Community
Tallgrass Energy Projects

Cheyenne Connector

Cheyenne Connector Binding Open Season

Tallgrass Energy (“Tallgrass”) is pleased to announce a binding open season (“Open Season”) for the Cheyenne Connector pipeline (“Project”). The Cheyenne Connector pipeline is a new, large diameter interstate natural gas pipeline providing the opportunity for natural gas market participants to move gas from supply connections in Denver-Julesberg Basin (“DJ Basin”), located in Weld County, Colorado, to Rockies Express Pipeline LLC’s (“REX”) Cheyenne Hub (“REX Cheyenne Hub”). Tallgrass is developing the Project to connect growing DJ Basin production with the numerous downstream takeaway options at the REX Cheyenne Hub.

The Project consists of an approximately 70-mile large diameter interstate pipeline originating at receipt connections with processing facilities in the DJ Basin and delivering gas to the REX Cheyenne Hub. The Project has an anticipated capacity between 600 MDth/d and 1,300 MDth/d, for which Tallgrass currently has commitments of 600 MDth/d from two pre-arranged bidders. The Project will be a separate interstate pipeline entity regulated by the Federal Energy Regulatory Commission (“FERC”) subject to its own FERC Gas Tariff (the “Tariff”).

Separately, REX is developing the Cheyenne Hub Enhancement Project to enhance the firm interconnectivity capability of the various pipelines and local distribution (“LDC”) systems located in and around the Cheyenne Hub. The delivery to the REX Cheyenne Hub and the anticipated transformation of the REX hub facilities will provide customers significant diversity in terms of market access. Additional information related to the REX Cheyenne Hub Enhancement Project is available at the following link, Cheyenne Hub Enhancement Project.

It is currently anticipated that the Project will have an in-service date in Q3 2019, subject to the timely receipt of a FERC certificate of public convenience and necessity authorizing construction and operation of the Project, as well as all other applicable permits and approvals

The document below provides description of the Project, applicable terms and conditions of the Open Season, the bid submission deadline, bid guidelines, and other relevant information concerning the Open Season

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

The Cheyenne Connector Project is the proposed construction of a 70-mile, large-diameter interstate natural gas pipeline (Cheyenne Connector) designed to move natural gas from receipt connections at processing facilities in the Denver-Julesburg Basin (DJ Basin) in Weld County to the Rockies Express Pipeline Cheyenne Hub (REX Cheyenne Hub) just south of the Colorado/Wyoming border. 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 Connector has an expected initial design capacity of 600 million cubic feet per day of natural gas and potential room for expansion. Affiliates of Anadarko Petroleum Corporation and DCP Midstream have signed precedent agreements for a combined 600 million cubic feet per day of natural gas on Cheyenne Connector. Cheyenne Connector is expected to be in service in Q3 2019, subject to approval by the Federal Energy Regulatory Commission (FERC) and other applicable approvals.

