Meritage Midstream Services is to build a new rich gas gathering system in Webb County, Texas, US.

The Cuervo Creek Pipeline will be built from Encinal to Laredo, and will include multiple downstream interconnections.

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The 16in pipeline will have an initial capacity of 150MMcf per day and is expected to begin its operations in the fourth quarter of 2011.

Escondido Resources will serve as anchor tenant to the system, and dedicate a 133km² area to Meritage, including deep and shallow rights in the Eagle Ford, Escondido and Olmos formations.