TULSA, Okla., Sept. 21, 2012 (GLOBE NEWSWIRE) -- White Cliffs Pipeline, L.L.C. ("WCPL") a partially owned subsidiary of SemGroup® Corporation (NYSE:SEMG), is considering an expansion of capacity from Platteville, Colorado to Cushing, Oklahoma to facilitate increasing shipments of crude petroleum from the DJ Basin to the Cushing hub (the "Expansion Project"). WCPL hereby announces a binding open season that will provide an opportunity for shippers to support the Expansion Project by making volume commitments, thereby becoming "Priority Service Shippers."
Highlights of Project
- It is anticipated that the Expansion Project would provide capacity for the transportation of approximately 80,000 bpd of crude petroleum from the DJ Basin and that it could be further expanded to support higher volumes as commitments may dictate.
- Subject to regulatory approval, the committed volumes of Priority Service Shippers would not be subject to pro-rationing under ordinary operating conditions.
- Priority Service Shippers would not be exposed to construction cost risk on their volume commitments.
- It is anticipated that the Expansion Project would be in-service for the transportation of crude petroleum by the first half of 2014. Following pipeline construction, Rose Rock Midstream, LP (NYSE:RRMS), SemGroup's master limited partnership, will continue in its role serving as the pipeline operator.
Priority Service Shippers' obligations to ship or pay under the transportation services agreements would commence on the in service date of the Expansion Project.
Open Season Process
Bona fide potential shippers that desire to receive copies of the open season documents, including the throughput and deficiency agreement (the "T&D Agreement"), are required to execute a confidentiality agreement (the "CA") in the form and pursuant to instructions available at:
http://www.semgroupcorp.com/OperationsAndCommodities/CrudeOil/WhiteCliffsPipeline/Open%20Season.aspx
Open season will remain open for 31 days and close at 5:00 P.M. CDT on October 22, 2012 at which time the T&D Agreement must be executed.
About White Cliffs Pipeline
White Cliffs Pipeline®, L.L.C. is a partially owned subsidiary of SemGroup® Corporation and is operated by Rose Rock Midstream, L.P. Partial ownership is also held by Samedan Pipe Line Corporation ("Noble Energy"); Anadarko Wattenberg Company, LLC, a subsidiary of Western Gas Partners, LP ("AWC"); and Plains Pipeline, L.P. White Cliffs Pipeline originates in Platteville, CO, northeast of Denver, and terminates at Rose Rock Midstream's storage facility in Cushing, OK. White Cliffs Pipeline, a 526-mile, 12-inch common carrier, crude oil pipeline is the only pipeline that directly moves crude oil out of the DJ Basin to the Cushing market and ultimately to refiners in the Mid-Continent area.
The White Cliffs Pipeline Logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14820
About SemGroup
Based in Tulsa, Oklahoma, SemGroup® Corporation (NYSE:SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.
SemGroup® and White Cliffs Pipeline® are registered trademarks of SemGroup Corporation.
About Rose Rock Midstream
Rose Rock Midstream, L.P. (NYSE:RRMS) is a growth-oriented Delaware limited partnership recently formed by SemGroup® Corporation to own, operate, develop and acquire a diversified portfolio of midstream energy assets. Rose Rock Midstream provides crude oil gathering, transportation, storage and marketing services. Headquartered in Tulsa, OK, Rose Rock Midstream has operations in six different states with the majority of its assets strategically located in or connected to the Cushing, Oklahoma crude oil marketing hub.
Forward-Looking Statements
Certain matters contained in this Press Release include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact, included in this Press Release including the timing and capacity of the Expansion Project, management's plans and objectives for the Expansion Project, business prospects, outcome of regulatory proceedings, market conditions and other matters, may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, regulatory approvals; environmental risks; changes in demand for crude oil; loss of market share and industry competition; potential delays and cost overruns; the risk of finalizing the T&D Agreements; the ability to access sufficient capital from internal and external sources; as well as other risk factors discussed from time to time in each of our documents and reports filed with the SEC.
Readers are cautioned not to place undue reliance on any forward-looking statements contained in this Press Release, which reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.