Onshore Crude Oil Pipelines & Services

Our Onshore Crude Oil Pipelines & Services business includes approximately 4,700 miles of onshore crude oil pipelines and 11 MMBbls of above-ground storage tank capacity. Our pipeline systems gather and transport crude oil primarily to refineries, centralized storage terminals and connecting pipelines in Oklahoma, New Mexico and Texas. 

We own crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are an integral part of our onshore crude oil operations.  In general, the crude oil terminals are used to store crude oil volumes for us and our customers.  Under our crude oil terminaling agreements, we charge customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage rate. 

Revenue from crude oil transportation is generally based upon a fixed fee per barrel transported multiplied by the volume delivered.  Accordingly, the results of operations are generally dependent upon the volume of product transported and the level of fees charged to customers.

Our crude oil marketing activities generate revenues from the sale and delivery of crude oil obtained from producers or on the open market. These sales contracts generally settle with the physical delivery of crude oil to customers.

In November 2010, we announced plans to construct a crude oil storage facility and associated pipelines to provide refiners in the Houston area with access to growing production from the Eagle Ford Shale play in South Texas. A 150-acre tract in an industrial area of southeast Houston has been purchased as the site for the new Enterprise Crude Houston terminal. Crude oil will be delivered to the facility through the partnership's Rancho Pipeline, located approximately three miles northwest of the new terminal, and two, 24-inch diameter pipelines Enterprise plans to construct. Strategically located close to two large-diameter crude oil distribution pipelines, the Enterprise Crude Houston terminal will provide access to the major refiners in Texas City, as well as other installations in Pasadena/Deer Park, Baytown and along the Houston Ship Channel via the Seaway Pipeline. The new crude oil storage facility and related infrastructure is scheduled to begin service in mid-2012.

In September 2010, we announced plans to construct a 140-mile pipeline expansion of our South Texas System to serve crude oil producers in the Eagle Ford Shale Basin.  Originating in northwestern Karnes County,  the 350,000 barrel per day pipeline will extend to its existing crude oil system in Austin County where it will connect to the partnership's Sealy Station.  It will provide shippers the flexibility to access the Houston refinery market or the Enterprise-operated Seaway Pipeline system that provides a direct link to Cushing, Oklahoma. Completion of the pipeline is expected in the first quarter of 2012.

Crude oil pipelines
Description of Asset	Ownership Interest	Useable Storage Capacity (MMBbls)	Miles	Function
Seaway Crude Pipeline system	50% (1)	3.4	669	Transports imported crude oil from Freeport, TX to Cushing, OK and supplies crude oil to refineries in the Houston area through its terminal facility at Texas City, TX.
Red River System	100%	1.2	1,749	Transports crude oil from North Texas to southern Oklahoma for delivery to two local refineries or pipeline interconnects for further transportation to Cushing, OK.
South Texas System	100%	1.1	1,174	Transports crude oil from an origination point in South Texas to the Houston area.
West Texas System	100%	0.4	372	Connects crude oil gathering systems in West Texas and southeast New Mexico to our terminal in Midland, TX.
Other (4 systems) (2)	Various	0.3	746
Total miles			4,710
Crude oil terminals
Description of Asset	Ownership Interest	Useable Storage Capacity (MMBbls)	Miles	Function
Cushing terminal	100%	3.1		Provides crude oil storage, pumpover and trade documentation services.
Midland terminal	100%	1.5		Provides crude oil storage, pumpover and trade documentation services.
Total capacity		11.0