A subsidiary of EnLink Midstream Partners LP is holding a binding open season through Aug. 10 to gauge interest in the proposed Greater Chickadee crude oil gathering system to be built in the Permian Basin of Texas. The system, to include more than 150 miles of high- and low-pressure pipelines, would have origin points in Upton and Midland counties and destination points at two terminals in Midland County. EnLink expects to spend $70-80 million for the project, which could be operational in 2017. Preliminary design is to include multiple central tank batteries and pump, truck injection and storage stations. Design capacity would be determined by shipper commitments. Details are available at enlink.com/crudeopenseason or by contacting Rick Van Eyk at (713) 739-3244 or firstname.lastname@example.org.
The Railroad Commission of Texas (RRC) issued 656 original drilling permits in June compared to 851 in June 2015. The June total included 506 permits to drill new oil or gas wells, four to re-enter plugged well bores and 146 for recompletions of existing well bores. The breakdown was 226 oil, 29 gas, 356 oil or gas, 37 injection, two service and six other permits. In June RRC staff processed 700 oil, 165 gas, 31 injection and four other completions compared to 1,416 oil, 225 gas, 64 injection and five other completions in June 2015. Total well completions for 2016 year to date are 6,429, down from 11,542 recorded during the same period in 2015. According to Baker Hughes Inc., the Texas rig count as of July 8 was 201, representing about 46% of all active rigs in the United States (see Shale Daily, July 8). Before the bust, Texas drilling activity accounted for about 50% of all rigs running in the United States.