Rangeland holds open season for RIO Pipeline

June 2016

Rangeland Energy announced the start of a binding open season for its RIO Pipeline. Operated by its affiliate Rangeland RIO Pipeline LLC, the 109-mile, 12-inch, common carrier pipeline will transport crude oil and condensate produced in the Delaware Basin to terminals in the Midland, TX, market center and takeaway pipelines to Cushing, OK; the Gulf Coast; and other market centers. Currently under construction, the pipeline has a capacity of more than 125,000 bpd and is expected to become operational in July 2016.

The pipeline originates at Rangeland’s State Line Terminal in Loving County, TX, where Rangeland has constructed truck unloading and crude storage facilities. Unloading facilities and tanks also have been constructed at the destination terminal in Midland, where additional space is available to build customer-leased crude storage. A long-term connection agreement has been executed with Plains Pipeline LP for delivery to the Plains Midland South terminal, giving shippers access to multiple terminals at Midland as well as outbound pipelines.

The open season process provides shippers with the opportunity to make volume commitments and execute long-term transportation contracts with Rangeland. Shippers electing to make long-term volume commitments to the RIO Pipeline will be eligible to receive priority transportation service at a premium rate.