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Tallgrass Energy Projects

REX Cheyenne Hub Enhancement

Cheyenne Hub Binding Open Season


Rockies Express Pipeline LLC (“REX”) is pleased to announce a binding open season (“Open Season”) for natural gas market participants to bring gas into REX at the Cheyenne Hub (“REX Cheyenne Hub”) and deliver gas to numerous delivery interconnects which provide take-away options with the ability to access markets across the country.

REX is accepting binding bids for a new firm Hub Service at the REX Cheyenne Hub which will be provided through installation of receipt booster compression, header piping modifications and interconnect modifications (the “Project”). This service will be provided under a new C-Hub Rate Schedule in the REX Tariff (the “Tariff”). This announcement provides a description of the Project, applicable terms and conditions of service, the bid submission deadline, bid guidelines, bid evaluation and award process and other relevant information concerning the Open Season. It is currently anticipated that the REX Cheyenne Hub would have an in-service date in Q2 2020.

Cheyenne Connector Binding Open Season Project Document
Cheyenne Connector Binding Open Season Bid Form
Cheyenne Hub Project Description

The REX Cheyenne Hub is an existing natural gas facility owned and operated by Rockies Express Pipeline in northern Weld County, just south of the Colorado-Wyoming border. At the Hub, the existing Rockies Express Pipeline intersects and/or connects with numerous other natural gas pipelines. The REX Cheyenne Hub Enhancement Project consists of modifications to the REX Cheyenne Hub to accommodate firm receipt and delivery interconnectivity among multiple natural gas pipelines with various operating pressures and will provide customers significant diversity in terms of market access. Using Cheyenne Connector producers in the DJ Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub as well as interconnected systems downstream of REX that reach end-users in West markets, Midwest markets such as Chicago and Detroit, the Gulf Coast and Southeast. End users in those markets benefit from diversity of supply and resulting competitive pricing.

The Rockies Express Pipeline (REX) is an interstate pipeline spanning nearly 1,700 miles from northwestern Colorado and southwestern Wyoming to eastern Ohio. It provides natural gas transportation services in Colorado, Wyoming, Nebraska, Kansas, Missouri, Illinois, Indiana and Ohio, linking natural gas supply with demand centers in the states it serves to help meet our country’s energy needs. It is the only U.S. pipeline that links the Rocky Mountain and Appalachian supply basins to consumers across the Midwest and beyond. REX is jointly owned by Tallgrass Energy and Phillips 66.
The REX Cheyenne Hub is an existing natural gas facility owned and operated by Rockies Express Pipeline in northern Weld County, just south of the Colorado-Wyoming border. At the Hub, the existing Rockies Express Pipeline intersects and/or connects with numerous other natural gas pipelines.
The Cheyenne Connector Project is the proposed construction of a new Tallgrass Energy 70-mile, large-diameter interstate natural gas pipeline (Cheyenne Connector) designed to move natural gas from the Denver-Julesburg Basin (DJ Basin) in north-central Colorado to the Rockies Express Pipeline Cheyenne Hub (REX Cheyenne Hub).
The REX Cheyenne Hub Enhancement Project consists of modifications to the REX Cheyenne Hub to accommodate firm receipt and delivery interconnectivity among multiple natural gas pipelines with various operating pressures and will provide customers significant diversity in terms of market access. Using Cheyenne Connector, producers in the DJ Basin can access interconnected pipelines and local distribution systems at the REX Cheyenne Hub as well as interconnected systems downstream of REX that reach end-users in West markets, Midwest markets such as Chicago and Detroit, the Gulf Coast and Southeast. End users in those markets benefit from diversity of supply and resulting competitive pricing.
The Cheyenne Hub Enhancement Project is designed to link much-needed natural gas supplies in the DJ Basin and other Rocky Mountain production areas with residential, business and industrial users in West, Midwest, Gulf Coast and Southeast markets. In addition to allowing producers in Colorado and Wyoming to get their natural gas to markets across the country, Cheyenne Connector and the Hub Enhancement Project will provide end-users in those markets another source of natural gas and potentially better pricing.
We will be building new facilities and modifying existing facilities. The majority of this activity will take place within the current footprint of the existing REX Cheyenne Hub, although we will be expanding the area by approximately six acres. These facilities include:
  • Cheyenne Hub Booster Compressor Station – Rockies Express plans to construct a new booster compressor station with approximately 16,000 horsepower of natural gas compression.
  • Cheyenne Hub Interconnect Enhancements – Rockies Express plans to install pipe, valves, fittings, filters and ancillary equipment to modify certain existing interconnect facilities at the Cheyenne Hub to provide for firm bi-directional flow.
A compressor station is a facility that helps transport natural gas from one location to another within a pipeline. The station houses the natural gas compressors, process monitoring equipment and valves that work together to consistently pressurize the gas in a safe and monitored environment and ensure it moves consistently through the pipeline.
We anticipate minimal impact on the community. First and foremost, REX will be performing the facility modifications on its existing site plus a limited amount of land that REX will acquire and own. Further, REX will do everything in our power to be considerate of our neighbors during the construction process.
The project will provide some level of short- and long-term economic benefits to the local communities near the REX Cheyenne Hub. Benefits include increased property tax revenue; increased sales revenue, particularly for local restaurants, hotels/motels and other retailers during construction; job creation during the construction phase; and an estimated two permanent positions after completion.
We expect to hire an estimated two permanent, full-time employees to help manage the enhanced facility once the project is complete. Where possible, we prefer to hire locally.
Compressor station noise is regulated by the Federal Energy Regulatory Commission (FERC), which dictates that operational noise levels at identified noise sensitive areas (residences, schools, etc.) cannot exceed an average level of 55 decibels. Fifty-five decibels is a little quieter than normal conversation, which is 60 decibels. As a good neighbor, REX complies with all state and federal noise regulations.
Prior to construction, REX completes an ambient noise survey and generates a predicted noise level model. The results of this survey and modeling provide information REX uses to install noise control equipment during the construction phase to bring the compressor station into FERC compliance. Once construction is complete and the station is operational, we conduct an additional survey to verify the station is in compliance with FERC noise requirements.
REX complies with all state and federal air quality regulations that apply to the construction and operation of our compressor stations. REX is required to demonstrate, to the satisfaction of state and federal regulatory bodies, that potential air emissions of the Hub compressor station will not cause air pollutant concentrations to exceed the national ambient-air quality standards set by the U.S. Environmental Protection Agency (EPA).
At REX, safety comes first. We employ a variety of safety systems and processes to ensure the safety of our employees and the general public. First and foremost, we comply with all federal, state and local laws and regulations, and we apply industry standards and best practices. We continually train, educate and empower our employees in areas regarding pipeline and compressor station safety. Our stations are monitored 24 hours a day, 365 days a year by highly trained and experienced personnel so we have real-time information regarding the safety and integrity of our system. We also have emergency shut-down systems that can isolate abnormalities anywhere on our system quickly and safely.
If an abnormality is detected, each compressor station has a remote-operated, independent emergency shut-down system that maximizes the safety of our employees, first responders and the general public and minimizes any potential damage to the station. Consistent with our commitment to safety, our Damage Prevention team proactively meets with local emergency responders and tours the station with them so they know what to expect and what to do in case of an emergency at the station.
According to the U.S. Department of Transportation (DOT), pipelines are the safest means of transporting natural gas. At REX, safety comes first. We employ a variety of safety systems and processes to ensure the safety of our employees and the general public. First and foremost, we comply with all federal, state and local laws and regulations, and we constantly work to follow industry standards and best practices. We continually train, educate and empower our employees in areas regarding pipeline safety. Our compressor stations are monitored 24 hours a day, 365 days a year by highly trained and experienced personnel so we have real-time information regarding the safety and integrity of our system. If an abnormality is detected, the system will automatically shut down the pipeline at pre-determined sites to minimize the risk to our employees, the general public and our facilities.
We will install a 6-foot chain link fence, a security gate at the access road and lighting at night. To avoid having a negative impact on our neighbors, the lighting will be downcast and shielded so it doesn’t shine on adjacent property or pose a traffic hazard to motorists traveling on nearby roads. In addition, our natural gas controllers monitor the pipeline and compressor stations around the clock using sophisticated technology, sensors and a SCADA (supervisory control and data acquisition) system that allows them to detect anomalous operating conditions that might result from unauthorized interference with operations.
We are committed to being a good neighbor in Weld County, and that begins by being open and transparent regarding this project and by soliciting feedback from interested parties. There are a number of ways you can share your views.
  • Call the REX Cheyenne Hub Enhancement Project number at 855.211.1262
  • Submit comments electronically at AskCheyenneHub@tallgrassenergylp.com
  • Attend an open house on one of the following dates:
    Tuesday, April 3, 2018 Wednesday, April 4, 2018 Thursday, April 5, 2018
    5:30 – 7:30 p.m. 5:30 – 7:30 p.m. 5:30 – 7:30 p.m.
    St. Nicholas Catholic Church Eaton Area Park & Rec. District Platte Valley Middle School
    520 Marion Ave. 1675 3rd Street 700 Hill Street
    Platteville, CO 80651 Eaton, CO 80615 Kersey, CO 80644

