© 2013 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(November 26) – Ohio-based Marathon Petroleum Corporation announced Tuesday that it has agreed to be the anchor shipper and fund $2.6 billion toward the construction of Houston-based Enbridge Energy Partners, LP’s Sandpiper Pipeline Project.
The 560-mile intestate crude oil pipeline will be located in the Bakken Shale region of North Dakota and extend through Minnesota to Wisconsin and will supply crude oil to refineries in the U.S. and Canada. The pipeline project is part of Enbridge’s overall $6.2 billion Light Oil Market Access Program, which consists of several projects that will collectively allow an additional 400,000 barrels per day of light crude oil from Western Canada, and from the Bakken formation in North Dakota, to access premium markets in Eastern Canada and the U.S. Midwest.
MPC will own a 27 percent interest in the pipeline system when it opens for operation in 2016.
Jones Day represented MPC in the joint venture, with Houston energy partner Jeff Schlegel and associate David Stringer as the lead attorneys. Also assisting were Houston partners Jason Leif and Joe Beauchamp, Dallas partners Todd Wallace and Karen Currie, Houston associate Mosby Perrow, Dallas associate Alex Wilde and Chicago counsel Jane Murphy.
Last year, Schlegel led another Jones Day team when the firm represented MPC during its $2.4 billion acquisition of BP’s Texas City Refinery and other assets in Texas and the Southeast.
Vinson & Elkins represented Enbridge in the transaction, with Houston M&A partner Creighton Smith and New York tax partner Price Manford as the lead attorneys. Also assisting were Houston associates Shamus Crosby, Robert Jacobson, Elizabeth Radack, Alan Alexander and Atma Kabad.
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