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.


Energy Transfer Partners Plans to Double the Pipeline Capacity

Energy Transfer Partners plans to double the Dakota Access pipeline's capacity from more than 500,000 barrels per day to as much as 1.1 million barrels, The Bismarck Tribune reported.

The pipeline carries oil from North Dakota through South Dakota and Iowa to a shipping point in Illinois. The expansion will meet growing demand without additional pipelines or rail shipments, the company told North Dakota Public Service Commission in a letter on Wednesday.

Before the pipeline was completed and began moving oil in 2017, it sparked massive protests near the Standing Rock Indian reservation. The company said last year that it was planning to ship more crude to the Gulf Coast.


Texas Considering Bill to Bring Penalties for Pipeline Damage

Texas lawmakers are considering a bill that would reinforce penalties for damaging or trespassing around oil and gas operations. This effort comes after states around the country have introduced similar measures. This bill is considered despite the opposition from environmental groups who say it would quell peaceful protests and overly criminalize offenses.

Trespassing, damaging or destroying the facility, or impairing or interrupting oil and gas operations will be considered a third degree felony with between two and up to ten years in prison. Also a fine of up to $500,000 under another provision in the bill is also considering if organizations found guilty of breaking the law.

Gas lobbyists and environmental activists went head-to-head over the bill at a public hearing on Wednesday at the Texas capital. Both groups clashed on whether the bill would suppress Texans' right to legally protest pipeline projects and over its necessity.

Demonstrations such as those in North Dakota against the Dakota Access oil pipeline resulted in hundreds of arrests and cost the state $38 million. Republican state Rep. Chris Paddie of Marshall who is sponsoring the bill wanted to classify any oil or gas pipelines as critical infrastructure, placing them in the same category as power plants and water treatment facilities.


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.


ONEOK Bakken NGL Pipeline Permit Approved by North Dakota

ONEOK Bakken Pipeline, LLC, got approval from North Dakota’s Public Service Commission to build 77-mile long natural gas liquids pipeline, in a statement released by PUC.

The pipeline will start at the company's natural gas processing plant in McKenzie County and connect with another pipeline in Richland County, Montana.

The project is estimated to cost $125 million and 20-inch steel pipeline is designed to carry a maximum of 1,680,000 gallons per day.


Open Season Announced for Bayou Bridge Pipeline System

Bayou Bridge Pipeline, LLC, a joint venture owned by subsidiaries of Energy Transfer and Phillips 66 Partners recently announced a non-binding expansion open season that commenced at 1 pm CT on 22 April 2019 to solicit shipper interest for expanded joint tariff transportation service received from certain connecting carriers onto the Bayou Bridge Pipeline System.

Energy Transfer owns 60% and Phillips 66 Partners owns 40% of the Bayou Bridge Pipeline system. It is operated by a wholly owned subsidiary of Energy Transfer Operating, L.P. Bayou Bridge is evaluating joint tariff service from origin points in the Bakken/Three Forks Region in North Dakota; Patoka, Illinois; the Powder River Basin in Wyoming; the DJ Basin in Colorado; Cushing, Oklahoma; and the Permian Basin.

Bayou Bridge also continues to evaluate additional Southern Louisiana destination points to increase options for shippers on the system,in addition to the routes that are the subject of this non-binding expansion open season. Bayou Bridge will hold a binding expansion open season to finalize committed subscriptions, following the confirmation of shipper interest.


$1.6 Billion Closing Deal by Targa Resources to Sell Stakes in Bakken Assets

Targa Resources confirmed on Thursday that the company has closed a $1.6 billion deal to sell a minority stake in its Bakken Shale assets in North Dakota. The deal was to sell 45 percent of its subsidiary Targa Badlands LLC to funds managed by New York-based GSO Capital Partners and Blackstone Tactical Opportunities.

 Targa Badlands owns and operates 480 miles of crude oil gathering pipelines, 260 miles of natural gas gathering pipelines, crude oil storage terminals and a natural gas processing plant in the Bakken which is spread throughout western North Dakota.

