National Gas & Oil Cooperative provides natural gas service to more than 31,000 residential, commercial and industrial consumers within a 6 county service area. This service is provided through a network of over 1,000 miles of distribution pipeline. We are committed to providing our members safe and reliable natural gas service. Our commitment to service led our personnel to complete over 15,000 service orders to aid our members. We continued efforts to reduce the cost of gas in 2010. The staff will continue to explore ways to reduce costs and find alternatives for gas supply. Last year we reached an agreement with Texas Eastern Transmission to provide us with gas supply from the new Rockies Express pipeline. The ability to get this supply to our system provides yet another way for us to competitively bid gas purchases. We installed nearly 10 miles of distribution mains and connected an additional 368 members in 2010. Our members consumed over 25 million ccf of gas which was a slight increase over the previous year. This increase in consumption was mostly the result of severe cold weather experienced in the 2010/2011 heating season. The overall trend is for cooperative members to use less gas as a result of conservation efforts.
NGO Development Corporation owns interest in over 600 oil and gas wells in central Ohio. Many of these wells provide natural gas supply to the cooperative’s pipeline system. Oil and gas reserves total over 235,000 barrels and 5,000,000 Mcf respectively. Monthly production averages over 2,000 barrels of oil and 50,000 Mcf of natural gas. Overall safety awareness and concern for the environment continues to be a focus of oil and gas and production operations. For the seventh year in a row, there were no reportable spills or other contamination from our operations. We participated in the drilling of 8 new wells last year to help maintain the flow of local gas supply to the cooperative’s pipeline system. Currently we have over 100,000 acres of land under lease for future oil and gas development. Substantially all of this acreage is located within reach of the pipeline system to assure the availability of local crude oil and natural gas supply. Some of this acreage may be desirable for development of oil and gas reserves in the Ordovician Shale.
NGO Transmission provides gas transmission services to both affiliates and non-affiliates through a network of 171 miles of transmission pipelines and 3 underground gas storage fields. Last year our employees experienced no lost-time accidents and achieved an incident rate well below the national average. We also completed several projects related to integrity management of the facilities that will help keep our transmission system safe and reliable in the future. The primary goal of transmission is to provide firm gas delivery service to retail consumers of National Gas & Oil Cooperative. A secondary function is to facilitate the sale of gas to large-volume consumers through the marketing efforts of Producers Gas Sales and NGO Development. Transportation opportunities are also available for any qualifying gas shippers within Ohio.
Producers Gas Sales operates as an affiliated on-system marketing company for large commercial and industrial consumers. Producers Gas Sales arranges for acquisition and transportation of natural gas through the pipeline system to our large consumers. The volume of gas transported to large commercial and industrial consumers represents over half of the total gas sold or transported on the transmission and distribution systems.
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