Meritage Midstream marks first UP unit train at Wyoming crude terminal

Meritage Midstream Services II L.L.C. on June 20 marked the loading of the first crude oil unit train at its Black Thunder Terminal in Campbell County, Wyo.

Union Pacific Railroad operated the 99-car train, which will carry 70,000 barrels of crude from the terminal to an East Coast refinery. Located in the Powder River Basin (PRB), Black Thunder Terminal L.L.C. — a joint venture between Meritage Midstream and Arch Coal — is served by both UP and BNSF Railway Co.

All of the tank cars on the UP train are new and meet the stringent safety standards adopted earlier this year by the Association of American Railroads, Meritage Midstream officials said in a press release. The terminal provides outbound rail-to-market services for crude produced in the PRB.

"The Black Thunder facility is unique because it's the only crude oil terminal in Wyoming located at a coal mine. We created significant cost savings for our crude oil customers as well as efficiencies at Black Thunder by successfully repurposing some of the mine property and rail infrastructure for transloading crude oil," said Meritage Midstream Chief Executive Officer Steven Huckaby. "We are grateful to our joint venture partner Arch Coal and the Union Pacific and BNSF for working with [us] to offer our crude oil customers flexible and efficient access to multiple markets across the country."

The terminals' first phase — truck-to-rail transload operations — began at the terminal in early March. Construction of high-speed loading facilities is expected to begin later this year, with the loading services to become available in 2015, Meritage Midstream officials said.