Monarch Oil Pipeline, LLC, a subsidiary of Monarch Natural Gas Holdings, LLC, on Dec. 1, 2014, 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, to Plains Pipeline, LP’s, Reydon Station located in Roger Mills County, Okla., 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 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 open season ends Jan. 30.
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