CONTRIBUTION AGREEMENT by and among WESTERN GAS RESOURCES, INC. WGR HOLDINGS, LLC WGR ASSET HOLDING COMPANY LLC WESTERN GAS HOLDINGS, LLC WES GP, INC. as Contributing Parties and WESTERN GAS PARTNERS, LP WESTERN GAS HOLDINGS, LLC WESTERN GAS OPERATING, LLC WGR OPERATING, LP as Recipient Parties and, for certain limited purposes, ANADARKO PETROLEUM CORPORATION Covering the Contribution of a 100% membership interest in Mountain Gas ResourcesLLC Dated as of December 15, 2011 TABLE OF CONTENTS

EX-2.1 2 d271681dex21.htm CONTRIBUTION AGREEMENT Contribution Agreement

Exhibit 2.1

EXECUTION VERSION

CONTRIBUTION AGREEMENT

by and among

WESTERN GAS RESOURCES, INC.

WGR HOLDINGS, LLC

WGR ASSET HOLDING COMPANY LLC

WESTERN GAS HOLDINGS, LLC

WES GP, INC.

as Contributing Parties

and

WESTERN GAS PARTNERS, LP

WESTERN GAS HOLDINGS, LLC

WESTERN GAS OPERATING, LLC

WGR OPERATING, LP

as Recipient Parties

and, for certain limited purposes,

ANADARKO PETROLEUM CORPORATION

Covering the Contribution of

a 100% membership interest in Mountain Gas Resources LLC

Dated as of December 15, 2011

TABLE OF CONTENTS


			Page
Article I DEFINITIONS AND RULES OF CONSTRUCTION				2

	Section 1.1	Definitions		2

	Section 1.2	Rules of Construction		11

Article II CONTRIBUTION; CLOSING				11

	Section 2.1	Contribution of the MGR Interest		11

	Section 2.2	Consideration		12

	Section 2.3	Borrowing by the Partnership; Tax Treatment of Cash Consideration		12

	Section 2.4	Contemplated Legal Steps		12

Article III CLOSING				13

	Section 3.1	The Closing		13

	Section 3.2	Deliveries by the Contributing Parties		13

	Section 3.3	Deliveries by the Recipient Parties		14

	Section 3.4	Closing Costs; Transfer Taxes and Fees		14

	Section 3.5	Receipts and Credits		15

	Section 3.6	Prorations		16

Article IV REPRESENTATIONS AND WARRANTIES OF ANADARKO AND THE CONTRIBUTING PARTIES				16

	Section 4.1	Organization		16

	Section 4.2	Authorization; Enforceability		17

	Section 4.3	No Conflicts		17

	Section 4.4	Preference Rights and Transfer Requirements		17

	Section 4.5	Litigation		17

	Section 4.6	Title		18

	Section 4.7	Taxes and Assessments		19

	Section 4.8	Compliance With Laws		20

	Section 4.9	Environmental Matters		20

	Section 4.10	Brokers and Finders		21

	Section 4.11	Permits		21

	Section 4.12	Contracts		22

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	Section 4.13	Condition of Assets	22

	Section 4.14	Matters Relating to MGR	22

	Section 4.15	No Undisclosed Liabilities; Accuracy of Data	23

	Section 4.16	Absence of Certain Changes	23

	Section 4.17	Sufficiency of the Assets	23

	Section 4.18	Regulatory Matters	24

	Section 4.19	Outstanding Capital Commitments	24

	Section 4.20	Insurance	24

	Section 4.21	Employees; Labor Relations	24

	Section 4.22	Management Projections and Budgets	24

	Section 4.23	Investment	24

Article V REPRESENTATIONS AND WARRANTIES OF THE RECIPIENT PARTIES			25

	Section 5.1	Organization of Recipient	25

	Section 5.2	Authorization; Enforceability	25

	Section 5.3	No Conflicts	25

	Section 5.4	Litigation	26

	Section 5.5	Brokers’ Fees	26

	Section 5.6	Investment	26

Article VI COVENANTS			26

	Section 6.1	Conduct of Business	26

	Section 6.2	Access	27

	Section 6.3	Additional Agreements	28

	Section 6.4	Replacement of Bonds, Letters of Credit and Guarantees	28

	Section 6.5	General Matters	28

	Section 6.6	MGR Interest and Rendezvous Interest Matters	28

	Section 6.7	Required Consents	28

	Section 6.8	Identified Compressors	28

Article VII CONDITIONS TO CLOSING			29

	Section 7.1	Conditions to Each Party’s Obligation to Close	29

	Section 7.2	Conditions to the Recipient Parties’ Obligation to Close	29

	Section 7.3	Conditions to the Contributing Parties’ Obligation to Close	30

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Article VIII TERMINATION			31

	Section 8.1	Termination	31

	Section 8.2	Effect of Termination	31

Article IX INDEMNIFICATION			32

	Section 9.1	Survival	32

	Section 9.2	Indemnification of the Anadarko Indemnified Parties	32

	Section 9.3	Indemnification of the Partnership Indemnified Parties	32

	Section 9.4	Demands	33

	Section 9.5	Right to Contest and Defend	33

	Section 9.6	Cooperation	34

	Section 9.7	Payment of Losses	35

	Section 9.8	Limitations on Indemnification	35

	Section 9.9	Sole Remedy	36

	Section 9.10	Express Negligence Rule	36

Article X ADDITIONAL AGREEMENTS			36

	Section 10.1	Further Assurances	36

Article XI MISCELLANEOUS			37

	Section 11.1	Expenses	37

	Section 11.2	Notices	37

	Section 11.3	Severability	39

	Section 11.4	Governing Law; Consent to Jurisdiction	39

	Section 11.5	Parties in Interest	39

	Section 11.6	Assignment	39

	Section 11.7	No Amendment or Waiver	39

	Section 11.8	Counterparts	40

	Section 11.9	Integration	40

	Section 11.10	Determinations by the Partnership	40

	Section 11.11	Public Statements	40

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Disclosure Schedules


Schedule 1.1		- Identified Compressors
Schedule 4.4		- Preference Rights and Transfer Requirements
		Part 1 - Contracts
		Part 2 - Surface Contracts
Schedule 4.5		- Contributing Party Litigation
Schedule 4.6(a)		- Title to MGR Interest
Schedule 4.6(b)		- Title to MGR Assets
		Part 1 – Exceptions
		Part 2 – Material MGR Surface Contracts
Schedule 4.7(a)		- Tax Matters
Schedule 4.8		- Compliance With Laws
Schedule 4.9		- Environmental Matters
Schedule 4.11		- Permits
Schedule 4.12		- Contract Matters
		Part 1 – All Material Contracts
		Part 2 – Exceptions
Schedule 4.14		- Obligations Relating to MGR
Schedule 4.15		- Bonds, Letters of Credit and Guarantees
Schedule 4.16		- Absence of Certain Changes
Schedule 4.17		- Sufficiency of the Assets
Schedule 4.19		- Outstanding Capital Commitments
Schedule 4.20		- Insurance
Schedule 5.4		- Recipient Party Litigation

Exhibits


Exhibit A		Description of Patrick Draw Plant
Exhibit B		Description of Red Desert Gathering System
Exhibit C		Description of MGR Assets
Exhibit D		Form of MGR Interest Contribution Agreement
Exhibit E		Form of MGT Purchase and Sale Agreement
Exhibit F		Form of Partnership Agreement Amendment
Exhibit G		Hedging Arrangements

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CONTRIBUTION AGREEMENT

THIS CONTRIBUTION AGREEMENT, dated as of December 15, 2011 (the “Agreement”), is made and entered into by and among Western Gas Resources, Inc., a Delaware corporation (“WGR”), WGR Asset Holding Company LLC, a Delaware limited liability company (“WGRAH”), WGR Holdings, LLC, a Delaware limited liability company (“WGR Holdings”), Western Gas Holdings, LLC, a Delaware limited liability company (the “General Partner”), WES GP, Inc. (“WES GP” and, together with the General Partner, WGR, WGRAH and WGR Holdings, the “Contributing Parties”), and Western Gas Partners, LP, a Delaware limited partnership (the “Partnership”), Western Gas Operating, LLC, a Delaware limited liability company (“Western Gas Operating”), and WGR Operating, LP, a Delaware limited partnership (the “Operating Partnership”, and, together with the Partnership, the General Partner and Western Gas Operating, the “Recipient Parties”). The Contributing Parties and Recipient Parties are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.” In addition, Anadarko Petroleum Corporation, a Delaware corporation (“Anadarko”), is a party to this Agreement for the limited purposes set forth in Article II, Section 3.5, Article IV, Section 6.5, Article VIII, Article IX and Article XI and is a “Party” under this Agreement solely to that extent.

RECITALS

WHEREAS, WGR owns all of the equity interests in WGRAH and WGR Holdings, each of which is a disregarded entity for U.S. federal income tax purposes;

WHEREAS, WGRAH owns all of the MGR Interest (as defined herein);

WHEREAS, WGR Holdings owns 99% of the equity interests in the General Partner, which is a partnership for U.S. federal income tax purposes;

WHEREAS, WGR Holdings owns all of the equity interests in WES GP, which is a corporation for federal income tax purposes;

WHEREAS, WES GP owns 1% of the equity interests in the General Partner;

WHEREAS, WGR Holdings is a limited partner of the Partnership;

WHEREAS, the General Partner is the sole general partner of the Partnership;

WHEREAS, the Partnership owns all of the equity interests in Western Gas Operating, which is a disregarded entity for U.S. federal income tax purposes;

WHEREAS, the Partnership is the sole limited partner and Western Gas Operating is the sole general partner of the Operating Partnership;

WHEREAS, WGRAH desires to distribute the MGR Interest to WGR and WGR desires to acquire the same;

WHEREAS, WGR desires to contribute the MGR Interest to WGR Holdings and WGR Holdings desires to acquire the same;

WHEREAS, WGR Holdings desires to contribute an undivided interest in the MGR Interest to WES GP, and WES GP desires to acquire such undivided interest;

WHEREAS, WES GP desires to contribute such undivided interest in the MGR Interest to the General Partner, and the General Partner desires to acquire such undivided interest;

WHEREAS, WGR Holdings desires to contribute an undivided interest in the MGR Interest to the General Partner, and the General Partner desires to acquire such undivided interest;

WHEREAS WGR Holdings and the General Partner desire to contribute all of the undivided interests in the MGR Interest to the Partnership for the consideration described herein, and the Partnership desires to acquire such undivided interests for such consideration;

WHEREAS, the Partnership desires to contribute an undivided interest in the MGR Interest to Western Gas Operating, and Western Gas Operating desires to acquire such undivided interest;

WHEREAS, the Partnership and Western Gas Operating desire to transfer all of the undivided interests in the MGR Interest to the Operating Partnership, and the Operating Partnership desires to acquire such undivided interests; and

WHEREAS, in order to avoid multiple conveyances of the MGR Interest, each of the Parties entitled to receive an interest in the MGR Interest agrees that WGRAH will be instructed to convey such interest to any Party to which it is required to make such a conveyance, with the result that WGRAH will execute and deliver a document to convey the MGR Interest directly to the Operating Partnership.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE I

DEFINITIONS AND RULES OF CONSTRUCTION

Section 1.1 Definitions.

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with, such specified Person through one or more intermediaries or otherwise; provided, however, that (i) with respect to each of the Anadarko Entities and the Contributing Parties, the term “Affiliate” shall exclude the Partnership Entities, (ii) with respect to each of the Partnership Entities and the Recipient Parties, the term “Affiliate” shall exclude the Anadarko Entities, and (iii) MGR shall be deemed to be an Affiliate of the Anadarko Entities and the Contributing Parties before the Closing Date and an Affiliate of the Partnership Entities and the Recipient Parties on and after the Closing Date.

