TORRINGTON – Currently in the initial planning stages, ONEOK, Inc. of Tulsa, Okla., announced last week plans to construct a 900-mile pipeline which would run through Goshen County.
The Elk Creek Pipeline will carry natural gas liquids from northeastern Montana, through eastern Wyoming and northeastern Colorado to company facilities in Bushton, Kan. The pipeline is anticipated to cost $1.2 billion, with related infrastructure costs of about $200 million. The company anticipates completion by the end of 2019.
The new pipeline is needed, due to existing Bakken and Overland Pass pipelines being at full capacity, ONEOK President and Executive Officer Terry Spencer was quoted in a press release. The Bakken pipeline runs parallel to the northern leg of the proposed pipeline route, from northeastern Montana to join the Overland Pass pipeline just south of the Wyoming-Colorado state line.
“Additional NGL takeaway capacity is critical to meeting the needs of producers who are increasing production and are required to meet natural gas capture targets in the Williston Basin,” he said.
Carl Rupp, chairman of the Goshen County Commissioners, said the new pipeline could be a boon, both with lease revenue as well as potentially bolstering the county tax rolls.
There’s the potential for sales tax revenue on construction materials and other supplies that could be bought in Goshen County, Rupp said. Also, Goshen County could see increased tax revenue due to potentially increased land values in the path of the pipeline.
“It’s going to benefit the landowners and the county,” Rupp said Wednesday.