Under the agreement, ETC will construct a gathering and transportation pipeline and related facilities, as well as a new processing plant, to serve the Eagle Ford assets.
ETC has committed to provide up to a maximum level of 240,000mmbtu per day, or approximately 190mmcf per day in firm commitment transportation over a ten-year term beginning in 2013.
The gas will be transported through the ETC pipeline and processed at the new plant.
The agreement is fee based and will not require SM Energy to invest any upfront capital.
SM Energy will be obligated to ship specified minimum amounts of gas or make periodic deficiency payments.
SM Energy is engaged in the exploration, development, acquisition and production of natural gas, natural gas liquids and crude oil.
