Watson Road
- Clay Boyatt Road
- Alderville Road
- Adkins Trail
- Phillips Loop Road off Cherry Fork Road
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Citizens Gas Utility District - Future Expansion
- Tunnel Hill Road at Robbins
Phase Three
- Pine Hill Road from Pleasant Grove to Bethlehem
Road
- Big Ridge Road to Grave Hill Road
- Clay Hill Road from Pleasant Grove to Bethlehem
Road
- Fed Phillips Road
Phase Four
- Ridge Road Starts at Jurgins Road 1.8 miles
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We already know that MGLG is working in these area's, only makes sense that they will be bidding on more leases.
