ARLP owns or leases the mineral rights in some good Marcellus Shale areas of Appalachia.
Putting some of those acres to good use would serve the company well.
There are lots of operators who would be willing to go as high as 35% of the operated gross of the wells.
There all kinds of new pipelines to hook up to in the Appalachian region of the Marcellus Shale.
With ARLP's inventory of acres they could be an instant power house in the Marcellus, with the right oil company. Mark West would be a great partner for ARLP.
They key would be to find a partner that would actually drill the acreage.
The 50 million would be to just start an O&G subsidiary, not to actually drill wells.
In order to get a big royalty ,over 25%,ARLP would have to put up some money for drilling wells with a partner.