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."
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