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“Accounting Time” has the meaning set forth in Section 3.5(a).

“Aggregate Consideration” has the meaning set forth in Section 9.8(a).

“Agreement” has the meaning set forth in the preamble.

“Anadarko” has the meaning set forth in the preamble.

“Anadarko Entities” means Anadarko and any other Person Controlled by Anadarko other than the Partnership Entities.

“Anadarko Indemnified Parties” has the meaning set forth in Section 9.2.

“Ancillary Documents” means, collectively, the Recipient Party Ancillary Documents and the Contributing Party Ancillary Documents.

“Business Day” means any day that is not a Saturday, Sunday or legal holiday in the State of Texas or a federal holiday in the United States.

“Cash Consideration” means $458,586,850.

“Closing” has the meaning set forth in Section 3.1.

“Closing Date” has the meaning set forth in Section 3.1.

“Code” means the Internal Revenue Code of 1986, as amended and as interpreted by the applicable Treasury Regulations thereunder.

“Contributing Parties” has the meaning set forth in the preamble.

“Contributing Party Ancillary Documents” means each agreement, document, instrument or certificate to be delivered by any Contributing Party, or any Affiliate thereof, at the Closing pursuant to Section 3.2 and each other document or contract entered into by any Contributing Party, or any Affiliate thereof, in connection with this Agreement or the Closing.

“Contributing Party Closing Certificate” has the meaning set forth in Section 7.2(c).

“Control” means, where used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” have correlative meanings.

“Deductible” has the meaning set forth in Section 9.8(a).

“Effective Time” has the meaning set forth in Section 3.1.

“Environmental Activity” shall mean any investigation, study, assessment, evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective action, remediation (regardless of whether active or passive), natural attenuation, restoration,

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bioremediation, response, repair, corrective measure, cleanup, pollution control or abatement that is required or necessary under any applicable Environmental Law, including institutional or engineering controls or participation in a governmental voluntary cleanup program to conduct voluntary investigatory and remedial actions for the clean-up, removal or remediation of Hazardous Substances that exceed actionable levels established pursuant to Environmental Laws, or participation in a supplemental environmental project in partial or whole mitigation of a fine or penalty.

“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law relating to (i) pollution or protection of the environment or natural resources, (ii) any Release or threatened Release of, or any exposure of any Person or property to, any Hazardous Substances or (iii) the generation, manufacture, processing, distribution, use, treatment, storage, transport, disposal or handling of any Hazardous Substances; including the federal Comprehensive Environmental Response, Compensation and Liability Act, the Superfund Amendments and Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, the Toxic Substances Control Act, the Oil Pollution Act of 1990, the Federal Hazardous Materials Transportation Law, the Occupational Safety and Health Act, the Marine Mammal Protection Act, the Endangered Species Act, the National Environmental Policy Act and other environmental conservation and protection laws, each as amended through the Closing Date.

“Environmental Permit” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any applicable Environmental Law.

“Equity Interest” means any capital stock, partnership interest, membership interest or other unit of equity security, equity ownership or voting security (including any security convertible into or exchangeable or exercisable for any of the same).

“GAAP” means generally accepted accounting principles in the United States, consistently applied.

“General Partner” has the meaning set forth in the preamble.

“Governmental Entity” means any Federal, state, local, municipal or foreign court or governmental agency, authority or instrumentality or regulatory body having jurisdiction.

“GP Consideration” means 12,914 general partner units of the Partnership.

“Hazardous Substance” means (i) any substance that is designated, defined or classified under any Environmental Law as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including any hazardous substance as defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (ii) oil as defined in the Oil Pollution Act of 1990, as amended, including oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other refined petroleum hydrocarbons and petroleum products and (iii) radioactive materials, asbestos containing materials or polychlorinated biphenyls.

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“Hedging Arrangements” means the hedging arrangements substantially in the form of Exhibit G.

“Hydrocarbons” means oil, gas, condensate and other gaseous and liquid hydrocarbons or any combination thereof and sulphur extracted from hydrocarbons.

“Identified Compressors” means those compressors listed on Schedule 1.1.

“Indemnified Party” means any Person entitled to indemnification in accordance with Article IX.

“Indemnifying Party” means any Person from whom indemnification is required in accordance with Article IX.

“Indemnity Claim” has the meaning set forth in Section 9.4.

“Knowledge” and any variations thereof or words to the same effect means: (i) with respect to the Contributing Parties, the actual knowledge of (a) the officers of the Contributing Parties and their respective Affiliates and (b) the employees of Contributing Parties who have responsibility for MGR and who have the title of Midstream General Manager or Midstream Commercial Development Regional Manager; and (ii) with respect to the Recipient Parties, the actual knowledge of the officers of Recipient Parties and their respective Affiliates.

“Laws” means all statutes, laws, rules, regulations, Orders, ordinances, writs, injunctions, judgments and decrees of all Governmental Entities.

“Lien” means any lien, security interest, mortgage, pledge, charge, encumbrance or right of others.

“Losses” means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, sanctions, costs and expenses (including court costs and reasonable attorney’s and experts’ fees) of any and every kind or character.

“Material Adverse Effect” means any effect that is material and adverse to the ownership, operation, value, properties, assets, liabilities, financial condition, results of operations, or business (as currently operated) of (a) MGR, the MGR Assets or the MGR Interest or (b) the Red Desert Complex or the Rendezvous Interest or the assets related thereto, or the Contributing Parties’ interests therein; provided, however, that “Material Adverse Effect” shall not include (i) any effect resulting from the announcement of entering into this Agreement or of the transactions contemplated by this Agreement; (ii) any effect resulting from changes in general market, economic or financial conditions or any outbreak of hostilities or war, (iii) any effect that affects the Hydrocarbon exploration, production, development, processing, gathering and/or transportation industry generally (including changes in commodity prices or general market prices in the Hydrocarbon exploration, production, development, processing, gathering and/or transportation industry generally) unless such effect disproportionately affects MGR, the MGR Interest, the Red Desert Complex, Rendezvous or the Rendezvous Interest, as applicable, relative to such industry, and (iv) any effect resulting from a change in Laws.

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“MGR” means Mountain Gas Resources LLC, a Delaware limited liability company.

“MGR Assets” means the Red Desert Complex and the Rendezvous Interest and the other assets owned, held, used or held for use by MGR, which other assets are more specifically described on Exhibit C.

“MGR Asset Required Consents” means any consent, approval, authorization or permit of, or filing with or notification to, any Person which was required to be obtained, made or complied with for or in connection with any sale, assignment or transfer to MGR of any MGR Asset or any MGR Surface Contract (or any interest in any of them), and such required consent, approval, authorization, permit, filing or notification has not been obtained, made or complied with prior to Closing.

“MGR Contracts” means all contracts, agreements, instruments, undertakings or commitments (including intercompany contracts, agreements, instruments, undertakings or commitments), written or oral, by which MGR or any of its properties or assets are bound, or that relate to or are otherwise applicable to MGR or the MGR Assets (including exchange agreements, transportation or gathering agreements, connection or interconnect agreements, construction agreements, operating agreements, environmental compliance agreements, processing agreements, work orders, purchase orders, service agreements, rental agreements, compression agreements, utility services agreements, non-disturbance agreements for the benefit of MGR, fractionation agreements, and agreements for the sale and purchase of oil, gas, casinghead gas or other Hydrocarbons or processing agreements to the extent applicable to MGR or any of its properties or assets); provided that MGR Contracts shall not include any Rendezvous Contracts other than the Rendezvous LLC Agreement and the Rendezvous Administrative and Field Operations Agreement.

“MGR Interest” means 100% of the limited liability company interests of MGR.

“MGR Interest Contribution Agreement” means the contribution agreement substantially in the form attached hereto as Exhibit D.

“MGR LLC Agreement” means the limited liability company agreement of MGR dated May 1, 2009.

“MGR Permits” has the meaning set forth in Section 4.11.

“MGR Preference Right” has the meaning set forth in Section 7.2(a).

“MGR Surface Contracts” means all easements, MGR Permits, licenses, servitudes, rights-of-way, surface leases, fee interests in real property and other surface rights appurtenant to, and used or held for use in connection with MGR or the MGR Assets, including those identified on Schedule 4.6(b).

“MGT” means Mountain Gas Transportation LLC, a Delaware limited liability company.

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“MGT Purchase and Sale Agreement” means the purchase and sale agreement substantially in the form attached hereto as Exhibit E.

“Operating Costs” means all invoices, costs, expenses, disbursements and payables (as determined in accordance with GAAP consistent with past practices) attributable to the operation (but not the ownership) of the MGR Assets in the ordinary course of business and regularly invoiced to MGR. For clarity, Operating Costs do not include, without limitation, all invoices, costs, expenses, disbursements, payables or Losses directly or indirectly arising out of, resulting from or attributable to: (i) actual or claimed personal injury, illness or death; property damage; environmental damage or contamination; negligence, misconduct or failure to operate properly; other torts; private rights of action given under any Law; violation of any Law; or breach or violation of contract, agreement or duty; (ii) obligations to abandon, dismantle, remediate or remove pipelines or facilities; (iii) calamity, natural disaster, casualty, fire, explosion, weather or condemnation; (iv) claims, investigations, administrative proceedings, arbitration or litigation directly or indirectly arising out of, resulting from or attributable to any of the foregoing; (v) any claims for any of the foregoing or for indemnification, contribution, reimbursement or similar matters with respect to invoices, costs, expenses, disbursements, payables or Losses of the type described in clauses (i) through (iv), whether such claims are made pursuant to contract or otherwise; (vi) matters similar to those described in clauses (i) through (v); and (vii) other matters outside the ordinary course of business or related to the ownership of the MGR Assets.

“Operating Partnership” has the meaning set forth in the preamble.

“Order” means any order, writ, injunction, decree, ruling, compliance or consent order or decree, settlement agreement, schedule and similar binding legal agreement issued by or entered into with a Governmental Entity.

“Partnership” has the meaning set forth in the preamble.

“Partnership Agreement Amendment” means an instrument substantially in the form set forth on Exhibit F.

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of May 14, 2008, as such agreement is amended and in effect on the date of this Agreement.

“Partnership Debt” has the meaning set forth in Section 2.3.

“Partnership Entities” means the General Partner and each member of the Partnership Group.

“Partnership Group” means the Partnership and its Subsidiaries treated as a single consolidated entity.

“Partnership Indemnified Parties” has the meaning set forth in Section 9.3.

“Patrick Draw Plant” means the Patrick Draw natural gas processing plant (including all appurtenances thereto), which plant is more specifically described on Exhibit A.

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“Party” and “Parties” have the meanings set forth in the preamble.

“Permitted Liens” means (i) liens for Taxes, impositions, assessments, fees, rents or other governmental charges levied or assessed or imposed not yet delinquent or being contested in good faith by appropriate proceedings, provided appropriate reserves have been established with respect to such contest, (ii) statutory liens (including materialmen’s, warehousemen’s, mechanics’, repairmen’s, landlords’, and other similar liens) arising in the ordinary course of business securing payments not yet delinquent or being contested in good faith by appropriate proceedings, and (iii) utility easements, restrictive covenants and defects, imperfections or irregularities of title that do not and could not reasonably be expected to interfere materially with the ordinary conduct of the business of the MGR Assets or MGR.

“Person” means any individual, firm, corporation, partnership (general or limited), limited liability company, trust, joint venture, Governmental Entity or other entity.

