STEPHENS ENERGY CORP. - The Railroad Commission of Texas
STEPHENS ENERGY CORP. - The Railroad Commission of Texas
STEPHENS ENERGY CORP. - The Railroad Commission of Texas
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I will give you a brief summar); <strong>of</strong> my problems with Cantcra along with a<br />
csaiption <strong>of</strong> the enclosed documentation. Should you wish to have an in-depth discussion<br />
<strong>of</strong> what all Ulese p a p a, I wodd be glad to visit-<br />
Srartiag at the beginning our gs was sold to Lone Star Gas for many years. Aftcr they<br />
spun o5Enserch Processing in the early 1990's, we sold our gas to Enserch for a yearly<br />
contract price and zero gathering fee. Everything changed inNovember 1995. At that time.<br />
Ensenh would no longer <strong>of</strong>fer one-year contracts to anyone. Thcy would only pay<br />
whatever gas price they imposed each month. Additionally, they imposed a monthly<br />
gathering fce for the first time. A few rnonlhs later. I wrote to every gar producer<br />
coMected to the Enscrch gatbering system about the draslic conkact changes&<br />
This led to the RRC survey <strong>of</strong> gathering contract<br />
v n t c n t i o u RRC gas hearings in A&, d finally the<br />
toothless RRC Code <strong>of</strong> Conduct for gas gathering.<br />
Afta the Code <strong>of</strong> Conduct was published, we had our gas gathered and processed by<br />
Enserch. but we sold the gas to New Mexico Natural Gas at thc tailgate <strong>of</strong> the Enserch<br />
Gordon and Springlown processing plants. We had a set fce <strong>of</strong> 26 cents per wellhead<br />
MMBW at Gordon, and an 8000 processing deal at Springtown. Sometimes, one<br />
gathering fee was better, sometimes the other.<br />
1 have included a graph that summarizes the drastic incpcasc in effective gas gathering fees<br />
a thc.Gordon and Springtown p l ~ over b the last few years. You must understand that<br />
there an many terms in a gathering conmt that can &cct the bottom he. One with<br />
the amount <strong>of</strong> gas measured at the gathering company's gas meter at or near the gas well.<br />
This is called the wellhead gs actually delivered into the Cantera gathering system.<br />
measured in MMBTU. From tiie~wellhead MMBTU's. Canterasubmcts the fud gas<br />
used in its gas cornpresw. Which pump the gas from the low pressure gathering lines into<br />
the high pressure lines at'the processing plant. <strong>The</strong>n Cantera also subtracts Lost and
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