Rangeland Energy Executes Additional Contracts for COLT Hub in North Dakota's Bakken Shale
Sugar Land, TX - April 25, 2012 - Rangeland Energy, LLC announced today that the company has executed a long-term agreement with U.S. Oil Trading LLC, a subsidiary of Astra Oil Trading N.V., for handling material crude oil volumes at COLT, Rangeland’s crude oil loading terminal in Williams County, North Dakota. Astra is a global commodities marketer with crude oil refining and marketing interests in the United States and Canada.
Rangeland also announced that it has expanded its service agreement with Flint Hills Resources to include the handling of additional crude oil volumes to be loaded on unit trains for transport by rail.
Known as the COLT Hub and the COLT Connector, Rangeland’s terminal and pipeline facilities are expected to be 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 will provide producers, marketers and refiners with the largest open-access crude oil marketing hub in North Dakota.
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 100,000 barrels per day by rail. The COLT Connecter, a 21-mile, 10-inch bi-directional pipeline will connect the COLT Hub to the 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 Astra and expanding our relationship with Flint Hills to facilitate the transportation of Bakken crude oil to their respective refineries and other markets,” said Christopher W. Keene, Rangeland president and CEO. “Both companies are major crude oil players in the U.S. and a strong strategic fit for COLT as it grows its Bakken business.”
Rangeland also announced that it has successfully executed a pipeline interconnect agreement at COLT with Banner Energy’s Market Center Gathering System. Interconnect agreements have also been executed with the Enbridge and Tesoro pipeline systems at Beaver Lodge/Ramberg.
“The market’s response to COLT has been outstanding,” said Keene. “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. The COLT system is well positioned 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.