Under the agreement, Monarch Natural has dedicated all of its natural gas gathered from wells in over 150,000 gross acres of land, situated in Hemphill, Lipscomb and Ochiltree counties in Texas to the US-based midstream company.
The underlying acreage covers the Granite Wash, Tonkawa, Marmaton and Cleveland plays in the Anadarko Basin of the Texas Panhandle.
The agreement will provide Eagle Rock, fee-based compensation and fixed recoveries on natural gas liquids for Monarch Natural and applies to all volume delivered by Monarch to Eagle Rock for further gathering and processing.
Eagle Rock will gather and process all the deliveries from Monarch Naturals at one or more of its cryogenic processing plants in the Texas Panhandle.
Eagle Rock’s Texas Panhandle assets consist of about 6,500 miles of gathering pipeline and over 480 million cubic feet per day (MMcf/d) of processing capacity.
An additional 60MMcf/d of processing capacity expected to come on-line in the second quarter of 2013, following the completion of its Wheeler gas processing plant.
