Denver-based Taproot Energy Partners LLC says it’s secured a long-term agreement to move oil out of northern Colorado to the Cushing, Oklahoma crude storage facilities.
The agreement is with Bonanza Creek Energy Operating Company, LLC which is a subsidiary of Bonanza Creek Energy, Inc. It involves a long-term acreage dedication concentrated in rural, unincorporated Weld County in the DJ Basin. Bonanza has nearly 70,000 gross acres dedicated in the Basin.
Taproot plans to extend its existing midstream system about 35 miles south. The company stated that its Rattlesnake Extension will move Bonanza Creek’s crude oil to Taproot’s Baja system for re-delivery at the Tallgrass Energy Partners’ Buckingham Terminal with ultimate delivery to Cushing.
The Bonanza Creek commercial agreement increases the total acreage dedicated to Taproot’s Baja System to nearly 175,000 gross acres. In addition to the Rattlesnake Extension, Taproot also intends to construct a truck unloading and storage facility strategically located to provide its producer and marketing customers with a premium crude oil delivery point in Weld County.