March 2016, Vol. 243, No. 3

Web Exclusive

Howard Lateral Crude Pipeline Open Season Ends

Medallion Pipeline Company, a subsidiary of Medallion Midstream, said it successfully closed a binding open season for its proposed crude oil pipeline extension, the Howard Lateral.  The open season began Feb. 9.

Medallion executed a long-term transportation service agreement that provides a capacity commitment sufficient to move forward with the project and a partial expansion of Medallion’s Wolfcamp Connector mainline.

The Howard Lateral extends 49 miles from several origin points in Howard County, TX, to the southeast to a new point of interconnection on Medallion’s Wolfcamp Connector mainline in Glasscock County, and will be capable of transporting 45,000 bpd of crude oil for delivery on a bidirectional basis.  Adjacent to one of the Howard Lateral origin points will be truck unloading facilities, which will be owned and operated by Medallion Pipeline’s affiliate, Medallion Crude Oil Logistics.

“The successful close of the Howard Lateral Open Season underwrites a significant northern expansion of Medallion’s existing Midland Basin crude oil gathering system,” said Randy Lentz, CEO of Medallion.  “The Howard Lateral will provide a crucial market link for Howard County customers seeking multiple delivery and market options for their crude oil production.”

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