Black Hills Purchases Gas Pipeline In Northeast Wyoming

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To acquire gas utility assets in NE WY including 400 miles of natural gas pipeline.

Black Hills Corp. (NYSE: BKH) entered into an agreement Jan. 9 to acquire gas utility assets in northeastern Wyoming from MGTC Inc., an indirect wholly owned subsidiary of Anadarko Petroleum Corp. (NYSE: APC), including 400 miles of natural gas pipeline for $6 million.

MGTC, a certificated Wyoming public gas utility, provides natural gas transmission and distribution services through 271 miles of transmission pipeline and 135 miles of distribution pipeline.

The MGTC system being acquired by Black Hills, based in Rapid City, S.D., currently serves about 400 customers, principally in northeastern Wyoming, and its annual throughput exceeds 2.8 billion cubic feet (Bcf). The agreement includes the acquisition of MGTC's gas transmission and distribution utility assets throughout parts of Johnson, Campbell, Converse, Crook and Weston counties.

Black Hills intends to operate the assets as a separate division of Cheyenne Light, Fuel & Power, the corporation's electric and natural gas utility in Cheyenne, Wyo., under the name Black Hills Energy.

The transaction requires approval by the Wyoming Public Service Commission and is expected to close by year end 2014.