Medallion Pipeline launches binding Open Season for Wolfcamp and Howard Expansions
Irving, Texas – May 16, 2017 — Medallion Pipeline Company, LLC (Medallion), a subsidiary of Medallion Midstream LLC, today announced a binding open season to solicit long-term firm shipper commitments for a major expansion of its existing crude oil pipeline system in the Midland Basin (the “Expansion”). The Expansion will consist of two parts: the Wolfcamp Expansion, which will nearly double the capacity of Medallion’s existing Wolfcamp Connector mainline; and the Howard Expansion, which will increase the capacity of the existing Howard Lateral. Through these projects Medallion will provide much-needed capacity to transport crude oil produced in the Midland Basin to downstream pipelines and markets. The open season begins on Monday, May 16, 2017 and ends at 5:00 pm CDT Friday, June 9, 2017.
The Wolfcamp Expansion consists of a 16-inch partial loop of the Wolfcamp Connector mainline in Howard, Glasscock, Mitchell and Scurry counties, Texas. The Wolfcamp Expansion will commence at the existing Howard-Wolfcamp Interconnect and extend 47 miles to the Colorado City Hub, where Medallion interconnects with several third-party carriers. The Wolfcamp Expansion will increase the existing capacity on the Wolfcamp Connector mainline from 105,000 barrels per day to 200,000 barrels per day and provide firm shippers on the Wolfcamp Connector with multiple options for the receipt and delivery of crude oil.
To further address the needs of producers and marketers in the Midland Basin, Medallion will also expand the capacity of the existing Howard Lateral in Glasscock and Howard counties, Texas. The Howard Expansion will increase the existing 60,000-barrel-per-day capacity of the Howard Lateral, through the addition of pumping horsepower, to 85,000 barrels per day. Due to the bi-directional capabilities of the Howard Lateral, firm shippers on the Howard Expansion will have the flexibility to transport crude oil on several transportation paths.
The open season provides an opportunity for interested shippers to acquire long-term firm capacity, under minimum 10-year term Transportation Services Agreements and other eligibility requirements, as a committed firm shipper on either the Wolfcamp Expansion, the Howard Lateral, or both. The open season will also provide existing firm shippers on the Wolfcamp Connector the option to amend their existing Transportation Services Agreements to obtain the lower Wolfcamp Expansion firm rate in return for an extension of the primary term of the Transportation Services Agreement commensurate with the minimum term required on the Wolfcamp Expansion. The Expansion is expected to commence partial commercial operations in the third quarter of 2017 and full commercial operations in the fourth quarter of 2017.
OPEN SEASON PROCESS
The open season begins on Monday, May 16, 2017 and ends at 5:00 pm CDT Friday, June 9, 2017. All bids must be submitted to Medallion during the open season. Bona fide prospective shippers may obtain copies of the Transportation Services Agreement, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission tariffs by contacting the Medallion representative listed below. Medallion requires a prospective shipper to execute a Confidentiality Agreement prior to delivery of these documents. More information concerning the Expansion and the binding open season is available on the Medallion website www.medallionmidstream.com or by contacting the Medallion representative listed below.
About Medallion Midstream, LLC
Medallion Midstream is an Irving, Texas based full services midstream provider specializing in the design, construction and operation of natural gas and crude oil infrastructure. Medallion delivers responsive, reliable and comprehensive services and solutions for its customers. Medallion is a portfolio company of The Energy & Minerals Group. To learn more about Medallion, please visit www.medallionmidstream.com.
About The Energy & Minerals Group
The Energy & Minerals Group (EMG) is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $16.0 billion of regulatory assets under management and approximately $10.4 billion in commitments have been allocated across the energy sector since inception.
Open Season Inquiries
Medallion Pipeline Company, LLC
222 West Las Colinas Blvd., Suite 1140E
Irving, Texas 75039