Medallion Announces Successful Close of Open Season for Wolfcamp Connector & Reagan Gathering Extension
Medallion Pipeline Company, LLC (“Medallion”), a subsidiary of Medallion Midstream LLC, today announced the successful closing of the binding open season for its proposed crude oil pipeline, (the “Wolfcamp Connector”), as well as for the southward extension of the proposed pipeline, (the “Reagan Gathering Extension”). As previously announced, the binding open season for the Wolfcamp Connector and the then-proposed Reagan County Extension commenced on October 29, 2013; was supplemented on January 24, 2014 to reflect the modified route, configuration, and operations of the Reagan Gathering Extension (to replace the originally proposed Reagan County Extension); and, as supplemented and extended, closed on February 3, 2014.
Based on the binding capacity bids received from prospective shippers during the open season, Medallion has executed long-term Transportation Service Agreements which, in the aggregate, provide more than sufficient capacity commitments to move forward with the construction of both the Wolfcamp Connector and the Reagan Gathering Extension on a schedule that is expected to place both pipelines in-service by the 4th quarter 2014.
Medallion’s combined crude oil gathering system will extend approximately 112 miles through the Midland Basin, and will initially be capable of receiving and transporting up to 65,000 barrels per day of crude oil for delivery to take away pipelines at the Colorado City hub accessing both Cushing and Gulf Coast markets via existing and new major crude oil take away pipelines, including the proposed BridgeTex Pipeline. With the installation of mid-point pump stations the Wolfcamp Connector is expandable to approximately 100,000 barrels per day of capacity.
“The Wolfcamp Connector represents the next step in Medallion’s previously announced plan to provide fully integrated services to our customers in the fast growing Midland Basin“, said Randy Lentz, CEO of Medallion. “We are excited to be providing infrastructure that is crucial to the development of our customer’s oil and gas reserves”.