Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Teresa Fox - Stone Harbor.
Teresa Fox - Stone Harbor
I think when I was registering for this question, you actually answered it, so let me hit it again. Your 2010 CapEx program you said was $200 million, your expansion, is that correct?
Frank Semple
That’s correct. That’s a part of our guidance for 2009. I just made the point that we had so many questions about the projects that have already been announced primarily in the Marcellus, that we felt it was important to start getting some preliminary indications of what the 2010 capital, net of the JV contributions would look like for 2010.
Teresa Fox - Stone Harbor
So if I’m calculating this right, based on your press release today, your shortfall if you want to maintain your 51% ownership, your potential contributions would be about in the $230 million range.
Frank Semple
I’m not sure Teresa how you’re developing that. Probably the best way to think about it, I think you?re probably referencing the M&R press release that went out late last night. Essentially, the way to think about that, is that currently it’s a 60-40, with us owning 60%, M&R owning 40% of that Liberty JV in the Marcellus.
If you kind of look at what the current agreement involves from M&R investment is $200 million and the revision to the M&R agreement involves $150 million additional. So if you kind of add those together and kind of estimate what the CapEx would be through 2010, then there is a shortfall if you will between the 60-40 and the ultimate 49%, 51%. The actual investment by MarkWest is to be able to achieve that true-up, depending on what our capital program is in 2010, 2011.
Teresa Fox - Stone Harbor
Also just a quick question, your 10% ownership in the Pioneer, I know you are conducting due diligence now. What would be the estimated cost of that? Is that included in your CapEx program for this year?
Frank Semple
The Arkoma Connector Pipeline? Oh the MEP option?
The MEP option that I mentioned is not in our capital forecast, not in the numbers that we provided. The fact is that we have noticed the intent to conduct due diligence for that option, that will take several weeks, and really until we have the information to the due diligence process and the total cost of the project, it’s hard to estimate what the capital would involve, but it is 10% of the equity event of that project. Once we’re through that process then we will provide information, disclosures about whether or not we’re choosing to move forward with that purchase.
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