LM Energy Launches Open Season to Extend Oil Gathering System in Northern Delaware Basin
LM Energy Holdings announced one of its subsidiaries, LM Touchdown Crude, has launched a binding open season to obtain commitments to support the continued growth of its Touchdown Crude Oil Gathering System in the Northern Delaware Basin.
The proposed extension of the system will gather crude oil from origination points in Eddy and Lea Counties, New Mexico and deliver to destination points also in Eddy and Lea Counties, New Mexico. The binding open season commenced Monday and is scheduled to conclude at 5 p.m. Central on May 12.
The Touchdown Crude Oil Gathering System consists of about 50 miles of gathering and transportation pipelines and 30,000 barrels of storage capacity, with continued expansions underway and planned during 2021.
“Despite a challenging market backdrop over the last year, we feel very fortunate to work with customers who have active development plans and capital sponsors who remain supportive,” said Elliot Gerson, CEO at LM Energy. “We believe that the current environment creates opportunities for LM, which we are excited to pursue.”
LM Energy’s gas gathering system was brought into service in June 2020. The Touchdown Gas Gathering System provides low pressure gathering, dehydration, compression, and high-pressure gathering services for liquids-rich natural gas produced by customers in the area.
The binding open season provides potential customers with the opportunity to obtain priority crude oil gathering and transportation service between origins and destinations in Eddy and Lea Counties, New Mexico by making long-term acreage dedications to the pipeline. Customers that execute a crude oil gathering agreement with LM Touchdown during the binding open season will receive priority service on the pipeline up to the amount of their deemed volume commitment.
A copy of the open season procedures and a copy of the form crude oil gathering agreement will be available to interested customers upon the execution of a confidentiality agreement with LM Touchdown. A copy of the confidentiality agreement will be provided upon request. All requests should be directed to Ryan Godfrey at (469) 501-2579 or rsg@lmenergypartners.com.
All binding commitments must be received by 5 p.m. Central on May 12, 2021. For updates regarding the open season and potential future commitment, click here.
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