Crestwood Equity Partners LP (NYSE: CEQP) said April 6 it entered into a 10-year commercial agreement with BlueStone Natural Resources II LLC in the Barnett Shale.
Under the terms of the agreement, Houston's Crestwood will gather and process natural gas across its Alliance, Lake Arlington and Cowtown systems in the Barnett. The services are for a period of 10 years under a fixed-fee and percent of proceeds fee structure.
As part of the agreement, BlueStone has provided production assurance to Crestwood whereby across all systems it will return currently shut-in wells to production by July 1. The Tulsa, Okla.-based company will also not shut-in or choke back production for economic purposes through the end of 2018.
On April 6, BlueStone closed the acquisition of Quicksilver Resources Inc. for about $245 million in cash.
Quicksilver, in bankruptcy since March 2015, parted with nearly all of its assets pending a ruling in January in bankruptcy court to sell to BlueStone.
In connection with the closing, Quicksilver withdrew its motion to reject Crestwood’s legacy gathering agreements relating to its Barnett Shale assets.
RELATED: Quicksilver’s US Run Ends In Liquidation After A Half Century
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