Medallion seeks shipper agreements for expansion project

June 2016

Medallion Pipeline Co. LLC announced a binding open season which solicits long-term commitments from shippers for firm transportation capacity on the fifth major expansion of Medallion’s existing crude oil pipeline system. With the addition of the current project proposed by the open season, and two other projects proposed in two successful preceding open seasons in February 2016, Medallion’s operations will consist of approximately 380 miles of pipeline facilities providing shippers with significant flexibility to move crude oil production in the region to multiple markets via multiple transportation routes:

The “Martin Lateral” is a proposed 25,000 bpd oil pipeline, which will aggregate crude oil from multiple points of origin in Martin County, TX and extend in a southeasterly direction to a point of destination at the new Midland Hub in Midland County, TX.

The “Midland Lateral” is a proposed bi-directional crude oil pipeline, which will commence at the interconnection with the Martin Lateral at the Midland Hub and extend in a southeasterly direction to the existing Garden City Station where it interconnects with Medallion Pipeline’s existing Wolfcamp Connector mainline, the Reagan Gathering Extension, and the Midkiff Lateral, as expanded and extended. The Midland Lateral is proposed to be capable of transporting 25,000 bpd of crude oil from the Midland Hub to the Garden City Station and 90,000 bpd of crude oil from the Garden City Station to the Midland Hub.

The expansion project is expected to commence full commercial operations in the third quarter of 2016, although certain segments of the expansion project may commence service on an interim basis on an earlier date.