EPD » Topics » Slide 97 - MAPL, Seminole and Dixie Pipelines

This excerpt taken from the EPD 8-K filed Aug 28, 2006.

Slide 97 – MAPL, Seminole and Dixie Pipelines

Spend a little time on this map, and Randy said there was a pointer up here. But what you don’t see when you see this map, and to me it’s quite an impressive map covering over 20 states in the US. What you don’t see is 20 to 25 businesspeople back home in Houston, and 250 to 300 people out in the field every day, and what I tell you they do every single day is spend every minute of every day trying to make this system better and looking for the next deal for us to do.

 

I’ll focus on the Northern system. We really break down Mid-America into three different systems. On the Northern system, going due north out of central Kansas, you have 2 lines that we refer to as the West Line. The red line is a batch line that moves propane and refinery-blend stocks to the Pine Bend, Minnesota area or the Twin Cities. The blue line is dedicated 365 to the movement of propane. Along that system you have several terminals that are owned by Enterprise.

 

If you move east of there out of Conway, you’ve got an additional 2 lines. The red line is dedicated to the movement of EP mix. We move approximately 70 to 75 MBPD of EP mix to petrochemical facilities in the Chicago area. The blue line following the red line there is like the line on the West system which is dedicated to propane 365 days a year. The 2 propane lines are unique in the fact that it’s one of the only on-demand propane systems in the US. What that means is if you deposit a barrel of propane in Conway, you can immediately withdraw it at any terminal along the system. The 4 systems up there move approximately 22 MMBbls/yr of propane, 5 to 7 MMBbls/yr of refinery feedstock and about 70 MMBbls/yr of EP mix.

 

From there I’m going to move down south to the Dixie Pipeline system which is a C-Corp. It’s also today a dedicated propane line and the only line that services the propane market or the propane industry in the Southeast. It moves approximately 100 MBPD. And I might back up a little bit and tell you that where we are not the only pipeline, in areas where we are not the only pipeline, we are the biggest. And in the Southeast on Dixie, we’re the only one in the area.

 

I’ll move from there, west to Seminole. You’ll see on Seminole Pipeline Company, we have 2 pipelines. The blue line starting at Hobbs, going down to Mont Belvieu is a batch system where we move EP and purity products from the Conway and Hobbs market down to the petrochemical complex in Belvieu with some y-grade in that. The red line is dedicated to the movement of y-grade. Since we bought this system, these 2 lines have a total capacity of about 250 to 260 MBPD. These lines have been running full. In fact, for the last couple of years we’ve been offloading 20 to 25 MBPD of product to other carriers so we could meet our customers’ demands.

 

I’ll go from the Seminole Pipeline Company to the Central system. Again, you see 2 lines. One of those lines, the blue line, moves from the Conway area south, taking excess finished products from Conway into the Skellytown area, which I’ll talk about a little bit more later, into the Hobbs area and then further down to Mont Belvieu on Seminole. The red line picks up y-grade from the north Texas, Oklahoma and Kansas producing regions and can deliver that y-grade either to the Conway fractionators back to the Hobbs fractionator or on down to our huge Belvieu complex.

 

Finally I’ll move back to the Rocky Mountain system, and this is kind of a general overview. I’ll go into more details on the Rockies in a minute. The Rockies pipeline today is the only pipeline that transports demethanized mix out of the Rocky Mountain region. It’s dedicated to the y-grade. It’s got a current capacity of about 225 MBPD.



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