 With the deal now closed, Targa is planning to complete construction of another natural gas processing plant in the Bakken. The company plans to use proceeds from the $1.6 billion deal with GSO and Blackstone to pay down debt and fund part of its 2019 capital expenditure program.


67 Miles of New Pipeline to Be Constructed by WBI Energy in North Dakota

WBI Energy, Inc. is planning on approximately 67 miles of new pipeline construction, compression and ancillary facilities to transport natural gas from core Bakken production areas in western North Dakota to an interconnection point with Northern Border Pipeline.

The proposed North Bakken Expansion Project would provide 200 million cubic feet per day of natural gas transportation capacity.

Construction on the project is expected to begin in early 2021 and be completed late that year, depending on regulatory and environmental permitting and finalization of transportation agreements with customers.

The project is estimated to cost $220 million and will be designed using 20-inch diameter pipeline.

"We are excited to grow our pipeline system to meet the natural gas transportation needs in the Bakken region," said Trevor J. Hastings, President and CEO of WBI Energy. "We are working with our customers to meet these needs as the industry focuses on reducing natural gas flaring while growing production volumes."

The project will start near Tioga, North Dakota, and will extend to a new connection with Northern Border Pipeline in McKenzie County, North Dakota.

Once completed, the project could be expanded to provide transportation capacity of up to 375 million cfd.

World Pipelines

U.S. Army Corps to Finish Study on Dakota Access Pipeline in Two Months

The U.S. Army Corps of Engineers said it expects to wrap up its environmental study of the Dakota Access oil pipeline within the next two months now that it has met with all four of the Native American tribes that felt they were left out of the process.

Standing Rock, Cheyenne River, Yankton, and Oglala Sioux tribes filed a lawsuit in 2016 in hopes to shut down the $3.8 billion pipeline that began moving oil from North Dakota to Illinois in June last year. The tribes argue that the pipeline could cause environmental and cultural harm. U.S. District Judge James Boasberg is currently overseeing the lawsuit.

Although Boasberg allowed the pipeline to begin operations last year despite lingering concerns of its impact on tribal interests, he ordered additional study on the line.

Standing Rock and Cheyenne River said earlier this year that they were not given a significant role in the additional study process and asked Judge Boasberg to allow them more involvement. Their request was rejected.

The Corps' review on the pipeline was originally estimated to be completed in April but has been delayed to August due to difficulties in receiving needed information from the tribes. The Corps finally met with representatives of all tribes between May 22 and June 1 and have made significant progress in the review.

ABC News

Five-Year Cleanup of 840,000-gallon Oil Pipeline Spill Wraps Up in North Dakota

A North Dakota farm family affected by a 2013 oil spill that leaked some 840,000 gallons of oil across their wheat field is finally ready to plant for the first time after nearly five years of cleanup work.

The spill came from a pipeline owned by former Tesoro, which is now Andeavor, who said lightning may have struck the line and caused the pipeline rupture in northern North Dakota near the Canadian border in 2013.

The spill came to affect about 14 acres of land and has cost the pipeline company $93 million in cleanup efforts. The original cost estimate of cleanup was about $4 million.

The pipeline company said the spill did not affect water sources or any wildlife.

The farm family told reporters it hopes to plant a cover crop this year on the spill-affected area to put nutrients back into the soil in order to encourage a cash crop next year.

The Andeavor spill has been called one of the largest onshore spills in U.S. history.

Houston Chronicle

Army Corps to Meet with American Indian Tribes on Dakota Access Pipeline

As an environmental study for the Dakota Access Pipeline continues, the U.S. Army Corps of Engineers prepares to meet with American Indian tribes who argue they were left out of the process.

Standing Rock, Cheyenne River, Yankton, and Oglala Sioux tribes filed a lawsuit in 2016 in hopes to shut down the $3.8 billion pipeline that began moving oil from North Dakota to Illinois in June last year. The tribes argue that the pipeline could cause environmental and cultural harm. U.S. District Judge James Boasberg is currently overseeing the lawsuit.

