The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-13
BY VINCENT LYONS,
Times Financial Editor


You have drilled a well and got
gas So what
You have invested anywhere from
SIS 600 to $4,000 and all you have
to show for 1t is a series Of gadgets
which potentially might be the
means Of getting back your money.
An unfaillng sense Of economies
tells YOU that you can't construct
pipe line 10 a town a hundred or so
miles away and sell gas there. BY
the same token the livestock farm
or might build a railroad to haul
his product to market.
And it is here that the pipe line
company enters the scene. At pres
ent there are nine of them trans
porting natural gas out Of the Tex
as Panhandle From the richest gas
land in the world these pipe lines
carry their load as much as 1000
miles away. Gas moves to Chicago.
Denver. Kansas City and other
cities, fguratively thumbing its nose
as it flows past the city gates of
Indianapolis.
Cents Per Thousand Feet
The business of the pipe line
company originates from the time
a we'll is drilled and it begins to take
the gas which that we'll yields. In
virtually all instances the pipe line
companies are affiliated with separ-
ate production units The latter
produce the gas and sell it to the
former who, in turn, transmit 1t to
market.
Right at this point We come IN
conflict with a tantalizing question.
What is the price which the pipe
line company pays to the prOduc-
ton company for the gas it recov-
ers? The writer took up this veXa~
tious problem with quite a few gas
men in the Texas Panhandle, and
the consensus was that the average
price paid 10 the producing COM
pany is a little above cents a 1000
cubic feet
Under the terms of the lease be-
tween the land owner and the COM
pany which drills a well. the for
mer is entitled to 4 of the revenue
as a royalty Thus the producing
company. under this arrangement
would receive 81 cents and the land
owner would receive = cent for each
1000 cubic feet of gas extracted.
Keep Tab on Pipe Lines
AS a matter Of fact, however,
where the land is particularly de-
sirable as much as and 7 cents is
paid for gas. The land owner can
make sure that there is no "chisei-
ing" going on through charts, at
tached to the we'll, which autOmat-
ically indicate the amount Of gas
which has been taken every "a hours
by the pipe line.
The main line Of the pipe line
company is the focal point of the
business of transmission. From this
point lateral lines stretch out over
a wide area gathering in as much
gas as is needed to supply customers
hundreds of miles away. Garnered,
it speeds away at the rate of about
IS miles an hour to its destination,
which might be any place.
About every eight miles along the
main line are located gate valves
These instruments are utilized to
shut of the flow Of fias in the event
that some accident or necessity de-
mands it. BY spacing these valves
every eight miles interruption of
service to consumers is considerably
limited as the flow of gas would con-
tinue 10 move up TO the point where
the gate valve has been closed.
Regulators Are Provided
In addition the pipe lines have at
strategic points. and particularly at
the junction of town feeder lines.
regulators which regulate and con-
troll the pressure Of gas passing
through the gas lines.
Comprising stations are one Of
the intriguing parts of the trans
mission Of gas. To understand their
Importance it is well TO consider one
pipe line-the Panhandle Eastern
Pipe Line Co. This line tarverSeS
$50 miles from the Panhandle to its
junction al the Illinois Indiana
border. In order to reach that dis
lance gas. while it has an inherent
flowing power Of its own, needs a
lift every so often when travelling
such long distances.
This boosting is provided by COM
pressing stations The Panhandle
Eastern Pipe Line Co. has four Of
these stations along its line. At each
Of these stations all the gas IS
gathered in. treated and given a
boost so that il will flow steadily TO
consumers.
Trouble Shooters Alert
In the process. however. the tenn
perature of the gas IS raised a few
notcheS. In order TO send it on its
way in the same temperature as
when It was drawn into the COM
pressing station the gas is carried TO
a cooling system where the heat is
reduced
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