“Preference Right” means any right or agreement that enables any Person to purchase or acquire the MGR Interest, any MGR Asset, the Rendezvous Interest or any properties or assets of Rendezvous (or any interest in or portion of any of them) as a result of or in connection with (i) the sale, assignment or other transfer of the MGR Interest, any MGR Asset, the Rendezvous Interest or any properties or assets of Rendezvous (or any interest in or portion of any of them) or (ii) the execution or delivery of this Agreement or the consummation or performance of this Agreement or the transactions contemplated hereby.

“Recipient Party Ancillary Documents” means each agreement, document, instrument or certificate to be delivered by any Recipient Party, or any Affiliate thereof, at the Closing pursuant to Section 3.3 and each other document or contract entered into by any Recipient Party, or any Affiliate thereof, in connection with this Agreement or the Closing.

“Recipient Parties” has the meaning set forth in the preamble.

“Recipient Party Closing Certificate” has the meaning set forth in Section 7.3(b).

“Red Desert Complex” means the Red Desert Gathering System and the Patrick Draw Plant.

“Red Desert Gathering System” means the gas gathering system (including all appurtenances thereto), which is more specifically described on Exhibit B.

“Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing into the environment.

“Rendezvous” means Rendezvous Gas Services, L.L.C., a Wyoming limited liability company.

“Rendezvous Contracts” means all contracts, agreements, instruments, undertakings or commitments (including intercompany contracts, agreements, instruments, undertakings or commitments), written or oral, by which Rendezvous or any of its properties or assets are bound, or

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that relate to or are otherwise applicable to Rendezvous (including exchange agreements, transportation or gathering agreements, construction agreements, operating agreements, environmental compliance agreements, processing agreements, work orders, purchase orders, service agreements, rental agreements, compression agreements, utility services agreements, non-disturbance agreements for the benefit of Rendezvous, fractionation agreements, and agreements for the sale and purchase of oil, gas, casinghead gas or other Hydrocarbons or processing agreements to the extent applicable to Rendezvous or any of its properties or assets).

“Rendezvous Administrative and Field Operations Agreement” means the Administrative and Field Operations Agreement dated September 12, 2001, among Mountain Gas Resources, Inc., Questar Gas Management Company and Rendezvous Gas Services, L.L.C., as amended by Amendment No. 1 thereto on June 1, 2007, and Amendment No. 2 thereto on November 20, 2008, which are the only amendments thereto.

“Rendezvous Interest” means the 22% limited liability company interest held by MGR in Rendezvous.

“Rendezvous LLC Agreement” means the limited liability company operating agreement of Rendezvous dated September 12, 2001, as amended by Amendment No. 1 thereto on July 17, 2007, and Amendment No. 2 thereto on November 20, 2008, which are the only amendments thereto.

“Rendezvous Permits” has the meaning set forth in Section 4.11(b).

“Revolving Credit Agreement” means the Credit Agreement dated March 24, 2011 among the Partnership, as borrower, Wells Fargo Bank National Association, as the administrative agent, and the lenders party thereto.

“Securities Act” means the Securities Act of 1933.

“Special Committee” has the meaning set forth in the Partnership Agreement.

“Subsidiary” means, with respect to any Person, (i) a corporation of which more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (ii) a partnership (whether general or limited) in which more than 50% of the partnership interests (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or (iii) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (A) at least a majority ownership interest or (B) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

“Tax” or “Taxes” means (i) all taxes, assessments, duties, levies, imposts or other similar charges imposed by a Governmental Entity, including all income, franchise, profits, capital gains, capital stock, transfer, gross receipts, margins, sales, use, transfer, service, occupation, ad

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valorem, property, excise, severance, windfall profits, premium, stamp, license, payroll, employment, social security, unemployment, disability, environmental (including taxes under Code Section 59A), alternative minimum, add-on, value-added, withholding (including backup withholding) and other taxes, assessments, duties, levies, imposts or other similar charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), and all estimated taxes, deficiency assessments, additions to tax, additional amounts imposed by any Governmental Entity, penalties and interest, (ii) any liability for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any agreement or arrangement whereby liability for payment of such amounts was determined or taken into account with reference to the liability of any other Person, and (iii) any liability for the payment of any amounts as a result of being a party to any Tax-Sharing Agreement or with respect to the payment of any amounts of any of the foregoing types as a result of any express or implied obligation to indemnify any other Person.

“Tax Authority” means any Governmental Entity having jurisdiction over the assessment, determination, collection or imposition of any Tax.

“Tax Returns” means all reports, returns, statements (including estimated reports, returns or statements) and other similar filings relating to, or required to be filed in connection with, any Taxes.

“Tax-Sharing Agreements” means all existing contracts or arrangements (whether or not written) regarding the sharing, allocation, or payment of Taxes or amounts in lieu of Taxes.

“Termination Date” has the meaning set forth in Section 8.1(a)(ii).

“TPH” has the meaning set forth in Section 4.22.

“Transfer Requirements” means any consent, approval, authorization or permit of, or filing with or notification to, any Person which is required to be obtained, made or complied with for or in connection with any sale, assignment or transfer of the MGR Interest.

“Treasury Regulations” has the meaning set forth in Section 2.3.

“Unit Consideration” means 632,783 common units of the Partnership.

“WES GP” has the meaning set forth in the preamble.

“Western Gas Operating” has the meaning set forth in the preamble.

“WGR” has the meaning set forth in the preamble.

“WGR Holdings” has the meaning set forth in the preamble.

“WGRAH” has the meaning set forth in the preamble.

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Section 1.2 Rules of Construction.

(a) All article, section, schedule and exhibit references used in this Agreement are to articles, sections, schedules and exhibits to this Agreement unless otherwise specified. The schedules and exhibits attached to this Agreement constitute a part of this Agreement and are incorporated herein for all purposes.

(b) If a term is defined as one part of speech (such as a noun), it shall have a corresponding meaning when used as another part of speech (such as a verb). Terms defined in the singular have the corresponding meanings in the plural, and vice versa. Unless the context of this Agreement clearly requires otherwise, words importing the masculine gender shall include the feminine and neutral genders and vice versa. The terms “includes,” “include” and “including” shall be deemed to be followed by the words “without limitation”. The words “hereof,” “hereto,” “hereby,” “herein,” “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular section or article in which such words appear.

(c) It is the intention of the Parties that every covenant, term and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any Party (not withstanding any rule of law requiring an agreement to be strictly construed against the drafting party), it being understood that the Parties to this Agreement are sophisticated and have had adequate opportunity and means to retain counsel to represent their interests and to otherwise negotiate the provisions of this Agreement.

(d) The captions in this Agreement are for convenience only and shall not govern or be considered a part of or affect the construction or interpretation of any provision of this Agreement.

(e) All references to currency herein shall be to, and all payments required hereunder shall be paid in, United States dollars.

(f) All accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP.

(g) Any event hereunder requiring the payment of cash or cash equivalents on a day that is not a Business Day shall be deferred until the next Business Day without interest.

(h) Any reference to a Law shall include any amendment thereof or any successor thereto, and any rules and regulations promulgated thereunder, in each case as existing on the date of this Agreement.

ARTICLE II

CONTRIBUTION; CLOSING

Section 2.1 Contribution of the MGR Interest. At the Closing, upon the terms and subject to the conditions set forth in this Agreement, WGRAH shall contribute, assign, transfer and convey (or cause to be contributed, assigned, transferred and conveyed) to the Operating Partnership, and the Operating Partnership shall accept contribution of, the MGR Interest pursuant to the MGR Interest Contribution Agreement and in accordance with Section 2.4.

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Section 2.2 Consideration. In consideration for the contribution of the MGR Interest, the Partnership shall (i) distribute to WGR Holdings at Closing the Cash Consideration, (ii) issue to WGR Holdings at Closing the Unit Consideration, and (iii) issue to the General Partner the GP Consideration.

Section 2.3 Borrowing by the Partnership; Tax Treatment of Cash Consideration. Immediately prior to the Closing, the Partnership shall borrow $299,000,000 of the Cash Consideration under the Revolving Credit Agreement (the “Partnership Debt”). The Parties intend that (i) the distribution of the Cash Consideration to WGR Holdings shall be made first out of proceeds of the Partnership Debt, and such portion of the Cash Consideration shall qualify as a “debt-financed transfer” under Section 1.707-5(b) of the Treasury Regulations promulgated under the Code (the “Treasury Regulations”); (ii) WGR’s share of the Partnership Debt under Sections 1.752-2 and 1.707-5(a)(2)(i) of the Treasury Regulations shall be the entire amount of the Partnership Debt; and (iii) the distribution of the Cash Consideration to WGR Holdings in excess of amounts distributed out of proceeds of the Partnership Debt shall be made to reimburse WGR Holdings for capital expenditures described in Section 1.707-4(d) of the Treasury Regulations to the extent such distribution does not exceed the amount of capital expenditures described in Section 1.707-4(d) of the Treasury Regulations. The Parties agree to act at all times in a manner consistent with this intended treatment of the Cash Consideration and the Partnership Debt, including disclosing the distribution of the Cash Consideration in accordance with the requirements of Section 1.707-3(c)(2) of the Treasury Regulations.

Section 2.4 Contemplated Legal Steps. To avoid multiple state law conveyances of the MGR Interest, each Party entitled to receive an interest in the MGR Interest pursuant to this Section 2.4 agrees that WGRAH is instructed to convey such interests to each successive Party such that WGRAH will convey ownership of the MGR Interest directly to the Operating Partnership in a single state law conveyance, which shall accomplish the following discrete transfers:

(a) WGRAH distributes the MGR Interest to WGR;

(b) WGR contributes the MGR Interest to WGR Holdings;

(i) The undivided interest transferred by WGR Holdings to the General Partner is equal to 1.98% of “Net Equity”; and

(ii) “Net Equity” is an amount equal to the gross fair market value of the MGR Interest minus the Cash Consideration to be distributed to WGR Holdings pursuant to Section 2.2;

(d) WGR Holdings contributes an undivided interest in the MGR Interest to WES GP equal to 0.02% of Net Equity;

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(e) WES GP contributes an undivided interest in the MGR Interest to the General Partner equal to 0.02% of Net Equity;

(f) WGR Holdings and the General Partner contribute their respective undivided interests in the MGR Interest to the Partnership such that:

(i) The General Partner receives an increased general partner capital account and the GP Consideration; and

(ii) WGR Holdings receives the Cash Consideration and the Unit Consideration;

(g) The Partnership conveys an undivided 0.01% interest in the MGR Interest to Western Gas Operating; and

(h) The Partnership and Western Gas Operating convey their undivided interests in the MGR Interest to the Operating Partnership in exchange for increased capital accounts.

ARTICLE III

CLOSING

Section 3.1 The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, commencing at 10:00 a.m. local time on the third Business Day following the satisfaction or waiver of all conditions to the obligations of the Parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the Parties shall take at the Closing itself) or such other date as Recipient Parties and Contributing Parties may mutually determine (the “Closing Date”), subject to the rights of the Parties under Article VIII; provided, however, that after the Closing has occurred, unless otherwise agreed by the Parties, the Closing shall be deemed to have been consummated at 12:01 a.m. Houston, Texas time on the Closing Date (the “Effective Time”).

