Plains All American Pipeline LP, based in Houston, Texas, is planning to expand its pipeline system in the Permian Basin over the next four years. Parts of that expansion will happen in Texas. These projects bring more money and jobs and exemplify how our oil and gas industry continues to thrive. A healthy oil and gas sector means more royalties paid to Texas mineral owners.
The first of the four projects will be to add pumps to Plains existing 20″ Basin pipeline from Jal, New Mexico, to Wink, Texas. This will increase the pipeline’s capacity by 100,000 barrels per day. This first project will also include building a 40 mile long 12″ pipeline from Monahans to Crane, Texas, which will supply the Longhorn pipeline and the Cactus pipeline.
The second project is to build 62 mile, 16″ and 20″ pipelines with a 200,000 barrels per day capacity. This pipeline will go from the South Midland basin in Central Reagan and Central Upton counties in Texas to McCarney.
The fourth planned project will add pumping capacity to the Cactus pipeline to increase Plains expected increase in shipper demand.
All of these projects are expected to be completed in stages throughout 2014 and 2015. They are not Plains only plans. They also have plans for 45 new miles of crude oil pipeline to add to the Mississippian Lime pipeline, which is expected to start service early this year. It will bring the pipeline into Logan County, Oklahoma and Grant County, Oklahoma, to the Plains terminal at Cushing, Oklahoma. Plains also plans to build a 150,000 barrel tankage along the system, as well as have a long-term acreage dedication and storage lease at the Cushing terminal from an area producer.
Pipelines appear to be a safer way to get petroleum products to market, and Texas has a lot of petroleum products to get to market. Plains increased construction of pipelines means that more Texas landowners will be contacted for pipeline easements. Please contact an oil and gas attorney before you sign an easement with Plains or any other pipeline company. It is really the only way to be sure that you protect your land.
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