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Hoover starts up pecos crossing and begins construction on new natural gas project

Friday, Oct 12, 2012

Hoover Energy Partners LP, and its affiliate Hoover Energy Texas Crude LLC (“Hoover”), announced today that it has commenced operations and is flowing oil on Phase I of its Pecos Crossing Pipeline (“Pecos Crossing”), a 25-mile, 12-inch crude oil system that serves the heart of the Delaware Basin in Ward and Reeves Counties, Texas. Hoover owns and operates 100% of Pecos Crossing and operates Barstow Station. Barstow Station consists of 20,000 barrels of operational crude oil storage and associated measurement equipment. Barstow Station is located at the northern terminus of Pecos Crossing and delivers to Plains All American Pipeline’s (NYSE: PAA) (Plains) Barstow Pipeline. From Barstow Station, Plains’ extensive pipeline infrastructure provides delivery capability to multiple market outlets including Midland, Cushing and Crane, with connectivity to Magellan’s Longhorn Pipeline. Initial capacity of Pecos Crossing is 50,000 barrels per day with the capability to increase capacity to 120,000 barrels per day. At the southern terminus, Hoover owns and operates Perry Ranch Station, where storage facilities receive crude oil from Plains’ truck facilities, a producer owned pipeline system and Hoover owned gathering laterals. Additional gathering lateral projects are underway and Hoover is developing a 20-mile, Phase II expansion into Pecos County, Texas. Pecos Crossing is a Texas Railroad Commission regulated common carrier. Please see Hoover’s website to review the Pecos Crossing tariff.

Additionally, Hoover affiliate, Pecos River Pipeline I, LP (“Pecos River”), announced today that its Pecos River natural gas gathering system has begun construction of a producer supported compressor station and related 15-mile, 8-inch steel pipeline. Balmorhea Station will provide low pressure (30 PSIG) gathering for Pecos River’s 80+ mile natural gas gathering infrastructure. Bulrush pipeline originates down-stream of Balmorhea Station and is designed to transport up to 65,000 MCFD of associated natural gas. Bulrush will deliver to Regency Energy Partners downstream of Regency’s Station 799. Hoover will connect 40+ wells to Pecos River in 2012 and anticipates this level of activity continuing through 2013.

Source: Business Wire

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