Section 3.2 Deliveries by the Contributing Parties. At the Closing, the Contributing Parties will deliver (or cause to be delivered) the following:

(a) A counterpart to the MGR Interest Contribution Agreement, duly executed by the applicable Contributing Party or Contributing Parties;

(b) The Contributing Party Closing Certificate, duly executed by an officer of Anadarko;

(c) A certificate under Section 1.1445-2(b)(2) of the Treasury Regulations certifying that each applicable Contributing Party is not a foreign person within the meaning of Section 1445(f)(3) of the Code;

(d) A counterpart to the Partnership Agreement Amendment, duly executed by the General Partner;

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(e) A counterpart to the Hedging Arrangements, duly executed by the appropriate Contributing Parties;

(f) A counterpart to the MGT Purchase and Sale Agreement; and

(g) Such other certificates, instruments of conveyance and documents as may be reasonably requested by the Recipient Parties prior to the Closing Date to carry out the intent and purposes of this Agreement.

Section 3.3 Deliveries by the Recipient Parties. At the Closing, the Recipient Parties will deliver (or cause to be delivered) the following:

(a) The Cash Consideration, by wire transfer to an account specified by WGR;

(b) The Unit Consideration, by issuance of such common units (in certificated or book-entry form) to WGR Holdings, by instruction to the Partnership’s transfer agent or otherwise;

(c) The GP Consideration, by issuance of a certificate reflecting the issuance of such general partner units to the General Partner;

(d) A counterpart to the MGR Interest Contribution Agreement, duly executed by the applicable Recipient Party or Recipient Parties;

(e) The Recipient Party Closing Certificate, duly executed by an officer of the General Partner;

(f) A counterpart to the Hedging Arrangements, duly executed by the appropriate Recipient Parties;

(g) A counterpart to the MGT Purchase and Sale Agreement; and

(h) Such other certificates, instruments of conveyance and documents as may be reasonably requested by the Contributing Parties prior to the Closing Date to carry out the intent and purposes of this Agreement.

Section 3.4 Closing Costs; Transfer Taxes and Fees.

(a) Allocation of Costs. The Contributing Parties shall be responsible for and pay all sales, transfer, use and similar Taxes arising from or associated with the transfer of the MGR Interest (other than Taxes based on income) and all costs and expenses (including recording fees and real estate transfer taxes and real estate transfer stamps) incurred in connection with obtaining or recording title to the MGR Interest.

(b) Reimbursement. If any Recipient Party, on the one hand, or any Contributing Party, on the other hand, pays any tax agreed to be borne by the other Party under this Agreement, such other Party shall promptly reimburse the paying Party for the amounts so paid. If any Party receives any tax refund or credit applicable to a tax paid by another Party hereunder, the receiving Party shall promptly pay such amounts to the Party entitled thereto.

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Section 3.5 Receipts and Credits.

(a) Subject to the terms hereof, all monies, proceeds, receipts, credits and income attributable to the MGR Assets (as determined in accordance with GAAP consistent with past practices) (i) for all periods of time at, from and after 12:01 a.m. Houston, Texas time on the first day of January 2012 (the “Accounting Time”), shall be the sole property and entitlement of MGR, and, to the extent received by any Contributing Party or one of its Affiliates, shall be promptly accounted for and transmitted to MGR and (ii) for all periods of time prior to the Accounting Time, shall be the sole property and entitlement of the Contributing Parties and, to the extent received by MGR, shall be promptly accounted for and transmitted to a Contributing Party or Anadarko. The Parties acknowledge that because of cash management systems in place, all monies, proceeds, receipts, credits and income attributable to the MGR Assets, to the extent actually received by MGR or a Contributing Party prior to the Closing Date, will have already been transmitted to a Contributing Party or Anadarko and therefore that all monies, proceeds, receipts, credits and income attributable to the MGR Assets from and after the Accounting Time must be transmitted to MGR.

(b) In addition, subject to the terms hereof, all invoices, costs, expenses, disbursements and payables attributable to the MGR Assets (as determined in accordance with GAAP consistent with past practices) (A) for all periods of time at, from and after the Effective Time, shall be the sole obligation of MGR, and MGR shall promptly pay or, if paid by any Contributing Party, promptly reimburse such Contributing Party for, same and (B) for all periods of time prior to the Effective Time, shall be the sole obligation of the Contributing Parties, and the Contributing Parties shall promptly pay or, if paid by MGR or any Recipient Party, promptly reimburse MGR or such Recipient Party for, same.

(c) Notwithstanding Section 3.5(b), subject to the terms hereof, (A) all Operating Costs attributable to the operation of the MGR Assets in the ordinary course of business during the period from the Accounting Time to the Effective Time shall be the sole obligation of MGR, and (B) MGR shall promptly pay or, if paid by any Contributing Party, promptly reimburse such Contributing Party for, same, but in each case only up to the amount of all monies, proceeds, receipts, credits and income attributable to the MGR Assets actually received by MGR attributable to the operation of the MGR Assets during the period from the Accounting Time to the Effective Time.

(d) Other than Operating Costs (to the extent provided in Section 3.5(c)), the Contributing Parties shall be solely responsible for, and shall indemnify and hold the Partnership Indemnified Parties harmless from and against, all invoices, costs, expenses, disbursements, payables and Losses paid, incurred or suffered by the Contributing Parties, the Partnership Indemnified Parties, MGR or the MGR Assets arising out of or attributable to the ownership or operation of the MGR Assets during the period from the Accounting Time to the Effective Time. The indemnification provided in this Section 3.5(d) is in addition to, and is not subject to the provisions of, the indemnification in Article IX, including any limitations or Deductible therein.

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(e) Any amounts owing to MGR or a Party in accordance with Section 3.5(a), (b), (c) or (d) shall be settled among MGR and the Parties promptly. For avoidance of doubt, adjustments and other payments pursuant to this Section 3.5 shall not constitute adjustments of the Cash Consideration, Unit Consideration or GP Consideration.

(f) For a period of six months following the Closing Date, the Parties shall grant to each other full access to all relevant books and records and relevant personnel to allow each of them to confirm the payments made under this Section 3.5, but only to the extent the granting Party may do so without breaching any contractual restriction binding on such Party, provided that such Party will use commercially reasonable methods to have such restriction(s) waived for such purpose.

Section 3.6 Prorations. On the Closing Date, or as promptly as practicable following the Closing Date, but in no event later than 60 calendar days thereafter, the real and personal property taxes, water, gas, electricity and other utilities, local business or other license fees to the extent assigned and other similar periodic charges payable with respect to MGR or the MGR Assets (in each of the foregoing cases, to the extent the same constitute Operating Costs) shall be prorated between MGR, on the one hand, and the Contributing Parties, on the other hand, with the Contributing Parties being responsible for amounts related to the period up to but excluding the Accounting Time and MGR being responsible for amounts related to the period at and after the Accounting Time. If the final real property tax rate or final assessed value for the current tax year is not established by the Closing Date, the prorations shall be made on the basis of the rate or assessed value in effect for the preceding tax year and shall be adjusted when the exact amounts are determined. All such prorations shall be based upon the most recent available assessed value available prior to the Closing Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF ANADARKO AND THE CONTRIBUTING PARTIES

Anadarko and the Contributing Parties, jointly and severally, hereby represent and warrant to the Recipient Parties as follows:

Section 4.1 Organization. Each Contributing Party is an entity duly organized, validly existing and in good standing under the Laws of its state of organization and has all requisite entity power and authority to own the MGR Interest. MGR is a limited liability company duly organized, validly existing and in good standing under the Laws of its state of organization and has all requisite entity power and authority to own, operate and lease its assets and to carry on its business as now conducted, and is duly qualified to do business as a foreign entity in each jurisdiction where its assets are located or its business is conducted. To Contributing Parties’ Knowledge, Rendezvous is a limited liability company, duly organized, validly existing and in good standing under the Laws of its state of organization and has all requisite entity power and authority to own, operate and lease its assets and carry on its business as now conducted.

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Section 4.2 Authorization; Enforceability. Each Contributing Party has, as appropriate, full corporate or limited liability company power and authority to execute, deliver, and perform its obligations under this Agreement and any Contributing Party Ancillary Documents to which it is a party. The execution, delivery, and performance by each Contributing Party of this Agreement and the Contributing Party Ancillary Documents, and the consummation by such Contributing Party of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate or limited liability company action of the Contributing Parties. This Agreement has been duly executed and delivered by each Contributing Party and constitutes (and each Contributing Party Ancillary Document executed or to be executed by each Contributing Party has been, or when executed will be, duly executed and delivered by such Contributing Party and constitutes, or when executed and delivered will constitute), a valid and legally binding obligation of such Contributing Party, enforceable against it in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws affecting creditors’ rights and remedies generally and (ii) equitable principles which may limit the availability of certain equitable remedies (such as specific performance) in certain instances.

Section 4.3 No Conflicts. Subject to compliance with the Preference Rights and Transfer Requirements set forth in Schedule 4.4, the execution and delivery by each Contributing Party of this Agreement and the other Contributing Party Ancillary Documents to which it is a party, and the performance of its obligations hereunder and thereunder, do and will not, and the consummation of the transactions contemplated hereby and thereby will not, (i) violate, conflict with, or result in any breach of any provision of, or allow or give to others any right to exercise any rights or remedies under, such Contributing Party’s organizational documents or any material agreement or instrument to which it is a party or by which it is bound, or the MGR LLC Agreement, Rendezvous LLC Agreement or any other organizational document of MGR or Rendezvous, (ii) violate any Law applicable to any Contributing Party, the MGR Assets, MGR or Rendezvous, or (iii) violate, result in any breach of, or constitute a default under, or give to others any rights of termination, acceleration or cancellation of, or result in the creation of any Lien (other than a Permitted Lien) on any of the MGR Assets, the MGR Interest or the Rendezvous Interest pursuant to, the MGR Contracts or any other note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument relating to such assets or properties or by which any of such assets or properties is bound or affected, except (in the case of (iii) above) for (a) rights to consent by, required notices to, filings with, approval or authorizations of, or other actions by any Governmental Entity where the same are not required prior to the sale, assignment or contribution of such asset or are customarily obtained subsequent to the sale, assignment or contribution thereof, and (b) violations, breaches, defaults or Liens which would not, individually or in the aggregate, have a Material Adverse Effect.

Section 4.4 Preference Rights and Transfer Requirements. None of the MGR Assets, the MGR Interest, the Rendezvous Interest or any portion of any of them is subject to any Preference Right or Transfer Requirement which may be applicable to the transactions contemplated by this Agreement, except as set forth in Schedule 4.4.

Section 4.5 Litigation. Except as disclosed on Schedule 4.5, (i) there are no claims, demands, actions, suits, or proceedings (including condemnation, expropriation, or forfeiture proceedings) pending before any Governmental Entity or arbitrator (or, to the Contributing

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Parties’ Knowledge, threatened in writing) against a Contributing Party or any of its Affiliates, MGR, the MGR Assets, the MGR Interest, the Rendezvous Interest or, to the Contributing Parties’ Knowledge, Rendezvous or any of its assets, or the ownership or operation of any thereof (a) seeking to prevent the consummation of the transactions contemplated hereby, or (b) which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; (ii) no event has occurred nor does any circumstance exist that may give rise to, or serve as a basis for, the commencement of any proceeding described in the immediately foregoing clause (i); and (iii) there is no Order relating to the use or ownership of the MGR Assets, the MGR Interest, the Rendezvous Interest or, to the Contributing Parties’ Knowledge, Rendezvous or any of its assets, to which a Contributing Party, its Affiliates, or any of the MGR Assets, the MGR Interest, MGR, Rendezvous, any of its assets or the Rendezvous Interest is subject.

Section 4.6 Title.

