North Dakota tribe buys idle oil pipeline from EnbridgeNorth Dakota tribe buys idle oil pipeline from Enbridge
NEW TOWN, N.D. (AP) — A Native American tribe in North Dakota bought an idle pipeline from the energy company Enbridge
North Dakota tribe buys idle oil pipeline from EnbridgeNorth Dakota tribe buys idle oil pipeline from Enbridge
By The Associated Press and KFYR Staff
Published: Jun. 10, 2023 at 6:59 PM CDT
NEW TOWN, N.D. (AP) — A Native American tribe in North Dakota bought an idle pipeline from the energy company Enbridge to help deliver oil from wells on its reservation to the broader market.
The Mandan, Hidatsa and Arikara Nation announced the deal Friday but didn’t disclose how much it paid. The tribe said it expects the pipeline, which will connect its oil facilities on its Fort Berthold Reservation to Enbridge’s large pipeline network, will be up and running within a year.
“It’s another major step and positive investment that will further support development of our energy trust assets for the MHA Nation and its membership. This will also be a significant catalyst for enhancing economic development in our region of influence,” said MHA Nation Chairman Mark N. Fox.
Bernie Fox, CEO of Thunder Butte Petroleum Services, added, “The Enbridge purchase is a positive step to providing Thunder Butte Petroleum Services an asset that will lead to economic self-sufficiency, and a future revenue source for the MHA Nation. We also look forward to a positive relationship with our new partner Enbridge.”
There are more than 2,600 active oil and gas wells on the reservation that produced an average of 144,190 barrels of oil per day in February, according to the most recent figures from the state Department of Mineral Resources. Regulators estimate there is potential for 3,911 additional oil and gas wells on the reservation.
The 31-mile pipeline is the closest one to the tribe’s Thunder Butte Petroleum subsidiary’s transloading and oil storage facility. It can transport 15,000 barrels a day.
Mike Koby, vice president of U.S. liquids pipelines operations for Calgary, Alberta-based Enbridge, said the MHA Nation will be the first tribal shipper on an Enbridge pipeline. Owning the pipeline will benefit the tribe financially, he said.
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