  • Submit electronic comments to FERC directly referencing Docket No. CP18-103-000.
  • For your convenience, you can submit your comments to FERC via three methods. The Commission encourages electronic filing of comments and has staff available to assist you at 202.502.8258 or FercOnlineSupport@ferc.gov. To ensure your comments are properly recorded, please follow these instructions.
  1. You can file your comments electronically using the eComment feature on the Commission’s web site (www.ferc.gov) under the link to Documents and Filings. This is an easy method for submitting brief, text-only comments on a project;
  2. You can file your comments electronically by using the eFiling feature on the Commission’s web site (www.ferc.gov) under the link to Documents and Filings. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on eRegister. If you are filing a comment on a particular project, please select “Comment on a Filing” as the filing type; or
  3. You can file a paper copy of your comments by mailing them to the following address. Be sure to reference the project docket number (CP18-103-000) with your submission to: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426.
Cheyenne Hub Timeline

  • Public outreach and education – July 2017 and ongoing
  • FERC 7c application – filed with FERC March 2, 2018
  • FERC issues Environmental Assessment Received December 2018
  • Cheyenne Hub Enhancement in service – estimated 2nd quarter 2020



Seahorse Pipeline

Seahorse Pipeline Project Description

The proposed Seahorse Pipeline is expected to be 30 inches in diameter and approximately 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from the Cushing oil hub to the Louisiana Gulf Coast. The pipeline will operate as a multi-grade common batch system that, along with Tallgrass’ Pony Express Pipeline, will ensure domestic refiners and international markets have access to “neat” barrels from five different production basins. Seahorse is expected to start commercial operations in the third quarter of 2021.

Seahorse Pipeline Contacts

Dean Dick 307-232-4430 dean.dick@tallgrassenergylp.com
Kyle Quackenbush 303-763-3319 kyle.quackenbush@tallgrassenergylp.com
Andrew DiPaolo 303-763-3329 andrew.dipaolo@tallgrassenergylp.com