TULSA, OKLA., June 7 /CNW/ - SemStream, L.P. ("SemStream") announced
today that it has closed on its second acquisition in Arizona effective June
1, 2007. The Arizona Corporation Commission approved the purchase of the Page,
Arizona, propane assets of Black Mountain Gas Company ("Black Mountain") by
SemStream on May 8, 2007. Black Mountain is a wholly owned subsidiary of
Southwest Gas Corporation.
The assets acquired from Black Mountain consist of a regulated
underground pipeline system with 63 miles of pipe, approximately 129,000
gallons of bulk storage and related assets serving 1,350 retail customers in
Page, Arizona. The acquisition also includes non-regulated propane assets used
in the sale of propane to customers in the rural areas outside of Page. The
non-regulated business serves approximately 650 additional customers. The
purchase and sale agreement between SemStream and Black Mountain was signed on
September 20, 2006, but the sale and purchase required regulatory approval
from the Arizona Corporation Commission as a prerequisite to closing.
Larry Payne, SemStream president and chief operating officer, said that
this acquisition adds important assets in the southwestern U.S. to SemStream's
portfolio and nicely complements its existing Arizona assets. He also said
that the business is being added to the existing SemStream Arizona Propane
operations, and the employees who previously ran the business for Black
Mountain have accepted positions with SemStream.
SemStream, L.P., a subsidiary of SemGroup, L.P., is a North American
midstream business providing natural gas liquids supply, marketing, storage
and terminal services through 11 privately owned propane terminals.
For further information:
For further information: SemStream, L.P. Dave Wunch, 918-524-8727
Executive Vice President