Crestwood Equity Partners LP (NYSE: CEQP) has entered into new, long-term commercial agreements with BlueStone Natural Resources II LLC to gather and process natural gas across its Alliance, Lake Arlington, and Cowtown systems in the Barnett shale play.
Under terms of the agreement, Crestwood will provide services to BlueStone for a period of 10 years under a fixed-fee and percent of proceeds fee structure. As part of the agreement, BlueStone has provided production assurance to Crestwood whereby, across all systems, BlueStone will return currently shut-in wells to production by July 1 and will not shut-in or choke back production for economic purposes through the end of 2018.
On April 6, BlueStone closed the acquisition of Quicksilver Resources Inc.’s Barnett shale assets. In connection with the closing, Quicksilver withdrew its motion to reject Crestwood’s legacy gathering agreements relating to its Barnett shale assets.
BlueStone, formed in 2012, specializes in the development of oil and gas properties in the South Texas and Barnett shale plays and is sponsored by Natural Gas Partners. BlueStone is headquartered in Tulsa, Oklahoma.