PVR has two major businesses:
Our coal and natural resource management segment primarily involves the management and leasing of coal properties and the subsequent collection of royalties. Our proven and probable coal reserves at year-end 2010 were approximately 804 million tons. Our coal reserves are located on approximately 497,000 acres in various surface and underground mine seams located in the Central Appalachia, Northern Appalachia Illinois and San Juan Basins.
We also earn revenues from other land management activities, such as selling standing timber, leasing fee-based coal-related infrastructure facilities to certain lessees and end-user industrial plants, collecting oil and gas royalties and from coal transportation, or wheelage, fees. We own approximately 243,000 acres of forestland, the majority of which is located on properties that also contain our coal reserves. We own royalty interests in approximately 6.3 Bcfe of proved oil and gas reserves located in Kentucky, Virginia and West Virginia.
Our natural gas midstream segment is engaged in providing natural gas processing, gathering and other related services. As of December 31, 2010, we owned and operated natural gas midstream assets located in Oklahoma, Texas and Pennsylvania including six natural gas processing facilities having 400 MMcfd of total capacity and approximately 4,263 miles of natural gas gathering pipelines:
Our natural gas midstream business earns revenues primarily from gas processing contracts with natural gas producers and from fees charged for gathering natural gas volumes and providing other related services. In addition, we own a 25% member interest in Thunder Creek Gas Services, LLC, or Thunder Creek, a joint venture that gathers and transports coalbed methane in Wyoming’s Powder River Basin. We also own a natural gas marketing business, which aggregates third-party volumes and sells those volumes into intrastate pipeline systems and at market hubs accessed by various interstate pipelines.