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eventually deliver the gas to a gas processing plant or to a
transmission line.
Gas containing substantial amounts of natural gas liquids
(NGLs), such as ethane, propane, butane, and natural gasoline
(termed “wet gas”), must be fractionated to remove NGLs before
the gas can be transmitted to consumers. Fractionation occurs at
gas processing plants, where the resulting components are residue
gas (primarily methane) and extracted NGLs. The NGLs are
delivered by truck, rail, or pipeline to another specialized
processing plant for further fractionation and marketing. The
residue gas is delivered to a transmission line.
The person extracting the gas from the earth may own the
gathering system, or it may be owned by an independent pipeline
company (i.e., a company not in the business of extracting gas
from the earth).
Clajon’s Gathering Systems
During the audit years, Clajon’s activities included
purchasing, transporting, processing, and selling natural gas and
NGLs. Clajon owned six natural gas gathering systems, all
located in Texas (the Texas gathering systems), and two natural
gas processing plants, one in College Station, Texas (which was
closed in early 1990), and one in La Grange, Texas. The Texas
gathering systems were known as the Southeast Texas Pipeline
System, which gathered wet gas for delivery to the processing
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Last modified: May 25, 2011