Oil Boom Creates Infrastructure Needs

February 2011
The American Oil & Gas Reporter

Sugarland, Tx.-based Rangeland Energy LLC plans to provide producers with an open-access crude oil marketing hub in North Dakota, says Chief Executive Officer Christopher Keene. The company’s planned COLT Hub in Williams County and the COLT Connector line are expected to be in service by December 2011, he says.

“We felt that an open-access marketing hub did not really exist in North Dakota to the extent that it does in other crude oil- producing areas,” Keene explains. “Crude oil supplies eventually revolve around ter- minals that are hubs and provide industry players with options, which is key.”

The COLT Hub will collect oil from Williams and neighboring counties through trucks and gathering systems, provide han- dling and on-site tank storage, and provide access to multiple downstream markets through the COLT Connector and railcar loading facilities, Keene details. Served by BNSF Railway, the COLT Hub will load both unit-train and manifest shipments of crude oil to markets throughout North America, including oil receiving terminals along the Gulf Coast.

More than 90 percent of Bakken crude is trucked from leases, giving Rangeland and others opportunities to capitalize on demand for gathering systems to terminals, Keene goes on. “We will build this hub, aggregate supply, provide market access, and expand our footprint upstream by building gathering lines and expanding pipeline and rail access on the downstream side to grow the hub,” he delineates, pointing out that initial capacity is 100,000 bb/d, including 40,000 bbl/d by pipeline and 60,000 bbl/d shipped by rail.

EnCap Investments is providing initial development funding, and Keene says that the overall price tag for all gathering systems, the COLT Hub and the COLT Connector could eventually exceed $100 million.

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