The gathering system will have throughput capacity of over 600 million cubic feet per day (mmcf/d) and is supported by long-term acreage dedications from Plains Exploration & Production (PXP) and Delta Petroleum; and a long-term dedication from a subsidiary of Enterprise Products Partners, covering gas it has the right to gather from a specified area within the Piceance Basin. PXP CV Pipeline, a 50% subsidiary of PXP; and Delta own 25% and 5% of Collbran Valley Gas Gathering (CVGG), respectively.

CVGG will invest approximately $100 million in 2008-09 to achieve throughput capacity of approximately 300mmcf/d by the second quarter of 2009. The remaining investment in primarily compression equipment of approximately $50 million will be spent in 2010-13 as production volumes increase, providing total throughput capacity in excess of 600mmcf/d.

Mark Borer, president and CEO of DCP Midstream Partners, said: This expansion, which we first announced earlier this month, provides critical midstream infrastructure to serve the needs of Collbran Valley producers and a platform for our continued growth in the Piceance.