Monarch Oil Pipeline, LLC (Monarch), a subsidiary of Monarch Natural Gas Holdings, LLC, has announced an extension of the open season to solicit capacity commitments from shippers on the Monarch Pipeline. The Open Season, which began on 1 December, 2014, and was originally scheduled to close on 30 January, 2015, will now close on 20 February, 2015, at 5:00 pm CST.
The open season has received much interest from shippers. Monarch is extending the deadline for the open season to be responsive to the marketplace and assure adequate time to make changes to the open season documents. These changes are intended to make the project as dynamic as possible given the current state of the crude oil marketplace.
To accommodate market needs, the revised open season documents incorporate certain revisions to the transportation service agreements and pro forma tariffs that were made available to open season participants. These revised documents will be made available to all open season participants who have signed a confidentiality agreement and to any new participants upon execution of a confidentiality agreement.
The Monarch Pipeline system will continue to be divided into two primary components, an upstream gathering system to transport crude oil from the Production Areas to the Casey Station, an operational terminal and storage facility in Section 161 in Lipscomb County, Texas, and an 8 in. mainline pipeline that will transport crude oil from the Casey Station to the Plains’ Reydon Station interconnect. Monarch projects an initial capacity of 30 000 bpd of crude oil on each component, but is open to negotiations to increase the pipeline capacity and/or alter its configuration to meet market needs. The anticipated in-service date remains the second quarter of 2015.
Adapted from press release by Hannah Priestley-Eaton