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February 14, 2013

SCOOP provides product for natural gas companies

CHICKASHA — Energy is limited to crude oil. This is a common impression many people have when it comes to the energy industry, but it is amazingly incorrect.

Natural gas in its liquid form and as a gas are currently being extracted from the South Central Oklahoma Oil Province by companies like gas processor and gatherer DCP Midstream.

Senior Vice President Greg Smith said over the last decade use of his company's pipes has gone up substantially in Grady County.

"We have put a lot of new pipes in the ground out there in the last year," he said.

DCP uses natural gas extracted from drilling sites like those currently excavating the SCOOP and separates the liquid from the gas form. The liquid is then shipped via DCP's pipeline system to areas across the country and sold to third party vendors who then distribute it to the public via commercial commerce. This is how electric grill users in the United States get propane.

Once the natural gas is removed from a well, DCP treats it to remove nitrogen and other elements that interfere with the effectiveness of the crude and gas.

"We have to remove the chemicals from the natural gas in order for it to be viable," Smith said.

Currently there are four plants in south western Oklahoma that DCP owns and operates, and although none of these are in Grady County, Smith said that option is still available.

Companies like DCP piggy back off of large energy companies that use their pipelines to extract crude. This allows them to make money in the drilling process while also moving crude oil and natural gas.

The gas is the taken to processing plants like those located in southern Oklahoma. From there the gas is prepared for sale.

Companies like DCP are already looking for private and government land leases in Grady County.

Smith said he is excited to see what the future holds for DCP and the SCOOP.

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