Report Volume XXIX, Number 12 February 15, 2018

February 13, 2018

INDUSTRY NEWS (Missouri City, TX) We are excited about our new service at Pipeline Intelligence Co. It is the Pipeline Intelligence Spreadsheet. The Spreadsheet is updated twice a month (same as the hard copy), and is available for download at pipelineintelligence.com. The added feature costs an additional $195 per year. You must be a subscriber in order to add the Spreadsheet service. Please call us at the office (281) 499-3131or email us at pipelineintelligence@gmail.com to add this service today.

 

 

INDUSTRY NEWS (Houston, TX) – Advanced Geodetic Surveys, an authorized Trimble dealer since 1991, is pleased to announce the appointment of Todd Traylor to the role of Vice President of Sales and Business Development. Todd will be responsible for all aspects of AGS’s sales and business development initiatives and will work directly with CEO, PJ Meyers.

Todd joined AGS in 2017 after almost 20 years in sales with semi-conductor distributor Smith & Associates, where he most recently served as Vice President of Global Trading. Todd also held the positions of CPU Commodity Manager, Managing Director of Europe, General Manager of Amsterdam, and Trading Manager during his tenure with Smith. Todd is Lean Six Sigma Green Belt certified. He is a member of the Houston Pipeliners Association, the Texas Society of Professional Surveyors, the International Supply Chain Education Alliance and the APICS Supply Chain Management Professional Association.

Todd is an Alumni of Texas A&M University with a Bachelor’s Degree in Business Management. He is currently on the Champions Council for the 12th Man Foundation and has served on the Council of Athletic Ambassadors for the past 14 years. He has also been recognized as an Eppright Distinguished Donor and inducted into the Legacy Society at Texas A&M. Todd is also a Lifetime Member of the Houston Livestock Show & Rodeo.

A member of both the Association of National Park Rangers and the Association of Professional Patrollers, Todd enjoys the outdoors. “The people that I have met in surveying and are involved in this field are awesome and unique in their passion for what they do. They love the feeling of being outside and in the field, but also require the reliability of products and equipment that is technologically advanced. I look forward to helping AGS continue to grow while providing customers with the best service and support in the industry,” Traylor said.

“We have distinguished ourselves by being great at giving that support, and by being competitive with pricing for the products we supply. Customers deserve value and great service from their suppliers, and AGS has been doing that for years.” Todd added, “AGS has a team of talented salespeople and exceptional operations personnel, some of the best in the business. I’m fortunate to be a part of the family and appreciate all the support that will make 2018 another record year for AGS.”

 

 

INDUSTRY NEWS (Leawood, KS) – Tallgrass Energy Partners, LP and Silver Creek Midstream, LLC announced recently that they have signed definitive documents to develop the Iron Horse Pipeline, a joint venture pipeline to transport crude oil from the growing Powder River Basin to Guernsey, Wyo. Iron Horse will connect Silver Creek’s developing gathering system to the Tallgrass Guernsey Terminal, which is currently under construction, and then to Tallgrass’s Pony Express crude pipeline system, and other pipelines at Guernsey. Iron Horse and Pony Express intend to create a joint tariff to offer producers and marketers a single rate and direct access to the multiple refineries on Pony Express and to the Cushing, OK crude oil hub, from the PRB production zone.

In addition to forming the joint venture, Tallgrass has agreed and signed definitive documents to sell its 50-mile PRB crude oil gathering system to Silver Creek (formerly owned by Outrigger Energy). Tallgrass and Silver Creek expect to close the formation of the joint venture and the sale of Tallgrass Crude Gathering, LLC later this month.

The transaction gives Silver Creek an immediate presence in the PRB and provides a strategic footprint as it constructs additional gathering to cover the core of the PRB. The acquired gathering system alongside the newly constructed Silver Creek gathering system will deliver into the Silver Creek Midway Terminal, which will deliver barrels to Iron Horse. As a result of the acquisition and announced projects, Silver Creek will be positioned as the preeminent crude oil gathering company in the PRB.
As part of the joint venture, Tallgrass has agreed to contribute approximately 40 miles of pipe from Labonte, Wyo. to Guernsey, Wyo. This pipe is currently owned by Tallgrass Interstate Gas Transmission, LLC, and is undergoing abandonment from gas service. Tallgrass will be a 75 percent owner and will operate the approximately 80-mile, 16” pipeline, which consists of 40 miles of new build and the 40 miles of gas-to-oil conversion pipe. Silver Creek will own the remaining 25 percent. Iron Horse is anticipated to be in-service Q1 2019 with an expected initial capacity of about 100,000 barrels per day with significant available expansion capacity. After conversations with both producers and marketers in the PRB, the parties anticipate a significant amount of the Iron Horse’s initial capacity will be contracted prior to the pipeline being placed into service, and depending on commitments obtained, capacity could be expanded above the 100,000 barrels per day currently planned.

 

 

INDUSTRY NEWS (Washington, DC) – The Department of Commerce reissued an amended final environmental impact statement for the Enbridge Line 3 pipeline on recently after the agency fixed four “deficiencies” the Public Utilities Commission pointed out in December.

The PUC will accept comments through Feb. 27 “only on whether the revised final EIS adequately addresses the four specific deficiencies.”

Those had to do with karst topography; quantitative vs. qualitative representations; additive impacts and a clarification that “a traditional cultural properties survey must be completed before the start of any construction.”

Enbridge wants to build 337 miles of pipeline across the state on its route from Alberta to the company’s terminal in Superior, largely taking a route differing from the existing Line 3 and bringing capacity back to 760,000 barrels per day. The PUC is supposed to decide this summer if it will approve the pipeline, which has already begun construction in Canada and Wisconsin.

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