Nuverra Environmental Solutions have entered into a long-term definitive agreement with XTO Energy (XTO), a subsidiary of Exxon Mobil, to provide water-related pipeline services in McKenzie County, North Dakota.
Under the agreement, Nuverra will establish 150-mile McKenzie County Pipeline Network (the Network) to supply water gathering and disposal services in addition to fresh water delivery.
The XTO agreement is a long-standing, fee-based gathering deal and the construction is expected to begin in May 2015.
The Network will cost around $125 million -$150 million and the completion is expected during the fourth quarter of fiscal 2015.
The construction of this pipeline represents a transformational step in the effort to become a fully-integrated environmental solutions provider in North Dakota, said, Mark Johnsrud, chairman of board, CEO, Nuverra.
With significant increases in well density and growing water volumes, the company believes that the pipeline network represents an important complement to the transportation capabilities and provides sustainable and efficient water gathering and delivery solutions for customers, concluded, Johnsrud.
The Network will serve XTO’s exclusive property along with other operator wells in the area.
The Network will adopt fixed, buried pipelines, which will consist of a gathering line to carry produced and flow-back water for disposal and a distribution line for fresh water delivery.
Sabeena Wahid
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