Tall Oak to build gathering system in Payne County area

Tall Oak Midstream LLC plans to build 250 of natural gas gathering pipeline and a cryogenic processing plant to serve American Energy-Woodford and other producers in north central Oklahoma.
by Jay F. Marks Modified: June 25, 2014 at 5:59 am •  Published: June 25, 2014
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Fledgling pipeline company Tall Oak Midstream LLC has scored a coup with a long-term acreage dedication from Aubrey McClendon’s new company focused on Oklahoma’s Woodford Shale.

Tall Oak, which is about five months old, will build a natural gas gathering and processing system in north central Oklahoma to serve multiple producers in the liquids-rich play, which features stacked pay zones.

The system will be anchored by American Energy-Woodford LLC, an affiliate of former Chesapeake Energy Corp. CEO McClendon’s American Energy Partners LLC.

“We’re excited to have a project so close to home,” Tall Oak CEO Ryan Lewellyn said.

Lewellyn said the new Edmond company’s existing relationships helped it secure American Energy-Woodford’s business after a request for proposals went out to about a dozen midstream firms. Carlos Evans, Tall Oak’s chief commercial officer, had been manager of gas sales at Chesapeake.

American Energy-Woodford’s dedication spans an area of about 1 million acres that includes all previously undedicated acreage in Payne County and parts of five surrounding counties.

The Oklahoma City-based company contributed its existing gathering lines to Tall Oak in exchange for a minority stake in the midstream firm’s new system, dubbed the Central Northern Oklahoma Woodford system. It has an option to increase its non-operating interest in the system to as much as 50 percent.

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by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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