Dakota Gold Transfer - Plaza, LLC (“Dakota Gold”) announced today that
the company plans to develop a crude oil transload facility in Mountrail
County, North Dakota. Strategically located on a 350-acre site in the
eastern section of the prolific Bakken and Three Forks shale oil
producing areas, the Plaza Terminal will provide refiners, marketers and
producers with new options for reaching multiple markets across the
United States and Canada via rail and pipeline.
Dakota Gold is a joint venture between its president and CEO, Cody Moe,
and the TrailStone Group (“TrailStone”). Mr. Moe is a well-established
crude oil trucking and construction entrepreneur with seven years of
experience in the Bakken. TrailStone is an energy asset investor and
manager, majority-owned by Riverstone Holdings, LLC, a private equity
firm specializing in energy with approximately $27 billion of equity
capital raised.
The Mountrail County Commission has approved Dakota Gold’s application
for a conditional use permit and the company’s request to have the site
rezoned for industrial use. Direct truck-to-train transload service may
begin at the Plaza Terminal approximately 90 days after construction
begins. Dakota Gold plans to break ground at the site later this year
and anticipates that storage and high-speed rail loading service will be
available during the second half of 2015.
Storage, Rail and Pipeline Service
Located on a private rail spur controlled by Dakota Gold under a
long-term lease, the state-of-the-art terminal will be served by the
Canadian Pacific Railway (TSX: CP) (NYSE: CP). The Plaza Terminal will
aggregate crude oil produced in Mountrail and neighboring counties,
utilizing gathering pipelines and trucks. The terminal will also provide
crude oil storage services through on-site tankage. The rail facility
will have a throughput capacity of 70,000 barrels per day (bpd) and
storage capacity of more than 300,000 barrels, with expansion to 600,000
barrels during a planned second phase. The terminal’s design includes
two loop tracks with storage for one to two additional trains on the
private rail spur, a covered loading barn, a 14-arm system capable of
loading a unit train in approximately 14 hours, 15 truck unloading bays
and three 103,000-barrel storage tanks. The Plaza site is large enough
to allow for substantial expansions of storage and transload capacity as
customer demand increases.
Dakota Gold is currently working with various midstream companies to
develop gathering connections to the Plaza Terminal. Dakota Gold is also
in discussions with various pipeline companies to develop outbound
pipeline service from the Plaza Terminal to multiple pipeline markets.
Dakota Gold’s objective is to provide its customers with significant
takeaway capacity and flexible access to premium crude oil markets by
creating a logistics hub at the Plaza site that offers both rail and
pipeline delivery service.
Dakota Gold Perspective
“As Bakken production continues to expand at a remarkable rate, the
Plaza Terminal will offer refiners, marketers and producers competitive
and much-needed terminal service and the ability to access multiple
downstream markets, maximizing the value of their crude oil,” said Cody
Moe, Dakota Gold’s president and CEO. “Unit-train-capable rail
facilities are reasonably new to the Bakken. After an initial four years
that saw the construction of a number of rail facilities, we are
entering a new phase in their design and development. Dakota Gold is
incorporating all of the lessons learned in the initial phase to develop
a best-in-class facility with the most efficient design and the most
advanced technologies. We believe this is a key factor driving favorable
customer response to the Plaza Terminal. We look forward to providing
top-tier and very competitive service to all qualified crude oil
shippers in the region.”
“We are also excited about the economic benefits that development of
Dakota Gold’s Plaza Terminal will provide to local economies in
Mountrail and nearby counties. We continue to work closely with local
leaders and officials to forge strong, positive relationships.”
John Redpath, head of oil and agriculture at TrailStone and a Dakota
Gold board member, said, “We are very excited about our partnership with
Cody Moe to develop the Plaza Terminal, which provides a world-class
facility to meet the needs of our customers and extends the network of
strategic assets that TrailStone is building in our core markets.“
Comments from Canadian Pacific Railway
"CP is pleased to be working with Dakota Gold on this project as our
network provides flexibility to marketers and refiners to access key
production areas for light, medium and heavy crude and for producers to
get their product into all of the North American refining markets," said
Tommy Browning, CP’s vice president of energy and merchandise marketing
and sales. “CP offers a flexible, reliable and efficient method of
transporting crude oil and other energy-related products to emerging
markets and we are proud to be collaborating with Dakota Gold."
With more than 15,000 track miles and global reach through its ports on
the east and west coasts, the Canadian Pacific plays a key role in the
energy supply chain. CP is the only rail carrier providing single line
haul service between the Bakken and major crude oil markets in the
northeastern United States.
Dakota Gold believes that the substantial capital investment Canadian
Pacific is making in the Bakken region and on the New Town subline in
particular will allow the Plaza Terminal to more effectively realize its
design capabilities and will have a material impact on some of the
congestion issues experienced by all railroads during the rapid
expansion of rail deliveries of Bakken crude.
About Dakota Gold Transfer - Plaza, LLC
Headquartered in Plaza, North Dakota, Dakota Gold Transfer - Plaza, LLC
was formed in 2014 to focus on developing and operating a crude oil
marketing hub in Mountrail County. Dakota Gold is a joint venture
between its president and CEO, Cody Moe, and the TrailStone Group
(“TrailStone”). www.dakotagoldtransfer.com.
About Cody Moe
Mr. Moe began working construction when he was a teenager. He started
his own construction company a few years later, building the business to
execute large projects for customers including Baker Hughes, Cargill,
Enterprise Products Partners L.P., John Deere and Petro-Hunt, LLC. In
2011 he formed a crude oil trucking company, growing the company from
one truck to a fleet of 23 trucks hauling more than 23,000 barrels per
day. Born in Watertown, South Dakota, Cody has been working in the
Bakken Shale for more than seven years. He has deep understanding of the
oil and gas industry and the infrastructure challenges that have
accompanied the play’s rapid growth.
About TrailStone Group
Formed in April 2013, TrailStone is a global commodities logistics and
physical trading company staffed with experienced commodity
professionals from all sectors. Funded by Riverstone Holdings, LLC and
the direct investment of the TrailStone partners and employees, offices
have been established in London, Berlin, Sydney, Austin and New York.
TrailStone recently acquired U.S. Oil and Refining Co., whose assets
include a 42,000 bpd refinery located in Tacoma, Washington, and
best-in-class rail, pipe, marine and truck logistics in the Pacific
Northwest and the Bakken Shale. For more information go to www.trailstonegroup.com.
About Riverstone Holdings LLC
Riverstone is an energy and power-focused private investment firm
founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with
approximately $27 billion of equity capital raised. Riverstone conducts
buyout and growth capital investments in the exploration & production,
midstream, oilfield services, power and renewable sectors of the energy
industry. With offices in New York, London and Houston, the firm has
committed approximately $26.1 billion to 108 investments in North
America, Latin America, Europe, Africa and Asia. www.riverstonellc.com.
Copyright Business Wire 2014