High Prairie Pipeline LLC, a subsidiary of Durango, Colo.-based Saddle Butte Pipeline LLC, has announced an extension for the binding open season to solicit capacity commitments from shippers on the High Prairie Pipeline. The open season, which began on Feb. 14 and was originally scheduled to close on March 16, will now close on April 5.
The approximate 450-mile, 16-inch diameter pipeline would begin north of Alexander, N.D. in McKenzie County and end near Clearbrook, Minn. in Clearwater County. High Prairie is also proposing to construct two laterals: a 17-mile lateral originating at Johnsons Corner, N.D. in McKenzie County and connecting with the High Prairie Pipeline and an eight-mile lateral beginning near Robinson Lake, N.D. in Mountrail County and connecting with the High Prairie Pipeline. The anticipated in-service date is the fourth quarter of 2013.
Additionally, High Prairie has further defined and expanded the project to include the following facilities: First, distinct pipeline interconnects with Enbridge Pipelines Inc. and Minnesota Pipe Line Company, LLC will be established at or near Clearbrook, Minn. Second, 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 of delivery capacity to Eastern, Midwest and Gulf Coast markets. Third, in addition to its previously announced operational storage, High Prairie is developing significant long-term storage facilities at or near Clearbrook. Fourth, 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 Open Season has received a great deal of interest from shippers, and at the request of several prospective shippers we are extending the deadline to provide additional opportunity for them to contract for capacity on the High Prairie Pipeline," says John Earley, President and CEO of Saddle Butte. "This project will provide much needed firm capacity from the producing regions of the Bakken to major markets across the country in a timely manner, thereby maximizing value for shippers."
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