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MRO » Topics » Pipeline Barrels Handled

These excerpts taken from the MRO 10-K filed Feb 27, 2009.

Pipeline Barrels Handled

(Thousands of barrels per day)    2008    2007    2006

Crude oil trunk lines

    1,405    1,451    1,437

Refined products trunk lines

    960    1,049    1,101
              

TOTAL

    2,365    2,500    2,538

We also own 176 miles of private crude oil pipelines and 850 miles of private refined products pipelines, and we lease 217 miles of common carrier refined product pipelines. We have partial ownership interests in several pipeline companies that have approximately 780 miles of crude oil pipelines and 3,000 miles of refined products pipelines, including about 800 miles operated by MPL. In addition, MPL operates most of our private pipelines and 985 miles of crude oil and 160 miles of natural gas pipelines owned by our E&P segment.

Our major refined product lines include the Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers product from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other significant refined product pipelines owned and operated by MPL extend from: Robinson, Illinois, to Louisville, Kentucky; Garyville, Louisiana, to Zachary, Louisiana; and Texas City, Texas, to Pasadena, Texas.

 

16

Table of Contents
Index to Financial Statements

In addition, as of December 31, 2008, we had interests in the following refined product pipelines:

 

  •  

65 percent undivided ownership interest in the Louisville-Lexington system, a petroleum products pipeline system extending from Louisville to Lexington, Kentucky;

 

  •  

60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana, to North Muskegon, Michigan;

 

  •  

50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting the Gulf Coast region with the Midwest market;

 

  •  

17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf Coast to the Midwest; and

 

  •  

6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois, to Toledo, Ohio.

Our major crude oil lines run from: Patoka, Illinois, to Catlettsburg, Kentucky; Patoka, Illinois, to Robinson, Illinois; Patoka, Illinois, to Lima, Ohio; Samaria, Michigan, to Detroit, Michigan; and St. James, Louisiana, to Garyville, Louisiana.

In addition, as of December 31, 2008, we had interests in the following crude oil pipelines:

 

  •  

51 percent interest in LOOP LLC, the owner and operator of LOOP, which is the only U.S. deepwater oil port, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana;

 

  •  

59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;

 

  •  

37 percent interest in the Capline system, a large-diameter crude oil pipeline extending from St. James, Louisiana, to Patoka, Illinois;

 

  •  

26 percent undivided ownership interest in the Maumee Pipeline System, a large diameter crude oil pipeline extending from Lima, Ohio, to Samaria, Michigan; and

 

  •  

17 percent interest in Minnesota Pipe Line Company, LLC, which owns crude oil pipelines extending from Clearbrook, Minnesota, to Cottage Grove, Minnesota, which is in the vicinity of our St. Paul Park, Minnesota refinery.

We plan to construct, by the year 2012, a new section of pipeline connecting with the existing crude line from Samaria, Michigan, to Detroit, Michigan. This new section will deliver additional supplies of Canadian crude to our Detroit refinery. The above discussion includes forward-looking statements concerning the construction of a new section of pipeline in Michigan. Some factors that could affect this project include transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, delays in obtaining or conditions imposed by government or third-party approvals and other risks customarily associated with construction projects.

Pipeline Barrels Handled

(Thousands of barrels per day)    2008    2007    2006

Crude oil trunk lines

    1,405    1,451    1,437

Refined products trunk lines

    960    1,049    1,101
              

TOTAL

    2,365    2,500    2,538

We also own 176 miles of private crude oil pipelines and 850 miles of private refined products pipelines, and we lease 217 miles of common carrier refined product pipelines. We have partial ownership interests in several pipeline companies that have approximately 780 miles of crude oil pipelines and 3,000 miles of refined products pipelines, including about 800 miles operated by MPL. In addition, MPL operates most of our private pipelines and 985 miles of crude oil and 160 miles of natural gas pipelines owned by our E&P segment.

Our major refined product lines include the Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers product from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other significant refined product pipelines owned and operated by MPL extend from: Robinson, Illinois, to Louisville, Kentucky; Garyville, Louisiana, to Zachary, Louisiana; and Texas City, Texas, to Pasadena, Texas.

