Rockies Express Pipeline LLC (REX) and Tallgrass Energy Partners, LP, REX’s operator, announced today that REX has received the cash payment of $150 million from Ultra Resources, Inc. in connection with the settlement of REX’s $303 million breach of contract claim, and that the payment has been distributed to its partners. As previously disclosed, Ultra has agreed to enter into a new seven-year firm transportation agreement with REX commencing Dec. 1, 2019, for service from west-to-east of 200,000 dekatherms per day at a rate of approximately $0.37, or about $26.8 million annually.
In other news, the company has named Crystal Heter, who currently serves as the Vice President and General Manager of REX, President of REX. Heter is taking over for Matt Sheehy as he fully transitions into his role as Senior Vice President and Chief Commercial Officer for Tallgrass Energy. Heter, a chemical engineer, started her career as an engineering intern with predecessor companies and moved up through both the technical and commercial sides of the business. She is an accomplished leader at Tallgrass Energy and possesses a deep knowledge of REX, its customers and the markets it serves. has been instrumental in the execution of Tallgrass’s strategy to transform REX into the nation’s northernmost natural gas header system.