[Context:On February 8, Tailwater Energy-backed Goodnight Midstream Permian announced an open season for a water pipeline in Lea County, New Mexico. Further details and related links are below.]
DALLAS, Feb. 8, 2018 /PRNewswire/ — Goodnight Midstream Permian, LLC (“Goodnight”) is conducting a binding Open Season to provide an opportunity for producers to enter into long-term contractual commitments for Goodnight’s Llano Produced Water Pipeline System (the “Llano Pipeline”) to be constructed in Lea County, New Mexico. The Open Season will commence on February 8, 2018 and close on March 30, 2018.
The Llano Pipeline will transport produced water from the central Delaware Basin to Goodnight’s saltwater disposal well system on the Central Basin Platform (“CBP”) in the Eunice area. Goodnight’s produced water system will utilize the depleted oil fields on the CBP as a superior geologic alternative for sustainable disposal of produced water into multiple formations.
The Llano Pipeline will begin at its origin point in Lea County. The high-pressure pipeline will have an initial capacity of 200,000 barrels of water per day and is supported by a long-term dedication from a key producer. The Llano Pipeline is anticipated to be placed in service in the fourth quarter of 2018. Goodnight plans to construct multiple receipt points along the pipeline’s route with each receipt point having the capability to accept produced saltwater at 50 psi.
A map of the detailed route with planned receipt points for the Llano Pipeline can also be found on the Goodnight Midstream website at goodnightmidstream.com/llanopipeline.
Tariffs will vary depending on the structure of dedication and the location of a producer’s receipt point. Up to 80% of initial capacity will be reserved for producers entering into long-term commitments during this Open Season and at least 20% will remain open for uncommitted producers seeking interruptible capacity.
Producers who would like to receive Open Season documents must first execute a Confidentiality Agreement, a copy of which may be requested from Coley Kellogg using the contact information included below.
To the extent bids exceed the Llano Pipeline’s capacity, Goodnight reserves the right to reduce the maximum capacity available to each bidding producer according to system priority, which will assign the highest priority to producers entering into long-term minimum volume commitments.
Goodnight Midstream provides trusted oilfield water management services to oil and gas producers. The Company owns and operates an extensive network of water gathering pipelines and saltwater disposal wells focused on gathering and disposing of produced saltwater for its customers. Goodnight’s Midstream approach minimizes environmental impact and improves health and safety while lowering lease operating expense and improving reliability for its customers. Goodnight is supported by a team of highly experienced engineers and operating professionals. Goodnight operates in the leading oil shale fields in the United States, with a leading position in the Bakken of North Dakota, a rapidly expanding footprint in the Permian Basin, and an emerging presence in the Eagleford shale and the Powder River Basin.