Rangeland Energy Executes Additional Connection Agreements for Gathering Systems connected to the COLT Hub
Sugar Land, TX - August 8, 2012 - Rangeland Energy, LLC announced today that the company has executed a connection agreement with Bear Tracker Energy, LLC (BTE), for receiving crude oil volumes via a crude oil gathering pipeline at COLT, Rangeland’s crude oil loading terminal in Williams County, North Dakota. BTE, a midstream energy company, recently announced the signing of definitive agreements with Kodiak Oil & Gas Corp. (NYSE: KOG), an oil and gas exploration and production company with primary assets in the Williston Basin of North Dakota. BTE will construct, own, and operate crude oil gathering systems in Williams County, North Dakota. Under terms of the agreement, crude oil from Kodiak’s Polar area will be dedicated to BTE’s gathering facilities. BTE will gather and deliver crude oil to Rangeland Energy’s COLT Hub Terminal in Epping, ND, providing Kodiak with access to over 720,000 barrels of crude oil storage, multiple downstream crude oil markets via pipeline and up to 120,000 barrels of unit train take-away capacity. Construction of the gathering systems will commence in September of 2012 with deliveries estimated to start in the first quarter of 2013.
Rangeland also announced that it has recently put into service the previously executed connection agreement with the Hiland Crude Market Center crude oil gathering system as well as the Tesoro High Plains Pipeline, bring the total number of pipeline connected gathering systems to three in addition to the outbound connection with Enbridge at Dry Fork/Beaver Lodge.
Known as the COLT Hub and the COLT Connector, Rangeland’s terminal and pipeline facilities were placed in service in early May 2012. Strategically located in the heart of the prolific Bakken and Three Forks shale oil producing areas, the COLT system provides producers, marketers and refiners with the largest open-access crude oil marketing hub in North Dakota and has aggregate contracted volume commitments in excess of 135,000 barrels per day.
Construction of the COLT Hub began in May 2011. With six 120,000-barrel storage tanks and two 8,700-foot rail loops, COLT will accommodate large 120-car unit trains and will be capable of moving more than 120,000 barrels per day by rail. The COLT Connecter, a 21-mile, 10-inch bi-directional pipeline connects the COLT Hub to the Rangeland Terminal at Dry Fork (Beaver Lodge/Ramberg junction) and will be capable of transporting an additional 70,000 barrels per day by pipeline.
”Rangeland is looking forward to working with BTE and this connection provides yet another reliable source of pipeline connected volumes for our customers. With four large crude oil refiners/marketers as customers, along with upstream and downstream connectivity by pipeline and rail, the COLT Hub has created a point of liquidity for Bakken crude oil production” said Christopher W. Keene, Rangeland president and CEO. “ This connection further positions COLT to continue growing with the industry in the Bakken.”
About Rangeland Energy, LLC
Headquartered in Sugar Land, Texas, Rangeland Energy, LLC was formed in 2009 to focus on developing, acquiring, owning and operating infrastructure for crude oil, natural gas and natural gas liquids. The company’s primary focus has been in North Dakota and other growing oil and gas shale producing areas. The Rangeland team represents more than 100 years of combined midstream experience and is backed by an equity commitment from EnCap Flatrock Midstream. For more information please visit www.rgldenergy.com.