Copano

Eagle Ford Gathering LLC, a joint venture (JV) of Kinder Morgan Energy Partners LP and Copano Energy LLC, has made a long-term agreement with Williams Partners LP to process Eagle Ford Shale production at Williams Partners’ Markham processing plant in Matagorda County, TX. The JV will construct a seven-mile, 20-inch diameter lateral to connect its previously announced crossover pipeline project to the Markham plant and install 3,400 hp of compression at a cost of about $27 million. The agreement will initially provide Eagle Ford Gathering with 100 MMcf/d of processing capacity at the Markham plant, with an option to increase capacity to up to 200 MMcf/d. “The new agreement augments the previously announced agreement with Formosa Hydrocarbons Co., [see Shale Daily, Feb. 7] resulting in up to 375 MMcf/d of total processing capacity through the crossover project,” said Duane Kokinda, president of Kinder Morgan’s intrastate pipeline group.

ReoStar Energy Corp. has completed the sale of its 30% interest in the Tri-County Gas Gathering System to Cimmarron Gathering LP, an indirect subsidiary of Copano Energy LLC, for about $15 million cash. “This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area,” said ReoStar CEO Mark Zouvas. “The original purpose of building and owning the pipeline was to ensure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating Inc., negotiated a new gas gathering contract that mitigates our original concerns.” Fort Worth-based ReoStar has more than 20,000 acres of leasehold in Texas (Barnett and Corsicana) and Arkansas (Fayetteville), and drilling rig interests.

ReoStar Energy Corp. has completed the sale of its 30% interest in the Tri-County Gas Gathering System to Cimmarron Gathering LP, an indirect subsidiary of Copano Energy LLC, for about $15 million cash. “This sale allows ReoStar to focus on its core area of exploration in the Barnett Shale and provides us with the capital to acquire additional leasehold in the same area,” said ReoStar CEO Mark Zouvas. “The original purpose of building and owning the pipeline was to ensure access and prompt delivery of produced gas. However, in conjunction with the sale, ReoStar, through its affiliate, Rife Energy Operating Inc., negotiated a new gas gathering contract that mitigates our original concerns.” Fort Worth-based ReoStar has more than 20,000 acres of leasehold in Texas (Barnett and Corsicana) and Arkansas (Fayetteville), and drilling rig interests.