(a) WGRAH has good and valid title to, holds of record and owns beneficially the MGR Interest free and clear of any Liens other than transfer restrictions imposed thereon by applicable securities Laws and as set forth on Schedule 4.6(a). MGR has good and valid title to, holds of record and owns beneficially the Rendezvous Interest free and clear of any Liens other than transfer restrictions imposed thereon by applicable securities Laws and as set forth on Schedule 4.6(a). With respect to MGR (and to the Contributing Parties’ Knowledge, with respect to Rendezvous), there are no outstanding options, warrants, rights or other securities convertible into or exchangeable or exercisable for Equity Interests of such entities, any other commitments or agreements providing for the issuance of additional Equity Interests or the repurchase or redemption of Equity Interests of such entities, and there are no agreements or rights of any kind which may obligate such entities to issue, purchase, redeem or otherwise acquire any of their Equity Interests, other than as expressly set forth in the MGR LLC Agreement or the Rendezvous LLC Agreement. Except as expressly set forth in the MGR LLC Agreement and the Rendezvous LLC Agreement (true, correct and complete copies of which have been provided to the Recipient Parties), there are no voting agreements, proxies or other similar agreements or understandings with respect to the Equity Interests of MGR or, to the Contributing Parties’ Knowledge, Rendezvous. The MGR Interest and, to the Contributing Parties’ Knowledge, the Rendezvous Interest, are duly authorized, validly issued and outstanding and fully paid, and were issued free of preemptive rights and in compliance with applicable Laws. Immediately after the Closing, the Recipient Parties will own, beneficially and of record, the MGR Interest. WGRAH is the sole member of MGR, has not resigned as such, and has taken no action, and no event has occurred and no circumstances exist, that would cause it to cease to be a member. As the sole member of MGR, WGRAH is in compliance with and has performed its obligations under the MGR LLC Agreement. As a member of Rendezvous, MGR is in compliance with and has performed its obligations under the Rendezvous LLC Agreement.

(b) Except as set forth on Schedule 4.6(b), MGR is the owner of valid and indefeasible easement rights, leasehold and/or fee ownership interests (including rights of way) in and to the lands on which are located any MGR Assets sufficient to enable MGR to use or operate the MGR Assets in substantially the same manner that the MGR Assets were used and operated by MGR immediately prior to the Closing Date. A true and

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complete list of all MGR Surface Contracts involving an annual payment in excess of $1 million is set forth on Schedule 4.6(b). The Contributing Parties have provided true, correct and complete copies of all material MGR Surface Contracts to the Recipient Parties. MGR has good and valid title in fee to all real property and interests in real property constituting part of the MGR Assets and purported to be owned in fee, and good and valid title to the leasehold estates in all other real property and interests in real property (including rights of way) constituting part of the MGR Assets, in each case except as would not have a Material Adverse Effect. MGR owns all such MGR Surface Contracts, real property and interests in real property free and clear of any Liens other than Permitted Liens. MGR has good and marketable title to all tangible personal property included in the MGR Assets, free and clear of all Liens other than Permitted Liens, other than tangible personal property owned on the date of this Agreement but subsequently sold or otherwise disposed of in the ordinary course of business consistent with prior practice.

(c) To the Contributing Parties’ Knowledge, (i) Rendezvous is the owner of valid and indefeasible easement rights, leasehold and/or fee ownership interests (including rights of way) in and to the lands on which are located any of its assets sufficient to enable Rendezvous to use or operate its assets in substantially the same manner that such assets were used and operated by Rendezvous immediately prior to the Closing Date; and (ii) Rendezvous has good and valid title in fee to all real property and interests in real property constituting part of its assets and purported to be owned in fee, and good and valid title to the leasehold estates in all other real property and interests in real property (including rights of way) constituting part of its assets, in each case except as would not have a Material Adverse Effect.

Section 4.7 Taxes and Assessments.

(a) MGR. Except as set forth on Schedule 4.7(a), with respect to MGR (and to the Contributing Parties’ Knowledge, with respect to Rendezvous) (i) all Tax Returns required to be filed have been duly filed on a timely basis with the appropriate Tax Authority, and are true, correct and complete in all material respects, (ii) all Taxes due and owing (whether or not shown as due on any Tax Returns) have been timely paid in full, (iii) there are no Liens on any of the assets of MGR or Rendezvous that arose in connection with any failure (or alleged failure) to pay any Tax, (iv) there is no claim, action, or proceeding pending by any applicable Tax Authority in connection with any Tax, (v) no Tax Returns are now under audit or examination by any Tax Authority, (vi) there are no agreements or waivers providing for an extension of time with respect to the filing of any Tax Returns or the assessment or collection of any such Tax, (vii) no written claim has been made by any Tax Authority in a jurisdiction where MGR or Rendezvous does not file a Tax Return that it is or may be subject to taxation in that jurisdiction, (viii) neither MGR nor Rendezvous is a party to any Tax-Sharing Agreement, or is otherwise liable for the Taxes of any other Person (including as a transferee or successor), (ix) no power of attorney that is currently in force has been granted with respect to any matter relating to Taxes that could affect MGR or Rendezvous, and (xi) neither MGR nor Rendezvous has, during any period for which the statute of limitations for any relevant Tax has not expired, participated in any listed transaction required to be disclosed under Treasury Regulation Section 1.6011-4.

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(b) Tax Classification. MGR is disregarded as an entity separate from its owner for federal income tax purposes, and Rendezvous is classified as a partnership for federal income tax purposes. The classification for federal income tax purposes of each of MGR and Rendezvous will not change after the Closing by reason of any action taken by any of the Contributing Parties on or before the Closing Date or by reason of any action taken on or before the Closing Date by any Person who was at the time such action was taken an Affiliate of any of the Contributing Parties.

(c) Qualifying Income. In the 12 month period ended December 31, 2010, more than 90% of the gross income (as determined for federal income tax purposes) of the businesses conducted by MGR was qualifying income, within the meaning of Section 7704(d) of the Code. The Contributing Parties expect that more than 90% of the gross income of the business that is to be conducted by MGR in 2011 will be such qualifying income, provided that no significant change occurs after the Closing Date with respect to the methods by which the MGR Assets generate revenue. No action has been taken, or is contemplated, by any Contributing Party or MGR that is expected to result in a significant change in the methods by which the MGR Assets generate revenue.

Section 4.8 Compliance With Laws. Except as set forth in Schedule 4.8, the MGR Assets, the MGR Interest and MGR (and to the Contributing Parties’ Knowledge, Rendezvous and its assets) are, and the ownership and operation of MGR, the MGR Interest and the MGR Assets (and to the Contributing Parties’ Knowledge, Rendezvous and its assets) are, in compliance with the provisions and requirements of all Laws of all Governmental Entities having jurisdiction with respect to MGR, the MGR Interest, the MGR Assets or Rendezvous or its assets, or the ownership, operation, development, maintenance, or use of any thereof, except where the failure to so comply would not have a Material Adverse Effect. Notwithstanding the foregoing, the Contributing Parties make no representation or warranty, express or implied, under this Section 4.8 relating to any Environmental Activity or Environmental Law, which are addressed in Section 4.9.

Section 4.9 Environmental Matters. To the Knowledge of the Contributing Parties, except as set forth on Schedule 4.9:

(a) The operations of MGR and Rendezvous are in compliance in all material respects with all Environmental Laws, which compliance includes the possession and maintenance of, and compliance with, all material Environmental Permits required under all applicable Environmental Laws;

(b) The Contributing Parties, MGR and Rendezvous have not caused or allowed the generation, use, treatment, manufacture, storage or disposal of any Hazardous Substance at, on or from the MGR Assets or the assets of Rendezvous, except in accordance with all applicable Environmental Laws;

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(c) None of the Contributing Parties, MGR or Rendezvous is the subject of any outstanding administrative or judicial order of judgment, agreement or arbitration award from any Governmental Entity under any Environmental Laws relating to the MGR Assets or the properties or assets of Rendezvous and requiring remediation or the payment of a fine or penalty; and

(d) None of the Contributing Parties, MGR or Rendezvous is subject to any action pending or threatened in writing, whether judicial or administrative, alleging noncompliance with Environmental Laws or any other environmental matter, including any Environmental Activity, relating to the MGR Assets or the properties or assets of Rendezvous.

Section 4.10 Brokers and Finders. No investment banker, broker, finder, financial advisor or other intermediary has been retained by or is authorized to act on behalf of any of the Contributing Parties or any Affiliate thereof who is entitled to receive from any Party or its Affiliates any fee or commission in connection with the transactions contemplated by this Agreement.

Section 4.11 Permits.

(a) Except as set forth in Schedule 4.11, MGR has obtained and is maintaining all permits, licenses, variances, exemptions, Orders, franchises, consents, registrations, authorizations, permissions and approvals of all Governmental Entities necessary or desirable for the lawful ownership, lease and operation of MGR and its business and assets (the “MGR Permits”), the loss of which would, individually or in the aggregate, have a Material Adverse Effect, in compliance with all Laws and the terms and conditions of such MGR Permits. Except as set forth in Schedule 4.11, no MGR Permits will be subject to suspension, modification, revocation or nonrenewal as a result of the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. All MGR Permits that are held in the name of any employee, officer, director, stockholder, agent or otherwise on behalf of MGR or the MGR Assets shall be deemed included under the warranty in this Section.

(b) To the Contributing Parties’ Knowledge and except as set forth in Schedule 4.11, Rendezvous has obtained and is maintaining all permits, licenses, variances, exemptions, Orders, franchises, consents, registrations, authorizations, permissions and approvals of all Governmental Entities necessary or desirable for the lawful ownership, lease and operation of Rendezvous and its business and assets (the “Rendezvous Permits”), the loss of which would, individually or in the aggregate, have a Material Adverse Effect, in compliance with all Laws and the terms and conditions of such Rendezvous Permits. To the Contributing Parties’ Knowledge and except as set forth in Schedule 4.11, no Rendezvous Permits will be subject to suspension, modification, revocation or nonrenewal as a result of the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.

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Section 4.12 Contracts.

(a) Schedule 4.12 sets forth a complete and accurate list of all material MGR Contracts other than the MGR Surface Contracts. The Contributing Parties have provided true, correct and complete copies of all material MGR Contracts to the Recipient Parties. None of MGR, any Contributing Party nor, to the Knowledge of the Contributing Parties, any other Person, is in default under any material MGR Contract except as disclosed on Schedule 4.12. Except as set forth in Schedule 4.12, each material MGR Contract (other than such Contracts with respect to which all performance and payment obligations have been fully performed or otherwise discharged by all parties thereto prior to the Closing) (i) is in full force and effect and (ii) represents the legal, valid and binding obligation of MGR or any applicable Contributing Party and, to the Knowledge of the Contributing Parties, the other parties thereto, in each case enforceable in accordance with its terms. Except as disclosed on Schedule 4.12, there are no material Contracts with Affiliates of a Contributing Party that will be binding on MGR or any of its assets after Closing. Except as set forth in Schedule 4.12, MGR is not, no Contributing Party is and, to the Knowledge of the Contributing Parties, no other party is in breach of any MGR Contract, no notice of default or breach has been received or delivered by MGR or any Contributing Party under any MGR Contract, the resolution of which is currently outstanding, and there are no current notices received by MGR or any Contributing Party of the exercise of any premature termination, price redetermination, market-out or curtailment of any MGR Contract.

(b) To the Contributing Parties’ Knowledge, and except as disclosed on Schedule 4.12, (i) all material Rendezvous Contracts are in full force and effect and are valid, binding and enforceable against the parties thereto in accordance with their terms, (ii) no Affiliate of a Contributing Party is party to a material Rendezvous Contract, and (iii) no party thereto is in default or has received any notice of default under any material Rendezvous Contract.

