NuStar Energy LP has signed separate deals with Valero Energy Corp. and EOG Resources Inc. that will affect several shale plays. Under the Valero deal, NuStar will construct a new pipeline to transport Eagle Ford crude oil to Valero's processing plants. Meanwhile, EOG will ship 70,000 b/d of crude oil from the Bakken, Eagle Ford and other shale plays by train to NuStar's terminal at St. James, LA, and will add 360,000 bbl of storage capacity there. NuStar's share of construction costs should be between $30 million and $40 million.
Texas' Second Court of Appeals has upheld a 2009 ruling allowing Range Production Co., a subsidiary of Range Resources Corp., to proceed with natural gas drilling at the Rayzor Ranch development in Denton, TX. Range had sued the project's developer, Allegiance Hillview LP, for refusing to extend a land-use agreement deadline. Range has three wells at the site, which is permitted for five wells and is now owned by Legend Natural Gas.
ConocoPhillips has agreed to acquire up to 46,000 net acres in the Niobrara Shale play from Lario Oil & Gas Co. The leasehold is located in Adams, Arapahoe, Douglas and Elbert counties, CO. The terms of the deal were not disclosed. ConocoPhillips will become operator of the acquired leases and will begin exploration efforts as soon as possible.