The three companies have also signed definitive agreements to build the previously announced plans to build 210-mile crude oil pipeline.
Construction of the pipeline is expected to begin in 2012 and will be commissioned in 2013.
SemGroup will construct the new pipeline, which will have an initial capacity of approximately 140,000 barrels per day and 440,000 barrels of intermediate storage.
The pipeline will consist of two laterals and will terminate at Gavilon’s Cushing facility, where the joint venture will own one million barrels of crude oil storage.
SemGroup’s master limited partnership Rose Rock Midstream will serve as the pipeline operator, on completion of construction.
Chesapeake Energy has entered into a long-term transportation agreement with Glass Mountain Pipeline.
The pipeline is expected to meet the midstream needs originating from the drilling activity in western Oklahoma and the Mississippi Lime play.