Section 4.13 Condition of Assets. There are no material structural defects relating to any of the MGR Assets or, to the Contributing Parties’ Knowledge, the assets of Rendezvous, and the MGR Assets (and to the Contributing Parties’ Knowledge, the assets of Rendezvous) are in good repair, working order and operating condition, ordinary wear and tear excepted, and are adequate for the operation of such assets consistent with past business practices. To the Knowledge of the Contributing Parties, all improvements to the real property owned or used in connection with the MGR Assets and the assets of Rendezvous do not encroach in any material respect on property of others (other than encroachments that would not materially impair the operations of such assets). There is no pending or, to the Knowledge of the Contributing Parties, threatened condemnation of any part of the MGR Assets or the assets of Rendezvous by any Governmental Entity which would have a material adverse effect on the ownership or operation of the MGR Assets or the assets of Rendezvous.

Section 4.14 Matters Relating to MGR. MGR owns no Equity Interest in any Person, is party to no contracts other than the MGR Contracts, has no material assets other than the MGR Assets described in Exhibits A, B and C, and has no material liabilities or obligations of any kind or character other than those set forth on Schedule 4.14, all of which arise out of its construction and/or ownership of the MGR Assets or status as a party to the MGR Contracts.

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Section 4.15 No Undisclosed Liabilities; Accuracy of Data.

(a) To the Knowledge of the Contributing Parties, all information that has been made available to the Recipient Parties and their representatives by any Contributing Party or any of their directors, partners, officers, employees, agents, advisors or representatives in connection with this negotiation and execution of this Agreement and the transactions contemplated hereby, is complete and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading in any material respect in light of the circumstances under which such statements were made.

(b) Schedule 4.15 sets forth all bonds, letters of credit and guarantees posted as of the date of this Agreement by MGR or any Contributing Party with any Governmental Entity or third Person relating to the MGR Assets or any assets of Rendezvous.

Section 4.16 Absence of Certain Changes. Since December 31, 2010, (i) the MGR Assets, MGR and Rendezvous have been operated only in the ordinary course of business consistent with past practices of the Contributing Parties, MGR and Rendezvous, (ii) there has not been any material damage, destruction or loss with respect to MGR the MGR Assets or Rendezvous or its assets, and (iii) except as disclosed on Schedule 4.16, none of MGR, the MGR Assets or Rendezvous have become subject to any material obligation or liability, other than those contained in approved budgets, true and complete copies of which have been delivered to the Recipient Parties, incurred in the ordinary course of business consistent with past practice since December 31, 2010, or otherwise permitted under this Agreement to be incurred between the date hereof and the Closing Date.

Section 4.17 Sufficiency of the Assets.

(a) The MGR Assets constitute all of the assets related to the ownership, use and operation of the Red Desert Complex and are sufficient to permit MGR to own and operate the Red Desert Gathering System and the Patrick Draw Plant in the manner the business represented thereby was conducted by MGR on the date of this Agreement and immediately prior to the Closing Date.

(b) Except as listed on Schedule 4.17, (i) there are no obligations under the terms of the instruments creating the possessory interests of MGR in the MGR Assets requiring the payment of any money to permit the continued use of the rights granted by such instruments and (ii) there are no provisions permitting the termination of any instrument creating the possessory interests of MGR in the MGR Assets prior to the abandonment of the improvements thereon established by the respective instruments or unless such termination is caused by the occurrence of an event of default under the terms of such instruments, in each case outside the ordinary course of business or that would have a Material Adverse Effect.

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Section 4.18 Regulatory Matters.

(a) Neither MGR nor Rendezvous is regulated as a “common carrier” under applicable Law;

(b) The assets of MGR and Rendezvous are intrastate pipelines and not currently subject to regulation by the United States Federal Energy Regulatory Commission; and

(c) No assets of MGR were acquired through the use or threatened use of eminent domain by MGR or a Contributing Party or, to the Knowledge of the Contributing Parties, by any other Person.

Section 4.19 Outstanding Capital Commitments. As of the date of this Agreement, there are no outstanding capital commitments or other expenditure commitments or budgets of MGR that will require any Contributing Party or Recipient Party to make capital contributions to MGR in excess of $500,000, and no outstanding capital commitments or other expenditure commitments or budgets of Rendezvous which will require the owner of the Rendezvous Interest to make capital contributions to Rendezvous, in either case other than those shown on Schedule 4.19.

Section 4.20 Insurance. Schedule 4.20 lists all insurance policies separately maintained by (or on behalf of) the Contributing Parties with respect to MGR, the MGR Assets and the MGR Interest.

Section 4.21 Employees; Labor Relations. MGR has no employees.

Section 4.22 Management Projections and Budgets. The projections and budgets provided to the Partnership (including those provided to Tudor, Pickering, Holt & Co., LLC (“TPH”), the financial advisor to the Special Committee), by the Contributing Parties as part of the Partnership’s review in connection with this Agreement have a reasonable basis and are consistent with the Contributing Parties’ management’s current expectations. The other financial and operational information provided by the Contributing Parties to TPH as part of its review of the proposed transaction for the Special Committee is complete and correct in all material respects for the periods covered, and is derived from and is consistent with the books and records of the Contributing Parties or MGR.

Section 4.23 Investment. The Contributing Parties (which for purposes of this Section include any Anadarko Entity designated by Anadarko to receive any portion of the Unit Consideration) are not acquiring the Unit Consideration with a view to or for sale in connection with any distribution thereof or any other security related thereto in violation of the Securities Act or any state securities Laws. The Contributing Parties are familiar with investments of the nature of the Unit Consideration, understand that this investment involves substantial risks, have adequately investigated the Partnership and the Unit Consideration, and have substantial knowledge and experience in financial and business matters such that they are capable of evaluating, and have evaluated, the merits and risks inherent in acquiring the Unit Consideration, and are able to bear the economic risks of such investment. The Contributing Parties have had the opportunity to visit with the Partnership and meet with its officers and other representatives to discuss the business, assets, liabilities, financial condition, and operations of the Partnership,

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have received all materials, documents and other information that the Contributing Parties deem necessary or advisable to evaluate the Partnership and the Unit Consideration, and have made their own independent examination, investigation, analysis and evaluation of the Partnership and the Unit Consideration, including their own estimate of the value of the Unit Consideration. The Contributing Parties have undertaken such due diligence (including a review of the properties, liabilities, books, records and contracts of the Partnership) as the Contributing Parties deem adequate. The Contributing Parties acknowledge that the common units constituting the Unit Consideration have not been registered under applicable federal and state securities laws and that the such common units may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is registered under applicable federal and state securities laws or pursuant to an exemption from registration under any federal or state securities laws, and that the certificates representing such common units will bear a legend to the foregoing effect.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE RECIPIENT PARTIES

The Recipient Parties, jointly and severally, hereby represent and warrant to the Contributing Parties as follows:

Section 5.1 Organization of Recipient. Each Recipient Party is an entity duly organized, validly existing and in good standing under the Laws of its state of organization, and has all requisite entity power and authority to own the MGR Interest.

Section 5.2 Authorization; Enforceability. Each Recipient Party, as appropriate, has full partnership or limited liability company power and authority to execute, deliver, and perform its obligations under this Agreement and any Recipient Party Ancillary Documents to which it is a party. The execution, delivery, and performance by each Recipient Party of this Agreement and the Recipient Party Ancillary Documents and the consummation by such Recipient Party of the transactions contemplated hereby and thereby, have been duly authorized by all necessary partnership or limited liability company action, as appropriate, of the Recipient Parties. This Agreement has been duly executed and delivered by each Recipient Party and constitutes (and each Recipient Party Ancillary Document executed or to be executed by each Recipient Party has been, or when executed will be, duly executed and delivered by such Recipient Party and constitutes), or when executed and delivered will constitute, a valid and legally binding obligation of the Recipient Party, enforceable against it in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar Laws affecting creditors’ rights and remedies generally and (ii) equitable principles which may limit the availability of certain equitable remedies (such as specific performance) in certain instances.

Section 5.3 No Conflicts. The execution and delivery by each Recipient Party of this Agreement and the other Recipient Party Ancillary Documents to which it is a party, and the performance of its obligations hereunder and thereunder, do not, and the consummation of the transactions contemplated hereby and thereby will not, (i) violate, conflict with, or result in any breach of any provision of such Recipient Party’s organizational documents or any agreement or instrument to which it is a party or by which it is bound, or (ii) violate any Law applicable to such Recipient Party, except in the case of (ii) above for violations which would not have a material adverse effect on such Recipient Party’s ability to consummate the transactions contemplated by this Agreement.

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Section 5.4 Litigation. Except as set forth in Schedule 5.4, there are no claims, demands, actions, suits, or proceedings pending before any Governmental Entity or arbitrator or, to the Recipient Parties’ Knowledge, threatened in writing against any Recipient Party or any of its Affiliates which are reasonably likely to impair materially the ability of the Recipient Parties to perform their obligations under this Agreement or the Recipient Party Ancillary Documents.

Section 5.5 Brokers’ Fees. Except for TPH, no investment banker, broker, finder, financial advisor or other intermediary has been retained by or is authorized to act on behalf of any of the Recipient Parties or any of their Affiliates who is entitled to receive from any Party or any of its Affiliates any fee or commission in connection with the transactions contemplated by this Agreement.

Section 5.6 Investment. The Recipient Parties are not acquiring the MGR Interest with a view to or for sale in connection with any distribution thereof in violation of the Securities Act or any state securities Laws. The Recipient Parties have such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of an investment in the MGR Interest. The Recipient Parties acknowledge that the MGR Interest has not been registered under applicable federal and state securities Laws and that the MGR Interest may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is registered under applicable federal and state securities Laws or pursuant to an exemption from registration under any federal or state securities Laws.

ARTICLE VI

COVENANTS

Section 6.1 Conduct of Business. Except as specifically provided in this Agreement or as expressly agreed to in writing by the Partnership, during the period from the date of this Agreement until the Closing, each Contributing Party shall cause (i) MGR to (A) own, operate and maintain the MGR Assets in all material respects according to its usual and ordinary course of business consistent with past practice, (B) conduct its operations in all material respects according to its usual and ordinary course of business consistent with its past practice and (C) preserve intact its assets and its current business organization and preserve its relationships with customers, suppliers, licensors, licensees, advertisers, distributors, shippers and others having business dealings with it, and (ii) MGR, with respect to Rendezvous and the Rendezvous Interest, except as prohibited by the Rendezvous LLC Agreement or the Rendezvous Administrative and Field Operations Agreement setting forth the obligations of MGR or the other owners of Rendezvous or except as would breach its duties to such other owners of Rendezvous, (A) to cause Rendezvous to conduct is operations in all material respects according to its usual and ordinary course of business consistent with its past practice and (B) to preserve intact the current business organization of Rendezvous and preserve Rendezvous’s relationships with customers, suppliers, licensors, licensees, advertisers, distributors, shippers and others having business dealings with it. Without limiting the generality of the foregoing, except as

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expressly provided in this Agreement or as expressly agreed to in writing by the Partnership, the Contributing Parties shall not agree to, promote, or vote or cause to be voted the MGR Interest or Rendezvous Interest in favor of, or, if it can prevent such actions, permit Rendezvous to, or permit MGR to:

(a) other than with respect to distributions made under the Rendezvous LLC Agreement in the ordinary course consistent with past practice, declare, set aside or pay any dividends, or make any distributions, in respect of its Equity Interests; or repurchase, redeem or otherwise acquire any such Equity Interests;

(b) merge into or with or consolidate with any other Person or acquire all or substantially all of the business or assets of any Person or other entity;

(d) purchase any securities of any Person, except short-term debt securities of governmental entities, or make any investment in any corporation, partnership, joint venture or other business enterprise;

(e) increase its indebtedness, or incur any obligation or liability, direct or indirect, other than the incurrence of liabilities pursuant to existing agreements in the ordinary course of business consistent with past practice;

(f) (i) issue or sell any membership interests or other Equity Interests, (ii) amend any of the terms of any such interests outstanding as of the date hereof, or (iii) admit any new members;

(g) adopt a plan of complete or partial liquidation or resolutions providing for or authorizing its liquidation, dissolution, recapitalization, restructuring, or other reorganization; or

(h) make any capital commitments or other expenditure commitments or change any budgets of MGR or Rendezvous which will require any Recipient Party to make any capital contributions to MGR or Rendezvous in respect of the MGR Interest or the Rendezvous Interest other than those shown on Schedule 4.19.

