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Medallion Doubling Permian System Capacity, Sees Heightened Interest to Move Crude from West Texas

Medallion Pipeline Co. LLC is pulling the trigger on crude oil pipeline expansions in the Permian Basin's Midland sub-basin following a successful open season, and has launched a supplemental open season based on interest from potential shippers.

The initial two-part expansion would double capacity of the existing Wolfcamp Connector -- from 105,000 b/d to 200,000 b/d -- via a 16-inch diameter partial loop in the West Texas counties of Howard, Glasscock, Mitchell and Scurry. The expansion is to run 47 miles from the existing Howard-Wolfcamp Interconnect to the Colorado City Hub to interconnect with third-party carriers.

The second part of the expansion would increase capacity on Medallion's existing Howard Lateral in Glasscock and Howard counties, adding pumping horsepower to increase throughput from 60,000 b/d to 85,000 b/d.

Commercial operations initially would begin in 3Q2017, with full operation by the end of the year.

"The response to the open season and the continued interest of potential shippers in increased pipeline capacity in the Midland Basin is compelling," said Medallion CEO Randy Lentz. "We are excited about the significant production growth in the Midland Basin and the opportunity to meet our customers' growing needs."

Based on the binding capacity bids and "the significant interest expressed by potential shippers during the open season," as well as discussions with potential shippers, Medallion has launched a supplemental open season through June 30.

The supplemental open season would maintain "the same transportation options, the same origin and destination points, and the same rates as proposed in the open season, but provides a further opportunity to increase the capacity beyond the levels originally proposed in the open season."

More information about the expansion and the binding open season is available on the Medallion website. The Irving, TX-based midstream operator is a portfolio company of The Energy & Minerals Group.

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