Pat McGannon Vice President, Business Development rangelandenergy.com

Transcription

1 Pat McGannon Vice President, Business Development rangelandenergy.com

2 Overview Our Purpose Rangeland Energy is a midstream energy company focused on developing, owning and operating midstream assets. Backed with private equity commitments from EnCap Flatrock Midstream. Experienced management team with over 150 years of midstream experience (crude oil, natural gas, NGLs and refined products). Our Strategic Focus Strong Customer Alignment Design transportation systems which maximize customers market options Fee for service - Do not market crude or take title to crude Initial focus: crude oil infrastructure in North Dakota s Bakken shale Current focus: transportation and storage of crude oil, NGL s and frac sand in: New Mexico/West Texas Alberta, Canada

3 Rangeland Integrated Oil (RIO) System RIO System in the Delaware Basin Artesia Strategy: Provide crude oil producers and buyers with cost-competitive pipeline and rail transportation options Hobb RIO Pipeline to Midland - access to Cushing and s the Gulf Coast RIO Hub access to any location served by rail RIO Hub Loving NEW MEXICO RIO State Line Terminal to Midland TEXAS... RIO Pipeline Objective: Maximize customers flexibility to choose alternative markets as differentials shift

4 Maximum Throughput Minimum Turn Times 1. Unit Train Facility Design 2. Truck Reception Design 3. Rail Car Loading Design 4. Automated Control System Design

5 Maximum Throughput / Minimum Turn Times 1. Unit Train Facility Design Double Loop Track Design - one train loading, second train staged to load Power stays with train, minimizing turn time to the refinery High volume truck unloading and pipelines provide crude supply Large storage tanks create point of liquidity

6 Maximum Throughput Minimum Turn Times 2. Truck Reception Design Target a total of 40 to 45 minutes to move through the facility Driver card key access system: identifies driver, carrier and customer, selects tanks, initiates transaction Skid pumps move crude directly into large storage tanks Coriolis meters and 3 composite crude samplers per rack Ratable truck traffic vs. peak time jam-up

7 Maximum Throughput Minimum Turn Times 3. Rail Car Loading Design Maximum set-to-release time = 24 hours per unit train Number of loading arms determines number of loading sets Size of fill tube determines loading time per set

8 Maximum Throughput Minimum Turn Times 4. Rail Car Loading Design Fill tube size impacts loading rate 4 fill tube rate is 40% higher than 3 fill tube - 4 fill tubes via bolted manway vs. 3 fill tubes quick connect Crude oil velocity is a limiting factor Load time for 4 vs. 3 pipe 4 crude oil fill tube at bolted manway 3 fill crude oil connection at railcar hatch Vent line to Flare

9 Unit Train Loading Time Study 100 Car Unit train 10 Arms 3 Fill 10 Arms 4 Fill 15 Arms 4 Fill Loading Sets Load time per set 1.5 hrs. 0.9 hrs. 0.9 hrs. Total pumping time 15.0 hrs. 9.0 hrs. 6.0 hrs. Total Time between sets 4.0 hrs. 4.5 hrs. 3.0 hrs. Spotting train in and out 1.5 hrs. 1.5 hrs. 1.5 hrs. Total train time on site 20.5 hrs hrs hrs.

10 Maximum Throughput Minimum Turn Times 4. System Design Loading systems store design data for each rail car within the terminal automation system Operator inputs car number and any significant heels left in rail car Each car is loaded to its design capacity vs. loading to a set capacity for each car Bbl/Car Bbl/ Train Trains/yr (25 kbd) Bbl/yr 30 bbl bbl ,000 bbl. Extra trains per year 6

11 Maximum Efficiency = Strong Customer Alignment The most efficient facility is the one that best meets customers needs Use quality equipment, latest technology, and work closely with customers to maximize efficiencies Design scalable facilities that allow you meet current customer needs with the ability to grow to meet future needs

12 Questions? Artesia Hobbs RIO Hub Loving NEW MEXICO NEW MEXICO TEXAS. RIO State Line Terminal.. RIO Pipeline to Midland

13 Thank You Pat McGannon Vice President, Business Development