Aux Sable Announces Construction of NGL Truck Unloading Facility at Palermo Conditioning Plant

PALERMO, ND, Nov. 21, 2011 /CNW/ - Aux Sable Midstream ("ASM"), is pleased to announce plans to construct a Natural Gas Liquid (NGL) truck unloading facility at its Palermo Conditioning Plant (previously known as the Stanley Conditioning Plant). The unloading facility will have an initial capacity of 5,000 barrels per day. The NGL mix will be injected into the Palermo Plant/Prairie Rose Pipeline system for delivery and processing at Aux Sable's Channahon, Illinois Facility. This new truck unloading facility is anticipated to be operational in April 2012 and can be easily expanded to 10,000 barrels per day.

The recent acquisition of the Palermo Conditioning Plant and the Prairie Rose Pipeline allows Aux Sable to provide this new option to producers in the Bakken area. The Palermo Plant will be able to accept higher ethane content NGL mixes, is within a modest trucking distance of most field processing plants in the Bakken area and will avoid truck to rail transload congestion or delays.

"The new NGL truck unloading facility and the utilization of these existing midstream assets provide a very operationally effective and value competitive solution for Bakken gas processors/producers that have had to invest in field extraction facilities to manage their NGL-rich gas production. Post April, 2012, Aux Sable will be positioned to handle NGL rich gas delivered through several gas gathering systems as well as NGL mixes by truck." said W. J. (Bill) McAdam, President and Chief Executive Officer of Aux Sable.

About Aux Sable

For over ten years, Aux Sable has delivered outstanding safety, environmental and operating results. The company now has operations in several locations in the US and Canada.

Aux Sable USA

Aux Sable Liquid Products owns and operates one of the largest NGL extraction and fractionation plants in North America. The facility is located in Channahon, Illinois about 50 miles southwest of Chicago near the eastern terminus of the Alliance pipeline. The facility is capable of processing 2,100 mmcfd of gas and can produce about 102,000 barrels per day of specification NGL products. All of the Alliance gas is processed at the Channahon NGL Facility where Aux Sable has shipper contracts to extract the NGLs.

Aux Sable Midstream recently acquired the Palermo Conditioning Plant (previously known as the Stanley Conditioning Plant) and the Prairie Rose Pipeline from a wholly owned subsidiary of EOG Resources, Inc. The Prairie Rose Pipeline connects the Palermo Conditioning Plant to the Alliance Pipeline, which delivers high energy dense phase gas to Aux Sable's Channahon, Illinois Plant for NGL extraction and processing.  ASM is pursuing other NGL processing and infrastructure midstream initiatives, primarily driven by the shale oil and shale gas developments in the Midwest and northeast United States.

Aux Sable Liquid Products and Aux Sable Midstream are both owned by Enbridge Inc. (42.7% equity interest), Veresen Inc. (42.7% equity interest) and Williams Partners (14.6% equity interest).  Enbridge Inc. and Veresen Inc. each own a 50% interest in the Alliance Pipeline.

Aux Sable Canada

Aux Sable Canada is an active midstream gas processing company in Western Canada, primarily along the Alliance Pipeline corridor. Through the Alliance-Aux Sable dense phase gas system, ASC provides value added solutions for producers to effectively develop and produce NGL rich gas reserves. Since inception, the company has successfully attracted rich gas to Alliance through inducements and new rich gas connections. ASC's strategy also includes building, owning and operating offgas processing facilities for the heavy oil upgrading and refining industry in Alberta.

Aux Sable Canada is owned by Enbridge Inc. (50% equity interest), Veresen Inc. (50% equity interest). Enbridge Inc. and Veresen Inc. each own a 50% interest in the Alliance Pipeline.

For more information on Aux Sable, visit www.auxsable.com.

For specific information on the ASM NGL truck offloading project, please click on the following link, www.auxsable.com/Palermotruckrack.

SOURCE Aux Sable Liquid Products Inc.

For further information:

Aux Sable US
Scott A. Seibert 
Public Affairs Coordinator 
(815) 941-6250
Email: scott.seibert@auxsable.com

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Aux Sable Liquid Products Inc.

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