Presentation by
CNX Gas Company LLC
FERC Technical Conference
December 8, 2009
TETLP Docket No. RP10-30-000
Presented by: Roland J. Campanelli/William M. Hauck – CNX Gas
Bruce Craig, PhD - MetCorr
12/8/2009 FERC Docket No. RP10-30-000 2
Who Is CNX Gas Company?
• 2nd largest Appalachian producer – 4.1 MM Net Acres, Net Production Sales 92 Bcf/2009
• Safety driven - No lost-time accidents since 1994– Drilled and operate >2,600 wells with over 1,000 miles of pipeline
• Largest producer of CBM/CMM in Appalachia– ~250,000 net Mcf/day
• Growing Marcellus shale producer – ~15,000 net Mcf/day
– 230,000 net acres
• Long term sales commitments up to 125,000 Mcf/day on TETLP
CNX is a leading Appalachian producer with large capital investments
and future growth plans in the Appalachian basin.
12/8/2009 FERC Docket No. RP10-30-000 3
CNX Location on TETLP System
Source: TETLP Presentation to CNX on TEAM Project
CNX’s production is ~250 miles from the NE market area and
downstream of Gulf and Rockies commingling supplies.
12/8/2009 FERC Docket No. RP10-30-000 4
CNX’s Position on TETLP’s Proposed
Tariff
• There is no need to:
– Lower the existing CO2 or O2 specs, or
– Establish a minimum Wobbe spec
• The proposed tariff will limit existing and future supply
• The existing H2O spec adequately addresses transmission line
corrosion concerns
• Our concerns on ethane, nitrogen and sulphur will be addressed in
our forthcoming comment filing
TETLP’s existing quality specs protect the pipeline
while maximizing gas supply for energy independence.
12/8/2009 FERC Docket No. RP10-30-000 5
Carbon Dioxide
TETLP proposes to lower CO2 spec
from 3% to 2%
12/8/2009 FERC Docket No. RP10-30-000 6
• Some supply at Blessing TX would be excluded
• Yet with commingling, no other point even approaches 2% CO2
• NE Markets average about 1% CO2
Source: RP10-30-000 TETLP Filing Appendix A Presentations
No historical CO2 issues and the proposed 2% CO2 spec will
exclude supplies.
12/8/2009 FERC Docket No. RP10-30-000 7
TETLP’s Blending Studies (1)
TETPL’s blending studies show NE Market area CO2
levels projected to decline versus base cases
Supply Source CO2
LNG 0.003%
Marcellus 0.08%
REX 1.3%(2)
(1) Source: RP10-30-000 TETLP Filing Blending Studies, Appendix A Presentations
(2) The Rockies Express Tariff limits CO2 to 2%. 10/10/09 through 11/10/09 EBB data from REX shows CO2
averaged 0.9%
TETLP’s blending studies confirm no future CO2 issues.
12/8/2009 FERC Docket No. RP10-30-000 8
Presented by:
Bruce Craig, PhD - MetCorr
On behalf of CNX Gas
Internal Pipeline
Corrosion
12/8/2009 FERC Docket No. RP10-30-000 9
Internal Pipeline Corrosion
• No liquid water phase = no corrosion (true for both CO2 and O2)
• Example:
– A steel pipe filled with methane and anywhere from 0% to 100% of
either CO2 or O2 will not corrode regardless of the duration of the
exposure as long as the moisture in the gas stays in the vapor phase
Water in the liquid phase is the culprit, not CO2 or O2.
12/8/2009 FERC Docket No. RP10-30-000 10
Internal Pipeline Corrosion
At existing 7lb H2O/MMscf spec there is no
corrosion problem, regardless of CO2 or O2
content.
