Ann: Corporate Update, page-39

I see what your saying Orion .... up to a point. The "gas gathering" infrastructure is to be minimal and direct to the end user premise (which while in Fremont County is no necessarily that close to the well head though).

Perhaps just so everyone can be relatively familiar with the terms and process.

1. "Natural gas transmission pipelines serve the purpose of transporting natural gas from production areas to market areas. Transmission pipelines receive gas from the midstream facilities (i.e., gathering or processing facilities) and deliver this gas either to end users, local distribution companies, or to other transmission pipelines for further downstream transportation."

You agree that without processing and separation FPL gas would not see the inside of a transmission pipeline.

2. "“wet” gas consists of mostly methane and commonly contains lesser quantities of other hydrocarbons such as ethane, propane and butane, referred to collectively as Natural Gas Liquids (NGLs); and small quantities of carbon dioxide, hydrogen sulphide and water. Pipeline quality gas has been processed to remove these substances"

Here is the gas analysis sample (from May 5, 2017) of the flared gas from Magellan .... 89% methane. You can see the ethane, propane. On that basis its not too wet as methane is > 85%.



Obviously if the plan is to not separate and use the gas as a direct furnace fuel then you don't want to be supplying "hot" gas either - heat content that is too high to be used reliably in end-use applications. With those levels of ethane and propane it should (?) be safe.

Gathering is the process of collecting gas from multiple wellheads in the gas field, beginning at the wellhead and working through into common pipes leading to system outlet points.Now lets be realistic ... FPL needs to lay individual gas flow lines within Pathfinder from each well to connect to a more common point(s)  "the gathering line"  for further transmission ... and that then goes direct to the end user ... yes?


So the main concerns would still be the cost of transport from field outlet to the end user (obviously FPL would have to stump up for wellhead flow lines). Lots of changes to unregulated pipelines in Colorado recently.

Anyway, going back to the beginning of the year & Qtrly report for period ended 31/12/2016 we have this statement. Why wasn't binding gas sale agreement concluded???