Medallion Seeks FERC Declaratory Order

Medallion Pipeline Company LLC, a subsidiary of Medallion Midstream LLC, on Jan. 14 filed a request with the Federal Energy Regulatory Commission seeking a declaratory order concerning two proposed expansions of Medallion’s existing Wolfcamp Connector crude oil pipeline system.

The expansion projects would extend both the geographic reach of the current Wolfcamp Connector system and substantially expand its capacity, according to Medallion’s filing.

Medallion’s existing Wolfcamp Connector crude oil pipeline system, which was completed and placed in commercial service in October 2014, originates in the Midland Basin in West Texas. The system extends approximately 112 miles northward through the Midland Basin, with a capacity of approximately 65,000 barrels per day (“bpd”), to a point of interconnection, currently, with the pipeline facilities of BridgeTex Pipeline Company LLC.

After the commencement of operations last year, Medallion contemplated a potential westward extension of the existing system into Upton and Midland counties in Texas, called the Midkiff Lateral, as well as a potential expansion of the Wolfcamp Connector’s mainline from the existing Garden City station to the Colorado City hub, called the Wolfcamp Expansion, according to the filing. Medallion conducted a public open season from Nov. 6, 2014, to Dec. 1, 2014, to solicit long-term transportation commitments to support the commercial development of the two expansion projects and secured a binding commitment from one participant in the open season, Medallion said.

The resulting committed firm service awarded through the open season amounts to 60,000 bpd of the Midkiff Lateral’s 75,000 bpd capacity – representing 80% of the total capacity of the lateral – and 27,000 bpd of the Wolfcamp Expansion’s 30,000 bpd capacity – representing 90% of the expansion’s capacity.

In its filing, Medallion requested that FERC issue a declaratory order confirming that the open season for the expansion projects followed FERC guidelines;

Medallion properly committed capacity to shippers; and the committed rates and rate structure are just and reasonable.

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