• At 7lbs of H2O/MMscf (TETLP
spec) water in vapor phase will
not condense into liquid phase
even at extreme winter pipeline
conditions (1500 psig & 48 oF)(1)
(1) RP10-30-000 TETLP Filing Affidavit of John R. Hand, pg. 6, #18
(2) Source of Chart: McKetta-Wehe Chart for Estimating the Water
Content of Sweet Natural Gas - GPSA Engineering Data Book, 11th
ed., 1998
48 oF
9 lb H2O
12/8/2009 FERC Docket No. RP10-30-000 11
Minimum Wobbe Spec
TETLP proposes to create a
minimum Wobbe spec of 1314
12/8/2009 FERC Docket No. RP10-30-000 12
•System average is currently 1346
•Deliveries to the NE Market rarely approach
1330 Wobbe
Source: RP10-30-000 TETLP Filing Appendix A Presentations
Historically there has not been a minimum
Wobbe interchangeability issue.
12/8/2009 FERC Docket No. RP10-30-000 13
TETLP’s Blending Studies (1)
TETPL’s Blending Studies show NE Market area Wobbe
levels projected to increase versus base cases
Supply Source Wobbe
LNG 1371
Marcellus 1436
REX 1343
(1) Source: RP10-30-000 TETLP Filing Blending Studies, Appendix A Presentations
TETLP’s blending studies confirm no future Wobbe
interchangeability issues.
12/8/2009 FERC Docket No. RP10-30-000 14
CNX’s CBM Analysis
Gas Analysis Sample –
processed to 3% CO2
Mole %
Methane: CH4 96.23
Ethane: C2 0.10
Propane: C3 0.07
Butane+: C4+ 0.00
Nitrogen: N2 0.53
CO2 3.00
Oxygen: O2 0.07
Btu/scf 976
WOBBE 1274
TETLP’s skewed +4% (1400) to -2.4% (1314) proposed Wobbe range excludes
certain supplies in favor of high Btu gases such as LNG.
12/8/2009 FERC Docket No. RP10-30-000 15
Impact on Lean Gas Supplies
TETLP proposes to lower CO2 spec to 2% and
create a minimum Wobbe spec of 1314
12/8/2009 FERC Docket No. RP10-30-000 16
NGC+: Minimum Wobbe(1)
• NGC+ Interim Guidelines are for delivery points
• NGC+ Work Group focused on maximum Wobbe
• NGC+ Work Group did not develop interchangeability calculations
for minimum Wobbe; -4% guideline chosen for symmetry reasons
• NGC+ Work Group states that minimum Wobbe of -4% is
conservative, not a prediction of flame instability
(1) Source: NGC+ Interchangeability Work Group, White Paper on Natural Gas Interchangeability and Non Combustion
End Use, February 2005, Appendix G at pages 6-7.
The science to support the minimum Wobbe still needs to be
performed. Gas below -4% is interchangeable.
12/8/2009 FERC Docket No. RP10-30-000 17
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Wo
bb
eW
ob
be
Vol% CO2
GA
S E
XCLU
DED
BY
4%
TO
TAL
INER
TS
(970 Btu)
(970 Btu)
Total Inerts = 4%CH4 = 96%CO2 = 0%N2 = 4%
Btu = 970Wobbe = 1284
CH4 = 96%CO2 = 3%
N2 = 1%
Btu = 970Wobbe = 1265
Relationship Between Wobbe, Total Inerts,
And Btu/Scf In Lean Gases
TETLP’s 4% total inert spec establishes minimum Wobbe at ~1265.
• 4% total inert & 967 lower Btu specs:
- are consistent with one another, and
- equate to a minimum Wobbe of ~1265
• NGC+ specified 4% total inerts
12/8/2009 FERC Docket No. RP10-30-000 18
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Wo
bb
eW
ob
be
Vol% CO2
GA
S E
XC
LUD
ED B
Y
4%
TO
TAL
INER
TS
(970 Btu)
(970 Btu)
Total Inerts = 4%CH4 = 96%CO2 = 0%
N2 = 4%
Btu = 970Wobbe = 1284
CH4 = 96%CO2 = 3%
N2 = 1%
Btu = 970Wobbe = 1265
CH4 = 100%CO2 = 0%N2 = 0%
Btu = 1010
Wobbe = 1357
CH4 = 97%CO2 = 3%N2 = 0%
Btu = 980
Wobbe = 1283
Acceptable Lean Gas -- Current Tariff
Current tariff allows for a broad range of lean gases such as CBM.
