Operations

Stakeholder has commenced a binding open season with respect to its San Andres Crude Gathering System, a planned greenfield crude oil gathering and trunkline pipeline system. The open season begins at 9 a.m. CST on December 1, 2016, and will conclude at 5 p.m. CST on January 4, 2017. Construction is expected to begin in January 2017. Stakeholder anticipates that the crude gathering system will be operational in May 2017.

The system will primarily serve wells producing from the San Andres formation in Yoakum County, Texas, and Lea County, New Mexico, and will provide transportation service to multiple takeaway pipelines near Denver City, Texas, providing producers and marketers with cost-effective access to all major crude markets in West Texas. The crude gathering system establishes Stakeholder as the leading crude-by-pipe gatherer in the San Andres play with expansion capabilities not only in Yoakum and Lea counties, but also into Cochran, Andrews and Gaines counties. In addition to crude gathering, Stakeholder is also designing a comprehensive natural gas gathering, treating and processing solution.