 

16

Table of Contents
Index to Financial Statements

In addition, as of December 31, 2008, we had interests in the following refined product pipelines:

 

  •  

65 percent undivided ownership interest in the Louisville-Lexington system, a petroleum products pipeline system extending from Louisville to Lexington, Kentucky;

 

  •  

60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana, to North Muskegon, Michigan;

 

  •  

50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting the Gulf Coast region with the Midwest market;

 

  •  

17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf Coast to the Midwest; and

 

  •  

6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois, to Toledo, Ohio.

Our major crude oil lines run from: Patoka, Illinois, to Catlettsburg, Kentucky; Patoka, Illinois, to Robinson, Illinois; Patoka, Illinois, to Lima, Ohio; Samaria, Michigan, to Detroit, Michigan; and St. James, Louisiana, to Garyville, Louisiana.

In addition, as of December 31, 2008, we had interests in the following crude oil pipelines:

 

  •  

51 percent interest in LOOP LLC, the owner and operator of LOOP, which is the only U.S. deepwater oil port, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana;

 

  •  

59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;

 

  •  

37 percent interest in the Capline system, a large-diameter crude oil pipeline extending from St. James, Louisiana, to Patoka, Illinois;

 

  •  

26 percent undivided ownership interest in the Maumee Pipeline System, a large diameter crude oil pipeline extending from Lima, Ohio, to Samaria, Michigan; and

 

  •  

17 percent interest in Minnesota Pipe Line Company, LLC, which owns crude oil pipelines extending from Clearbrook, Minnesota, to Cottage Grove, Minnesota, which is in the vicinity of our St. Paul Park, Minnesota refinery.

We plan to construct, by the year 2012, a new section of pipeline connecting with the existing crude line from Samaria, Michigan, to Detroit, Michigan. This new section will deliver additional supplies of Canadian crude to our Detroit refinery. The above discussion includes forward-looking statements concerning the construction of a new section of pipeline in Michigan. Some factors that could affect this project include transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, delays in obtaining or conditions imposed by government or third-party approvals and other risks customarily associated with construction projects.

Pipeline Barrels Handled

























































(Thousands of barrels per day)  2008  2007  2006

Crude oil trunk lines

  1,405  1,451  1,437

Refined products trunk lines

  960  1,049  1,101
         

TOTAL

  2,365  2,500  2,538

We also own 176 miles of private crude oil pipelines and 850 miles of private refined products
pipelines, and we lease 217 miles of common carrier refined product pipelines. We have partial ownership interests in several pipeline companies that have approximately 780 miles of crude oil pipelines and 3,000 miles of refined products pipelines,
including about 800 miles operated by MPL. In addition, MPL operates most of our private pipelines and 985 miles of crude oil and 160 miles of natural gas pipelines owned by our E&P segment.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Our major refined product lines include the Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products
from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers product from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other significant refined product pipelines owned and operated by MPL extend
from: Robinson, Illinois, to Louisville, Kentucky; Garyville, Louisiana, to Zachary, Louisiana; and Texas City, Texas, to Pasadena, Texas.

 


16






Table of Contents


Index to Financial Statements


In addition, as of December 31, 2008, we had interests in the following refined product pipelines:

 







 • 

65 percent undivided ownership interest in the Louisville-Lexington system, a petroleum products pipeline system extending from Louisville to Lexington, Kentucky;

 







 • 

60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana, to North Muskegon, Michigan;

 







 • 

50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting the Gulf Coast region with the Midwest market;

 







 • 

17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf Coast to the Midwest; and


 







 • 

6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois, to Toledo, Ohio.

Our major crude oil lines run from: Patoka, Illinois, to Catlettsburg, Kentucky; Patoka, Illinois, to Robinson,
Illinois; Patoka, Illinois, to Lima, Ohio; Samaria, Michigan, to Detroit, Michigan; and St. James, Louisiana, to Garyville, Louisiana.

