Oklahoma City-based Tall Oak Midstream LLC plans to build a natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play. The system will serve producers in the play’s liquids-rich areas including the Mississippi Lime, Woodford Shale and Cleveland formations.

Current plans are for the CNOW system to include 250 miles of gas gathering pipeline, multiple compression sites and a new 75 million cubic feet per day cryogenic processing plant with nitrogen rejection capabilities in Payne County, Okla. The plant is expected to enter service in December 2014.

The CNOW system will be anchored by a long-term anchorage dedication from American Energy Partners LP affiliate American Energy—Woodford LLC. The dedicated area is about 1 million acres covering all previously undedicated acreage in Payne County and parts of Creek, Logan, Lincoln, Noble and Pawnee counties, Okla. American Energy—Woodford also contributed its existing gathering lines in exchange for a minority interest in the system, with an option to increase its non-operating interest up to 50%.

Tall Oak is supported by $400 million in private equity commitments from EnCap Flatrock Midstream and Tall Oak’s founders.