Medallion Pipeline Launches Binding Open Season for Major Expansion of Crude Oil Pipeline

Medallion Pipeline Company, LLC (Medallion) today announced a binding
open season to solicit long-term, firm shipper commitments for a major
expansion of its crude oil pipeline system in the Midland Basin. Through
the open season, Medallion proposes to expand six pipeline segments to
transport increased quantities of crude oil, produced from acreage
proximate to Medallion’s system, to downstream pipelines and markets.
The open season begins today, July 16, 2018 and ends Wednesday, August
15, 2018 at 4:00 p.m. CDT.

To address the growing need for pipeline capacity in the region,
Medallion plans to construct a 16-inch operational loop of its existing
Midkiff Lateral and plans to expand the capacity of the Crane Extension,
Reagan Gathering Extension, Santa Rita Lateral, Martin Lateral and
Midland Lateral (Expansion Segments). The open season provides an
opportunity for interested shippers to acquire long-term firm capacity
under binding Transportation Services Agreements, as a committed firm
shipper on one or more of the Expansion Segments. Prospective shippers
are provided with two commitment tiers subject to a minimum five-year
commitment.

Additionally, existing firm shippers will be provided the option to
amend their existing Transportation Services Agreements, as set forth in
the open season notice, to 1) adjust committed volumes or 2) obtain the
lower expansion rates offered on the applicable Expansion Segments in
return for an extension of the primary term of the Transportation
Services Agreement. The expansion project is expected to commence
commercial operations in phases, with full commercial operations
expected during the fourth quarter of 2019.

Initially placed in service in October 2014, Medallion’s crude oil
pipeline has undertaken a series of expansions to meet the increasing
needs of producers and marketers in the Midland Basin. The existing
system is a network of approximately 700 miles of 6-inch and larger
crude oil pipeline facilities that aggregate and transport crude oil
production to the Colorado City Hub, the Crane Hub and the Midland Hub,
providing access to multiple long-haul, large-volume pipelines for
transportation to downstream markets.

OPEN SEASON PROCESS

The open season begins today, July 16, 2018 and ends at 4:00 pm CDT
Wednesday, August 15, 2018. All bids and expressions of interest
regarding the relinquishment of capacity must be submitted during the
open season, except as provided in the open season notice. Bona fide
prospective shippers may obtain copies of the Transportation Services
Agreements, as well as the proposed Federal Energy Regulatory Commission
and Texas Railroad Commission tariffs by contacting the representative
listed below. Prospective shippers and existing firm shippers must
execute a confidentiality agreement prior to delivery of these
documents. More information concerning the expansion can be found in the
open season notice available at www.medallionmidstream.com
or by contacting the Medallion representative listed below.

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