Section 6.2 Access. From the date of this Agreement until the Closing Date, each Contributing Party shall (and, as applicable, shall cause MGR to), upon reasonable advance notice by the Partnership, (i) provide each Recipient Party and its representatives reasonable access, during normal business hours, to the MGR Assets and MGR and (ii) furnish to each Recipient Party such documents and information in the possession or control of Contributing Parties concerning the MGR Assets, MGR, the MGR Interest, Rendezvous and the Rendezvous Interest, as the Partnership from time to time may reasonably request, but only to the extent that Contributing Parties may comply with the covenants in clause (i) and (ii) above without breaching any confidentiality obligation or other contractual restriction binding on any Contributing Party.

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Section 6.3 Additional Agreements. Subject to the terms and conditions of this Agreement, each of the Parties shall use its commercially reasonable efforts to do, or cause to be taken all action and to do, or cause to be done, all things necessary, proper, or advisable to consummate and make effective the transactions contemplated by this Agreement, including the fulfillment of the conditions set forth in Article VII, to the extent that the fulfillment of such conditions is within the control of such Party; provided, however, that in no event shall any Party or its Affiliates be required to divest any interest that they may have in any material assets or business.

Section 6.4 Replacement of Bonds, Letters of Credit and Guarantees. The Parties understand that none of the bonds, letters of credit or guarantees, if any, set forth on Schedule 4.15 posted by any Contributing Party with any Governmental Entity or third Person and relating to the MGR Interest are to be transferred to the Recipient Parties. The Recipient Parties shall use commercially reasonable efforts to obtain, or cause to be obtained in the name of a Recipient Party, replacements for such bonds, letters of credit and guarantees, and shall use commercially reasonable efforts to cause, effective on or promptly after the Closing, the cancellation or return to the Contributing Parties of such bonds, letters of credit and guarantees posted by such Contributing Party, but only to the extent such replacements are necessary or required under the MGR Contracts or by applicable Law.

Section 6.5 General Matters. The Recipient Parties shall use commercially reasonable efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement, including the Contributing Parties’ conditions to closing in Section 7.3. Anadarko and the Contributing Parties shall use commercially reasonable efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement, including the Recipient Parties’ conditions to closing in Section 7.2.

Section 6.6 MGR Interest and Rendezvous Interest Matters. Until the Closing, WGRAH will not resign as the sole member of MGR and MGR will not sell, transfer, assign or in any other manner reduce its ownership interest in Rendezvous.

Section 6.7 Required Consents. In the event any of the MGR Asset Required Consents have not been obtained, made or complied with as of the Closing, the Contributing Parties will, and will cause their Affiliates to, obtain, make or comply with promptly after the Closing any such MGR Asset Required Consents.

Section 6.8 Identified Compressors. Beginning at the Closing and until the Contributing Parties have fully complied with the last sentence of this Section 6.8, the Contributing Parties will use the Identified Compressors to provide compression services with respect to the MGR Assets in a manner substantially identical to that provided prior to the Closing. The Partnership will reimburse the Contributing Parties for all costs and expenses incurred in connection with providing such services to the extent that such costs and expenses are substantially similar (in both quantity and quality) to those incurred in the provision of such services prior to the Closing. The Parties acknowledge that the Identified Compressors are subject to certain restrictions on transfer. The Contributing Parties will remove all such transfer restrictions as soon as reasonably practicable following the Closing Date and in no event later

than March 31, 2012, and promptly after removing such transfer restrictions will assign the Identified Compressors to MGR (for no additional consideration).

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ARTICLE VII

CONDITIONS TO CLOSING

Section 7.1 Conditions to Each Party’s Obligation to Close. The obligations of the Parties to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

(a) No Restraint. No temporary restraining order, preliminary or permanent injunction or other Order issued by any Governmental Entity or other legal restraint or prohibition preventing the consummation of the transactions contemplated by this Agreement shall be in effect.

(b) Legality of Transactions. No action shall have been taken nor any Law enacted by any Governmental Entity that makes the consummation of the transactions contemplated by this Agreement illegal.

(c) Opinion of Financial Advisor to Special Committee. The Special Committee shall have received the opinion, in form and substance satisfactory to the Special Committee, of TPH, the financial advisor to the Special Committee, that the transactions contemplated by this Agreement are fair to the Partnership from a financial point of view, and such opinion shall not have been withdrawn.

Section 7.2 Conditions to the Recipient Parties’ Obligation to Close. The obligation of the Recipient Parties to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by the Partnership in its sole discretion), at or prior to the Closing, of each of the following conditions:

(a) Preference Rights and Transfer Requirements. With respect to each Preference Right, (i) each holder of such Preference Right has waived such Preference Right or (ii) the time in which such Preference Right may be exercised has expired and no suit, action or other proceeding has been initiated by a third party seeking to restrain, enjoin or otherwise prohibit the consummation of the transactions contemplated hereby in connection with a claim to enforce such Preference Right. All Transfer Requirements related to the MGR Interest have been complied with or otherwise satisfied.

(b) Representations and Warranties. The representations and warranties set forth in Article IV shall be true and correct in all material respects (other than representations and warranties that are already qualified as to materiality or Material Adverse Effect, which representations and warranties shall be true and correct in all respects) as of the Closing Date as though made on and as of the Closing Date, and the Recipient Parties shall have received a certificate to such effect signed on behalf of Anadarko and the Contributing Parties by an officer of Anadarko.

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(c) Performance of Obligations. The Contributing Parties shall have performed in all material respects (other than covenants and obligations that are already qualified as to materiality or Material Adverse Effect, which covenants and obligations shall have been performed in all respects) all covenants and obligations required to be performed by the Contributing Parties under this Agreement prior to or on the Closing Date, and the Recipient Parties shall have received a certificate to such effect signed on behalf of the Contributing Parties by an officer of Anadarko (such certificate, together with the certificate described in Section 7.2(b), the “Contributing Party Closing Certificate”).

(d) Contributing Party Ancillary Documents. The Contributing Parties shall have delivered, or caused to be delivered, to the Recipient Parties the Contributing Party Ancillary Documents required under Section 3.2.

(e) Indemnification Release. The parties to that certain Contribution Agreement, dated January 29, 2010 (the “Granger Contribution Agreement”), covering the contribution of the Granger gather system and treating and processing facilities to a subsidiary of the Partnership, shall have delivered, or caused to be delivered, an agreement releasing the Partnership from certain indemnification obligations arising under the Granger Contribution Agreement.

Section 7.3 Conditions to the Contributing Parties’ Obligation to Close. The obligation of the Contributing Parties to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by Anadarko), at or prior to the Closing, of each of the following conditions:

(a) Representations and Warranties. The representations and warranties of the Recipient Parties set forth in Article V shall be true and correct in all material respects (other than representations and warranties that are already qualified as to materiality or Material Adverse Effect, which representations and warranties shall be true and correct in all respects) as of the Closing Date as though made on and as of the Closing Date, and the Contributing Parties shall have received a certificate to such effect signed on behalf of the Recipient Parties by an officer of the General Partner.

(b) Performance of Obligations. The Recipient Parties shall have performed in all material respects (other than covenants and obligations that are already qualified as to materiality or Material Adverse Effect, which covenants and obligations shall have been performed in all respects) all covenants and obligations required to be performed by the Recipient Parties under this Agreement prior to or on the Closing Date, and the Contributing Parties shall have received a certificate to such effect signed on behalf of the Recipient Parties by an officer of the General Partner (such certificate, together with the certificate described in Section 7.3(a), the “Recipient Party Closing Certificate”).

(c) Recipient Party Ancillary Documents. The Recipient Parties shall have delivered, or caused to be delivered, to the Contributing Parties the Recipient Party Ancillary Documents required under Section 3.3.

(d) Delivery of Consideration. The Recipient Parties shall have delivered the Cash Consideration, the Unit Consideration and the GP Consideration in accordance with Section 3.3.

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ARTICLE VIII

TERMINATION

Section 8.1 Termination.

(a) Right to Terminate. This Agreement may be terminated and the transactions contemplated hereby abandoned at any time prior to the Closing:

(i) by mutual written consent of Anadarko and the Partnership;

(ii) by either Anadarko or the Partnership if the Closing has not occurred within 90 days of the date of this Agreement (the “Termination Date”); provided, however, that this right to terminate this Agreement shall not be available to any Party whose breach of this Agreement or whose Affiliate’s breach of this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date;

(iii) by either Anadarko or the Partnership if a Governmental Entity shall have issued an Order or taken any other action, in each case permanently restraining, enjoining, or otherwise prohibiting the transactions contemplated by this Agreement; or

(iv) by Anadarko in the event of a breach by any Recipient Party, or by the Partnership in the event of a breach by Anadarko or any Contributing Party, of any representation, warranty, covenant or other agreement contained in this Agreement which (A) would give rise to the failure of a condition set forth in Section 7.2(b), Section 7.2(c), Section 7.3(a) or Section 7.3(b), as applicable, and (B) cannot be or has not been cured by the earlier of (1) 20 days following receipt by the breaching party of written notice of such breach or (2) the Business Day immediately preceding the Termination Date.

(b) Effect of Investigation. The right of any Party to terminate this Agreement pursuant to this Section 8.1 shall remain operative and in full force and effect regardless of the actual or constructive knowledge of such Party regarding the subject matter giving rise to such right of termination.

Section 8.2 Effect of Termination. Upon termination of this Agreement pursuant to Section 8.1, the undertakings of the Parties set forth in this Agreement shall forthwith be of no further force and effect; provided, however, that no such termination shall relieve any Party of any intentional material breach of any term or provision hereof.

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ARTICLE IX

INDEMNIFICATION

Section 9.1 Survival.

(a) The representations and warranties in this Agreement shall survive the Closing until the applicable dates specified in Sections 9.1(b) and 9.1(c) and regardless of any inspection or investigation by or on behalf of the Recipient Parties or the Contributing Parties, respectively; provided that any representation or warranty with respect to which a claim for indemnification has been brought pursuant to this Article IX that is pending at the end of the applicable survival period shall continue to survive until the final resolution of such claim.

(b) The liability of Anadarko and the Contributing Parties for the breach of any of the representations and warranties of Anadarko and the Contributing Parties set forth in Article IV shall be limited to claims for which a Partnership Indemnified Party delivers written notice to Anadarko on or before 18 months after the Closing Date; provided, however, that (i) the representations and warranties in Section 4.9 shall be limited to claims for which a Partnership Indemnified Party delivers written notice to Anadarko on or before 24 months after the Closing Date; and (ii) the representations and warranties set forth in Sections 4.1, 4.2 and 4.7 shall not be limited as to time other than the applicable statute of limitations.

(c) The liability of the Recipient Parties for the breach of any of the representations and warranties of the Recipient Parties set forth in Article V shall be limited to claims for which an Anadarko Indemnified Party delivers written notice to the Partnership on or before 18 months after the Closing Date; provided, however, that the representations and warranties set forth in Sections 5.1 and 5.2 shall not be limited as to time other than the applicable statute of limitations.

