I don't see why they can't continue loading oil the way they were before the shutdown until the court case gets a ruling. They were making good money at the loading site ,when it was running. Canexus should be able to show the lost income at the court case due to MEGs refusal to connect to the pipeline .I think the judge told the parties that he or she would make a decision at a future date if the parties can't come to a negotiated settlement .
Multi-Phase Expansion Plans
Driven by customer demand, we are capitalizing the Bruderheim Terminal's strategic location and expanding our operations in two ways:
1. Truck-to-Rail
Since late 2011, we have undertaken a series of projects to increase our diluted bitumen and crude oil truck-to-rail ("manifest") transloading. Our expansion provides 30,000 bbls/day of capacity and the significant railcar storage capabilities associated with the manifest facility provide a unique opportunity for Canexus’ manifest customers to capture unit train shipment economics.
2. Pipeline-to-Rail
In December 2013 we began start-up of a pipeline-connected unit train. The Terminal is connected with pipelines that interconnect with the MEG Energy Stonefell Terminal. We have long-term agreements with Inter Pipeline for delivery of bitumen blend from the Cold Lake pipeline system. We are guaranteed capacity of up to 100,000 bbls/day of Cold Lake Blend pipeline delivery. And we have a multi-year agreement with Cenovus Energy Inc. for bitumen blend pipeline receiving and unit train loading services at our Terminal.
Long-term Take-or-Pay Contract
NATO is anchored by long-term take-or-pay contracts. Currently, 60 to 70% of the expected unit train activity of 10.5 unit trains per week is now contracted with two producers (MEG Energy and Cenovus Energy Inc.) and a midstream logistics and marketing company and leader in transporting crude oil by rail. The market fundamentals for oil-by-rail movements are strong and we continue to meet with existing and potential customers to contract out the remaining volumes.
Pipeline and Unit Train Growth Expansion
The pipeline-connected unit train project included building out the pipeline connection, rail infrastructure, loading/offloading and above ground tank storage. The next expansion to further increase terminal loading capacity is expected to be operational by late August 2014, to coincide with completion of the second pipeline connection to the Cold Lake pipeline system.
Setting the Stage for Future Expansion
Looking ahead, there is opportunity to increase our unit train capability, utilize our existing 1.6 million barrels of salt cavern storage, develop additional salt cavern storage and pursue other attractive investment opportunities at this 480-acre site.