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Industry Brief

Tall Oak Midstream LLC is constructing a crude oil gathering, storage and transportation system to serve producers in Oklahoma's STACK play. Tall Oak is currently gathering and processing natural gas on its STACK System for multiple customers. Anchored by a long-term agreement with Felix Energy LLC, the crude oil system will connect to multiple downstream pipelines that provide access to the market center at Cushing, OK. Tall Oak said it expects to bring the system into service by the fourth quarter. "This expansion provides one-stop shopping and marketing flexibility to Felix Energy and many other customers we are working with in the STACK play," said Tall Oak CEO Ryan Lewellyn. Tall Oak's initial crude oil system will consist of a storage and truck unloading facility east of Okarche, OK, in the center of the STACK play, and a 20-mile pipeline that will provide connection to multiple downstream markets. Ultimately, Tall Oak expects to construct a 210-mile gathering system that will provide wellhead service. To serve customers while the gathering system is under construction, Tall Oak has contracted for a fleet of dedicated trucks that will deliver crude oil from the wellhead to the terminal. The terminal will have an unloading capacity of 16,000 b/d and storage capacity of 20,000 bbl with plans to expand to 70,000 bbl. The STACK play sits northwest of Oklahoma City and targets the Woodford and Mississippian-age shales.

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