Denver-based TransMontaigne Inc. agreed to sell gas gatheringsubsidiary Bear Paw Energy Inc. to a group formed by Bear Pawmanagement along with two other partners for $107.5 million in cashand reimbursement of costs for a Powder River gathering system.

The group, BPE Acquisition LLC, was formed by Bear Pawmanagement, Thomas J. Edelman and Chase Capital Partners.TransMontaigne will be reimbursed for all capital expenditures itmade on Bear Paw’s newly constructed Powder River coal seamgathering system from July 1 to Dec. 31. The deal, effective Dec.31, is expected to close mid-January, subject to regulatoryapprovals. Net proceeds to TransMontaigne are expected to be $130million and will mainly cut debt. The gain will mitigate hedginglosses in TransMontaigne’s core business of petroleum productslogistical services.

TransMontaigne subsidiaries provide logistical petroleumservices including terminaling and storage services anddistribution and marketing of refined petroleum products.Subsidiaries also are engaged in gathering, treating, processing,fractionating and marketing natural gas liquids and natural gas.The company mainly operates in the Midcontinent, Gulf Coast,Southeast, Mid-Atlantic, Northeast and Rocky Mountain regions. Gasservices assets mainly consist of five gathering and processingsystems in four states with combined throughput of about 106MMcf/d.

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