SemGroup Corporation
SEMG, and Gavilon, LLC, today announced that each has completed the
acquisition of a 25 percent share of Glass Mountain Pipeline LLC previously
owned by an affiliate of Chesapeake Energy Corporation CHK. Following
this purchase, SemGroup Corporation now owns 50 percent of Glass Mountain
Pipeline; the remaining 50 percent of the pipeline is now owned by Gavilon.
Chesapeake will maintain its long-term transportation agreement with Glass
Mountain Pipeline, providing the economic incentive for its construction.
SemGroup Corporation logo
Chesapeake Energy + Gavilon Logos
The Glass Mountain Pipeline will have an initial capacity of approximately
140,000 barrels per day and 440,000 barrels of intermediate storage. The
pipeline will consist of two laterals. One lateral will originate near the
town of Alva in Woods County, Oklahoma. The second lateral will originate near
the town of Arnett in Ellis County, Oklahoma. The pipeline will increase in
diameter where the laterals intersect near Cleo Springs in Major County,
Oklahoma and continue east to Cushing, Oklahoma. The pipeline will terminate
at Gavilon's Cushing facility, where the joint venture will own one million
barrels of crude oil storage. Following pipeline construction, Rose Rock
Midstream, LP RRMS, SemGroup's master limited partnership, will serve
as the pipeline operator.
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