Alpha Crude Connector, LLC ("Alpha"), through its Manager, Frontier Energy Partners, LLC, has announced it is conducting an additional Open Season for its new Alpha Crude Connector Pipeline (the "Pipeline" or the "System"), a FERC regulated crude oil transportation System located in Lea and Eddy Counties, New Mexico and Culberson, Loving, Reeves and Winkler Counties, Texas. This new transportation System commenced initial service in November 2015 and has the capacity to accept over 100,000 barrels per day of crude oil from numerous lease tank batteries and other field receipt points, including the outlet of the Red Hills truck unloading facility, in the northern Delaware Basin. By bidding for capacity on the Pipeline, producers and marketers can enjoy the option of delivering crude through the System to multiple downstream pipelines and a rail terminal, providing access to local refineries, Cushing and the US Gulf Coast.
Alpha intends to conduct an additional four week Open Season to obtain long‐term acreage or long‐term volume commitments for this new crude oil transportation System. This Open Season will commence on May 1, 2016 and will provide an opportunity for interested shippers to present bids for long term transportation commitments for capacity rights at competitive rates.
Notices of changes to these Open Season Procedures and the Open Season Documents (hereinafter defined), if any, will be posted on this website.
No further notice will be given except as explicitly provided elsewhere in these Open Season Procedures and the Open Season Documents.
The Pipeline will be comprised of four Segments. Segment 1 will originate in Lea and Eddy Counties, New Mexico and Culberson and Reeves Counties, Texas and will have the capability to receive crude oil from numerous lease tank battery receipt points and at a point of interconnect with Segment 4. Segment 2 will originate at a point of interconnect with Segment 1 in Lea County New Mexico, and will also have the capability to receive crude oil at points of interconnect with the Red Hills Truck unloading facility, Genesis Rail Services, LLC's facilities, Western Refining Pipeline's facilities and at multiple points of interconnect with Segment 3, and will terminate at Wink in Winkler County, Texas.1 Segment 3 will originate in Lea County, New Mexico and Loving and Winkler Counties, Texas and will have capability to receive crude oil from numerous lease tank battery receipt points. Segment 4 will originate in Lea County, New Mexico and will have capability to receive crude oil from numerous lease tank battery receipt points. The transportation System will have over 300,000 barrels of operational breakout storage to provide increased reliability to shippers. Alpha is not offering storage services at this time. Each downstream third party pipeline interconnect will have a dedicated LACT unit for accurate measurement of volume and crude oil quality. The transportation System is designed to have approximately 400 miles of crude oil transportation pipeline capable of transporting over 100,000 barrels per day.
Alpha currently has, or will have by July 1, 2016, interconnecting facilities with multiple long‐haul takeaway pipelines including the Plains Pipeline, L.P.'s facilities, Enterprise Crude Pipeline LLC's facilities, Sunoco Pipeline L.P.'s facilities and Holly Energy Partners Operating LLC's facilities, as well as the Genesis Rail Services, LLC's facilities. Alpha also plans to have interconnecting facilities out of its System with Western Refining Company Pipeline's facilities and Kinder Morgan Wink Pipeline LLC's facilities.1
Alpha has established a Quality Bank with respect to crude oil transported within the same common stream on the System. This Quality Bank initially applies only to the API gravity of crude oil transported in the same common stream on the System. All shippers shall be required to participate in the Quality Bank.
Alpha is offering committed service and uncommitted service under its Tariff. Upon request and following execution of a Confidentiality Agreement (PDF document), a prospective participant in the Open Season will be provided a form Crude Petroleum Dedication and Transportation Agreement and a form Crude Petroleum Throughput and Deficiency Agreement (collectively, together with these Open Season Procedures, the "Open Season Documents"). A map of the Alpha System as well as Alpha's existing FERC rates tariff and rules and regulations tariff and changes to these tariffs to be effective June 15, 2016 are posted to this website.
Up to ninety percent (90%) of the available project capacity will initially be reserved for shippers making term commitments during this Open Season and/or the previous Open Seasons conducted by Alpha and at least ten percent (10%) will remain open for shippers that have not previously and who do not sign up for term commitments during this Open Season or the previous Open Seasons conducted by Alpha and instead elect to make timely, monthly nominations.
As noted, the Open Season is scheduled to begin on May 1, 2016 and end on May 31, 2016. All bids must be submitted to Alpha by 5:00 pm, Central Daylight Time, on or before May 31, 2016. Any bid received after that deadline will be considered only at the election of Alpha. Alpha reserves the right to extend the deadline for submission of conforming bids. All requests for Open Season Documents, bids, and other correspondence must be directed to:
To constitute a valid bid in this Open Season, a prospective shipper submitting a bid must include a duly executed Dedication and Transportation Agreement or a Throughput and Deficiency Agreement ("Committed Shipper Agreements").
The forms of Committed Shipper Agreements provided in the Open Season Documents include places for each interested shipper to insert its acreage or volume dedication, as applicable, the corresponding term, company name, address, and contact information. Any other modification to the provisions of the Committed Shipper Agreements is subject to acceptance or rejection by Alpha, in its sole discretion, and may therefore render any such bid invalid. A bid will also be subject to Alpha's review and verification of the bidding party's creditworthiness .
After the Open Season process has ended, Alpha will make a decision on whether or not to modify the design of the transportation System to add capacity to accommodate more crude oil production than anticipated. In the event Alpha elects to proceed, Alpha will execute each acceptable Committed Shipper Agreement and return an executed copy to each shipper.
1The availability of such interconnecting facilities is subject to agreement with the entities whose facilities will interconnect with Alpha's Pipeline.
This notification along with any and all related Open Season Documents is provided for informational purposes only. Notwithstanding anything contained herein to the contrary, this notification, the Committed Shipper Agreements and any other Open Season Documents are not intended to constitute, nor shall they be construed to constitute, an offer or any binding obligation whatsoever on Alpha until Alpha has countersigned and delivered a fully executed Committed Shipper Agreement to an interested party. Alpha reserves the right, in its sole discretion, to modify, terminate or extend the Open Season, in whole or in part, at any time and without advance notice, including without limitation, any ensuing discussions with any recipient of any Open Season Documents. Alpha further reserves the right to modify or supplement any of the Open Season Documents associated with the Open Season without notice.
Under no circumstances shall Alpha or any of its members or any of its or their affiliated companies or any of its or their respective directors, officers, employees, agents, attorneys, advisers and representatives be responsible for any costs or expenses incurred by any recipient of any Open Season Documents or any other liability incurred by any such recipient in connection with any investigation or evaluation of the Pipeline project.