Report Volume XXVIII, Number 18 May 15, 2017

May 11, 2017


INDUSTRY NEWS (Tulsa, OK) – SemGroup Corporation announced plans to build a natural gas pipeline to connect its processing complex in northern Oklahoma to the active STACK play in the central portion of the state.

The Canton Pipeline is backed by firm commitments from an investment-grade counterparty and has an initial capacity of 200 million cubic feet per day. With additional compression, the pipeline could be expanded up to 400 million cubic feet per day to serve other producers in the area.

The 24″ diameter natural gas pipeline will extend approximately 50 miles from SemGroup’s Rose Valley processing facility in Woods County to north central Blaine County. The pipeline is expected to be in service by year-end 2017.

“This project falls directly in line with our long-term strategic goals to achieve basin and customer diversification while optimizing our existing assets,” said Wayne Ziegler, vice president of SemGroup’s gas operations. “It significantly expands our Oklahoma asset footprint and allows us to better serve the growing gathering and processing needs within this active play.”

Also in the STACK play, SemGroup’s jointly owned Glass Mountain Pipeline, LLC is constructing a 44-mile pipeline extension to deliver STACK crude to the Cushing storage complex with access to Mid-Continent and Gulf Coast refineries. The Glass Mountain Pipeline extension is expected to be in service in the fourth quarter of 2017.



INDUSTRY NEWS (Tulsa, OK) – SemGroup Corporation and NGL Energy Partners LP announced that its jointly owned venture, Glass Mountain Pipeline, LLC will construct a 44-mile pipeline extension of the Glass Mountain Pipeline system in Oklahoma. This extension will deliver crude oil from north-central Oklahoma’s STACK resource play to Cushing, OK.

“We’re excited about this opportunity to enter the STACK,” said David Minielly, vice president of SemGroup’s crude operations. “It’s a continuously growing area with strong economics for producers. We believe in the play and are happy to offer a new midstream option to meet producer demands.”

“The STACK extension will provide local producers with a cost-effective and reliable transportation solution from the core of the STACK to Glass Mountain’s storage facilities in Cushing, which enable further delivery to refineries and the Gulf Coast,” said Don Robinson, executive vice president of NGL’s crude operations. “The extension will tie-in to the existing Glass Mountain mainline facilitating a shortened construction timeline.”

Glass Mountain Pipeline has also entered into a long-term, fee-based transportation agreement with a large investment grade producer in the STACK that includes a committed area of dedication. Route selection is complete and right-of-way acquisition is underway. The extension is expected to be in service during the fourth quarter of 2017, pending the timely acquisition of right-of-way and the satisfaction of all necessary regulatory requirements.

Glass Mountain Pipeline is a joint venture owned equally between SemGroup Corporation and NGL Energy Partners LP. The current pipeline is 215-miles long and delivers crude oil from the Mississippi Lime and Granite Wash plays to Cushing.



INDUSTRY NEWS (Tulsa, OK) – Vacuworx Global has promoted Brian Hall to International Product Manager with responsibility for Mexico, Central America and the Caribbean. He remains the authorized Safety Trainer for Vacuworx, providing product and application training around the world as needed.

Hall will celebrate 9 years with Vacuworx in November. He has served customers in various capacities including field service tech, service manager, and most recently through research and development and product training. Hall will continue to work closely with Engineering on product development, enhancements and field testing of new concepts.

In addition, in his expanded role Hall will work as part of the International Sales team to grow sales in Latin American markets. Responsibilities include development and training of new dealers and sales agents as well as working with end users.

“As we continue to grow our presence in targeted markets, we are committed to providing focused support for our customers,” said Steve Smith, Director of International Sales. “Brian has extensive experience in maintenance, trouble-shooting, product training and safety training.”

Hall attended Oklahoma State University Institute of Technology for diesel technology, specializing in heavy equipment. He has worked in the mining, construction and pipeline industries repairing all types of equipment.

A country boy at heart, Hall and his wife Brenda keep cattle, sheep, chicken and bees. He also trains border collies and enjoys taking his granddaughter for tractors rides.



INDUSTRY NEWS (Tulsa, OK) – A year after New York rejected a key certificate for the $925 million Constitution natural gas pipeline, developer Williams Cos. is appealing to a higher authority: the White House.

Williams and labor unions are pressing President Donald Trump’s administration for a U.S. Army Corps of Engineers permit after the state refused to certify the project, Alan Armstrong, the Tulsa, Oklahoma-based company’s chief executive officer, said Wednesday in an interview at Bloomberg headquarters in New York. The pipeline would link supplies from the Marcellus shale basin, America’s biggest by volume, to markets in the Northeast.

Constitution’s approval would be a major win for Williams, which wants to reassure investors of its growth prospects after a failed $33 billion takeover attempt by Energy Transfer Equity LP and an aborted proxy fight with activist shareholder Corvex Management LP. Williams is doubling down on the Marcellus shale basin, where supplies have outpaced new pipeline capacity, as the company seeks to boost profits.

The Constitution delays “have not been a regulatory issue,” Armstrong said. “The issue has been purely political. That’s exactly when, for interstate commerce, the federal government should use their authority.” He declined to identify any Trump administration officials who are involved in the talks.

The White House declined to comment. Trump was instrumental in clearing the way for Energy Transfer Partners LP’s controversial Dakota Access oil pipeline to be finished. In March, TransCanada Corp.’s Keystone XL crude pipeline gained U.S. approval after Trump invited the pipeline builder to reapply for a presidential permit.

Although New York has not issued a water-quality certificate for the Constitution pipeline, the Army Corps can issue its own permit if the state doesn’t act within a “reasonable” time period, Armstrong said. Williams also supports a broader Trump administration effort to reduce the “regulatory morass” facing pipeline development, he said.

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