Tesoro Logistics LP Announces Binding Open Season, Proposes Additional Expansion to THPP System and Bakken Area Storage Hub Proj

abarrelfullabarrelfull wrote on 01 Sep 2015 06:06
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February 4, 2014

Tesoro Logistics LP (“TLLP”) announced today the launch of a binding open season, to assess shipper interest in firm priority capacity on the Tesoro High Plains Pipeline system (“THPP”) to transport crude petroleum from various points south of Lake Sakakawea, including Johnson’s Corner, Keene and Blue Buttes (all within McKenzie County, N.D.) to Ramberg Station, Williams County, N.D., and from Ramberg Station to Stampede, Burke County, N.D.

Additionally, TLLP is proposing an expansion of the Bakken Area Storage Hub (“BASH”) terminal facility. The storage facility is being constructed near THPP’s Ramberg Station and is expected to have capabilities to allow shipper access to/ from multiple pipelines and rail loading facilities in the area, including Enbridge’s North Dakota Pipeline System, the proposed Sandpiper Pipeline to Clearbrook, Minn., Crestwood’s COLT hub rail facility and/or Global’s Stampede rail facility in Columbus, N.D. Initial storage capacity at BASH is expected to be at least 1.0 million barrels of crude oil with the first 360,000 barrels of working storage capacity currently under construction anchored by Tesoro Refining & Marketing Company LLC. TLLP currently owns or has rights to acquire sufficient land to expand BASH capacity to at least 2.5 million barrels.

THPP Expansion and Binding Open Season
The proposed THPP capacity expansion would be executed in two phases: Phase I will provide incremental capacity for shippers to transport up to approximately 70,000 barrels per day (bpd) of crude petroleum from various locations south of Lake Sakakawea, including Johnson’s Corner, Keene, Blue Buttes and Charlson Station, to Ramberg Station by July 1, 2014. Phase II will provide incremental pipeline capacity of up to 90,000 bpd from Ramberg to Stampede, with an expected in service time frame of second half of 2015. Bids will be considered separately for each Phase of the pipeline expansion. The total aggregate incremental capacity expansion from both Phases will be 160,000 bpd, all of which will be available to committed shippers, assuming that both Phases are completed. The in-service time frames are subject to THPP obtaining sufficient commitments from shippers as well as regulatory and internal approvals.

The binding open season will commence on February 4, 2014 and will end at noon Central Time on March 18, 2014. Bona fide potential shippers that would like to receive copies of the open season documents, the throughput and deficiency agreement and proposed tariff(s) must first sign a confidentiality agreement (requested by emailing moc.procost|nosaeSnepOPPHT#moc.procost|nosaeSnepOPPHT , or by going to www.tesorologistics.com , and selecting the “High Plains Open Season” link on the left navigation bar). Confidentiality agreements that have been altered or amended in any way (other than by inserting the requested information) will not be accepted by TLLP. During the binding open season, comments, questions or changes to the general terms and conditions of the throughput and deficiency agreement, the proposed tariffs, services and/or routes are due at noon Central Time on February 28, 2014, and are to be submitted in writing in the relevant documents. Interested parties will have the opportunity to execute committed agreements for crude oil transportation service on the Phase I and the Phase II expansions, respectively.

In addition, shippers will have the opportunity to enter into terminalling service agreements that are not part of the binding open season, for storage at the BASH terminal facilities. Parties who sign a confidentiality agreement may also request a terminal services schedule covering proposed terms of the storage services to be provided at the BASH terminal. TLLP expects to finalize agreements for committed storage at the BASH terminal during the same time period as the open season for the pipeline capacity expansion.

The THPP System
The THPP System is currently an open stock system transporting crude to Tesoro’s Mandan, N.D. refinery as well as outbound delivery points at Richey Station in eastern Montana, Dry Fork Station, Enbridge Beaver Lodge and Stampede, N.D. with approximate capacity of 110,000 bpd. Pursuant to the proposed open season approximately 160,000 bpd of incremental capacity will be added.


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