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NGAS utilised the initial payment of USD7.5m to reduce debtAand will use the USD14.5m that will be paid in monthly instalments to improve liquidity.
The gas gathering system spans parts of southeastern Kentucky, eastern Tennessee and western Virginia and interconnects with Spectra Energy Partners' East Tennessee Interstate pipeline network.
In addition, NGAS has retained long-term operating rights and firm capacity rights of 30,000 Mcf per day in the gathering system.
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