Rustler Breaks crude oil line placed into service in New Mexico

Dec. 19, 2018
San Mateo Black River Oil Pipeline LLC, a subsidiary of San Mateo Midstream LLC, has placed into service its crude oil gathering and transportation system in the Delaware basin. 

San Mateo Black River Oil Pipeline LLC, a subsidiary of San Mateo Midstream LLC, has placed into service its crude oil gathering and transportation system in the Delaware basin. The Rustler Breaks Pipeline System includes approximately 17 miles of 10-in. diameter crude oil gathering and transportation pipelines from origin points in Eddy County, NM to an interconnect with Plains Pipeline LP.

The Rustler Breaks Pipeline System can support growing volumes from its anchor customer, Matador Resources Co., and other producers without significant additional capital investment, the company said.

“San Mateo is now able to offer services across all three production streams—crude oil, natural gas and produced water,” said Matt Spicer, senior vice-president and general manager of San Mateo.

In January, subsidiaries of San Mateo and Plains All American Pipeline LP agreed to work together through a joint tariff arrangement and related transactions to offer producers located within a joint development area of approximately 400,000 acres in Eddy County, NM, crude oil transportation services from the wellhead to Midland, Tex. with access to other end markets.

San Mateo Midstream is a joint venture formed in 2017 by a subsidiary of Matador Resources and a subsidiary of Five Point Energy LLC (OGJ Online, Feb. 17, 2017).