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High Prairie Pipeline Extends Open Season and Expands Project Facilities to Accommodate Shipper Response

Shippers Will Have until April 5, 2012 to Contract for Capacity; Project to Include Rail Loading and Storage Facilities, Backhaul Service, and Truck Receiving Stations


News provided by

Saddle Butte Pipeline, LLC

Mar 14, 2012, 06:55 ET

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DURANGO, Colo., March 14, 2012  /PRNewswire/ -- Saddle Butte Pipeline, LLC (Saddle Butte), by and through its wholly-owned subsidiary High Prairie Pipeline, LLC (High Prairie), today announced an extension for the binding Open Season to solicit capacity commitments from shippers on the High Prairie Pipeline. The Open Season, which began on Feb. 14, 2012 and was originally scheduled to close on March 16, 2012, will now close on Thursday, April 5, 2012 at 5:00 p.m. MDT.

"The Open Season has received a great deal of interest from shippers, and at the request of several prospective shippers we are extending the deadline to provide additional opportunity for them to contract for capacity on the High Prairie Pipeline," said John Earley, President and CEO of Saddle Butte. "This project will provide much needed firm capacity from the producing regions of the Bakken to major markets across the country in a timely manner, thereby maximizing value for shippers."

Additionally, High Prairie has further defined and expanded the Project to include the following facilities: First, distinct pipeline interconnects with Enbridge Pipelines Inc. and Minnesota Pipe Line Company, LLC will be established at or near Clearbrook, Minn. Second, High Prairie has signed a letter of intent with a third party transloading company to develop a rail loading terminal near Clearbrook with an initial capacity of 120,000 barrels per day (bpd) of delivery capacity to Eastern, Midwest and Gulf Coast markets. Third, in addition to its previously announced operational storage, High Prairie is developing significant long-term storage facilities at or near Clearbrook.  Fourth, crude oil truck receiving stations are being considered for Alexander, N.D., Johnsons Corner, N.D. and New Town, N.D. locations.

Lastly, High Prairie will establish a backhaul service for shippers which will enable crude oil to flow east to west between established receipt and delivery points.  The backhaul service will be provided on a hydraulically available basis.

The approximate 450-mile, 16-inch diameter pipeline would begin north of Alexander, N.D. in McKenzie County and end near Clearbrook, Minn. in Clearwater County. High Prairie is also proposing to construct two laterals: a 17-mile lateral originating at Johnsons Corner, N.D. in McKenzie County and connecting with the High Prairie Pipeline and an 8-mile lateral beginning near Robinson Lake, N.D. in Mountrail County and connecting with the High Prairie Pipeline. The anticipated in-service date is the fourth quarter of 2013.

For more information about the Open Season or High Prairie, visit Saddle Butte's website at www.sbpipeline.com.

Shipper inquiries, contact:
David Lytle
Senior Vice President of Business Development
Saddle Butte Pipeline, LLC
4544 Post Oak Place Drive, Suite 395
Houston, TX 77027
713-677-0446
[email protected]

Open Season document and/or media inquiries, contact:
Greg Ward
Vice President and General Counsel
Saddle Butte Pipeline, LLC
858 Main Avenue, Suite 301
Durango, CO 81301
970-828-2079
[email protected]

About Saddle Butte Pipeline, LLC:

Saddle Butte Pipeline, LLC (www.sbpipeline.com) is an independent midstream company headquartered in Durango, Colo. and funded largely by Yorktown Energy Partners. Saddle Butte and its wholly-owned subsidiary High Prairie were formed to develop greenfield gathering, processing, and transportation projects throughout the central and western U.S. The company owns and operates over 200 miles of gas and crude oil pipelines in McKenzie and Dunn counties, N.D., a gas processing plant near Watford City, N.D., and crude oil terminals with delivery outlets in Alexander and Johnsons Corner, N.D.

SOURCE Saddle Butte Pipeline, LLC

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