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September 10, 2019 - Explorer Pipeline Company Launches Binding Open Season For New Movement On Explorer Pipeline System

Explorer Pipeline Company ("Explorer") announced today a binding open season to secure shipper commitments to support the development of a proposed extension of Explorer's pipeline system. The proposed project will provide transportation services from points of origin in the U.S. Gulf Coast to a new delivery point near Melissa, Texas ("Expansion Project").

Upon completion of the Expansion Project, shippers will be able to obtain transportation service from the U.S. Gulf Coast receipt points on Explorer's system to the new delivery point near Melissa, Texas. A new terminal is also planned to be constructed at the terminus of the Expansion Project near Melissa, Texas, which will be owned and operated by U.S. Oil. The binding open season commences today, September 10, 2019, and is scheduled to conclude on November 11, 2019.

Shippers interested in becoming committed shippers on the Expansion Project must make a volume commitment of at least 2,500 barrels per day. Shippers that make a volume commitment will have the ability to receive priority capacity, up to an amount of their volume commitments, during periods of prorationing, subject to the payment of a premium rate. Shippers that make a volume commitment and do not receive priority capacity will be subject to discounted rates compared to the rates assessed to walk-up shippers, with the amount of the discount dependent on the level of the shipper's volume commitment.

A copy of the Open Season Procedures, which provides a more detailed summary of the key terms and conditions of service for the Expansion Project, and a copy of the pro forma Transportation Services Agreement will be available to any party with a bona fide shipping interest upon the execution of a confidentiality agreement. A form of the confidentiality agreement will be provided to such interested parties upon request.

Any party interested in obtaining copies of the Open Season Procedures and the Transportation Services Agreement, or that has any questions concerning the Expansion Project, should contact Tony Romanello at 918-493-5146 or at tromanello@expl.com. Any questions related to the proposed new terminal facility to be constructed near Melissa, Texas, should be directed to Shawn Barker at 918-332-2099 or at sbarker@usoil.com.

Open Season Notice

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Explorer Pipeline is headquartered in Tulsa, Oklahoma and has approximately 200 employees. It transports refined petroleum products through a 1,900-mile pipeline system extending from Port Arthur, Texas to the upper Midwest and serving major markets, including Houston, Dallas, Tulsa, St. Louis and Chicago. The southern system currently has a capacity of 660,000 barrels per day and the northern system currently has a capacity of 450,000 barrels per day.

Commercial Contact:
Tony Romanello
Manager Business Development
Explorer Pipeline Company
tromanello@expl.com

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