Medallion Pipeline Launches Binding Open Season – Santa Rita Lateral Crude Oil Pipeline/Reagan Expansion

February 11, 2015
Medallion Midstream

Medallion Pipeline Company, LLC (“Medallion”), a subsidiary of Medallion Midstream LLC, today announced a binding Open Season which solicits long-term commitments from shippers for firm transportation capacity on the second major expansion of Medallion’s existing crude oil pipeline system.  With the first expansion of the system nearing completion, the current project proposed by the Open Season will further extend and expand the geographic scope of the existing 200-mile, 95,000 barrel per day system:

  • The “Santa Rita Lateral” is a proposed 65,000 barrel per day, 10-inch and 8-inch diameter crude oil pipeline which, along with smaller diameter pipeline, will extend approximately 55 miles to the southwest from Medallion’s existing Reagan Station in Reagan County, Texas, to production areas in southwestern, central, and northeastern Reagan County.
  • An integral part of the overall project is a proposed 30,000 barrel per day (or more, depending upon shipper commitments) expansion of Medallion’s existing 10-inch diameter Reagan Gathering Extension, which originates at the Reagan Station and extends approximately 55 miles north to the Garden City Station in Glasscock County, Texas (“Reagan Expansion”).

Medallion is conducting the binding Open Season to obtain long-term volume commitments for firm transportation capacity on the Santa Rita Lateral and Reagan Expansion (referred to as the “Expansion Project”).  The Open Season provides an opportunity for interested shippers to acquire long-term firm capacity, under minimum 10-year term Transportation Service Agreements and other eligibility requirements, as a Committed Firm Shipper on the Expansion Project.  The Expansion Project is expected to commence full commercial operations in the second quarter of 2015, although certain initial segments of the proposed project may commence service on an interim basis as early as March 1, 2015.