Tallgrass Energy Partners & BNN Energy Acquire Redtail Water Business from Whiting Petroleum

Tallgrass Energy Partners, LP (NYSE: TEP) announced on December 16th, 2015 that through its subsidiary BNN Water Solutions (BSEG owns 12%) it has closed on the $75 million acquisition of Whiting Oil & Gas Corporation's Redtail Saltwater Disposal and Fresh Water Transportation and Storage System in Weld County, Colorado.  The acquisition includes a fresh water delivery and storage system and a produced water gathering and disposal system that together comprise 62 miles of pipeline along with associated fresh water ponds and disposal wells.  The purchase agreement with Whiting includes a five-year fresh water service contract and a nine-year gathering and disposal contract, each of which includes annual minimum volume commitments in line with Whiting's currently expected volumes.  Whiting also dedicated approximately 148,000 acres to the Redtail Water System.  Tallgrass expects the acquisition to be immediately accretive to unit holders.

"As a natural expansion of our water services business, this acquisition highlights our ability to help producers reduce their water costs and maximize returns in a challenged commodity environment," said Tallgrass Chief Operating Officer Bill Moler.  Moler added, "Tallgrass intends to continue growing its water services business in the Rockies, Permian, Eagle Ford, and other production areas to help companies that are seeking cost reductions in fresh water, disposal, recycling, and general water management."

To read the full article on Tallgrass Energy Partners, please click here.

Sovereign Operating Company Wins Lawsuit Against Broomfield Over Frac Ban

On September 25, 2014, District Court Judge Christopher Melonakis ruled against City and County of Broomfield's claims that Sovereign Operating Company should comply to the five-year moratorium on fracking. Sovereign Operating sued Broomfield because a strict legal agreement had been in place prior to the moratorium, which allows the company to drill within Broomfield as long as standards are met. Although not legally obligated to do so, Sovereign voluntarily agreed to the memorandum with Broomfield, which includes stringent standards that go beyond Colorado's already strict regulations for water quality, air quality, safety, etc. As a result of the court's decision, Sovereign is now able to pursue drilling efforts in the area. Chairman and COO of Sovereign, Tom Metzger, stated "We're pleased that the court said clearly that local agreements between an operator and a municipality like the one Sovereign entered into can't be violated retroactively by fracking bans." As a company, Sovereign is dedicated to working closely with local jurisdictions for oil and gas drilling, while respecting the state's regulations, needs of local communities, and the environment.

To read the full press release on the Colorado Oil and Gas Association's webpage, please click here