The Broe Group and Musket Corp. to Pursue Pipeline-by-rail Solution
Within Great Western Industrial Park
The Broe Group today announced that
Musket Corp. will establish a crude-oil export terminal within the Great Western
Industrial Park on a newly-constructed loop track on the Great Western Railway.
Due to the abundance of existing infrastructure, the site is easily scalable
beyond the initial loading capacity of 5.8 million barrels per
year.
"With increasing oil production in the Denver-Julesburg (DJ) Basin
and exploration of the Niobrara Formation, Northern Colorado needs a rail-served
solution to efficiently transport crude-oil unit trains,"
said Rich
Montgomery, vice president of The Broe Group, based in Denver, Colorado. "Our
expertise in land development, railroads and energy will enable us to continue
bringing solutions like this to the region."
"The Windsor facility is a
great addition to our service platform, allowing customers to take advantage of
the promising opportunities surrounding the Niobrara shale play," said J.P.
Fjeld-Hansen, managing director of Musket Corp., based in Houston, Texas.
"Musket was one of the first to make an investment in a pipeline-by-rail
terminal in North Dakota's Bakken shale play, which has become a success. We are
excited to extend this strategy to the DJ Basin."
Financial terms of the
transaction were not disclosed.
Today's announcement follows the recent
acquisition by Windsor Renewal 1, an affiliate of The Broe Group, of 320 acres
of former Eastman Kodak Company property. Some of that property, now part of the
1,800-acre Great Western Industrial Park, will become the site of the Musket
pipeline-by-rail facility. Fuel-storage tanks on the site, with a total capacity
of 48,000 barrels, will be converted for crude oil storage. The terminal is
intended to be unit-train capable.
Separately, the Great Western Railway
will extend its railroad track to complete a four-mile long loop track within
the Great Western Industrial Park to serve the Musket facility and other users
within the park. The rail loop will add capacity to address the growing demand
for rail service.
Great Western Railway interchanges with both the
Burlington Northern Santa Fe and Union Pacific railroads. The Great Western
Industrial Park's location, competitive rail service, and infrastructure have
made it a center of manufacturing in the region. For more, see
www.greatwesternindustrialpark.com.
In attracting companies such as
Owens-Illinois, Front Range Energy, Reliant Holdings, Vestas and Hexcel to the
Great Western Industrial Park, it has helped generate more than a thousand new
jobs for the community. In 2011, the park will contribute $1.6 million to Weld
County's tax base, $1.1 million to Windsor's, and $4.3 million to Windsor's
school district. The $9.8 million Colorado Army National Guard Windsor Readiness
Center, being built on a 17-acre parcel within the park, is scheduled to open
later this year.
The Broe Group, based in Denver, Colorado, manages 29
million square feet of real estate throughout North America, including more than
750,000 square feet of industrial facilities in Northern Colorado. For more, see
www.broe.com. The Broe Group's transportation affiliate, OmniTRAX, Inc., is a
leading transportation services firm with railroad, port and terminal operations
throughout North America, including the Great Western Railway. For more, see
www.omnitrax.com.
In addition to its railroad and land holdings, The Broe
Group controls the Great Western Oil & Gas Company, which has grown to be
one of the top oil producers in Colorado and the burgeoning Niobrara shale
play.
For more, see www.gwogco.com.
Musket Corp. is a privately held
commodity supply, trading and logistics company with offices in Houston, Texas,
Oklahoma City, Okla., Phoenix, Ariz., and Calgary, AB Canada. The company
operates a rail fleet serving its crude, refined products and renewable fuel
terminals across the U.S. and Canada. For more, see www.musketcorp.com.
