Rimrock Midstream entered into agreements with Grand Mesa Pipeline, a subsidiary of NGL Energy Partners, to construct and operate the Grand Mesa Pipeline.
The system will include 550 miles of crude oil transportation pipeline, multiple truck injection bays, over 1 MMbbls of operational storage and at least two origination points located near Lucerne and Kersey (Riverside Station) in Weld County, CO. The system is in active development and scheduled to come on line in the latter part of 2016.
In addition to Grand Mesa, Rimrock is developing the Platte River gathering system that will deliver significant volumes of crude oil to Grand Mesa Pipeline’s origin point at Lucerne, CO. The gathering system will consist of over 220 miles of pipeline and will be capable of delivering multiple grades of crude oil from several counties throughout north central and eastern Colorado.
“The sale of our interest in Grand Mesa, the construction and operations agreements with Grand Mesa and our development of the Platte River gathering system greatly strengthen our financial and strategic position as a midstream growth company,” said Matt Valentine, Rimrock’s CFO.