wyoming pipeline authority · pdf filetrue companies • wyoming pipeline authority october...

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True Companies • Wyoming Pipeline Authority

October 15, 2013 • Pipelines

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Wyoming Pipeline AuthorityTrue PipelinesOctober 15, 2013

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• Pipeline Integrity Management

• Summer 2012

• Spring 2013

• Summer 2013

• Belle Fourche/Pony Express

• Fort Laramie Rail

AGENDA

3



Integrity Management: What is it?

4



Internal & External Corrosion

• Damage caused by:– Water

– 3rd Party Damage (Coating)

• General Rule: Every jurisdictional pipe within HCA needs to be internally inspected every 5 years unless engineering analysis proves otherwise.

• “Smart Pig”: Magnetic Flux Leakage (MFL) Tool

• Anomalies: – Depending upon clustering

and wall loss, PHMSA has a strict set of classification for repairs. E.g., • Immediate Pressure Reduction,

• Immediate Repairs,

• 180 day repairs, etc..

5



Pre-1970 ERW Line Pipe

From PHMSA

“Electric resistance welded (ERW) pipe is longitudinally welded pipe. A failure in the weld seam of this type of pipe can propagate for a distance along the pipe and can quickly release large quantities of product to the environment. Low-frequency (LF) ERW pipe installed prior to 1970 in particular can be susceptible to such failures.”

• Long Seam Inspected by Ultrasonic Tool

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Physical Regulations: Results

7



Agenda


• Summer 2012

• Spring 2013

• Summer 2013



8



Williston Basin Pipelines

Montana

Wyoming

North Dakota

South Dakota

Minnesota

Enbridge

Bu

tte

9



North Dakota Production

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

OTHERS

WILLIAMS

WARD

STARK

SLOPE

RENVILLE

MOUNTRAIL

Mercer

McLEAN

McKENZIE

McHENRY

VALLEY

DUNN

DIVIDE

BURKE

BOWMAN

BOTTINEAU

BILLINGS

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Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Mainline Throughput

11



-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jan

-07

Sep

-07

May

-08

Jan

-09

Sep

-09

May

-10

Jan

-11

Sep

-11

May

-12

Jan

-13

Sep

-13

May

-14

Jan

-15

Sep

-15

May

-16

Jan

-17

Sep

-17

May

-18

Jan

-19

Sep

-19

May

-20

Jan

-21

Sep

-21

May

-22

Jan

-23

Sep

-23

May

-24

Jan

-25

Sep

-25

Basin Transload

US Dev. Van Hook

Dakota Transport

Plains - Ross

Musket

BakkenLink

Berthold Rail

Savage Services

Bakken Oil Express

Rangeland COLT

Additional Rail

Hess Rail

EOG Stanley Rail

ONEOK Bakken Crude Express*

Hiland

Keystone XL*

Butte Loop*

High Prairie*

Plains Bakken North

Enbridge Sandpiper*

Enbridge BEP 2

Enbridge BEP 1

Enbridge Mainline

Butte Expansion

Butte

Tesoro

Production

Production Forecast and Export Capacity

1.6Mbpd

2.5Mbpd of Takeaway

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-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

Jan

-21

Jul-

21

Jan

-22

Jul-

22

Jan

-23

Jul-

23

Jan

-24

Jul-

24

Jan

-25

Jul-

25

PIPELINE VERSUS RAIL: PIPE WINS

Pipeline

Rail

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CushingWTI: $0

Source: Platt’s North American Crude Wire

Market Destinations and Prices for near-Bakken equivalents

Summer 2012 Market Prices

East CoastBrent: +$16.5

Gulf CoastLLS: $16

West CoastANS: +$16

GuernseyLS: -$4

ClearbrookLS: -$4

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-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jan

-07

Jul-

07

Jan

-08

Jul-

08

Jan

-09

Jul-

09

Jan

-10

Jul-

10

Jan

-11

Jul-

11

Jan

-12

Jul-

12

Jan

-13

Jul-

13

Jan

-14

Jul-

14

Jan

-15

Jul-

15

Jan

-16

Jul-

16

Jan

-17

Jul-

17

Jan

-18

Jul-

18

Jan

-19

Jul-

19

Jan

-20

Jul-

20

Jan

-21

Jul-

21

Jan

-22

Jul-

22

Jan

-23

Jul-

23

Jan

-24

Jul-

24

Jan

-25

Jul-

25

PIPELINE VERSUS RAIL: RAIL WINS

Pipeline

Rail

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Agenda


• Summer 2012

• Spring 2013

• Summer 2013



16



Spring 2013

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

De

c-1

0

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

Jul-

11

Au

g-1

1

Sep

-11

Oct

-11

No

v-1

1

De

c-1

1

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Jan

-13

Feb

-13

OTHERS

WILLIAMS

WARD

STARK

SLOPE

RENVILLE

MOUNTRAIL

Mercer

McLEAN

McKENZIE

McHENRY

VALLEY

DUNN

DIVIDE

BURKE

BOWMAN

BOTTINEAU

BILLINGS

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Butte Southbound Deliveries: Spring 2013

