Eagle Rock Energy Partners, L.P. has entered into a new fee-based Gas Gathering, Processing and Purchase Agreement (the "Agreement") with Monarch Natural Gas, LLC (Monarch), who has offices in Austin, Dallas, and Denver.

As part of the Agreement, Monarch has dedicated to the Partnership, for further gathering and processing, all of its gathered natural gas volume from wells within an area encompassing more than 150,000 gross acres, located in Hemphill, Lipscomb and Ochiltree counties, Texas, under market-based terms. The underlying acreage covers the Granite Wash, Tonkawa, Marmaton and Cleveland plays in the Anadarko Basin of the Texas Panhandle.

In the dedicated area in the Texas Panhandle, Monarch has a dedication of, and will construct all gathering lines to, existing and future wells from a major third party operator, gather the natural gas from all of these wells, and deliver the associated volumes to Eagle Rock at central delivery points for further gathering and processing by Eagle Rock. The Agreement provides for fee-based compensation to the Partnership and fixed recoveries on natural gas liquids for Monarch, and applies to all volume delivered by Monarch to Eagle Rock for further gathering and processing.

Tags: Eagle Rock Energy Partners