In
addition, as of December 31, 2008, we had interests in the following crude oil pipelines:

 







 • 

51 percent interest in LOOP LLC, the owner and operator of LOOP, which is the only U.S. deepwater oil port, located 18 miles off the coast of Louisiana, and a crude
oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana;

 







 • 

59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 







 • 

37 percent interest in the Capline system, a large-diameter crude oil pipeline extending from St. James, Louisiana, to Patoka, Illinois;

 







 • 

26 percent undivided ownership interest in the Maumee Pipeline System, a large diameter crude oil pipeline extending from Lima, Ohio, to Samaria, Michigan; and

 







 • 

17 percent interest in Minnesota Pipe Line Company, LLC, which owns crude oil pipelines extending from Clearbrook, Minnesota, to Cottage Grove, Minnesota, which is
in the vicinity of our St. Paul Park, Minnesota refinery.

We plan to construct, by the year 2012, a new section of
pipeline connecting with the existing crude line from Samaria, Michigan, to Detroit, Michigan. This new section will deliver additional supplies of Canadian crude to our Detroit refinery. The above discussion includes forward-looking statements
concerning the construction of a new section of pipeline in Michigan. Some factors that could affect this project include transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, delays in
obtaining or conditions imposed by government or third-party approvals and other risks customarily associated with construction projects.

Integrated Gas

Our integrated gas operations include natural gas liquefaction and regasification operations and methanol production operations. Also
included in the financial results of the Integrated Gas segment are the costs associated with ongoing development of projects to link stranded natural gas resources with key demand areas.

STYLE="margin-top:12px;margin-bottom:0px">LNG Operations

We hold a 60 percent interest
in EGHoldings, which is accounted for under the equity method of accounting. In May 2007, EGHoldings completed construction of a 3.7 million metric tonnes per annum (“mmtpa”) LNG production facility on Bioko Island and delivered its
first cargo of LNG. LNG from the production facility is sold

 


17






Table of Contents


Index to Financial Statements



under a 3.4 mmtpa, or 460 mmcfd, sales and purchase agreement with a 17-year term. The purchaser under the agreement takes delivery of the LNG on Bioko
Island, with pricing linked principally to the Henry Hub index, regardless of destination. This production facility allows us to monetize our natural gas reserves from the Alba field, as natural gas for the facility is purchased from the Alba field
participants under a long-term natural gas supply agreement. Sales of LNG from this production facility totaled 3.4 metric tonnes in 2008. In 2008 we continued discussions with the government of Equatorial Guinea and partners regarding a potential
second LNG production facility on Bioko Island.

We also own a 30 percent interest in a Kenai, Alaska, natural gas liquefaction plant, and
lease two 87,500 cubic meter tankers used to transport LNG to customers in Japan. Feedstock for the plant is supplied from a portion of our natural gas production in the Cook Inlet. From the first production in 1969, we have sold our share of the
LNG plant’s production under long-term contract with two of Japan’s largest utility companies, with 2008 LNG deliveries totaling 40 gross bcf. In June 2008 we, along with our partner, received approval from the DOE to extend the export
license for this natural gas liquefaction plant through March 2011.

In April 2004, we began delivering LNG cargoes at the Elba Island,
Georgia, LNG regasification terminal pursuant to an LNG sales and purchase agreement. Under the terms of the agreement, we have the right to deliver and sell up to 58 bcf of natural gas (as LNG) per year, through March 31, 2021, with a possible
extension to November 30, 2023. In September 2004, we signed an agreement under which we will be supplied with 58 bcf of natural gas per year, as LNG, for a minimum period of five years. The agreement allows for delivery of LNG at the Elba
Island LNG regasification terminal with pricing linked to the Henry Hub index. This supply agreement enables us to fully utilize our rights at Elba Island during the period of this agreement, while affording us the flexibility to commercialize other
stranded natural gas resources beyond the term of this contract. The agreement commenced in 2005.

These excerpts taken from the MRO 10-K filed Feb 29, 2008.

