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Nuverra Environmental Solutions, Inc. has entered into a long-term definitive agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to provide water-related pipeline services in McKenzie County, North Dakota.
Mark Johnsrud, Chairman of the Board and Chief Executive Officer of Nuverra, commented: "The construction of this pipeline represents a transformational step in our effort to become a fully-integrated environmental solutions provider in North Dakota. We are pleased to extend our relationship with XTO to serve their growing water management needs.
"With significant increases in well density and growing water volumes, we believe our pipeline network represents an important complement to our transportation capabilities and provides sustainable and efficient water gathering and delivery solutions for our customers."
The Network will serve XTO's dedicated acreage, as well as other operator wells in the area. The Network will feature fixed, buried pipelines, which will include a gathering line to transport produced and flowback water for disposal or recycling and a distribution line for fresh water delivery.
The Network is projected to cost $125 million to $150 million, based on current engineering and construction specifications, with completion during the fourth quarter of fiscal 2015. Construction is expected to begin in May 2015.
