A Colorado company is seeking shipping commitments from oil producers to use a proposed pipeline that would move 150,000 barrels of crude daily from western North Dakota's booming oil patch to a pipeline hub in northern Minnesota.
Durango-based Saddle Butte Pipeline LLC said oil shippers have until March 16 to solicit interest in the 450-mile pipeline from Alexander, in McKenzine County, to Clearbrook, Minn.
"We don't know what the response is going to be," Greg Ward, a company vice president, said Thursday. "Commitments typically come in on the last day of the open season."
If sufficient commitments are obtained, the company will then seek federal and state regulatory approval. Ward said the pipeline could be running late next year.
North Dakota was pumping a record 534,000 barrels daily in December, the latest figures available. State and industry officials say North Dakota's daily production rate is expected to surpass those of California and Alaska within a year, trailing only Texas.
Justin Kringstad, director of the North Dakota Pipeline Authority, said the proposed pipeline would add capacity and expand the market of regional oil drillers.
North Dakota has only one oil refinery, the Tesoro Corp. plant near Mandan.
"This project is being put together to meet the need of growing North Dakota production levels," Kringstad said. "We're expecting North Dakota production to increase over the next 10 to 15 years."
The project would be built by High Prairie Pipeline LLC, a subsidiary of Saddle Butte. Ward said the company has not estimated a cost on the proposed High Prairie Pipeline.
"We have not put a number out there because it's so preliminary," he said.
The route for the 16-inch diameter pipeline would run due east from western North Dakota to the pipeline hub in Clearbrook, Ward said.
"It's pretty much a straight-line shot," Ward said. Ninety percent of the pipeline's route would follow existing utility and roadway corridors, "minimizing the pipeline's footprint," he said.
The pipeline also would have a 17-mile spur in McKenzie County and an 8-mile spur in Mountrail County.
Ward said the project would employ about 2,500 people during its six-month construction phase.
Saudi Arabia Threatens to Sue Anyone Who Compares Their Justice System to ISIS | Christine Rousselle
The Myth of "4 Million Conservative Voters Stayed Home in 2012" | RedState
George Friedman - The Geopolitics of France: Maintaining Its Influence in a Changing Europe
S.C. Woman Outdraws, Outshoots, And Kills CraigsList Robber - Bearing Arms - Guns Saving Lives, South Carolina
'Let's fix this': Former NFL punter Chris Kluwe thinks 'white people need a coach'
We should definitely challenge Ted Cruz’s citizenship if he is elected president
Importing Terrorism and Other American Values | Human Events
John Hawkins - 15 Excerpts That Show How Radical, Weird And Out of Touch College Campuses Have Become