OKS » Topics » Gathering and Processing

This excerpt taken from the OKS 10-K filed Mar 1, 2007.

Gathering and Processing

Our gathering and processing assets gather natural gas in the Mid-Continent region, which includes the Anadarko Basin of Oklahoma and the Hugoton and Central Kansas Uplift Basins of Kansas. In addition, we gather natural gas in three producing basins in the Rocky Mountain region: the Williston Basin, which spans portions of Montana, North Dakota, and the Canadian province of Saskatchewan, and the Powder River and Wind River Basins of Wyoming.

In the Mid-Continent and Rocky Mountain regions, raw natural gas is compressed and transported through pipelines to processing facilities where volumes are aggregated, treated and processed to remove water vapor, solids and other contaminants, and NGLs are extracted. In some cases, the NGLs are separated into marketable components, including ethane, propane, iso-butane, normal butane and natural gasoline, utilizing a distillation process known as fractionation and the components are sold to refineries or local markets. The remaining residue gas, which consists primarily of methane, is compressed and delivered to natural gas pipelines for transportation to the end user.

Our Gathering and Processing segment assets consist of the following:

   

approximately 10,100 miles and 4,500 miles of gathering pipelines with capacity owned, leased or contracted for in the Mid-Continent and Rocky Mountain regions, respectively;

 

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10 active processing plants, with approximately 1.6 Bcf/d of owned, leased or contracted processing capacity in the Mid-Continent region, and four active processing plants with approximately 80 MMcf/d of owned, leased or contracted processing capacity in the Rocky Mountain region; and

   

approximately 89 MBbl/d and 11 MBbl/d of owned, leased or contracted natural gas liquids fractionation capacity in the Mid-Continent and Rocky Mountain regions, respectively.

Our natural gas processing operations utilize straddle and field gas processing plants to extract NGLs from raw natural gas and remove water vapor and other contaminants from the raw natural gas stream. A straddle gas processing plant is situated on a pipeline system and relies on the pipeline’s natural gas throughput volume, which subjects the plant to increased supply risk as it is dependent upon the throughput of a single pipeline rather than several supply sources. Field gas processing plants gather raw natural gas from multiple producing wells.

On January 1, 2007, the Bushton Plant was temporarily idled. Volumes available for processing at this straddle plant have declined due to contract terminations and natural field declines which made it more efficient to process the remaining gas at other facilities. We have contracted for all of the capacity of the plant from ONEOK. We are in the process of adding new facilities and making other changes at the plant as part of our Overland Pass Pipeline Company project. The plant currently has 1.0 Bcf/d processing capacity and 80 MBbl/d fractionation capacity.

"Gathering and Processing" elsewhere:

ONEOK (OKE)
Williams Companies (WMB)
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