PLANO, Texas--(BUSINESS WIRE)--Rimrock Midstream has entered into agreements with Grand Mesa Pipeline, LLC, a subsidiary of NGL Energy Partners LP (NYSE:NGL), to construct and operate the Grand Mesa Pipeline.
Grand Mesa Pipeline, LLC completed a successful Open Season on October 3, 2014 securing multiple significant long-term shipper commitments. The system will include approximately 550 miles of new crude oil transportation pipeline, multiple truck injection bays, over 1.0 million barrels of operational storage, and at least two origination points located near Lucerne and Kersey (Riverside Station) in Weld County, Colorado. The system is in active development and scheduled to come on line in the latter part of 2016.
In addition to Grand Mesa, Rimrock is actively developing the Platte River gathering system that will deliver significant volumes of crude oil to Grand Mesa Pipeline’s origin point at Lucerne, Colorado. The gathering system will consist of more than 220 miles of pipeline and will be capable of delivering multiple grades of crude oil from several counties throughout North Central and Eastern Colorado.
“We have been fortunate to add several of our industry’s most experienced, respected and talented individuals to our team. It is because of these team members that we are able to continue to execute on our aggressive growth objectives in the Mid-Continent and Rockies regions of the United States,” said John Peterson, Rimrock’s Chief Executive Officer.
“The sale of our interest in Grand Mesa, the construction and operations agreements with Grand Mesa and our development of the Platte River gathering system greatly strengthen our financial and strategic position as a midstream growth company,” stated Matt Valentine, Rimrock’s Chief Financial Officer.
“We are pleased with Rimrock’s monetization of its Grand Mesa interests and look forward to continuing to support Rimrock’s growth objectives,” said Trent Kososki, Vice President of Energy Capital Partners.
About Rimrock Midstream, LLC
Rimrock Midstream, LLC is a strategic, growth-oriented company formed to acquire, develop and operate a portfolio of midstream energy infrastructure assets. Rimrock has been engaged in the business of acquiring, transporting and storing crude oil in Oklahoma, Kansas, Texas, North Dakota, Wyoming, Colorado, New Mexico and Utah. For more information, visit www.rimrockmidstream.com.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL owns and operates a vertically integrated energy business with five primary businesses: water solutions, crude oil logistics, NGL logistics, refined products / renewables and retail propane. NGL completed its initial public offering in May 2011. For further information, visit NGL’s website at www.nglenergypartners.com.