|First Crude Oil Unit Train Departs Meritage Midstream’s Black Thunder Terminal|
DENVER - Meritage Midstream Services II, LLC (“Meritage Midstream”) announced today that the first crude oil unit train loaded at its Black Thunder Terminal departed the Wyoming terminal on Friday, June 20, via the Union Pacific railway. The Black Thunder Terminal, LLC is a joint venture between Meritage Midstream and Arch Coal (NYSE:ACI). Served by both the Union Pacific and BNSF railways, the terminal is strategically located at the Black Thunder mining complex in Campbell County, Wyoming, in the heart of the Powder River Basin’s drilling activity.
The 99-car train is carrying 70,000 barrels of crude oil to a refinery on the East Coast for the terminal’s anchor shipper, Black Thunder Marketing, LLC. All of the train’s tank cars are new and meet the stringent safety standards adopted earlier this year by the American Association of Railroads.
The Black Thunder Terminal provides outbound rail-to-market optionality for crude oil production from Wyoming’s Powder River Basin.
Phase I truck-to-train transload service has been fully operational at Black Thunder since the beginning of March. Current transload capacity is 10,000 barrels per day. Landing and loading space is available. Construction of Phase II high-speed loading facilities is expected to begin later this year. The Phase II facility will include up to four 100,000-barrel storage tanks and a 15-car rack system capable of loading 15 to 18 cars per hour. Target total loading time is 15 hours. High-speed loading service is expected to be available in 2015. The terminal’s location at the Black Thunder mining complex provides ample room for additional expansion to meet customer needs.
“The Black Thunder facility is unique because it's the only crude oil terminal in Wyoming located at a coal mine. When we formed the joint venture with Arch Coal, our vision was to create a win-win situation for our customers and the terminal partners. We created significant cost savings for our crude oil customers as well as efficiencies at Black Thunder by successfully repurposing some of the mine property and rail infrastructure for transloading crude oil. It’s a great location in the center of drilling and production activity and a perfect fit for everyone at the table.”
“Partnering with Meritage at Black Thunder Terminal not only helps us unlock additional value of our existing land holdings and infrastructure, but also provides us with a diversified interest in the growing shale oil market,” said Paul A. Lang, Arch Coal executive vice president and chief operating officer.
Additions to Crude Oil Management Team
Richmond McGee has also joined Meritage Midstream as senior crude manager. He helps manage Black Thunder Marketing, LLC with responsibilities that include supply management and business development. Prior to Meritage, Mr. McGee served as a manager of crude oil supply at Sunoco Logistics in Sugar Land, Texas, where he worked closely with the company’s producer customers. Before establishing a career in the oil industry, Mr. McGee played in the National Football League with the Philadelphia Eagles, Chicago Bears and Cleveland Browns. He is a graduate of the University of Texas, where he studied petroleum engineering and kinesiology.
“We place a great deal of value on our strong relationships with producers, marketers, refiners and both of the Class I railroads that serve Black Thunder. It was important to us to bring on proven leaders with strong operations and marketing records, significant Class I experience and great working relationships with the UP and BNSF. We are very pleased to welcome Trevin and Richmond to our team,” said Meritage CEO Steve Huckaby.
About Black Thunder Terminal, LLC
About Meritage Midstream Services
About Arch Coal