Monarch Oil Pipeline, LLC (Monarch), a subsidiary of Monarch Natural Gas Holdings, LLC, today launched an Open Season to solicit capacity commitments from shippers for a new crude oil pipeline system that will be constructed to gather and transport crude oil in interstate commerce from production areas in Hemphill and Lipscomb Counties, Texas (Production Areas) to Plains Pipeline, LP’s (Plains) Reydon Station located in Roger Mills County, Oklahoma, with the potential for expansion to other regional interconnects.
The new pipeline system will be divided into two primary components, an upstream gathering system to transport crude oil from the Production Areas to the Casey Station, an operational terminal and storage facility in Section 161 in Lipscomb County, Texas, and an 8‐inch mainline pipeline that will transport crude oil from the Casey Station to the Plains’ Reydon Station interconnect. Monarch projects an initial capacity of 30,000 barrels of crude oil per day on both components, but is open to negotiations to increase the pipeline capacity and/or alter its configuration to meet market needs.
The purpose of this Open Season is to solicit commitments from potential shippers who seek to transport crude oil gathered from the Production Areas to Plains on both of the two pipeline components (gathering and transportation), or only to transport crude oil from the Casey Station to Plains on the transportation component, and to solicit interest for additional pipeline transportation solutions in the region. Bidders making acreage dedications can request capacity and transportation rights on both pipeline components, or can request capacity and transportation rights on the transportation component only.
The Open Season will commence at 8:00 a.m. Central Time on December 1, 2014 and will end at 5:00p.m. Central Time on January 30, 2015.