Spectra Energy Partners LP’s plan to acquire Ozark Gas Transmission LP and various assets from Atlas Pipeline Partners LP (APL) for $300 million cash, as well as Williams’ proposal to form a midstream joint venture (JV) with APL, have cleared federal antitrust authorities.

Both transactions were granted early termination of approval process under the Hart-Scott-Rodino Act following reviews by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) Antitrust Division. The antitrust approvals clear the way for the separate Spectra Energy and Williams deals with APL to proceed.

The Spectra-APL transaction, which was announced earlier this month, gives the Spectra Energy Corp. partnership all of the ownership interests in NOARK Pipeline System LLP (see Daily GPI, April 9). The primary asset is Ozark Gas Transmission LP, a 565-mile regulated interstate natural gas pipeline system that extends from southeast Oklahoma through Arkansas into southeast Missouri.

The Ozark system interconnects with several other interstate pipelines, including Spectra’s Texas Eastern Transmission, linking gas supplies in the Fayetteville Shale and Arkoma Basin areas to Midwest and Northeast markets. Ozark Gas Gathering LLC, a 365-mile, fee-based gathering system located in eastern Oklahoma and western Arkansas, also is part of the agreement.

In related action, the FTC and DOJ approved Williams’ plan to move into the Marcellus Shale play through a newly formed JV with APL. Under the JV, Williams will contribute funds to help Atlas trim its debt in exchange for a 51% interest in the pipeline’s existing Appalachian Basin gathering system, which includes 1,800 miles of intrastate gathering lines serving 6,900 wells (see Daily GPI, April 2).

Average throughput for the Atlas Marcellus system is more than 100 MMcf/d. Atlas Energy Resources LLC, an Atlas Pipeline affiliate, has increased the gathering system’s throughput by 30% in the past year.

Williams plans to contribute around $102 million and issue a $25.5 million note payable to newly formed JV Laurel Mountain Midstream LLC in exchange for a 51% ownership interest. In addition to its ownership stake, Williams would operate the gathering system.

“Our net proceeds here will aid us in reducing debt and improving the capital structure of our business, and the joint venture will also aid us by providing us the financial leverage needed to fund expansion capital for anticipated growth in production from the Marcellus Shale,” said Atlas Pipeline CEO Gene Dubay.

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