Enbridge Sells Inactive North Dakota Oil Pipeline to MHA Nation for Reservation's Oil Transportation
(P&GJ) — In order to assist in bringing oil from wells on its reservation to the general market, a Native American tribe in North Dakota purchased an empty pipeline from Canadian pipeline operator Enbridge.
The agreement was announced by the Mandan, Hidatsa, and Arikara Nation on Friday, but no financial details were provided, the Associated Press reported. The pipeline, which would link the tribe's oil facilities on the Fort Berthold Reservation to Enbridge's extensive pipeline network, is anticipated to be operational within a year, according to the tribe.
The California Department of Mineral Resources' most current data shows that there are more than 2,600 operational oil and gas wells on the reservation, which in February generated an average of 144,190 barrels of oil per day. According to regulators, the reservation has the potential for 3,911 more oil and gas wells.
The pipeline spanning 31 miles holds the distinction of being the nearest to the Thunder Butte Petroleum subsidiary's transloading and oil storage facility, allowing for the transportation of 15,000 barrels per day.
The MHA Nation will be the first indigenous shipper on an Enbridge pipeline, according to Mike Koby, vice president of U.S. liquids pipeline operations for the Calgary, Alberta-based company Enbridge. The tribe will gain financially from owning the pipeline, he claimed.
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