Private equity is playing a critically important role in the build-out of crude oil gathering systems in the Denver-Julesburg (D-J) Basin, where rising production volumes — and the expectation of further growth, especially in and around Weld County, CO — are spurring a number of major projects. For proof, you need look no further than ARB Midstream, which, with backing from Ball Ventures’ BV Natural Resources, has developed the largest privately held crude transportation and storage network in the D-J through a combination of acquisitions and new construction. Producers have dedicated a quarter of a million acres to it. Today, we continue a series on crude-related infrastructure in the D-J with a look at ARB Midstream’s fast-expanding asset base there.
Midstreamers supported by private equity have been the focus of two of the three blogs on D-J crude gathering systems we’ve already posted. In Part 1, we discussed the sprawling Black Diamond crude gathering system in Weld County that is co-owned by publicly traded Noble Midstream Partners and PE-backed Greenfield Midstream, which was established in 2017 with financial backing from EnCap Flatrock Midstream. Part 2 reviewed Noble Midstream’s nearby Wells Ranch, East Pony, Greeley Crescent and Mustang systems, and Part 3 considered the crude transportation network now being expanded by Denver-based Taproot Energy Partners, a year-and-a-half-old company with financial backing from Energy Spectrum Partners.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
Before we delve into ARB Midstream’s extensive pipe and storage holdings in the D-J Basin, we’ll provide a brief reminder that the D-J area in northeastern Colorado and southeastern Wyoming offers an unusually intense concentration of hydrocarbons within four geologic layers, or “benches,” only a few thousand feet below the surface, as well as low per-well drilling costs and direct pipeline access to the crude oil hub in Cushing, OK. We also should point out that D-J crude production has doubled in the past 18 months to almost 650 Mb/d, and that the vast majority of the basin’s production growth has been occurring in Weld County, making it the epicenter of midstream development activity as well.
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About the song
"40 Miles From Denver" was written by Ben Kaufmann, and appears as the eighth cut on Yonder Mountain String Band's debut album, Elevation. The album was released in September 1999 on Frog Pad Records, an independent record label run by the band. Production chores were handled by Sally Van Meter. Personnel on the record were: Dave Johnston (banjo, vocals), Jeff Austin (mandolin, vocals), Ben Kaufmann (bass, vocals) and Adam Aijala (guitar, vocals). The song features producer Sally Van Meter on resophonic guitar. An interesting side note to this song is that Nederland, CO, where Yonder Mountain String Band resides, is about 40 miles from Denver — just like the D-J.
Elevation was recorded at Rancho DeVille, Sawtelle Studio and Swallow Hill in Denver. Additional musicians on the album were: Darol Anger (fiddle), Celeste Krenz (backing vocals), Mike Marshall (mandolin) and Sally Van Meter (electric lap steel, resophonic guitar).
Yonder Mountain String Band is an American progressive bluegrass/jam band formed in Nederland, CO, in 1998. The band was started by Dave Johnston and Jeff Austin, who had previously played together in The Bluegrassholes in Urbana, IL. After relocating to Colorado, the two put together what would become Yonder Mountain String Band. They developed a loyal following by constantly touring on the bluegrass and jam band circuits. Austin left the band in 2014, and passed away earlier this year. The current lineup features original members Johnston, Kaufmann and Aijala, joined by Allie Kral (fiddle, vocals) and Jake Joliff (mandolin, vocals). Yonder Mountain String Band has released five studio albums and five live albums. They continue to record and tour.
