NS indicated not material to operations, was "a purported termination", appears to be over take or pay terms being negotiated-part 4
corrected word withdrawal to word termination, sorry for misquote
continuation of conference call transcript
"..Danny Oliver - SVP, Marketing & Business Development
Yeah, we are completing final negotiations on many of those agreements. It entails both the supply of the Y-grade also the off take of the purity grades and then of course we have to finish constructing the fractionators, the two fractionators exist are being refurbished and reconstructed.
And Bryan I know you probably know this but just for the benefit of everybody on the call, we are getting into this NGL transportation and fractionation solely on a fee basis. These are deals backed by long term contracts. We never take ownership of the commodity. There's no price risk. We are not exposing ourselves to any margin risk and so I'm sure you know that but I just wanted to reiterate that when I had an opportunity to do so...."
I'm still totally confused as to what the status is of the Texstar merger. I believe it was completed in Dec. from the press releases. I emailed the company to try to get a clarification about what's going on.
Steve they competed phase 1 which was oil, gathering and storage in Dec for $325 million which was again the majority of the transaction. They still needed to complete phase 2, the y grade (ngl) line and fractionators on which they were negotiating take or pay contracts before finalizing for $100 million