Palisade Pipeline LLC announced on Aug. 24 it is running a non-binding open season on its Rail Runner produced water pipeline system, according to a recent company press release.

The open season system will allow producers and midstream operators the opportunity to enter into long-term contracts for the Rail Runner pipeline, beginning Aug. 24 and ending Oct. 7, 2022.

The pipeline will serve as a water distribution system for reuse in fields along the route as it transports water from the norther Delaware Basin to saltwater disposal well systems in Texas.

Comprised of 97 miles of easements, the pipeline is to be constructed along Highway 18 in the Watco Railroad right-of-way, stretching from Lea County, N.M., to Winkler County, Texas.

The project has been approved to move about 500,000 bbl/d of produced water, with a current available disposable volume of 150,000 bbl/d and is expected to grow its capacity up to 500,000 bbl/d.

Macquarie Capital will continue providing development and construction capital to Palisade.