Eagle Rock, Monarch Sign Gathering, Processing Deal In Texas Panhandle

June 2013, Vol. 240, No. 6

Eagle Rock Energy Partners LP has a new fee-based gas gathering, processing and purchase agreement with Monarch Natural Gas LLC.

Monarch has dedicated to the partnership, for further gathering and processing, all of its gathered gas volume from wells within an area encompassing more than 150,000 gross acres, located in Hemphill, Lipscomb and Ochiltree counties, under market-based terms. The underlying acreage covers the Granite Wash, Tonkawa, Marmaton and Cleveland plays in the Anadarko Basin of the Texas Panhandle.

In the dedicated area of the Panhandle, Monarch will construct all gathering lines to existing and future wells from a major third-party operator, gather the gas from all the wells and deliver the associated volumes to Eagle Rock at central delivery points for further gathering and processing.

The arrangement complements the capabilities of Eagle Rock’s gathering and processing footprint in the Panhandle. The associated Monarch deliveries will be gathered and processed at one or more of the partnership’s cryogenic processing plants in the Panhandle.

Eagle Rock’s Panhandle assets consist of 6,500 miles of gathering pipeline and more than 480 MMcf/d of high-efficiency processing capacity, with an additional 60 MMcf/d of processing capacity expected to come online shortly following completion of Eagle Rock’s Wheeler Plant.