Medallion Launches Binding Open Season – Wolfcamp Connector & Reagan County Extension
Medallion Pipeline Company, LLC (“Medallion”), a subsidiary of Medallion Midstream LLC, today announced a binding open season to solicit long-term commitments from shippers for capacity on a new crude oil pipeline (the “Wolfcamp Connector”) originating at a new station (the “Garden City Station”) near Garden City in Glasscock County, Texas and extending approximately 60 miles north to the Colorado City hub in Scurry County, Texas. The Wolfcamp Connector will be a beneficial new outlet for shippers seeking transportation services for crude oil production in Glasscock, Howard, Irion, Reagan, and Sterling Counties. As proposed, the Wolfcamp Connector will be capable of receiving and transporting up to 65,000 barrels per day for delivery to take away pipelines at the Colorado City hub, including the proposed BridgeTex Pipeline. At least one anchor shipper has committed to long-term capacity on the proposed project, subject to the acceptance of its bid for capacity in the binding open season.
In addition, based on discussions with certain other potential anchor shippers, Medallion is considering a southward extension of the Wolfcamp Connector from the Garden City Station, approximately 40 miles into southern Reagan County (the “Reagan County Extension”), depending upon the level of binding commitments received during the Open Season. As proposed, the Reagan County Extension will be capable of receiving and transporting up to 40,000 barrels per day to the Garden City Station interconnection with the Wolfcamp Connector for delivery to the Colorado City hub.
Medallion is conducting the binding Open Season to obtain long-term volume commitments for the Wolfcamp Connector and the Reagan County Extension. The Open Season provides an opportunity for interested shippers to acquire long term firm capacity, under either 7 year or 10 year transportation service agreements, as a Committed Firm Shipper or non-firm capacity as a Committed Non-Firm Shipper, both of which will have rights not available to Uncommitted Shippers. The Wolfcamp Connector is expected to be in service in the third quarter of 2014, while the Reagan County Extension is expected to be in service in the 4th quarter of 2014.