RADNOR, Pa., Feb. 16, 2011 /PRNewswire/ -- Penn Virginia Resource Partners, L.P. ("PVR") (NYSE: PVR) today announced that its midstream division began commercial operation of the first section of its natural gas gathering system in Lycoming County, Pennsylvania.  PVR's Lycoming system, the first large-diameter gathering pipeline operational in the north-central Pennsylvania Marcellus fairway, provides more than 850 million cubic feet per day (MMcf/day) of capacity on its 30-inch trunk line and connects natural gas producers' operating wells to the Transcontinental Gas Pipe Line Company, LLC ("Transco") interstate pipeline system.  This new system is PVR's second gathering system in the Marcellus region; PVR began operation of a 12-inch gathering system in Wyoming County last year.

As previously announced, Range Resources Corporation ("Range") (NYSE: RRC), through a subsidiary, has contracted for significant firm capacity on the Lycoming system, and PVR will be compensated for the compression and gathering services provided to Range through a combination of volumetric fees and fixed charges with no direct commodity exposure.  The agreement with Range establishes an area of mutual interest (AMI) in north-central Pennsylvania, and PVR is currently constructing additional pipeline and related facilities to extend and expand the service area of this new system.  PVR is also currently in negotiations with other area producers, and expects to receive commitments for additional available system capacity and related services. PVR plans to extend the system into southern Tioga County which will provide producers in that area with better access to premium northeast markets through the Transco pipeline.

William H. Shea, Jr., Chief Executive Officer of PVR's general partner, said, "We are excited by the continuing opportunities to participate in unlocking the great economic potential contained in the natural gas reserves of the Marcellus Shale.  We look forward to continuing to work closely with Range and other area producers to meet their gathering and compression needs, and to provide the critical transportation links to interstate carriers and end-use markets.  As the first operational large-diameter gathering pipeline in the region, we offer a distinct competitive advantage to current and potential shippers, and we expect that our well-positioned assets and responsive customer service will enable us to continue as the leading midstream provider in our service area," said Mr. Shea.  "With construction work on-going to extend both this new Lycoming system, as well as our existing gathering system operating in the Wyoming County area, we expect to significantly expand the scope and activity of our Marcellus area businesses."

Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which owns and manages coal and natural resource properties and related assets, and owns and operates midstream natural gas gathering and processing businesses.  We own approximately 900 million tons of proven coal reserves in Northern and Central Appalachia, and the Illinois and San Juan Basins; our midstream natural gas assets are located principally in Texas, Oklahoma and Pennsylvania and include more than 4,200 miles of natural gas gathering pipelines and 6 processing systems with approximately 400 million cubic feet per day of capacity. For more information about PVR, visit our website at www.pvresource.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of federal securities laws.  Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements.  These risks, uncertainties and contingencies include, but are not limited to, the following: the volatility of commodity prices for natural gas, NGLs and coal; our ability to access external sources of capital; any impairment writedowns of our assets; the relationship between natural gas, NGL and coal prices; the projected demand for and supply of natural gas, NGLs and coal; competition among producers in the coal industry generally and among natural gas midstream companies; the extent to which the amount and quality of actual production of our coal differs from estimated recoverable coal reserves; our ability to generate sufficient cash from our businesses to maintain and pay the quarterly distribution to our general partner and our unitholders; the experience and financial condition of our coal lessees and natural gas midstream customers, including our lessees' ability to satisfy their royalty, environmental, reclamation and other obligations to us and others; operating risks, including unanticipated geological problems, incidental to our coal and natural resource management or natural gas midstream businesses; our ability to acquire new coal reserves or natural gas midstream assets and new sources of natural gas supply and connections to fourth-party pipelines on satisfactory terms; our ability to retain existing or acquire new natural gas midstream customers and coal lessees; the ability of our lessees to produce sufficient quantities of coal on an economic basis from our reserves and obtain favorable contracts for such production; the occurrence of unusual weather or operating conditions including force majeure events; delays in anticipated start-up dates of our lessees' mining operations and related coal infrastructure projects and new processing plants in our natural gas midstream business; environmental risks affecting the mining of coal reserves or the production, gathering and processing of natural gas; the timing of receipt of necessary governmental permits by us or our lessees; hedging results; accidents; changes in governmental regulation or enforcement practices, especially with respect to environmental, health and safety matters, including with respect to emissions levels applicable to coal-burning power generators; uncertainties relating to the outcome of current and future litigation regarding mine permitting; risks and uncertainties relating to general domestic and international economic (including inflation, interest rates and financial and credit markets) and political conditions (including the impact of potential terrorist attacks); our ability to complete our previously announced merger; and other risks set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and our most recent Quarterly Reports on Form 10-Q.

Additional information concerning these and other factors can be found in our press releases and public periodic filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2009 and our most recent Quarterly Reports on Form 10-Q.  Many of the factors that will determine our future results are beyond the ability of management to control or predict.  Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Penn Virginia Resource Partners, L.P.