Section 9.2 Indemnification of the Anadarko Indemnified Parties. Solely for the purpose of indemnification in this Section 9.2, the representations and warranties of the Recipient Parties in this Agreement shall be deemed to have been made without regard to any materiality or Material Adverse Effect qualifiers. The Partnership, from and after the Closing Date, shall indemnify and hold Anadarko and the Contributing Parties and their respective Affiliates (other than any of the Partnership Entities), shareholders, unitholders, members, directors, officers, employees, agents and representatives (together with Anadarko and the Contributing Parties, the “Anadarko Indemnified Parties”) harmless from and against any and all Losses, suffered or incurred by the Anadarko Indemnified Parties as a result of, caused by, arising out of, or in any way relating to (a) subject to Section 9.1, any breach of a representation or warranty of the Recipient Parties in this Agreement (which for this purpose is deemed not to include Exhibit D, Exhibit E or Exhibit F), and (b) any breach of any agreement or covenant on the part of the Recipient Parties in this Agreement.

Section 9.3 Indemnification of the Partnership Indemnified Parties. Solely for the purpose of indemnification in this Section 9.3, the representations and warranties of Anadarko and the Contributing Parties in this Agreement shall be deemed to have been made without

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regard to any materiality or Material Adverse Effect qualifiers. Anadarko shall indemnify and hold the Recipient Parties and their respective Affiliates (other than any of the Anadarko Entities), shareholders, unitholders, members, directors, officers, employees, agents and representatives (together with the Recipient Parties, the “Partnership Indemnified Parties”) harmless from and against any and all Losses suffered or incurred by the Partnership Indemnified Parties as a result of, caused by, arising out of, or in any way relating to:

(a) subject to Section 9.1, any breach of a representation or warranty of Anadarko or the Contributing Parties in this Agreement (which for this purpose is deemed not to include Exhibit D, Exhibit E or Exhibit F);

(b) any breach of any agreement or covenant on the part of Anadarko or the Contributing Parties in this Agreement;

(c) all Tax liabilities (i) attributable to the ownership or operation of the MGR Interest or Rendezvous Interest prior to the Closing Date or (ii) with respect to MGR or Rendezvous, arising under Treasury Regulation Section 1.1502-6 and any similar Law, by contract, as successor or transferee or otherwise and which Tax is attributable to having been a member of any consolidated, combined or unitary group prior to the Closing Date;

(d) the failure to obtain, make or comply with any MGR Asset Required Consents;

(e) the transfer of the ownership of MGT from MGR to WGRAH; or

(f) claims associated with the matter disclosed on Schedule 4.5 to this Agreement.

Section 9.4 Demands. The Indemnified Party agrees that within 30 days after it becomes aware of facts giving rise to a claim for indemnification pursuant to this Article IX, including receipt by it of notice of any demand, assertion, claim, action or proceeding, judicial or otherwise, by any third party (any such third party action being referred to herein as the “Indemnity Claim”), with respect to any matter as to which it claims to be entitled to indemnity under the provisions of this Agreement, it will provide notice thereof in writing to the Indemnifying Party specifying in reasonable detail the nature of and specific basis for such claim. Notwithstanding the foregoing, the Indemnified Party’s failure to provide notice under this Section 9.4 will not relieve the Indemnifying Party from the liability hereunder with respect to such matter except in the event and only to the extent that the Indemnifying Party is materially prejudiced by such failure or delay. Such notice shall include a formal demand for indemnification under this Agreement.

Section 9.5 Right to Contest and Defend. The Indemnifying Party shall be entitled at its cost and expense to contest and defend by all appropriate legal proceedings any Indemnity Claim with respect to which it is called upon to indemnify the Indemnified Party under the provisions of this Agreement; provided, that notice of the intention to so contest shall be delivered by the Indemnifying Party to the Indemnified Party within 20 days from the date of receipt by the Indemnifying Party of notice by the Indemnified Party of the assertion of the

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Indemnity Claim. Any such contest may be conducted in the name and on behalf of the Indemnifying Party or the Indemnified Party as may be appropriate. Such contest shall be conducted by reputable counsel (in the reasonable opinion of the Indemnifying Party) employed by the Indemnifying Party and not reasonably objected to by the Indemnified Party, but the Indemnified Party shall have the right but not the obligation to participate in such proceedings and to be represented by counsel of its own choosing at its sole cost and expense. The Indemnifying Party shall have full authority to determine all action to be taken with respect thereto; provided, however, that the Indemnifying Party will not have the authority to subject the Indemnified Party to any obligation whatsoever, other than the performance of purely ministerial tasks or obligations not involving material expense. If the Indemnifying Party does not elect to contest any such Indemnity Claim, the Indemnifying Party shall be bound by the result obtained with respect to such claim by the Indemnified Party. If the Indemnifying Party shall have assumed the defense of an Indemnity Claim, the Indemnified Party shall agree to any settlement, compromise or discharge of an Indemnity Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Indemnity Claim, which fully and completely releases the Indemnified Party in connection with such Indemnity Claim and which would not otherwise adversely affect the Indemnified Party.

Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to assume the defense of any Indemnity Claim (and shall be liable for the reasonable fees and expenses of counsel incurred by the Indemnified Party in defending such Indemnity Claim) if the Indemnity Claim seeks an order, injunction or other equitable relief or relief for other than money damages against the Indemnified Party which the Indemnified Party reasonably determines, upon the advice of outside counsel, cannot be separated from any related claim for money damages. If such equitable relief or other relief portion of the Indemnity Claim can be so separated from that for money damages, the Indemnifying Party shall be entitled to assume the defense of the portion relating to money damages.

Section 9.6 Cooperation. The Indemnified Party agrees to cooperate with the Indemnifying Party with respect to all aspects of the defense of any Indemnity Claims covered by the indemnification set forth in this Article IX, including the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the names of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party reasonably considers relevant to such defense and the making available to the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records and other information furnished by the Indemnified Party pursuant to this Section 9.6, unless otherwise required by Law or the listing standards of the New York Stock Exchange or any other applicable exchange or quotation system. In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article IX; provided, however, that the Indemnified Party may, at its own option, cost and

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expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party reasonably informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense to the extent provided above.

Section 9.7 Payment of Losses. The indemnification required hereunder shall be made by monthly payments of the amount thereof during the course of the investigation or defense, within 30 days as and when reasonably specific bills are received or Loss is incurred and reasonable evidence thereof is delivered. In calculating any amount to be paid by an Indemnifying Party by reason of the indemnification provisions of this Agreement, the amount to be paid shall be reduced by (i) any insurance proceeds related to indemnified Losses realized by the Indemnified Party and (ii) any amounts related to indemnified Losses recovered by the Indemnified Party under contractual indemnities from third parties.

Section 9.8 Limitations on Indemnification.

(a) To the extent the Partnership Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.3(a) (other than for Losses related to a breach of the representations and warranties in Section 4.6), Anadarko shall not be liable for those Losses unless the aggregate amount of Losses exceeds 1% of the sum of (i) the Cash Consideration, plus (ii) the dollar value of the Unit Consideration on the Closing Date, plus (iii) the dollar value of the GP Consideration on the Closing Date (with each general partner unit being deemed for this purpose to have the same value as a common unit) (the sum of (i), (ii) and (iii) being the “Aggregate Consideration”) (the “Deductible”), and then only to the extent of any such excess.

(b) In addition, to the extent the Partnership Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.3(a), Anadarko shall not be liable for such Losses that exceed, in the aggregate, 25% of the Aggregate Consideration less the Deductible.

(c) Notwithstanding Section 9.8(a) and (b), to the extent the Partnership Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.3(b), 9.3(c), 9.3(d), 9.3(e), or 9.3(f) or for claims arising from fraud, Anadarko shall be fully liable for such Losses without respect to the Deductible in Section 9.8(a) and the limitations in Section 9.8(b).

(d) To the extent the Anadarko Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.2(a), the Partnership shall not be liable for those Losses unless the aggregate amount of Losses exceeds, in the aggregate, the Deductible, and then only to the extent of any such excess. In addition, to the extent the Anadarko Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.2(a), the Partnership shall not be liable for such Losses that exceed, in the aggregate, 10% of the Aggregate Consideration less the Deductible.

(e) Notwithstanding Section 9.8(d), to the extent the Anadarko Indemnified Parties are entitled to indemnification for Losses pursuant to Section 9.2(b) or for claims arising from fraud, the Partnership shall be fully liable for such Losses without respect to the Deductible and the limitations in Section 9.8(d).

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Section 9.9 Sole Remedy. Notwithstanding anything herein to the contrary, after the Closing, this Article IX contains the Anadarko Indemnified Parties’ and the Partnership Indemnified Parties’ exclusive remedy against each other with respect to breaches of the representations, warranties, covenants and agreements of the Parties contained in Article IV and Article V and in the covenants in this Agreement to be performed prior to the Closing, in each case other than claims or causes of action arising from fraud. All references in this Article IX to such breaches of such representations, warranties, covenants and agreements include any affirmation of such representations, warranties, covenants and agreements contained in the certificates delivered at Closing by the Contributing Parties pursuant to Section 3.2(b) or by the Recipient Parties pursuant to Section 3.3(e).

Section 9.10 Express Negligence Rule. THE INDEMNIFICATION PROVISIONS PROVIDED FOR IN THIS AGREEMENT HAVE BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL, ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANY INDEMNIFIED PARTY. ANADARKO AND THE CONTRIBUTING PARTIES AND THE RECIPIENT PARTIES ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE. NOTICE IN THIS CONSPICUOUS NOTICE IS NOT INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF ANADARKO AND THE PARTIES, ALL OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT.

ARTICLE X

ADDITIONAL AGREEMENTS

Section 10.1 Further Assurances. The Contributing Parties hereby agree that, from time to time, at the request of a Recipient Party and without further consideration, they will execute and deliver to the Recipient Parties such other deeds, bills of sale, instruments of conveyance, assignment and transfer, and notices, affidavits and acknowledgements, and take such action as the Recipient Parties may reasonably require to effectively convey, transfer, and assign to the Recipient Parties, and to put the Recipient Parties in possession of the MGR Interest. After the Closing, each Party shall take such further actions, including obtaining consents to assignment from third parties, and execute such further documents as may be necessary or reasonably requested by the other Parties in order to effectuate the intent of this Agreement and the Ancillary Documents and to provide such other Parties with the intended benefits of this Agreement and the Ancillary Documents.

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ARTICLE XI

MISCELLANEOUS

Section 11.1 Expenses. Except as provided in Section 3.4, or as provided in the Ancillary Documents, regardless of whether the transactions contemplated in this Agreement occur, all costs and expenses incurred by the Parties in connection with the consummation of the transactions contemplated hereby shall be borne solely and entirely by the Party which has incurred such cost or expense.

Section 11.2 Notices. Any notice or other communication to be given under this Agreement by any Party to another shall be in writing and shall be (i) delivered personally, (ii) sent by courier service requiring acknowledgement of receipt, or (iii) sent by facsimile transmission. Notice given by personal delivery or courier shall be effective upon actual receipt. Notice given by facsimile transmission shall be confirmed by appropriate answer-back, and shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next Business Day after receipt if not received during the recipient’s normal business hours. Notices or other communications shall be directed to the following addresses:

Notices to Anadarko:

Anadarko Petroleum Corporation

1201 Lake Robbins Drive

The Woodlands, Texas 77380

Attention: Senior Vice President, General Counsel

and Chief Administrative Officer