Great Salt Plains Pipeline

The project includes laying approximately 115 miles of new 8 inch pipeline from Cherokee, Oklahoma to Cushing, Oklahoma and will be able to move 20,000 barrels per day of crude oil  with an option to up rate to 35,000 barrels per day. The pipeline, to be named “Great Salt Plains Pipeline”, will transport production from Central and Western Oklahoma and interconnect with Parnon’s crude oil tanks located at Cushing.

All of the steel pipe sections have been manufactured and delivered, rights of way secured and approvals received from the various Government agencies. In response to interest from producers with acreage in Western Oklahoma, plans are being prepared to extend the Great Salt Plains Pipeline (Phase II) further west to serve the Granite Wash and other new tight sands plays. As sufficient interest and commitment to this extension is confirmed, the second phase of the project will run concurrently with Phase 1 and could commission as soon as midyear 2012.

Quick Fact 8

Parnon’s basic practice secures a profit on transactions while minimizing exposure
to price volatility.