Pacific Energy Partners to expand Wyoming crude line

Pipeline & Gas Journal, May, 2006

Pacific Energy Partners' wholly owned subsidiary, Rocky Mountain Pipeline System LLC (RMPS), has signed a transportation agreement with Frontier Oil and Refining Co., a subsidiary of Frontier Oil Corp., that will allow RMPS to build a pipeline extension from Guernsey to Cheyenne, WY in exchange for Frontier Oil's 10-year firm commitment to ship 35,000 bpd to support the project. RMPS will also lease to Frontier Oil, on a concurrent basis, approximately 300,000 bbls of storage capacity at Fort Laramie.

The construction involves 10 miles of new 24-inch diameter crude line from Guernsey to RMPS's Fort Laramie-based tank farm and a 16-inch diameter crude line, approximately 85 miles in length, from Fort Laramie to Frontier Oil's Cheyenne refinery. Construction will begin this spring and is expected to be completed in the second quarter of 2007. The estimated cost of the project is $59 million. Initial capacity will be 55,000 bpd which can be expanded to 90,000 bpd.