TPi January 2012

business & market news

Joint venture private water pipeline Aqua America Inc and Penn Virginia Resource Partners (PVR) have announced that certain of their operating subsidiaries have formed a joint venture, Aqua-PVR Water Services, LLC, to construct and operate a private pipeline system to supply fresh water to natural gas producers drilling in the Marcellus Shale in north-central Pennsylvania, USA. The 12" diameter steel pipeline will largely parallel the trunkline of PVR’s gathering system in Lycoming County and will share PVR’s existing rights of way. with other area producers for supply agreements are on-going. The joint venture commenced construction of the fresh water pipeline in the latter part of 2011, and limited water delivery was expected before year-end. The entire 18-mile long first segment of the system is anticipated to be fully completed and begin regular operation during the first quarter of 2012.

Nicholas DeBenedictis, chairman and CEO of Aqua, said, “Marcellus Shale offers a critical and challenging opportunity for the State of Pennsylvania. Critical because the energy needs of the country must be developed domestically and Pennsylvania can be that provider. Challenging because it must be done in a manner that protects and manages our most precious resource, water. This project is the first that prudently enables the development of the Marcellus while helping to protect our water sheds and manage our supplies. Pumping water through pipe, as opposed to trucking water, reduces road traffic and damage that can result in runoff that can negatively impact streams in this sensitive part of the state. Managing the supply from confirmed reliable sources reduces the potential for over withdrawal from those same streams.”

William H Shea, Jr, CEO of PVR, said, “We are very excited to join with Aqua America in building a private water pipeline to supply Marcellus producers. We are also pleased to welcome Range Resources as an anchor customer on the pipeline. We believe this project is a ‘win-win’ solution that offers tangible benefits to both the contracting producers and the local communities in which we operate. The pipeline will provide contracting producers with a more reliable fresh water source at a lower delivered cost. By reducing the number of trucks operating on area highways, area residents will benefit from reduced traffic congestion, noise and delays.”

PVR is constructing the fresh water pipeline and handling negotiation of water pipeline capacity contracts with producers. Aqua will operate the system when completed and handle water intake supply arrangements. Aqua and PVR each anticipate investing approximately $12mn for construction of the first segment of the project. The joint venture has entered into an agreement with Range Resources – Appalachia, a wholly owned subsidiary of Range Resources Corporation, to supply fresh water to three of Range’s water impoundments, and negotiations

aqua america – USA custserv@aquaamerica.com www.aquaamerica.com

Penn Virginia resource Partners, lP – USA www.pvrpartners.com

Contract extension to continue water network improvements

improve system operability and control on a daily basis.” The programme in Atlanta is focused on improving water main valve and fire hydrant operability, enabling the utility to better respond to water main breaks, achieve a high level of operational control of the water network, and pinpoint repair and replacement of water distribution assets more effectively. Working closely with the Atlanta Department of Watershed Management, services provided by the joint venture include asset location, operational condition assessment, and GPS location mapping of critical water assets.

system improvements to date, including achieving a high degree of water main valve operability that the company says has set industry standards for large urban cities. “Wachs Water Services is proud to contribute to Atlanta’s efforts to ensure a reliable and sustainable water infrastructure to serve their citizens and businesses,” said company president Cliff Wilson. “Managing an ageing water network requires a results-driven approach that achieves both immediate system improvements and long-term sustainability. Every dollar that has been invested into this programme has delivered tangible results that

Wachs Water Services, a provider of solutions for the management of ageing water infrastructure in North America, has been awarded a $9.4mn contract extension to continue supporting the City of Atlanta, Georgia in its efforts to assess, test and survey thousands of valves and fire hydrants throughout its water network. One of the largest water infrastructure projects of its kind in the USA, the company is helping to improve and rehabilitate vital water distribution system assets and control points for the city as part of a joint venture with Brindley Pieters and Associates.

Wachs Water services – USA info@wachsws.com www.wachsws.com

The on-going programme has accomplished considerable water

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