Tallgrass Pony Express Pipeline and Hiland Crude Announce Joint Open Season
Tallgrass Pony Express Pipeline, LLC (Pony Express) and Hiland Crude, LLC (Hiland) announced today a joint open season soliciting shipper commitments for crude oil transportation service under a joint tariff from receipt points on the Hiland Double H Pipeline at Hiland’s Sieler station in Montana and the North Wright and Douglas stations in Wyoming to delivery points at Cushing, Okla. The two companies expect this open season to end on Dec. 12, 2014.
Hiland will construct expansion capacity above its currently contracted and walk-up system capacity of 50,000 barrels per day, and Pony Express will construct expansion capacity above its currently contracted and walk-up system capacity of 230,000 barrels per day (which will increase by about 90,000 barrels per day upon completion of Pony Express’ Northeast Colorado Lateral), in each case based on commitments received in this and other binding open seasons requiring expansion of the Pony Express and Hiland Crude systems.
Interested parties may review the details of the Open Season at either the Pony Express website at http://pipeline.tallgrassenergylp.com/Pages/OilOpenSeason.aspx?pipeline=42 or the Hiland website at http://www.hilandcrude.com.
About Tallgrass Pony Express Pipeline, LLC
Pony Express owns an approximately 690-mile crude oil pipeline commencing in Guernsey, Wyo., and terminating in Cushing, Okla., with delivery points at the Ponca City Refinery and at Deeprock in Cushing. Upon completion of ongoing construction, Pony Express also will own an approximately 66-mile lateral in Northeast Colorado that will commence in Weld County, Colo., and interconnect with the Pony Express mainline just east of Sterling, Colo. The lateral in Northeast Colorado is expected to be in service sometime during the first half of 2015. Additional detail regarding the Pony Express crude oil pipeline system is available at http://pipeline.tallgrassenergylp.com. Tallgrass Energy Partners, LP (NYSE:TEP) owns 33.3 percent of Pony Express and Tallgrass Development, LP owns 66.7 percent of Pony Express. TEP is the managing member of Pony Express.
About Hiland Crude, LLC
Hiland Crude is a wholly owned subsidiary of Hiland Partners, LP. Hiland Crude is engaged in the gathering and transmission of crude oil in the Rocky Mountain Region and owns the Double H Pipeline. Double H Pipeline is a 12-inch 492-mile pipeline with an initial capacity of approximately 50,000 barrels per day with origins at Albin, Mont., and Dore, N.D., and a destination of Guernsey, Wyo. Double H Pipeline is planned to become operational in January of 2015.
Disclosures in this press release contain forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include Pony Express’s ability to complete a potential expansion of its crude oil pipeline system, the expected in-service date of any phase of the potential expansion and any synergies or benefits that would flow to Pony Express or its members if the potential expansion is completed. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of TEP and Pony Express, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by TEP with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and Pony Express and TEP do not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
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