Although Boasberg allowed the pipeline to begin operations last year despite lingering concerns of its impact on tribal interests, he ordered additional study on the line, which is currently underway.

Standing Rock and Cheyenne River said earlier this year that they were not given a significant role in the additional study process and asked Judge Boasberg to allow them more involvement. Their request was rejected.

To complete the study, the U.S. Army Corps needs additional information from the tribes, which it has had difficulty obtaining. The Corps is scheduled to meet with each tribe by June 1.

The New York Times

North Dakota Regulators Approve $1.8 Million Cherry Creek NGL Pipeline

North Dakota regulators have approved a $1.8 million natural gas liquids pipeline project that will be developed by ONEOK Rockies Midstream in the northwestern area of the state.

ONEOK will convert an existing natural gas gathering pipeline and part of another gathering pipeline into a natural gas liquids transmission line, or the Cherry Creek Pipeline.

North Dakota's Public Service Commission said in its approval that the pipeline would be a safer transportation option as well as help reduce excess natural gas flaring.

The pipeline will transport up to 50,000 barrels of natural gas liquids from McKenzie County to Williams County, where it will then go into the Bakken Pipeline.

The pipeline conversion will involve little construction and is expected to be in use by the end of 2019.

The Washington Post

Alliance Pipeline Proposes System Expansion in North Dakota

Alliance Pipeline is seeking commitments to expand its pipeline system, which runs through North Dakota, by 25 percent.

The expansion would require three more compressor stations in North Dakota and expects to put the expanded pipeline into service by the end of 2021.

The proposed expansion comes as North Dakota oil and gas regulators are encouraging an increase in infrastructure investment due to rising volumes of natural gas production.

The expansion, which would also include developing more gathering pipelines and processing plants, would help to reduce natural gas flaring, said Justin Kringstad, director of the North Dakota Pipeline Authority.

The Alliance Pipeline is a natural gas transmission system that runs 2,391 miles from the Western Canadian Sedimentary Basin and Williston Basin to the Chicago market hub, with 967 miles existing in the U.S.

Alliance Pipeline is owned by affiliates of Enbridge and Pembina Pipeline Corp.

ABC News
Alliance Pipeline

Crestwood Equity Partners Pays Fine for 2014 Pipeline Spill in North Dakota

Crestwood Equity Partners has paid a $49,000 fine to the Environmental Protection Agency for a pipeline leak that spilled 1 million gallons of produced water waste in North Dakota in 2014.

The spill occurred in the Fort Berthold Reservation and contaminated Lake Sakakawea.

Cleanup efforts are ongoing, and Crestwood is following an EPA-approved remediation plan.

Crestwood will also provide a Native American Nation in the area with at least $173,000 in spill-response equipment, as required by the EPA.

Crestwood paid the fine on Thursday and has until April 30 to provide spill response equipment to the MHA Nation.

Houston Chronicle

Shale Gas Production Affected by Record-High Cold Weather in U.S.

The recent cold weather in the U.S. is hurting natural gas production as the output of heating fuel is down more than 20 percent since last month in North Dakota's Bakken region.

Natural gas flow on interstate pipelines out of North Dakota dropped to about 1 billion cubic feet per day from 1.3 billion cubic feet per day on December 25 due to freezing water vapor inside of pipeline systems, which hinders the flow of gas.

Natural gas transport is down 20 percent in Texas, 22 percent in Oklahoma, and 5 percent in Pennsylvania's Marcellus shale. However, the demand for natural gas in the continental U.S. this week has hit an all-time high of 144 billion cubic feet per day on Tuesday.


Monument from DAPL Protest to be Displayed at Smithsonian

A 12-foot mile-marker constructed by protestors during their months-long fight against the Dakota Access Pipeline will be on display at the Smithsonian Institution's National Museum of the American Indian in D.C.

The structure was made as a centerpiece of the protest camp in southern North Dakota that began its sprawl in August of 2016 until it was forced to disband in February this year. It showed the distances that protestors traveled from around the globe, ranging from homes 50 yards to some 4,000 miles away.

