Rangeland Energy to Handle Bakken Shale Crude Oil for Flint Hills Resources
Sugar Land, Texas - November 16, 2011 - Rangeland Energy, LLC announced today that the company has executed a long-term agreement with Flint Hills Resources for handling significant crude oil volumes at Rangeland’s crude oil loading terminal in Williams County, N.D. Flint Hills Resources is a leading transporter, marketer and refiner of crude oil and petroleum products in the United States. The company’s Midwest operations include the Pine Bend refinery in Rosemount, Minn., which has a crude oil processing capacity of approximately 320,000 barrels per day.
Known as the COLT Hub and the COLT Connector, Rangeland’s terminal and pipeline facilities are expected to be in service by the first quarter of 2012. Strategically located in the heart of the prolific Bakken and Three Forks shale areas, the COLT system will provide producers, marketers and refiners with North Dakota’s first open-access crude oil marketing hub. Rangeland announced a long-term anchor contract with Tesoro Corporation (NYSE:TSO) in July and executed a second long-term contract with another major crude oil company in August.
Construction of the COLT Hub began in May. With five 120,000-barrel storage tanks, an eight-bay truck station and two 8,700-foot rail loops, COLT will accommodate large 120-car unit trains and will be capable of moving more than 80,000 barrels per day by rail. Rangeland also provides pipeline services into and out of the Hub through its COLT Connector. The Connecter is a 21-mile, 10-inch, bidirectional pipeline that will connect the COLT Hub to the Beaver Lodge/Ramberg junction and will be capable of transporting an additional 70,000 barrels per day. Rangeland is building an additional 120,000-barrel storage tank at Ramberg to facilitate these movements.
“Rangeland is looking forward to working with Flint Hills Resources to help grow its Bakken presence and facilitate the transportation of Bakken crude oil to the various markets it serves,” said Christopher W. Keene, Rangeland president and CEO. “Flint Hills Resources is a major crude oil player in the U.S., a strong strategic fit for COLT and the third major customer to contract with us for services at the COLT facility. We are working with other key Bakken players to provide gathering services into the COLT Hub, tankage and terminal services, as well as pipeline and rail transportation options out of COLT. The COLT system is well positioned to grow with the industry in the Bakken. ”
“We’re very pleased to join forces with Rangeland to improve our position in North Dakota,” said Brad Razook, Flint Hills Resources president. “Rangeland’s state-of-the-art facility will greatly enhance our ability to serve our customers in the Williston Basin.”
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. www.rgldenergy.com.
About Flint Hills Resources, LLC
Flint Hills Resources, LLC, through its subsidiaries, is a leading refining and chemicals company. The company markets products such as gasoline, diesel, jet fuel, ethanol, olefins, polymers and intermediate chemicals, as well as base oils and asphalt. Based in Wichita, Kan., Flint Hills has expanded its operations through capital projects and acquisitions worth more than $6.2 billion since 2002. www.fhr.com.
For Rangeland Energy
For Flint Hills Resources
Flint Hills Resources