Houston-based Texas Eastern Products Pipeline Co. LLC, general partner of TEPPCO Partners LP, said last week it closed on the purchase of the 1 Bcf/d Val Verde Gathering System from Burlington Resources’ gathering affiliate for $444 million.

TEPPCO estimated that the first full-year earnings before interest, taxes, depreciation and amortization (EBITDA) from the deal, which was first announced in May, will be approximately $55 million to $60 million.

Located in San Juan and Rio Arriba counties, NM, the Val Verde Gathering System gathers coal-seam gas from the Fruitland Coal Formation of the San Juan Basin, a major source of both coalbed methane and conventional gas reserves. The system is considered one of the largest coal-seam gas gathering and treating facilities in the nation, with 360 miles of pipeline ranging from 4 to 36 inches in diameter, 14 stations operating more than 93,000 horsepower of compression and a large amine treating facility for removing carbon dioxide.

The Val Verde network gathers gas from more than 544 separate wells throughout New Mexico and southern Colorado, and provides services under 60 long-term contracts to approximately 40 producers in the San Juan Basin.

The assets will be operated and commercially managed by Duke Energy Field Services LLC under agreements with TEPPCO.

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