The Enid News and Eagle, Enid, OK

Local news

May 16, 2013

Hamm companies ink deal to transport oil

ENID, Okla. — Enid-based Hiland Partners has contracted with Continental Resources to pipe oil from the lucrative Bakken formation in North Dakota southward toward refineries.

The five-year deal would have Continental, now based in Oklahoma City, push at least 10,000 barrels of oil per day down Hiland’s proposed Double H pipeline — one-tenth of the line’s capacity.

However, Hiland expects the pipeline to initially transport 50,000 barrels per day.

The pipeline has not yet been constructed, but when it is, it will run about 450 miles from Dore, N.D., to Guernsey, Wyo.

There it will connect with the Pony Express, another proposed pipe that would carry oil to the pipeline hub of Cushing, Okla.

Hiland said in April construction on the $300 million Double H pipeline should begin this summer and be finished in August 2014.

The Wall Street Journal reported Continental did not invite an independent law firm to review the agreement between the closely tied companies.

Billionaire oilman Harold Hamm is chairman and CEO at Continental, and he also serves as Hiland’s chairman of the board.

“If you only knew what we go through — the audit committee, conflicts committee. We have an intelligent and expert board on industry matters. Nobody’s going to lead them down a bad path for anyone’s sake,” Hamm told Forbes magazine.

Representatives from Hiland and Continental did not return a request for comment on this story.

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