Watco And Kinder Morgan Plan Crude Rail Network

March 2011, Vol. 238 No. 3

Watco Companies LLC and Kinder Morgan Energy Partners L.P. have agreed to construct and operate several rail transload facilities in key markets for loading and unloading crude oil along with many other commodities and products that are tied to the oil and gas industry.

The network will consist of several key markets which include Dore and Stanley, ND, Stroud, OK, Houston, TX and several strategic loading facilities in the Eagle Ford Shale area in south Texas. Each facility will have the capability of handling large unit train volumes along with manifest commodities such as frac sand, pipe and drilling supplies.

The Dore, ND facility will include Pioneer Oil LLC, headquartered in Billings, MT, and will have over 10,000 feet of track in Phase I of the project along with warehousing for inside storage. The operational start date is September 1, 2011. Stroud will also house the capabilities of handling unit train volumes with a start date of October 1, 2011 and will provide customers direct access to Cushing, OK. The other locations are still in the design phase and will be operational in the first quarter of 2012.

“As companies like Watco and Kinder Morgan continue to invest in expanding transportation services for the oil and gas industry, they are also helping to boost the economies of these key markets,” said Denis Smith, BNSF vice president, industrial products marketing.