As per the agreement, BTE will gather SM Energy’s crude oil produced from its wells in Divide County in the US state of North Dakota and transport it to many downstream crude oil markets through its pipelines.
The company will build, own and operate the crude oil gathering system in Divide and Williams Counties, North Dakota.
Bear Tracker Energy chairman and chief EXECUTIVE officer Robert J Clark said the company’s gather system in Divide County will reduce truck traffic and provide reliable transport for SM Energy’s growing crude oil production.
"This system also complements Bear Tracker’s Williams County crude gathering system currently under construction and will provide rail and pipeline market alternatives for a growing Williston Basin oil producing corridor extending from the Missouri River to the Canadian border," Clark added.
BTE is planning to build the gather system in the first quarter of 2013 and put it in service by 1 July 2013.