A total of more than 12,000 activists protested the construction of the $3.8 billion Dakota Access Pipeline, which is now in operation, saying it violated Native rights and would ruin water supply.

The camp was forced to disband in February for safety reasons as the spring flooding season was on its way after an incredibly harsh winter.

The mile-marker post will be the final piece of an exhibit in the Smithsonian called "Nation to Nation: Treaties Between the United States and American Indian Nations." It will be on display through 2021.

Washington Post

Federal Judge to Hear Arguments on Tribe's Fallback Plan for Dakota Access Pipeline

U.S. Federal Judge James Boasberg will hear arguments over the next month about whether Energy Transfer Partners should be required to stage equipment near the Standing Rock Sioux tribe's reservation to quickly respond to any oil spill that could occur under the Missouri River.

The proposed requirement is part of the Standing Rock Sioux tribe's fallback plan in case Boasberg decided to allow the Dakota Access pipeline to continue operating while the Army Corps of Engineers conducts additional study on the pipeline route.

Earlier this month Boasberg ruled that the pipeline, which began operations on June 1 of this year, could continue operations during the review.

Boasberg scheduled a timeline for arguments with attorneys on both sides of the tribe's proposal. The proposal asks for increased public reporting of pipeline issues and implementation of an emergency spill response plan.

Additional review of the pipeline will most likely not be completed until the spring of next year, according to the Army Corps.

ABC News

Energy Transfer Partners Gives $15 Million to North Dakota to Help with DAPL Protest Costs

Energy Transfer Partners sent North Dakota $15 million on Thursday to help pay for costs related to months of protests over the Dakota Access Pipeline construction.

The state has been pushing for federal reimbursement to cover costs related to the pipeline protests. Although the state's request for a disaster declaration was denied, the U.S. Justice Department gave a $10 million grant to the state to help pay some of the policing bills.

Some state officials, however, argue that the federal government should pay for all costs since the protests occurred on federal ground without a permit, and the federal government decided not to evict the protestors due to free speech.

North Dakota has arranged for a bank credit line of up to $43 million to cover costs. the state's head of National Guard said the costs shouldn't go past that figure.

The Dakota Access Pipeline started service in June, moving oil from North Dakota to Illinois. The project is still being contested in federal court by Native American tribes who worry a leak would ruin water supply.

Houston Chronicle

American Midstream Partners Begins Crude Deliveries to Dakota Access Pipeline

American Midstream Partners announced Monday that it began deliveries from its 40,000 barrel-per-day Bakken crude oil gathering system in North Dakota into the Dakota Access Pipeline.

American Midstream's connection to the Dakota Access Pipeline provides optionality to high-value market alternatives and take-away capabilities for gathered barrels and volume brought through American Midstream's trucking terminal.

"The connection is a continuation of our strategy to optimize the long-term value of our assets by giving producers a suite of services with strong market connectivity via multiple pipeline takeaway points," said Lynn Bourdon, President and CEO of American Midstream Partners.

American Midstream Partners is a growth-oriented limited partnership that currently owns or has ownership interest in about 4,000 miles of interstate and intrastate pipelines and other assets.

Business Wire

North Dakota, Energy Transfer Partners Agree on Settlement Related to DAPL

The North Dakota Public Service Commission and Energy Transfer Partners agreed on a settlement related to allegations that Energy Transfer violated state rules while constructing the Dakota Access Pipeline.

Rather than fining Energy Transfer $15,000, which was its original proposal, the Public Service Commission will have the pipeline company develop a "how-to" manual and plant more than 100,000 trees along the pipeline's path in the state.

Among other accusations toward the company, Energy Transfer was said to have removed too many trees and mishandled some soil removed while laying pipe in North Dakota.

In its "how-to" manual, Energy Transfer will be required to write about the proper handling of artifacts discoveries, like the American Indian artifacts the company found, but allegedly improperly reported, during construction.

Although Energy Transfer Partners fought against the allegations and denied doing anything intentionally wrong, the agreement omits any fine against the company and results in "more meaningful initiatives than just a flat-out-fine," said state commissioner Julie Fedorchak.

Houston Chronicle