Tallgrass Energy Partners LP (NYSE: TEP), through its subsidiary BNN Water Solutions, has closed on the $75 million acquisition of Whiting Oil & Gas Corp.’s Redtail Saltwater Disposal and Fresh Water Transportation and Storage System in Weld County, Colorado.
The acquisition includes a freshwater delivery and storage system and a produced water gathering and disposal system that together comprise 62 miles of pipeline, along with associated freshwater ponds and disposal wells.
The purchase agreement with Whiting includes a five-year freshwater 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 unitholders.