Paradigm Energy Partners LLC’s wholly owned subsidiary, Paradigm Midstream Services – ND LLC, has executed a crude oil gathering agreement with XTO Energy Inc. for Paradigm's Charlson Gathering System in the North Dakota Bakken shale play.
Paradigm reached an agreement with XTO to gather crude oil from XTO's Charlson Field in northern McKenzie County for delivery to the Keene Central Delivery Point (Keene CDP), Paradigm's 50/50 joint venture with Phillips 66 Partners LP (NYSE: PSXP) near Johnson's Corner, North Dakota. The agreement will further expand Paradigm's existing footprint in the Charlson area to 70 miles of pipelines covering 70,000 acres of production.
The 272-acre Keene CDP is the commercial and operational hub of the Paradigm system, providing producers with multi-market delivery optionality via access to the Palermo Rail Terminal, Paradigm's joint venture with Phillips 66 located near Palermo, North Dakota, the North Dakota Pipeline Company LLC Terminal located in Stanley, North Dakota, several pipeline connections, as well as up to 1.2 MMBbl of storage.
The Charlson Gathering System gathers barrels from the Charlson Field of northern McKenzie County into the Charlson Extension pipeline, a 10-in. pipeline extending south to storage and take-away options at Paradigm's Keene CDP. The system has a capacity of up to 80,000 barrels of oil per day.