NGL Energy Partners LP said Aug. 6 that it has signed a new long-term produced water transportation and disposal agreement with a leading independent producer operating in Eddy and Lea Counties within the Delaware Basin.
This agreement includes a 10 year acreage dedication totaling approximately 10,000 acres and an additional area of mutual interest (AMI) for future growth. The producer currently has a 53,000 acre position within the AMI which includes all of Eddy and Lea counties in New Mexico. As it has with other recent dedications, the partnership plans to use its existing infrastructure and significant disposal capacity to service this new contract.
“We are pleased to announce this agreement that allows us to continue to grow with this customer as it develops its resource and increase our dedicated acreage portfolio in the Northern Delaware Basin,” Doug White, executive vice president of water solutions, said.
NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Northern Delaware Basin. The partnership’s water solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas, the Midland Basin in Texas, the D-J Basin in Colorado and the Eagle Ford Basin in Texas.
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