12/8/2009 FERC Docket No. RP10-30-000 19
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
1200
1220
1240
1260
1280
1300
1320
1340
1360
1380
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Wo
bb
e
Wo
bb
e
Vol% CO2
0% N2
1% N2
2% N2
(1010 Btu)
(1000 Btu)
(990 Btu)
(1000 Btu)
(990 Btu)
(970 Btu)
(980 Btu)
(990 Btu)
(980 Btu)
(970 Btu)
(980 Btu)
(970 Btu)
Wobbe = 1314
GA
S E
XC
LUD
ED B
Y
4%
TO
TAL
INER
TS
(980 Btu)
GAS EXCLUDED BY 2% CO2
Limit
GA
S E
XC
LUD
ED B
Y 1
29
2 W
OB
BE
Wobbe = 1292
GA
S E
XC
LUD
ED B
Y 1
31
4 W
OB
BE
3% N2
Acceptable Lean Gas -- Proposed Tariff
TETLP’s proposed 1314 minimum Wobbe spec would exclude
historically acceptable lean gases from the system.
• Proposed Wobbe & CO2 specs:
- Voids the current 967 Btu & total inert spec
- Excludes historically usable gas
• Even a -4% lower limit (1292) excludes
usable gas
12/8/2009 FERC Docket No. RP10-30-000 20
CNX’s Historical Production into
TETLP Meter (73512)
900
1000
1100
1200
1300
1400
1.0
2.0
3.0
4.0
5.0
6.0
1/20/09 2/20/09 3/20/09 4/20/09 5/20/09 6/20/09 7/20/09 8/20/09 9/20/09 10/20/09 11/20/09
Gre
en
hill (7
35
12
) Wo
bb
e an
d B
tu/scf
Gre
en
hill
(7
35
12
) V
ol%
C
O2
WOBBE EXCLUDED GAS QUALITY
CO2 EXCLUDED GAS QUALITY
WOBBE PROPOSED GAS QUALITY
CO2 PROPOSED GAS QUALITY
CO2
Btu/scf
WOBBE
Existing specs already strike the right balance between
maximizing supply and end-use interchangeability.
12/8/2009 FERC Docket No. RP10-30-000 21
Oxygen
TETLP proposes to lower O2 spec from
0.2% (2000 ppm) to 0.1% (1000 ppm)
12/8/2009 FERC Docket No. RP10-30-000 22
• Historical averages are well below both current and proposed specs
• No new supplies reported to be high in O2
• CNX already addressed corrosion issue
O2 is not a problem today, nor is there evidence it will be a
future problem.
Source: RP10-30-000 TETLP Filing Appendix A Presentations
12/8/2009 FERC Docket No. RP10-30-000 23
CNX’S Overall Conclusion
• TETLP has not demonstrated that CO2, minimum Wobbe, and O2 are problems today, nor that they will become problems in the future
• TETLP’s proposed specs will definitely exclude existing and future supplies, particularly lower Btu (lean) unconventional supply such as CBM
– Lean gas is part of the solution
• Current total inerts, lower Btu and H2O tariff specs adequately protect the system
TETLP’s EXISTING SPECS strike the right balance between system
integrity and safety, end-use interchangeability and maximizing supply.
12/8/2009 FERC Docket No. RP10-30-000 24
CNX’S Recommendation
• Maintain current quality specs for CO2 and O2 and do not
set any minimum Wobbe spec
• TETLP should perform quality studies over the next 3-5
years to see the effects of the change in supply mix,
before proposing any new specs
TETLP’s Proposed Specs Are Unnecessary!