Plains All American Pipeline, L.P. (NYSE:PAA)
today announced it plans to construct a new 170-mile pipeline to service
the increasing Mississippian Lime crude oil production in northern
Oklahoma and southern Kansas. This pipeline, in conjunction with the
previously announced Medford-to-Cushing pipeline conversion, is designed
to provide approximately 175,000 barrels-per-day of crude oil
transportation capacity to the Cushing market and is expected to be
completed in mid-2013. PAA also announced it has entered into a
long-term agreement with SandRidge Energy (NYSE:SD) to purchase
SandRidge's production from a multi-county area around the new pipeline
system.
"We are excited about the opportunity to expand our presence in the
Mississippian Lime play and to further develop our relationship with
SandRidge, which has a substantial acreage position in the area," said
Harry N. Pefanis, President and COO of Plains All American.
The Mississippian Lime pipeline will originate in Alfalfa County near
Alva, Okla. and terminate at PAA's Cushing, Okla. crude oil storage
facility. The new pipeline will share approximately 80 miles of
right-of-way with PAA's Medford-to-Cushing pipeline. PAA plans to extend
the pipeline from Alva northward into Kansas as demand warrants.
For additional commercial information on the Mississippian Lime
pipeline, please contact:
Laura Williams
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Steve Misner
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Dir. – Pipeline Commercial Operations
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Mgr. – Pipeline Business Development
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713-646-4245
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405-936-6710
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PAA owns a network of approximately 16,000 miles of liquids pipelines,
approximately 90 million barrels of liquids storage capacity and handles
more than 3 million barrels of physical product on a daily basis.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum gas and
other natural gas related petroleum products. Through its general
partner interest and majority equity ownership position in PAA Natural
Gas Storage, L.P. (NYSE: PNG), PAA develops and operates natural gas
storage facilities. PAA is headquartered in Houston, Texas.
Forward Looking Statements:
Except for the historical information contained herein, the matters
discussed in this release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to
differ materially from results anticipated in the forward-looking
statements. These risks and uncertainties include, among other things,
failure to implement or capitalize on planned internal growth projects;
shortages or cost increases of supplies, materials or labor; the
availability of adequate third-party production volumes for
transportation and marketing in the areas in which we operate and other
factors that could cause declines in volumes shipped on our pipelines by
us and third-party shippers, such as declines in production from
existing oil and gas reserves or failure to develop additional oil and
gas reserves; continued creditworthiness of, and performance by, our
counterparties, including financial institutions and trading companies
with which we do business; the impact of current and future laws,
rulings, governmental regulations, accounting standards and statements
and related interpretations; weather interference with business
operations or project construction; environmental liabilities or events
that are not covered by an indemnity, insurance or existing reserves;
the effects of competition; interruptions in service on third-party
pipelines; general economic, market or business conditions and the
amplification of other risks caused by volatile financial markets,
capital constraints and pervasive liquidity concerns; and other factors
and uncertainties inherent in the transportation, storage, terminalling
and marketing of crude oil, refined products and liquefied petroleum gas
and other natural gas related petroleum products discussed in the
Partnership's filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222
or 800-564-3036
Director, Investor Relations