Atlas Pipeline Completes JV With Williams For Marcellus Shale Gathering System

August 2009 Vol. 236 No. 8

Atlas Pipeline Partners and Williams have formed Laurel Mountain Midstream LLC to expand and develop Atlas’ presence in the southwestern Pennsylvania portion of the Marcellus Shale.

APL’s affiliate, Atlas Energy Resources LLC will be the anchor tenant on the system.

Atlas Pipeline will receive approximately $90 million in cash, a preferred equity right to proceeds under a $25.5 million obligation from Williams, and a 49% equity interest in Laurel Mountain. The obligation amortizes in equal principal installments over a three-year period and the right to receive accrued principal and interest can be converted at APL’s option into an equivalent sum to pay capital expenditures Atlas Pipeline would otherwise be required to fund under the joint venture agreement.