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Awards

Koch Pipeline Company To Begin Building 16-Inch Crude Oil Pipeline in Texas

Koch Pipeline Company, L.P. will create the capacity to move an additional 120,000 barrels per day of Eagle Ford crude in late 2012. Koch Pipeline today received final shareholder approval to build a new pipeline into Karnes County, Texas.

Final shareholder approval received

WICHITA, Kan. – Koch Pipeline Company, L.P. will create the capacity to move an additional 120,000 barrels per day of Eagle Ford crude in late 2012. Koch Pipeline today received final shareholder approval to build a new pipeline into Karnes County, Texas.

“This will be our most extensive project to date to connect Eagle Ford producers with refineries in Corpus Christi,” said Kim Penner, president of Koch Pipeline. “It not only allows us to ship more crude oil to Corpus Christi refiners and to the Flint Hills Resources waterborne terminal at Ingleside, but it also improves our efficiency and reliability as this project includes new tanks and a new truck station.”

The new 16-inch line will have future expansion capability of more than 200,000 barrels per day and include direct pipeline connections to producer tank batteries in Karnes and DeWitt counties. A new station, likely near Helena, will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.

Brad Urban, senior vice president of supply for Koch Pipeline’s affiliate Flint Hills Resources, said: “This project fits well with our plan to process a large volume of South Texas crude oil and condensate at our Corpus Christi refinery as well as move a large volume of those products via the water. We continue to evaluate projects to enhance our Corpus Christi refinery processing capability and believe the majority of what we will refine in the future will be South Texas domestic crude oil and condensate.”

By the end of 2011, Koch Pipeline will have added 10 to 15 new employees and completed several other projects that add more than 140,000 barrels per day of new pipeline capacity in South Texas. The company is the largest transporter of South Texas crude oil.

Engineering for the new pipeline to connect Eagle Ford producers to Corpus Christi, Texas, has begun. Construction, which will require numerous contractors, is expected once project permits are received.

“We are evaluating several other major pipeline projects in South Texas in addition to this one, including a project to connect producers in Western counties such as Dimmit and LaSalle,” Penner said. “We are working with producers and our affiliate Flint Hills Resources to ensure producers have transportation to markets for the rapid growth of crude oil production projected in South Texas.”

Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capacity from NuStar Logistics on a line from Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the western counties of the Eagle Ford trend.

Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.

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Koch Pipeline Company, L.P. has earned numerous local, state and national level safety awards. Koch Pipeline operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals. Koch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Learn more at www.kochpipeline.com

VPP Star Certification

Occupational Safety & Health Administration
The Bethany, Missouri, station earned Star certification for its exemplary safety commitment.

Koch Pipeline Company Continues Plans to Expand Texas Crude Oil Pipeline Capabilities

Koch Pipeline Company, L.P. is seeking corporate approval to further expand its South Texas Crude oil system. Approval is expected by year end.

Customer to process additional Eagle Ford production

WICHITA, Kan. – Koch Pipeline Company, L.P. is seeking corporate approval to further expand its South Texas Crude oil system. Approval is expected by year end.

The proposed new 16-inch pipeline to connect Eagle Ford producers in the Karnes County area to Corpus Christi, Texas, will have an initial capacity of 120,000 barrels per day with future expansion capability of more than 200,000 barrels per day.

“This is a cornerstone project that complements our recent efforts to better serve Eagle Ford producers,” said Kim Penner, president of Koch Pipeline. “We have already completed or are in the process of constructing several projects that will add more than 140,000 barrels of capacity by the end of 2011 – all aimed at moving more Texas crude to Corpus Christi.”

The company today is the largest transporter of South Texas crude oil.

“Koch Pipeline’s expansion not only fits well with Flint Hills Resources’ strategy to run more domestic crude at our Corpus Christi refinery but also our plans to market crude from our Ingleside waterborne terminal,” said Brad Urban, senior vice president of supply. “What’s more, we are evaluating projects to enhance our refinery processing capability to handle even more volumes of Eagle Ford crude in the future.”

The project, in the heart of the northern Eagle Ford trend, should be complete in the fourth quarter of 2012. The expansion will include pump and truck receipt stations and tanks. A new station likely near Helena will connect into Koch Pipeline’s existing crude system in Pettus and Refugio.

“We are pleased with our steady progress to provide timely logistic solutions to the Corpus Christi energy center,” Penner said. “We expect to receive final approval to move forward with this pipeline expansion by the end of the year. Our privately held status is an advantage when it comes to moving quickly to respond to market needs. Our next phase is to evaluate a large-diameter trunk line to connect our Pettus infrastructure and continue into the western counties of Live Oak, McMullen, LaSalle and Dimmit.”

Koch Pipeline currently is building a line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal. In addition, Koch Pipeline leased 30,000 barrels of capacity from NuStar Logistics on a line from Pettus to Corpus Christi. In August, in conjunction with Arrowhead Pipeline, L.P., Koch Pipeline announced an agreement and joint tariff to add 50,000 barrels per day of crude and condensate capacity during 2011 from the western counties of the Eagle Ford trend.

Koch Pipeline operates about 540 miles of active crude oil transportation lines in Texas. The company also has ongoing relations with other crude distribution systems that further its ability to provide services in this growing production area.

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Koch Pipeline Company, L.P. has earned numerous local, state and national level safety awards. Koch Pipeline operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals. Koch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Learn more at www.kochpipeline.com

Koch Pipeline Company and NuStar Logistics Finalize Agreement on South Texas Crude Oil Pipeline Capacity to Move Eagle Ford Crude to Corpus Christi

The pipeline connection and capacity lease agreement will give Koch Pipeline future additional capacity to transport Eagle Ford Shale crude oil to Corpus Christi, Texas.

The pipeline connection and capacity lease agreement will give Koch Pipeline future additional capacity to transport Eagle Ford Shale crude oil to Corpus Christi, Texas.

Koch Pipeline and Arrowhead Pipeline Add to South Texas Crude Oil Capacity

Koch Pipeline Company, L.P. and Arrowhead Pipeline, L.P. will move more Eagle Ford crude via the Arrowhead pipeline to Corpus Christi following a recent agreement and joint tariff.

WICHITA, Kan. – Koch Pipeline Company, L.P. and Arrowhead Pipeline, L.P. will move more Eagle Ford crude via the Arrowhead pipeline to Corpus Christi following a recent agreement and joint tariff.

“This agreement with Arrowhead is one of several projects to expand the joint capabilities of our pipelines in South Texas,” said Kim Penner, president of Koch Pipeline. “The Arrowhead lines primarily serve the western Eagle Ford production area of Frio, LaSalle, McMullen and Live Oak counties. The initial expansion phase is currently underway and will add capacity throughout 2011 of more than 50,000 barrels of crude and condensate per day.”

“This is the first in a series of expansions. Together we offer a solution to transport current production and the future growth in the Eagle Ford,” said Steve Jacobs, president of Arrowhead Pipeline and Harvest Pipeline Company. “The ability to help producers get their oil to market is critical.”

“Expansion will include extending our mainline to producers, additional pump stations, truck unloading facilities and crude storage,” Jacobs said. “Ultimately we will install new mainlines to transport the increased production.”

“We believe Corpus Christi is the most cost-effective market to clear Eagle Ford crude and condensate production,” Penner said. “Arrowhead and Koch Pipeline continue to develop options for adding even more capacity to accommodate growing domestic production.

“We are also in the process of building a new line to expand delivery capability to Flint Hills Resources’ Ingleside waterborne terminal and actively reviewing a new build extension into Karnes County,” Penner said.

The northern leg of the Arrowhead system runs through the Eagle Ford trend from Maverick County to San Patricio County. Arrowhead owns an extensive system of oil and gas gathering and mainline systems across South Texas and Louisiana. Harvest Pipeline Company is the operator of the Arrowhead systems.

Koch Pipeline is the largest pipeline transporter of South Texas crude and operates about 540 miles of active crude oil transportation lines in Texas. The company has relationships with other crude distribution systems that further its ability to provide services in this growing production area.

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Koch Pipeline Company, L.P. has earned numerous local, state and national level safety awards. Koch Pipeline operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals. Koch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Learn more at www.kochpipeline.com

Koch Pipeline Company, L.P. Safety Performance Recognized

Koch Pipeline Company, L.P. has earned five awards for its 2009 safety performance.

WICHITA, Kan. — Koch Pipeline Company, L.P. has earned five awards for its 2009 safety performance.

“Koch Pipeline employees are committed to safety,” said Kim Penner, company president. “Each award is a reflection of that hard work and dedication to our MBM® Guiding Principles. Their outstanding performance has made our company an industry leader in safety.”

The company’s southern operating group received the Safety Excellence and the Safety Merit awards at the Industrial Industry Safety Excellence Awards Program & Banquet in Corpus Christi, Texas. The program is a cooperative effort between the Port Industries of Corpus Christi, Contractors Safety Council of the Coastal Bend, and the Contractors Safety Council of the Texas Mid-Coast.

Its northern operating group has received the Award of Honor and the Incident Rate Award from the Iowa-Illinois Safety Council, the Award of Honor from Minnesota Safety Council, and the Outstanding Achievement Award and the Certificate of Excellence from Wisconsin Safety Council.

Koch Pipeline Company employees have worked 9 years and 6.5 million hours without a lost-time incident.

Koch Pipeline’s overall OSHA recordable rate is 0.00, compared to the latest industry average of 1.6. When it comes to working without an injury resulting in time away from work, the company’s rate is also 0.00, compared to the industry’s average of 0.90.

The company was named one of the Safest Companies in America by EHS Today magazine in 2008. It is a recipient of the Occupational Safety Award, American Petroleum Institute’s top industry safety award in 2007. In addition, employees in Texas have achieved Voluntary Protection Program Star status – becoming only the fourth pipeline operating group in the United States to earn that prestigious designation.

Koch Pipeline Company is an indirect, wholly owned subsidiary of Koch Industries, Inc. It operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals.

Safety Excellence Award – Owner

Port Industries of Corpus Christi, Contractors Safety Council of the Coastal Blend, and Contractors
Recognizes the company for providing a safe work environment for employees and contractors for assets owned by the company.

Safety Merit Award

Port Industries of Corpus Christi
The award recognizes the company's safety achievements in 2009. The awards are presented by the Industrial Industry Safety Excellence Awards Program, a cooperative effort between the Port Industries of Corpus Christi, Contractors Safety Council of the COA.

Safety Excellence Award

Port Industries of Corpus Christi
The award recognizes the company's safety achievements in 2009. The awards are presented by the Industrial Industry Safety Excellence Awards Program, a cooperative effort between the Port Industries of Corpus Christi, Contractors Safety Council of the COA.

Outstanding Achievement Award and the Certificate of Excellence

Wisconsin Safety Council
The award recognizes the company's safety achievements during 2009.

Incident Rate Award

Iowa-Illinois Safety Council
The company was honored for its safety achievements during 2009.

Award of Honor

Minnesota Safety Council
The award recognizes the company's safety achievements during 2009.

Award of Honor

Iowa-Illinois Safety Council
The company was honored for its safety achievements during 2009.