Belle Fourche Pipeline Co. and Bridger Pipeline LLC (collectively, the Pipelines) intend to hold an open season in January 2015 to obtain volume commitments to support expansions of their common carrier pipeline systems in order to substantially increase their capacity to transport crude petroleum from the Bakken shale play and the Powder River Basin to Guernsey, Wyoming.
The Pipelines are coordinating their planned expansions to coincide with the expansion of another pipeline, together offering joint transportation service to Cushing, Oklahoma. The design of the expansion and the additional capacity volume available on the Pipelines will be dependent on commitments received during the open season.
The open season process provides potential shippers with the opportunity to make volume commitments and execute long-term transportation contracts with the Pipelines. Shippers electing to make long-term volume commitments to the Pipelines will be eligible to receive discounted transportation rates for their committed volumes. A firm service option will also be available for commitments on certain portions of the Pipelines.
The Pipelines plan to offer producers in the Bakken region and Powder River Basin multiple points of origin for transportation to Guernsey, Wyoming, and onward to Cushing, Oklahoma, through a joint tariff.