Page 28 - DCP AR2011 Dev

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NGL Pipelines
Following is operating data for our NGL pipelines:
2011 Operating data
System
Approximate
System
Length
(Miles)
Approximate
Capacity
(MBbls/d)
(a)
Pipeline
Throughput
(MBbls/d)
(a)
Seabreeze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
41
20
Wilbreeze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
11
11
Wattenberg (b) . . . . . . . . . . . . . . . . . . . . . . . . . .
480
22
13
Black Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
317
40
18
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
892
114
62
(a) Represents total throughput for 2011 divided by 365 days.
(b) The Wattenberg capital expansion project was completed in May 2011.
Seabreeze and Wilbreeze Pipelines.
The Seabreeze intrastate NGL pipeline is approximately 56 miles
long, has capacity of 41 MBbls/d and, in 2011, had average throughput of approximately 20 MBbls/d. The
Seabreeze pipeline, located in Texas, receives NGLs from a large third-party processing plant with capacity of
approximately 340 MMcf/d located in Matagorda County and two NGL pipelines. The Seabreeze pipeline is the
sole NGL pipeline for one processing plant and is the delivery point for two NGL pipelines, the Wilbreeze
Pipeline and Enterprise’s Dean Pipeline. One third party NGL pipeline is capable of transporting NGLs from
five natural gas processing plants located in south Texas that have aggregate processing capacity of
approximately 1.6 Bcf/d. Three of these processing plants are owned by DCP Midstream, LLC. In total, seven
processing plants produce NGLs, which flow into the Seabreeze pipeline from processed natural gas produced
in south Texas and the Gulf of Mexico. The Seabreeze pipeline delivers the NGLs it receives from these
sources to a third party fractionator, and its associated party storage facility. The Wilbreeze intrastate pipeline,
located in Texas, is approximately 39 miles long, has a current capacity of 11 MBbls/d and, in 2011, had
average throughput of 11 MBbls/d.
Wattenberg Pipeline.
The Wattenberg interstate NGL pipeline is approximately 480 miles long and has
capacity of 22 MBbls/d. It originates in the DJ Basin in Colorado and terminates near the Conway hub in Bushton,
Kansas. The pipeline is currently connected to four DCP Midstream, LLC plants, two of which were connected in
2011 to address the growing needs in the DJ Basin. These plants ultimately deliver to the MAPL pipeline.
Black Lake Pipeline.
The Black Lake interstate NGL pipeline is approximately 317 miles long, has
capacity of 40 MBbls/d and, in 2011, had average throughput of approximately 18 MBbls/d. The Black Lake
pipeline delivers NGLs from processing plants in northern Louisiana and southeastern Texas to fractionation
plants at Mt. Belvieu on the Texas Gulf Coast. The Black Lake pipeline receives NGLs from two natural gas
processing plants in northern Louisiana, including our Minden plant and Regency Intrastate Gas, LLC’s Dubach
processing plant. The Black Lake pipeline is the sole NGL pipeline for these natural gas processing plants in
northern Louisiana, as well as one of our Southeast Texas system processing plants, and also receives NGLs
from XTO Energy Inc.’s Cotton Valley processing plant and Eagle Rock’s Brookland processing plant.
Black Lake is owned by us and has been operated by DCP Midstream, LLC since November 2010. Prior to
July 27, 2010, we owned a 45% interest in Black Lake, while DCP Midstream, LLC owned a 5% interest. The
remaining 50% was owned by an affiliate of BP PLC, who also operated the pipeline prior to November 2010. Prior
to our acquisition of the remaining 50% interest in Black Lake, we accounted for Black Lake under the equity
method of accounting. Subsequent to this transaction we account for Black Lake as a consolidated subsidiary.
NGL Fractionation Facilities
Our DJ Basin NGL Fractionators in Weld County, Colorado are located on DCP Midstream, LLC’s processing
plant sites and are operated by DCP Midstream, LLC. DCP Midstream, LLC, one of the largest gatherers and
processors in the DJ Basin, delivers NGLs to the fractionators under a long-term fractionation agreement.
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