Enterprise, Anadarko and DCP Midstream to build new NGL pipeline

HOUSTON, Texas, THE WOODLANDS, Texas and DENVER, Colo. - Enterprise Products Partners L.P., Anadarko Petroleum Corp. and DCP Midstream, LLC on April 12 announced an agreement to design and construct a new natural gas liquids pipeline that will originate in the Denver-Julesburg Basin in Weld County, Colo., and extend approximately 435 miles to Skellytown, Texas, in Carson County.

Each party will hold a one-third interest.

The new Front Range Pipeline, with connections to the Mid-America Pipeline system and the recently announced Texas Express Pipeline, will help producers in the DJ Basin maximize the value of their NGL production by providing reliable takeaway capacity and market access to the Gulf Coast, the largest NGL market in the United States.

Depending on shipper interest to an upcoming binding open commitment period, initial capacity on Front Range is expected to be approximately 150,000 barrels per day (b/d), which can be readily expanded to approximately 230,000 b/d.

Enterprise will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.

"We are very pleased to partner with Anadarko and DCP on this project, which will extend Enterprise's integrated pipeline network into the liquids-rich DJ Basin to address the area's NGL transportation constraints, providing flow assurance and market choice for producers," said Michael A. Creel, Enterprise president and chief executive officer.

"With the success and significant growth expected in Anadarko's liquids-rich Wattenberg HZ (horizontal) program, Front Range will provide needed access to premium markets, which enables us to capture the highest wellhead netbacks. When combined with the recent announcement by Western Gas Partners, LP to construct the Lancaster Plant in the DJ Basin, Front Range provides significant value to Anadarko and its stakeholders," said Danny Rea, vice-president of midstream for Anadarko.

Bill Waldheim, president of DCP Midstream's NGLs, Gas and Crude Oil Logistics business unit, said, "The DJ Basin for several years has been an attractive liquids-rich resource. Now, with the introduction of horizontal drilling and this new phase of oil-driven development, the volumes and the infrastructure needs are accelerating. In anticipation of growing volumes, DCP remains focused on the liquids transportation needs of the basin. Given the plant development under way in the DJ, DCP has a strategic need to provide open access transportation services to the higher-valued Mt. Belvieu market."

Mid-America in 1,970-bbl. Kansas gasoline leak

SOLOMON, Kansas – A farmer here noticed a distinct odor of gasoline as he stepped out of his house on the afternoon of April 23.
Prochaska drove onto Buffalo Road about five miles northwest of Solomon and noticed gasoline coming out of the ground about 400 yards east of his farm home.
Fuel from a ruptured eight-inch Mid-America mainline was gushing into the waterway, headed for the Solomon River.
Rory Tillett, director of Ottawa County Emergency Management, estimated
1,970 barrels - 82,740 gallons - spilled from the line. "It ran open for an hour and a half before it was shut down," Tillett said.
Prochaska called 911 to report the leak. Dispatchers took the call at 5:07 p.m., Tillett said.
The Prochaskas - Tom and Patty - were among 10 people evacuated from their homes that night.
Officials with Mid-America Pipeline, owned by Enterprise Products of Houston, rushed to the scene, along with emergency workers from
Bennington and Salina.
The leak was stopped on the evening of April 23, said Alan Siemer, Enterprise Products' central region operations manager.
While the flow of fuel was stopped, fixing the leak has been
troublesome, Tillett said, because of muddy conditions. Another pipeline
carrying anhydrous ammonia - owned by Magellan Pipeline - runs
parallel to the ruptured line.