Thunder Creek NGL Pipeline

Meritage subsidiary, Thunder Creek NGL Pipeline, LLC (“TCNGL”) is the operator of a FERC-regulated common-carrier natural gas liquids (“NGL”). The TCNGL pipeline system receives high-pressure NGL from a single receipt point located at Meritage subsidiary, Thunder Creek Gas Services, L.L.C.’s 50 Buttes Gas Processing Plant located in Campbell County, Wyoming, extending south to a single downstream delivery point with the Phillips 66 (“P66”) Powder River Pipeline located near the town of Douglas, Wyoming. NGL delivered to P66 are transported by P66 and redelivered to fractionation and refining facilities near Borger, Texas, and/or fractionation facilities near Conway, Kansas.

The TCNGL pipeline system is currently being extended from its southern terminus by approximately 10 miles to connect with Thunder Creek Gas Services’ new Steamboat Gas Processing Plant (“Steamboat”), located in Converse County, Wyoming, which is currently under construction and estimated to commence service during the second quarter 2019. In conjunction with the construction of the Steamboat plant, TCNGL is modifying and expanding its system with a 10-mile 10” pipeline to connect Steamboat, with a new delivery connection with ONEOK Bakken Pipeline, by a reverse flow from the southern end of the system, and by a disconnect of the delivery point with P66.

The system had a preliminary design capacity of 15,000 barrels per day (expandable to 30,000 barrels per day). The first 108-mile leg of the pipeline came into service in April 2015. After the modifying related to Steamboat, the system will have 118 miles of pipeline, with 15,000 barrels per day of capacity from 50 Buttes and 25,000 barrels per day of capacity form Steamboat.