Binding Supplemental Open Season Announced for Bakken Pipeline System

A binding supplemental open season to solicit additional shipper commitments for transportation service was launched by Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC. Both companies are subsidiaries of Energy Transfer LP.

The transportation service is from Bakken/Three Forks play in North Dakota to storage terminals located in Patoka, Illinois and Nederland, Texas through their respective pipeline systems, which is collectively known as the ‘Bakken Pipeline System’.

Committed subscriptions made by shippers during the open season and commitments already received for future capacity during the previous open season that concluded in December 2018 will determine the incremental capacity on the Bakken Pipeline System. The open season commenced at 12:00 pm CT on 15 July, 2019.


Binding Open Season Announced for Thunder Creek NGL Pipeline

A binding open season to secure volume dedications for the proposed construction and development on its existing Thunder Creek NGL Pipeline system was announced by Meritage Midstream. The binding open season started at 8:00 AM MT on June 10, 2019 and is scheduled to conclude at 5:00 PM MT on July 10, 2019.

The pipeline will transport NGLs from two processing plants in Campbell and Converse counties, Wyoming, to an interconnection point with ONEOK's Bakken Pipeline in Converse County.

Meritage said the open season seeks to obtain volume dedications from shippers to the following proposed new movements:

1. Originating from Thunder Creek Gas Services' 50 Buttes Process Plant in Campbell County with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, and

2. Originating from Thunder Creek's Steamboat I Natural Gas Plant in Converse County, with a destination at an interconnection with ONEOK Bakken Pipeline in Converse County, Wyoming.

The proposed new origin and destination points will allow potential shippers to move product from Thunder Creek plants in the Powder River Basin to a newly established interconnect with ONEOK Bakken Pipeline at Well Draw in Converse County.

It will then provide access to ONEOK’s Niobrara Lateral, which will ultimately access newly created capacity on ONEOK’s Elk Creek expansion. The new movements is expected to be completed in the third quarter of 2019, subject to shipper demand.


Proposed $15 Million Pipeline Project in North Dakota Is Set for Public Hearing

The Public Service Commission in North Dakota have scheduled a public hearing in Watford City on the ONEOK Bakken Pipeline LLC’s 11-mile pipeline.

The pipeline will be connecting the Targa Badlands Little Missouri Gas Processing Plant with ONEOK’s planned Demicks Lake Pipeline.

The company wants to build the $15 million 12-inch steel natural gas liquids pipeline in McKenzie County that would carry up to 20,000 barrels per day.

The hearing is set for 9 a.m. on Friday, May 17, at the Little Missouri Inn and Suites.


Judge Pushes Back Pipeline Protest Court Date, Tells Sides to Meet

Dakota Access Pipeline proposed route from  Dakota Access Pipeline Facts

Dakota Access Pipeline proposed route from Dakota Access Pipeline Facts

A federal judge has moved the date of a pipeline hearing that would decide whether a preliminary injunction should be issued to keep protestors from interfering with the construction of the Dakota Access pipeline in North Dakota.

U.S. District Judge Daniel Hovland scheduled the hearing that was to be this Thursday to September 8 and extended the temporary restraining order against the protestors that the developers requested in court earlier this month.

Hovland encouraged in his court order filed Monday that the two groups should meet and attempt to work out their differences outside of the courtroom first.

The controversial Dakota Access pipeline project has been under scrutiny for months by environmentalists, landowners, tribal groups, and other communities. Several protest groups have tried to halt construction, resulting in multiple protestors’ arrests for trespassing and other interference, including allegedly putting the developers’ safety at risk.

Developers of the line have agreed to stop construction until court matters are resolved.

The Dakota Access Pipeline is a $3.8 billion project that will move crude oil 1,172 miles from the Bakken and Three Forks production areas in North Dakota to Illinois. It will carry approximately 470,000 barrels per day with a capacity as high as 570,000 barrels per day.

Energy Transfer is over seeing construction, and Sunoco Logistics will operate the line once it is completed. Enbridge Energy Partners and Marathon Petroleum Corporation collectively purchased a $2 billion share of the project, and Phillips 66 owns 25 percent of the project.

Houston Chronicle
Dakota Access Pipeline

Minnesotans Voice Concerns Regarding Sandpiper Pipeline Delay

Proposed route of the Sandpiper Pipeline from  Enbridge

Proposed route of the Sandpiper Pipeline from Enbridge

Minnesotans voice their frustration about the state’s lack of action regarding permits for the Sandpiper pipeline that would benefit Northern Minnesota communities, according to Star Tribune.

After four years of studying the proposed Sandpiper pipeline, the Minnesota Public Utilities Commission has yet to reach a conclusion about issuing a permit for the project, which would carry crude oil for 616 miles from North Dakota through Minnesota to Wisconsin.

