SCM Crude, a wholly-owned subsidiary of Salt Creek Midstream LLC, launched a binding open season on Aug. 2 to solicit binding commitments for priority (firm) crude oil interstate gathering and transportation service on its proposed Delaware Basin crude oil gathering and transportation system in the Permian.
The crude oil gathering and transportation project will be constructed and operated by SCM across multiple segments spanning from various tank battery receipt points in Eddy and Lea Counties, N.M., to SCM’s Wink Terminal and Orla Terminal, with interconnects to certain takeaway pipelines, including pipelines with direct, long-haul transportation to the Midland, Texas area and the Corpus Christi, Texas area.
This open season provides an opportunity for shippers to demonstrate support for the project by making acreage dedications for priority service, thereby becoming priority shippers for the term of their crude oil gathering agreements. The final volume of capacity of the project will be determined by SCM, in part based on the results of this open season.
Open Season Process
The binding open season begins at 8 a.m. CDT Aug. 2, and ends at 5 p.m. CDT Aug. 31. All bids must be submitted during the open season. SCM reserves the right to extend, modify, or cancel the open season period as participation in the open season requires and as determined by SCM. For more information about the project and open season documents, contact SCM’s senior vice president of midstream business development, Paul Williams at firstname.lastname@example.org.