Gas producers face uphill battle in Tennessee intrastate sales

Difficulties with gas marketing and frustration over low crude oil prices have accompanied Tengasco's drilling success in Swan Creek field in the mountains of northeastern Tennessee. The company completed a 28 mile gas pipeline from the field over mountainous terrain in Hancock and Hawkins counties in 1998, and production and sales of oil and gas began in August and September 1998. Swan Creek field lies in a remote, economically depressed area of Appalachia, northeast of Knoxville, Tenn. Some of the larger towns in the area have gas utilities that purchase gas from interstate pipelines. Initial deliveries were to Hawkins County Utility District in August 1998. Tengasc...

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