Dakota Plains Holdings, Inc., provided an operations update on the Pioneer Terminal expansion project that commenced in March of this year. The project consists of a double loop track that can accommodate two 120 rail car unit trains, 180,000 bbls of crude oil storage, a high-speed loading facility that can accommodate 10 rail cars simultaneously, and transfer stations to receive crude oil from local gathering pipelines and trucks. Highlights include:
◾ With 75% of construction completed and all materials secured, the $50 million project remains under budget;
◾ Full commissioning of the expansion is expected in late December 2013 as per the original schedule;
◾ The first gathering system pipeline has been connected to the Pioneer Terminal. A definitive agreement to receive oil has been executed, with first oil expected in late October;
◾ As part of an agreement with its joint venture partner, Dakota Plains has begun the transition to assume the management oversight of the Pioneer Terminal operations. As a result, Dakota Plains plans to consolidate the DPTS transloading joint venture financial statements from Q4 2013 onwards;
◾ Mr. James Tate has been appointed Vice President of Operations of Dakota Plains and will oversee Pioneer Terminal operations;
◾ The company continues to develop its inbound oilfield products business at the Pioneer Terminal. Construction is underway for the $15 million frac sand terminal announced with UNIMIN earlier this year; completion is scheduled for May 2014. The frac sand terminal will comprise 8,000 tons of fixed sand storage, an enclosed transloading facility, and four ladder tracks. Interim frac sand transloading is expected to commence in January 2014, while construction of the permanent facility is still underway.