Eagle Rock to gather, process Apache's Texas Panhandle gas

Eagle Rock Energy Partners LP entered into a new fee-based gas gathering, processing, and purchase agreement with Apache Corp. to support the Houston independent’s active drilling program in the Texas Panhandle portion of the Anadarko basin. Apache has dedicated all existing and future wells drilled within a more than 106,000-gross acre area in Hemphill, Lipscomb, Ochiltree, Roberts, Hansford, and Sherman counties, Tex., to Eagle Rock under market-based terms. The dedicated acreage covers the Granite Wash, Hogshooter, Tonkawa, Marmaton, and Cleveland plays in the Anadarko basin.

Eagle Rock will gather Apache production and process it at one or more of its cryogenic processing plants in the Texas Panhandle. Eagle Rock’s Texas Panhandle assets include roughly 6,500 miles of gathering pipeline and more than 480 MMcfd of high-efficiency processing capacity, with an additional 60 MMcfd expected online in this year’s second quarter following the completion of its previously announced Wheeler plant.

The agreement supersedes and expands on various existing agreements between Eagle Rock and Apache, providing fee-based compensation to Eagle Rock and applying to all existing and future wells completed by Apache on any of the acreage in the dedicated area.

Eagle Rock last year bought BP America Production Co.’s processing plants and associated gathering serving the Texas Panhandle (OGJ Online, Aug. 13, 2012). The two companies entered into a 20-year agreement under which Eagle Rock will gather and process BP’s production from existing connected wells.

Contact Christopher E. Smith at chriss@ogjonline.com.

Related Articles

ETP unit gets FERC approval for gas exports to Mexico

03/21/2014 Energy Transfer Partners LP unit Houston Pipe Line Co. LP (HLPC) has received approval from the US Federal Energy Regulatory Commission to build a ...

Millennium Pipeline appoints president

03/20/2014 Millennium Pipeline Co. LLC has selected Joseph Shields as its president. He succeeds Rocco D’Alessandro, who held the position beginning in May 20...

Shah Deniz II, South Caucasus Pipeline contracts awarded

03/20/2014 The Shah Deniz and South Caucasus Pipeline consortia awarded project management and construction contracts for the development of Shah Deniz Stage ...

MARKET WATCH: NYMEX crude prices rise on Seaway pipeline expansion news

03/19/2014 Crude oil futures prices rose on the New York market Mar. 18 after Enterprise Products Partners LP told analysts and investors that an expanded Sea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected