DOUGLAS — A Bakersfield, Calif.-based oil transportation company is building a delivery station near Douglas where up to 4,000 barrels of crude a day will be unloaded from semi trucks and injected into a Sinclair Oil pipeline.
On Tuesday, representatives from Gazelle Transportation Inc. shared details of their planned project, which would entail transporting crude from the area’s pump jacks to the delivery station, with the Converse County Commission.
The county is undergoing an oil drilling boom and Gazelle Transportation’s project is one of three oil transportation projects planned for Converse County, said commission Chairman Jim Willox. The other two projects load oil onto railroad lines.
Two additional projects are planned for outside Converse County.
Gazelle Transportation drivers are already hauling crude in single-trailer semis from the pump jacks to refineries and pipeline terminals throughout Wyoming. The delivery station would shorten the mileage they have to drive, said Bob Howard, the company’s general manager.
“We’re looking at 20 trucks a day, so 40 trips in and out, on Natural Bridge Road,” Howard said.
Gazelle Transportation has leased for the project about five acres 1,000 feet off Interstate 25’s exit 151. The exit is about
14 miles west of Douglas.
The Sinclair pipeline is already installed in the area, said Jim Schwartz, Gazelle’s Wyoming and Powder River Basin area manager.
The station will have separate entrance and exit areas, Schwartz said. There will be storage tanks on site.
Converse County commissioners didn’t vote on any measures Tuesday but told Howard they expect some upgrades to Natural Bridge Road to
accommodate the traffic. The commissioners also discussed possibly matching funds with Gazelle Transportation to upgrade the road for a distance beyond the delivery station. Willox said part of the county’s long-term plan is improving the road.
Gazelle Transportation will join four other proposed oil transportation projects in Wyoming.
In Converse County, Enserco Midstream LLC will move up to 120,000 barrels of oil per day from trucks to the railroad south of Douglas. The oil would come from the Niobrara formation, which includes drilling in Converse County, as well as oil from North Dakota’s Bakken shale formations and Canada.
Also, a subsidiary of Genesis Oil called Pronghorn Rail Services will move oil from truck to rail and pipeline north of Douglas. The company previously said it could move the equivalent of up to 5,000 barrels of locally produced oil each day.
Elsewhere in the state, Casper-based Eighty-Eight Oil will build a facility near Guernsey, while Granite Peak Development and Cogent Energy Solutions plan to cooperatively build a facility in Casper. Both could be operational by the end of the year.
Throughout the United States, pipelines transport most oil. But rail shipments are increasing because there aren’t many pipelines in North Dakota’s Bakken shale in play and oil company executives have praised rail for its flexibility.