Dakota Plains And Hiland Crude Announce Bakken Gathering Pipeline To Pioneer Rail Terminal
Dakota Plains Holdings, Inc. (“Dakota Plains”) (NYSE MKT: DAKP) and Hiland Crude, LLC, a wholly owned subsidiary of Hiland Partners, LP (“Hiland”) today jointly announced the execution of an interconnection agreement that links Dakota Plains' Pioneer Rail Terminal in New Town, North Dakota, with Hiland's Market Center Gathering System crude oil pipeline network. Construction for the final link is underway and is expected to be commissioned by October 31, 2014.
Hiland's gathering system is the largest in the Bakken, traversing through the heart of the field in Divide, Dunn, Mountrail, McKenzie and Williams counties in North Dakota, as well as Richland and Roosevelt Counties in Montana. Hiland's gathering system has multiple connection points into pipeline outlets and crude by rail terminals, with the Pioneer Terminal being the only Canadian Pacific Railway origin. The connection to the Pioneer Terminal is expected to have an initial capacity of greater than 15,000 barrels a day and easily expanded to supply approximately 60,000 barrels of oil per day.
Chairman and Chief Executive Officer of Dakota Plains, Craig McKenzie, said, “This new infrastructure provides another source of oil supply to the Pioneer Terminal. We now have two gathering pipelines in addition to our ten stations dedicated to oil supplied by truck. The Hiland pipeline is an important link to the western area of the Williston Basin, effectively expanding our supply radius to enable cost effective delivery of oil to the Pioneer Terminal. We believe the connection with Hiland provides a substantial increase in value to the Pioneer Terminal for our three current shippers and will assist us in attracting incremental shippers in the future.”
Senior Vice President of Hiland Crude, Jim Suttle, said, “Our connection into the Dakota Plains terminal is a continued part of our efforts to cover every element of crude oil transportation in the Bakken. In connecting to the Pioneer Terminal on the Canadian Pacific Railway network, we can now offer our clients access to every market outlet in the Bakken. It is another example of Hiland being the fundamental leader in market outlet access for Bakken production.”
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