Saddle Butte Pipeline, LLC, by and through its wholly-owned subsidiary High Prairie Pipeline, LLC, launched a binding Open Season to solicit capacity commitments from shippers on the new High Prairie Pipeline, a project to increase crude oil pipeline takeaway capacity in the Williston Basin of North Dakota to a key pipeline market hub in Minnesota.
The High Prairie Pipeline consists of a nearly 450-mile, 16-inch diameter interstate crude oil pipeline beginning north of Alexander, N.D. in McKenzie County and terminating near Clearbrook, Minn. in Clearwater County and two lateral pipelines: a nearly 17-mile lateral originating at Johnsons Corner, N.D. in McKenzie County and connecting with the High Prairie Pipeline and an approximately 8-mile lateral beginning near Robinson Lake, N.D. in Mountrail County and connecting with the High Prairie Pipeline.
The Project also includes the following facilities:
- Distinct pipeline interconnects with Enbridge Pipelines Inc. and Minnesota Pipe Line Company, LLC will be established at or near Clearbrook, Minn.
- High Prairie has signed a letter of intent with a third party transloading company to develop a rail loading terminal near Clearbrook with an initial capacity of 120,000 barrels per day (bpd) of delivery capacity to Eastern, Midwest and Gulf Coast markets.
- In addition to its previously announced operational storage, High Prairie is developing significant long-term storage facilities at or near Clearbrook.
- Crude oil truck receiving stations are being considered for Alexander, N.D., Johnsons Corner, N.D. and New Town, N.D. locations.
- Lastly, High Prairie will establish a backhaul service for shippers which will enable crude oil to flow east to west between established receipt and delivery points. The backhaul service will be provided on a hydraulically available basis
The new pipeline will increase crude oil pipeline takeaway capacity by 150,000 barrels per day (bpd) and has an anticipated in-service date of fourth quarter 2013, subject to regulatory approvals and sufficient long-term commitments from shippers.
The binding Open Season began at 5:00 p.m. MST on Tuesday, February 14, 2012 and ends at 5:00 p.m. MDT on Thursday, April 5, 2012. |