NGL Storage Facility
Our NGL storage facility is located on 620 acres of land in Marysville, Michigan and includes nine
underground salt caverns with approximately 7 MMBbls of storage capacity and rail, truck and pipeline
connections providing an important supply point for refiners, petrochemical plants and wholesale propane
distributors in the Sarnia, midwestern and northeastern markets, including our Wholesale Propane business.
Customers and Contracts
The Wilbreeze pipeline is supported by an NGL product dedication agreement with DCP Midstream, LLC.
DCP Midstream, LLC is the sole shipper on the Seabreeze pipeline under a long-term transportation
agreement. The Seabreeze pipeline collects fee-based transportation revenue under this agreement. DCP
Midstream, LLC receives its supply of NGLs that it then transports on the Seabreeze pipeline under an NGL
purchase agreement with Williams Field Services – Gulf Coast Company, LP. Under this agreement, Williams
has dedicated all of their respective NGL production from this processing plant to DCP Midstream, LLC. DCP
Midstream, LLC has a sales agreement with Formosa Hydrocarbons Company, Inc. Additionally, DCP
Midstream, LLC has a transportation agreement with TEPPCO Partners, L.P. that covers all of the NGL
volumes transported on TEPPCO Partners, L.P.’s South Dean NGL pipeline for delivery to the Seabreeze
pipeline.
The Wattenberg pipeline is an open access pipeline with access to numerous gas processing facilities in the
DJ Basin. Effective January 1, 2011, we entered into a 10-year dedication and transportation agreement with a
subsidiary of DCP Midstream, LLC whereby certain NGL volumes produced at several of DCP Midstream,
LLC’s processing facilities are dedicated for transportation on the Wattenberg pipeline. We collect fee-based
transportation revenue under our tariff.
There are currently four active shippers on the Black Lake pipeline. DCP Midstream, LLC has historically
been the largest, accounting for approximately 38% of total throughput in 2011. The Black Lake pipeline
generates revenues through a FERC-regulated tariff.
DCP Midstream, LLC supplies certain committed NGLs produced by them in Weld County to our DJ
Basin NGL Fractionators under fee-based agreements that are effective through March 2018.
Our Marysville NGL storage facility serves retail and wholesale propane customers, as well as refining
and petrochemical customers, under one to three year term storage agreements. Our margins for the storage are
primarily fee-based.
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