White Cliffs pipeline begins DJ basin crude open season

White Cliffs Pipeline LLC, a partially owned subsidiary of SemGroup Corp., has begun a binding open season for priority service shippers for an expansion of capacity on its 526-mile, 12-in. OD crude pipeline from Platteville, Colo. to Cushing, Okla. The line will transport Denver-Julesburg production to the Cushing hub. WCPL anticipates an 80,000 b/d increase in capacity, but could increase this amount if sufficient commitments emerge.

WCPL expects the expansion to enter service first-half 2014. Rose Rock Midstream LP, SemGroup's master limited partnership, will continue to operate White Cliffs pipeline, which it describes as the only pipeline directly moving crude oil out of the DJ basin to the Cushing market.

Priority shippers would not be subject to prorationing under ordinary operating conditions, pending regulatory approval. Priority shipper would also not be exposed to construction cost risk. Priority shippers obligation to ship or pay would begin once the expansion enters service. The open season closes Oct. 22.

SemGroup earlier this year announced plans to build a new oil gathering system in the DJ basin (OGJ Online, May 18, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

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