The Niobrara Falls Project will also be used to transport Permian and Granite Wash crude petroleum into NuStar’s Dixon, Texas Tank Farm from where it can be supplied to other destinations.

NuStar will connect the new pipelines to the tie-in point on its existing NuStar Colorado 10" Pipeline which will be reversed and converted to crude oil service.

The NuStar Colorado 10" Pipeline will be connected to NuStar Wichita Falls 14" Pipeline which will also be reversed.

The capacity of the both the NuStar Colorado 10" Pipeline and the NuStar Wichita Falls 14" Pipeline will be respectively increased from 70,000 barrels per day (bpd) to 75,000bpd, and from 125,000bpd to 130,000bpd.

To evaluate shipper interest in the project the company has launched a Binding Open Season and depending upon the interest, and necessary approvals, the company is planning to put the NuStar Wichita Falls 14" Pipeline, a part of the Niobrara Falls Project into service by 1 April 2013.

The full Niobrara Falls Project is expected to become operation in the first quarter of 2014.