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Systems

Bu

tte

Par

shal

l

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Parshall Gathering System

BN

SF

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Deliveries - BPD by Location

Stanley to Hawthorn Pl Stanley to Enbridge Pl Stanley to Loadout


Parshall Gathering System

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Four Bears Pipeline

Dunn

McKenzie

Stark

Billings

Fact SheetOrigin: 13 mi W of New TownDest.: 12 mi NNE of Belfield• 77 Miles of 12” Epoxy

Coated Steel PipelineOil Receipt Locations• Keene Truck Terminal• Killdeer Truck Terminal• Gathering SystemsDeliveries• Butte Pipe Line at Baker,

MT• Bakken Oil Express Rail

Terminal at DickinsonCapacity• To Baker: 80,000• To BOE: 55,000

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Deliveries - BPD by LocationDeliveries - BPD by Location

Four Bears

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Belle Fourche North Dakota


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Agenda


• Summer 2012

• Spring 2013

• Summer 2013



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Summer 2013

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WTI-LLS vs Mainline Throughputs

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

Spring 2013-Economic to Rail-Rail Capacity is Expanding

Summer 2013-Not Economic to Rail

Summer 2012-Economic to Rail-Not Enough Rail Capacity

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Agenda


• Summer 2012

• Spring 2013

• Summer 2013



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Belle Fourche/ Pony Express Project

• Tallgrass• Convert Pony Express Pipeline form

natural gas service to crude oil service. • Extend the Pony Express line by 260

miles to Cushing, Oklahoma.• Bridger and Belle Fourche

• 155 miles of new pipe from Baker to Donkey Creek (PRB).

• Expand Phase I construction from a 12” mainline to a 16” mainline.

• Expand Belle Fourche Guernsey terminal.

• Summary• Total distance to Cushing: ~1,200 miles• Utilizes 1,800 miles of pipe.• 80% of the pipe is already in the

ground.• This proposal solves both Intra-Regional

Constraints and Inter-Regional Constraints.

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Intra Regional Constraints: Truck Terminal Coverage

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Belle Fourche/ Pony Express Open Season

Intra Regional Constraints• Belle Fourche and Bridger

gathering mainlines are no farther than 30 miles away from 80% of Montana and North Dakota’s production.• Economic & Expedited Lease

Gathering • Minimize Truck Haul Distance

• With the BF Reversal, Four Bears Expansion, Poplar and PAA pipelines, total capacity into Baker exceeds 300,000bpd.

• In Service August 2014

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Agenda


• Summer 2012

• Spring 2013

• Summer 2013



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Cushing

Tight Oil in the Mid-Continent

East Coast

Gulf Coast

West Coast Guernsey

Clearbrook

Permian+1,000 Light

Eagle Ford

700 Light

Anadarko+275 Light

Bakken+500 Light

Uinta100 Light

Canada800 Heavy100 Light

Niobrara275 Light

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Guernsey/ Fort Laramie: The hub of the Rockies

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Guernsey Terminal

Plains– Big Horn Basin Wyoming Asphalt

True - Belle FourchePowder River Basin

“Niobrara” Sweet & Sour

Kinder Morgan-PlatteCanadian Heavy

& Synthetic

True - Butte Williston BasinBakken & CCA

Plains WamsutterCondensate

Guernsey/Ft. Laramie Inbound Pipes

SinclairColorado Niobrara

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The Project

Guernsey Terminal Fort Laramie Rail Terminal

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Design Features• Incoming Pipeline: 3,500bph

(expandable to 5,000bph)• Loading Pumps: 8,000bph• 3 rail loop tracks (expandable

to four)• Two 100,000 bbl tanks (one

for sweet and one for heavy)• Double Sided Loading Rack

(24 Load Arms)• Initial Capacity: 1 Train per

day (80,000bpd of Light)• Expanded Capacity: 2 Trains

per day (160,000 of Light)

The Project

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To the East Coast

East CoastPhiladelphia, PA

Albany, New YorkDelaware

Displaced CrudesArabian Light

Nigerian Bonny

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West CoastBakersfield, CALos Angeles, CA

San Francisco, CASeattle, WA

Anacortes, WA

To the West Coast

Displaced CrudesRussian ESPO

Indonesian SenoSaudi Heavy

Ecuadorian Napo

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CushingWTI

Gulf CoastLLS

East CoastBrent

West CoastANS

GuernseyLS

ClearbrookLS

Where’s the Oil Going to Flow?

Conclusions

Observations• Rail is here to stay.• Pony Express will tie

Wyoming to the most liquid oil market in the world.

• The EEO Rail Terminal will tie Rockies production to world markets.

• Most importantly, these two projects will cause Wyoming to become an import constrained market instead of an export constrained market.

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Wyoming Pipeline AuthorityTrue PipelinesOctober 15, 2013

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