Jicarilla Apache Nation and Enterprise Announce Long-Term Right-of-Way Agreement

DULCE, N.M. & HOUSTON--(BUSINESS WIRE)--The Jicarilla Apache Nation (Nation) and an affiliate of Enterprise Products Partners L.P. (NYSE:EPD) announced today they have signed a 20-year right-of-way agreement that will allow the partnership to continue its natural gas gathering operations on reservation lands in northwest New Mexico. Under the terms of the agreement, Enterprise will continue to own and operate existing infrastructure and related assets located on tribal land, including 545 miles of gathering lines connected to the partnership’s San Juan Gathering system that have current throughput in excess of 30 million cubic feet per day of natural gas. Comprised of more than 6,000 miles of natural gas pipelines in New Mexico and Colorado, the San Juan system gathers more than 1 billion cubic feet of natural gas per day.

Included in the long-term contract are incentives that could lead to future expansion of the gathering system on Jicarilla land. In addition to a fixed price component, the right-of-way agreement also provides the Nation with opportunities to benefit from changing market conditions for energy commodities.

“The Nation’s agreement with Enterprise will stimulate our oil and gas economy while protecting our lands,” said Jicarilla Apache President Levi Pesata. “I’m pleased we reached this mutually beneficial agreement and the Nation looks forward to continuing our work with Enterprise.”

Enterprise President and Chief Executive Officer Michael A. Creel said, “I commend the efforts of those who worked diligently to craft an agreement that addresses the needs of both sides and provides producers in the region with the assurance and stability of knowing that the midstream services they have come to expect from Enterprise will be available for decades to come. In addition, I am very pleased with Enterprise’s contributions in developing the provisions of the agreement that address cultural awareness and educational opportunities.”

To protect sensitive religious, cultural and pristine sites, a small portion of the approximately 1 million acres that comprise the Jicarilla reservation will be off-limits to oil and gas activity. Also, over the 20-year period of the right-of-way agreement, Enterprise will award 25 college scholarships to tribal members for training and employment opportunities. Additionally, the partnership will join a committee made up of producers and tribal representatives to maintain a system of access roads serving oil and gas facilities that comply with specific Bureau of Land Management guidelines. The U.S. Department of the Interior has authority for granting final approval of the right-of-way agreement.

The Jicarilla Apache Nation is a federally recognized Indian Tribe with over 4,000 enrolled tribal members. The Jicarilla Apache Reservation consists of approximately 1 million acres of trust land and is located in Northern New Mexico. Jicarilla is one of the largest natural gas producing Indian Nations in the United States.

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and is a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil and petrochemicals. Enterprise transports natural gas, NGLs, crude oil and petrochemicals through more than 36,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform; and petrochemical transportation and storage services. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com.