BISMARCK – The North Dakota Public Service Commission on Wednesday approved a crude oil pipeline in Mountrail County and set a public hearing for another proposed by the same company in McKenzie County.
The three-member panel unanimously granted a route permit for Sacagawea Pipeline Co.’s 8-mile pipeline and associated facilities that will transport oil from the Palermo Rail Facility owned by Phillips 66 to the Enbridge oil terminal in Stanley.
The 12-inch pipeline will have a maximum capacity of 100,000 barrels per day. The estimated cost of the project is $18 million.
Commissioners also set a public hearing for April 19 in Watford City for Sacagawea’s proposed 13-mile crude oil pipeline in McKenzie County.
The 16-inch pipeline would extend from a service site near Johnson’s Corner to the Keene crude oil terminal owned by Paradigm Midstream Services. It would normally transport 75,000 barrels per day, with a maximum capacity of 100,000 barrels per day.
Commission chairwoman Julie Fedorchak noted it’s the third pipeline proposed by Sacagawea in the past 12 months. Last month, the PSC awarded the firm a permit for a $125 million, 70-mile pipeline under Lake Sakakawea.
“This company is really investing and building out some significant infrastructure in the heart of the Bakken,” she said.
Commissioner Brian Kalk said pipeline construction doesn’t appear to be slowing down despite a drop in drilling activity and production due to slumping oil prices. But companies are proposing a lot of smaller projects with a focus on efficiency, positioning themselves for when oil prices rebound, he said.
“I like what’s going on out there,” he said.