Enbridge, the developers of the proposed line, have moved onto other investments as a result, purchasing a share of the Bakken Pipeline that received its permits in just a year and a half.

Although Enbridge has not yet announced it will nix the Sandpiper project, the uncertainty of receiving permits and its investment in the Bakken Pipeline has significantly delayed the project and has given little doubt that the line may no longer be immediately necessary.

Minnesotans have noticed the lack of streamlined decisions on environmental permits from the state and want to remind their state government of the “importance of natural-resource-based industries and the thousands of good-middle class jobs, both blue- and white-collar, that are supported by development."

Star Tribune

Construction Plan for Winter Conditions Made for Bakken Pipeline

Snowy road in Iowa, by Jsayre64 (Own work) [CC BY-SA 3.0 (], via Wikimedia Commons

Snowy road in Iowa, by Jsayre64 (Own work) [CC BY-SA 3.0 (], via Wikimedia Commons

Energy Transfer’s Dakota Access LLC has developed contingency plans to battle snow, ice, and sub-freezing temperatures, if necessary, during construction of the Bakken oil pipeline through Iowa.

Although Dakota Access LLC said earlier this year it planned to begin construction of the underground oil pipeline no later than May 17 in order to avoid possible harsh winter conditions during construction, the Iowa Utilities Board did not approve the work until June 6, and the U.S. Army Corps of Engineers did not approve necessary permits in Iowa until July 26.

Officials of Dakota Access said last week that they plan to move forward with construction in Iowa as quickly as possible so the line may be complete by the end of the year; however, the Iowa Utilities Board had already ordered them to develop plans for winter construction.

The winter plan discusses working conditions in cold weather and snow, including using equipment capable of accurately removing various depths of soil, suspending final cleanup activities if soil is frozen and cannot be evenly distributed, installing erosion control devices to stabilize soil and remaining soil stockpiles left over the winter, and backfilling trenches with unfrozen soil.

Lawyer for the Iowa chapter of the Sierra Club Wallace Taylor, who opposes the pipeline, said the winter construction plan appears too general and lacks detail.

The Des Moines Register

Enbridge's Sandpiper Pipeline Looks Uncertain After Investment in Bakken Pipeline

The controversial and long-delayed Sandpaper oil pipeline project in northern Minnesota is at a standstill after Enbridge and Marathon announced its big investment in a different pipeline project, the Bakken Pipeline that will transport crude from North Dakota to Illinois.

Enbridge announced late Tuesday that it will purchase a $1.5 billion stake in the Bakken Pipeline System while Marathon will purchase a $500 million stake. Both companies have stated their plans to terminate their joint venture agreements for the Sandpiper pipeline once the Bakken Pipeline is complete.

The $2.6 billion Sandpiper pipeline would run from the Bakken oil fields through Minnesota but has gone through several delays due to opposition from environmentalists and aboriginal groups. It has been under regulatory review for over two years, and its future is now uncertain.

Because the Bakken Pipeline approvals are complete and operation is expected to begin by end of 2016, Enbridge and Marathon view the Bakken Pipeline to be a quick cash flow producing replacement for what analysts think will be a deferred Sandpiper pipeline.

On top of a new investment in Bakken Pipeline, the low prices staggering through the oil industry with no sign of a big rebound anytime soon decreases the need for Sandpiper, according to Scott Strand, head of the Minnesota Center for Environmental Advocacy.

“For now, it’s very hard to see the economic case for doing [Sandpiper],” he said.

Star Tribune

Energy Transfer, Sunoco Logistics Sell Stake in Bakken Pipeline to Help Pay Off Debt

Energy Transfer Partners and Sunoco Logistics announced its coming sale of a $2 billion share of the Bakken Pipeline project to another company in order to pay down the debt of the project.

Energy Transfer and Sunoco Logistics will sell nearly 37 percent of their 75 percent stake to an entity jointly owned by Enbridge Energy Partners and Marathon Petroleum Corporation.

Phillips 66 owns 25 percent of the project.

Energy Transfer will continue to oversee construction while Sunoco Logistics will operate the pipeline once construction is complete.

The Bakken Pipeline, which is a collective project of the $3.7-billion Dakota Access Pipeline and the $1-billion Energy Transfer Crude Oil Pipeline, will run for 1,172 from North Dakota to Illinois and connect to an existing, but converted to crude service, pipeline that runs from Illinois to Texas. The Dakota Access Pipeline component is expected to deliver more than 470,000 barrels of crude oil per day.

Enbridge Energy said the Bakken Pipeline deal will help their market access strategy, and Marathon said the deal will be a significant step in its midstream logistics business growth.

The sale is expected to close in the third quarter of this year.

Wall Street Journal
Yahoo Finance