Medallion Pipeline launches binding open season for Midland County system

Midland Lateral will transport 25,000 b/d from Midland Hub to Garden City Station and 90,000 b/d from Garden City to Midland Hub

Medallion Pipeline Company, LLC announced yesterday a binding open season to solicit long-term commitments from shippers for firm transportation capacity on the fifth major expansion of Medallion’s existing crude oil pipeline system.

With the addition of the current project proposed by the open season, and two other projects proposed in two successful preceding open seasons in Feb., Medallion’s operations will consist of approximately 380 miles of pipeline facilities providing shippers with significant flexibility to move crude oil production in the region to multiple markets via multiple transportation routes:

• The “Martin Lateral” is a proposed 25,000 b/d crude oil pipeline, which will aggregate crude oil from multiple points of origin in Martin County, Texas and extend in a southeasterly direction to a point of destination at the new Midland Hub in Midland County, Texas.
• The “Midland Lateral” is a proposed bi-directional crude oil pipeline, which will commence at the interconnection with the Martin Lateral at the Midland Hub and extend in a southeasterly direction to the existing Garden City Station where it interconnects with Medallion Pipeline’s existing Wolfcamp Connector mainline, the Reagan Gathering Extension, and the Midkiff Lateral, as expanded and extended. The Midland Lateral is proposed to be capable of transporting 25,000 barrels of crude oil per day from the Midland Hub to the Garden City Station and 90,000 b/d from the Garden City Station to the Midland Hub.

Medallion is conducting the binding Open Season to obtain long-term volume commitments for firm transportation capacity on the Martin Lateral and the Midland Lateral (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 Committed Firm Shippers on the Expansion Project.

The Expansion Project is expected to commence full commercial operations in the third quarter of 2016, although certain segments of the Expansion Project may commence service on an interim basis on an earlier date.

Open Season Process

The Open Season began on Monday, April 18, 2016 and ends on Wednesday, May 11, 2016. All bids must be submitted to the Medallion representative listed below by 5:00 pm Central Daylight Time on or before May 11, 2016.

Bona fide prospective Shippers may obtain copies of the Transportation Service Agreement, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission Tariffs, by contacting Medallion.