Pipeline Barrels Handled

(Thousands of barrels per day)    2007    2006    2005

Crude oil gathering lines

    17    17    18

Crude oil trunk lines

    1,500    1,484    1,619

Refined products trunk lines

    1,175    1,101    1,219
              

TOTAL

    2,692    2,602    2,856

At December 31, 2007 we had interests in the following pipelines:

 

  •  

100 percent ownership of Ohio River Pipe Line LLC, which owns a refined products pipeline extending from Kenova, West Virginia to Columbus, Ohio, known as Cardinal Products Pipeline;

 

  •  

60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan;

 

  •  

51 percent interest in LOOP LLC (“LOOP”), the owner and operator of the only U.S. deepwater oil port, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana;

 

  •  

59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;

 

  •  

50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting Gulf Coast refineries with the Midwest market;

 

  •  

37 percent interest in the Capline system, a large-diameter crude oil pipeline extending from St. James, Louisiana to Patoka, Illinois;

 

15

Table of Contents
Index to Financial Statements
  •  

17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf of Mexico to the Midwest;

 

  •  

17 percent interest in Minnesota Pipe Line Company, LLC, which owns a crude oil pipeline extending from Clearbrook, Minnesota to Cottage Grove, Minnesota, which is in the vicinity of our St. Paul Park, Minnesota refinery; and

 

  •  

6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois to Toledo, Ohio.

Our 85 owned and operated light product and asphalt terminals are strategically located throughout the Midwest, upper Great Plains and southeastern United States. In October 2007, we executed an agreement to purchase four light product terminals in Ohio and an ownership interest in a refined product pipeline. This transaction is expected to close by the end of the second quarter of 2008, pending completion of various pre-closing activities, including obtaining necessary government approvals.

Our marine transportation operations include 15 towboats and 182 barges that transport refined products on the Ohio, Mississippi and Illinois rivers, their tributaries and the Intercoastal Waterway. We lease and own over 2,500 rail cars of various sizes and capacities for movement and storage of petroleum products and over 150 tractors and tank trailers.

Pipeline Barrels Handled




























































(Thousands of barrels per day)  2007  2006  2005

Crude oil gathering lines

  17  17  18

Crude oil trunk lines

  1,500  1,484  1,619

Refined products trunk lines

  1,175  1,101  1,219
         

TOTAL

  2,692  2,602  2,856

At December 31, 2007 we had interests in the following pipelines:

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 







 • 

100 percent ownership of Ohio River Pipe Line LLC, which owns a refined products pipeline extending from Kenova, West Virginia to Columbus, Ohio, known as Cardinal
Products Pipeline;

 







 • 

60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan;

 







 • 

51 percent interest in LOOP LLC (“LOOP”), the owner and operator of the only U.S. deepwater oil port, located 18 miles off the coast of Louisiana, and a
crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana;

 







 • 

59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 







 • 

50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting Gulf Coast refineries with the Midwest market;

 







 • 

37 percent interest in the Capline system, a large-diameter crude oil pipeline extending from St. James, Louisiana to Patoka, Illinois;

 


15






Table of Contents


Index to Financial Statements








 • 

17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf of Mexico to the Midwest;


 







 • 

17 percent interest in Minnesota Pipe Line Company, LLC, which owns a crude oil pipeline extending from Clearbrook, Minnesota to Cottage Grove, Minnesota, which is
in the vicinity of our St. Paul Park, Minnesota refinery; and

 







 • 

6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois to Toledo, Ohio.

Our 85 owned and operated light product and asphalt terminals are strategically located throughout the Midwest, upper
Great Plains and southeastern United States. In October 2007, we executed an agreement to purchase four light product terminals in Ohio and an ownership interest in a refined product pipeline. This transaction is expected to close by the end of the
second quarter of 2008, pending completion of various pre-closing activities, including obtaining necessary government approvals.

Our
marine transportation operations include 15 towboats and 182 barges that transport refined products on the Ohio, Mississippi and Illinois rivers, their tributaries and the Intercoastal Waterway. We lease and own over 2,500 rail cars of various sizes
and capacities for movement and storage of petroleum products and over 150 tractors and tank trailers.

EXCERPTS ON THIS PAGE:

10-K (3 sections)
Feb 27, 2009
10-K (2 sections)
Feb 29, 2008

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