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Permian Basin 2017

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PERMIAN BASIN: MIDSTREAM UGcenter.com | November 2017 | 71 Even within the operating entities, there has been a willingness to go with the flow. "Our origi- nal intent for our Rangeland Integrated Oil (RIO) complex outside Loving, N.M., was intended to be a liquids terminal," said Chris Keene, CEO and presi- dent of Rangeland Energy, "but we were early [into the unconventional development in the play], and there was first a need for inbound frack sand. That business has grown exponentially. We are moving on average 240,000 tons of sand a month; about 400 trucks a day outbound from the RIO Hub into the play." The RIO Hub is served by the BNSF Railway. It has two rail loops for unloading unit trains into silos and also ladder tracks for direct transloading sand from rail cars to trucks. The main customer is Halliburton; and there are two sand-mining firms that also bring in supply. "We continue to expand the sand business as we explore options for moving liquids," Keene said. Rangeland's second operation in the Permian is the RIO Pipeline System, which is two terminals and their connecting 110-mile pipeline, an arrangement Keene likens to a barbell. Rangeland's State Line Terminal is on the eponymous border between New Mexico and Texas, with two additional terminals in Midland. "Cur- rently crude is moving east into Midland market center, but it could easily move the other way," Keene said. "We are actively negotiating with producers for more crude, looking at adding additional terminals and pipelines for storage and gathering, and talking with long-haul carriers for transport connections to Corpus Christi and Houston. That is the three-pronged growth strat- egy: additional supply, gathering and takeaway." As with virtually all private-equity-backed devel- opments, Rangeland's approach is to build and operate then ultimately sell, likely to a publicly traded operator, a master limited partnership or perhaps a very large fund. n

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