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Dominion to deliver WV natural gas to Ohio

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RICHMOND, Va. (AP) -

Energy company Dominion has announced agreements to deliver 500 million cubic feet of West Virginia-produced natural gas daily to Ohio and to lease more than 100,000 acres of Marcellus shale rights.

Dominion said Tuesday it will receive payments over nine years of approximately $200 million under the leasing agreements and royalties for the natural gas produced.

The delivery of West Virginia-produced natural gas to Ohio reflects a move to seek new markets westward for natural gas drilled from the vast Marcellus shale formation, which extends from upstate New York to the Virginias.

Dominion partner CONSOL Energy said the deal reinforces its "commitment to being a leading natural gas producer in the Appalachian Basin."

Virginia-based Dominion is one of the nation's largest producers and transporters of energy.

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