NuStar proposes pipelines to carry oil from Colorado’s Niobrara to Texas

Oil Tank Battery in Weld County Colorado with protective liner

Oil Tank Battery in Weld County

Denver Business Journal by Mark Harden, New Media Editor – October 16, 2012

NuStar Energy LP of Texas is proposing to create a system of pipelines to carry crude oil from Colorado’s Niobrara shale formation to refineries in Texas and elsewhere.

The system seeks to address a shortage of ways to get oil from Colorado’s promising Niobrara play to refineries with the capacity to handle it.

The system proposed by San Antonio-based NuStar (NYSE: NS) — dubbed the Niobrara Falls Project — would use an existing petroleum-products pipeline from Denver to McKee, Texas, that would be reversed and converted to crude oil.

That line — which has a capacity of 70,000 to 75,000 barrels a day — would be connected to another existing pipeline between McKee and refineries in Wichita Falls, Texas.

The system would include new pipelines running from Niobrara oil operations near Platteville and Watkins to the existing line in Denver.

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