Company formed to build Glass Mountain Pipeline

The proposed pipeline, which will be constructed by SemGroup, will consist of two laterals. One lateral will originate near the town of Alva in Woods County, Oklahoma. The second lateral will originate near the town of Arnett in Ellis County, Oklahoma.

The pipeline will increase in diameter where the laterals intersect near Cleo Springs in Major County, Oklahoma, and continue east to Cushing, Oklahoma. The pipeline will terminate at Gavilon’s Cushing facility, where the joint venture will own 1 MMbbl of crude oil storage.

The new pipeline will have an initial capacity of approximately 140,000 bbl/d and 440,000 bbl of intermediate storage.

Chesapeake Energy has entered into a long-term transportation agreement with Glass Mountain Pipeline to provide the economic incentive to construct the pipeline.

The pipeline system is expected to meet growing and diverse midstream requirements resulting from the drilling activity in western Oklahoma and the Mississippi Lime play.

Construction of the pipeline is expected to begin this summer and be commissioned in the fall of 2013. Upon completion, SemGroup’s master limited partnership Rose Rock Midstream will serve as the pipeline operator.

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