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Koch Pipeline Company Planning Another Eagle Ford Crude Oil Pipeline in Texas

Permitting, right-of-way work beginning

Koch Pipeline Company, L.P. plans to build a crude oil pipeline from Pettus, Texas, to Corpus Christi, Texas, to move more Eagle Ford production. Current plans include a 20-inch line, which is currently in the permitting and right-of-way acquisition phase and should be complete in mid- 2012.

“With this large-diameter line in operation, Koch Pipeline will have increased its system capability from Karnes County to the Corpus Christi-area to about 250,000 barrels per day,” said Kim Penner, president of Koch Pipeline.

The completion of the line is timed with affiliate Flint Hills Resources’ updates to an Ingleside terminal that will have the capacity to ship up to 200,000 barrels per day of production via barge to other Gulf Coast markets. Koch Pipeline is constructing a station near Helena in Karnes County along with connections to tank batteries in Karnes and DeWitt counties as well as a 16-inch pipeline from Helena to Pettus.

The 16-inch pipeline will connect to the new line announced today at Pettus. “With several new lines, our legacy system and arrangements with Arrowhead Pipeline and NuStar Logistics, we are addressing producer’s needs to move crude oil and condensate to market,” Penner said. “We continue to evaluate major South Texas pipeline projects, including a project to connect producers in Western counties.”

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