Operating across 11 states, Tallgrass Energy is a midstream energy operator with transportation, storage, terminal, water, gathering and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins. Headquartered in Leawood, Kan., our primary operating office is in Lakewood, Colo., and we have nearly 700 employees. More than 300 employees live in Colorado, including about 30 in Weld County.
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 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 Cheyenne Connector is designed to receive gas from processing facilities in southern Weld County in the DJ Basin and deliver it to the REX Cheyenne Hub just south of the Wyoming border.
Tallgrass Energy is constructing and, when complete, will own and operate Cheyenne Connector. We are jointly developing the pipeline with Western Gas Partners and DCP, who both hold an option to invest in Cheyenne Connector at a later date.
Cheyenne Connector is designed to be up to 36 inches in diameter and about 70 miles long.
Cheyenne Connector will have a maximum allowable operating pressure (MAOP) of 1,480 psi.
Consistent with applicable law and industry standards, Cheyenne Connector will be buried underground. Typically, the Department of Transportation requires a pipeline like this to have 30 inches to 36 inches of ground cover above the top of the pipeline. With a pipeline of this diameter, Tallgrass prefers to have four feet of cover above the top of the pipeline for added safety and in certain conditions will bury our pipeline much deeper.
The Cheyenne Connector has an expected initial design capacity of 600 million cubic feet per day of natural gas and potential room for expansion.
Affiliates of Anadarko Petroleum Corporation and DCP Midstream have signed precedent agreements for a combined 600 million cubic feet per day of natural gas on both the Cheyenne Connector and the REX Cheyenne Hub Enhancement projects.
Cheyenne Connector is designed to link much-needed natural gas supplies in the DJ Basin 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 will provide end-users in those markets another source of natural gas and potentially better pricing.
We expect Cheyenne Connector to be in service H2 2019, subject to the necessary approvals which include FERC.
There is potential for some of the natural gas transported on Cheyenne Connector to stay in Weld County. By adding another outlet for Weld County natural gas supply, Cheyenne Connector could lead to more attractive pricing for residential and commercial users in some parts of Colorado.
Colorado producers will benefit from Cheyenne Connector because it gives them another route to get their natural gas to consumer markets across the country. There will be both short- and long-term economic benefit to Weld County, including 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 three permanent jobs in Colorado to operate the pipeline after it is in service.
In addition to the pipeline, the Cheyenne Connector Project involves building measurement facilities at connection points along the pipeline route.
A measurement facility consists of equipment to measure natural gas volumes and quality coming into and leaving the pipeline. This equipment is typically housed within a small building typically around 8 feet by 10 feet.
We will use a variety of communications channels and vehicles, including news releases, open houses, direct mailings and our web site.
We selected the route based on the best balance of several factors, including our ability to safely and efficiently build the pipeline; land use and landowner feedback; and our ability to minimize our impact on the environment, archeological resources and local communities.
As is our practice at Tallgrass, we compensate landowners fairly when we site a pipeline on their property.
We anticipate minimal disruption to the community, and we’ll do everything in our power to be considerate of our neighbors during the construction process.
At Tallgrass, safety comes first. We employ a variety of safety systems and processes to ensure the safety of our employees and those who live and work near our pipelines. 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 safety. We have state-of-the-art emergency shutdown systems that isolate anomalies quickly and safely. We also coordinate with local first responders to ensure they are familiar with nearby natural gas infrastructure and prepared in the event of an emergency. Finally, we emphasize safety through prevention, employing qualified pipeline construction inspectors to thoroughly inspect and test natural gas infrastructure before it is put into service.
As an interstate pipeline, Cheyenne Connector is regulated by the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA). The pipeline also is subject to a number of other environmental laws and regulations, including the National Environmental Policy Act (NEPA); Endangered Species Act (ESA); Clean Water Act (CWA); Clean Air Act; National Historic Preservation Act; and Bald and Golden Eagle Protection Act.
Tallgrass believes in supporting the local economy, and that means whenever possible we hire qualified local crews.
Natural gas is clean, reliable, affordable and abundant. Innovations in the energy sector continue to drive down natural gas emissions and cost. While U.S. natural gas production is up 50 percent since 2005, total U.S. greenhouse gas emissions are down 11 percent. Natural gas can be used to complement renewable energy sources like wind and solar, and together with renewable energy sources is essential for powering our country’s long-term energy needs.
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. The cooperation of Weld County landowners is important to the success of this project, and we value their feedback and participation throughout the process. There are a number of ways you can share your views.
  • Call the Cheyenne Connector project number at 855-288-3997
  • Submit comments electronically at AskCheyenneConnector@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. CP18-102-000.
  • 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 (CP18-102-000) with your submission to: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426.
Cheyenne Connector Timeline

  • Public outreach and education – July 2017 and ongoing
  • FERC 7c application – filed with FERC March 2, 2018
  • FERC issues Environmental Assessment – expected Fall 2018
  • FERC order issuing certificate – expected March 2019
  • FERC issues notice to proceed with construction – estimated April 2019
  • Cheyenne Connector Enhancement in service – estimated Q3 2019



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 Q3 2019.

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 – expected Fall 2018
  • FERC order issuing certificate – expected March 2019
  • FERC issues notice to proceed with construction – estimated April 2019
  • Cheyenne Hub Enhancement in service – estimated H2 2019



Iron Horse Pipeline

Iron Horse Pipeline Project Description

The Iron Horse pipeline is a joint venture between Tallgrass Energy and Silver Creek Midstream to transport crude oil from the growing Powder River Basin to the Guernsey, Wyo., oil hub. The approximately 80-mile, 16-inch Iron Horse pipeline will consist of 40 miles of new-build and 40 miles of gas-to-oil conversion pipe. At Guernsey, shippers will have access to the Tallgrass Pony Express Pipeline and other pipelines accessible through Tallgrass Terminals’ Guernsey Terminal, which is under construction and expected to start commercial operations in the fourth quarter of 2018.

Iron Horse, which has secured a 10-year producer-supported committed transportation contract for 15,000 barrels per day, is under construction and currently expected to start commercial operations by Feb. 1, 2019, with an initial capacity of approximately 100,000 barrels per day that is expandable to approximately 200,000 barrels per day.

Iron Horse 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



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