The North Dakota Public Service Commission (PSC) unanimously approved a Belle Fourche Pipeline Co. pipeline application.

This enables delivery of abundant and relatively low-cost Bakken crude to an under-construction, 20,000 barrels per day (bbl/d), diesel-oriented refinery being built by the MDU/Calumet Specialty Product Partners joint venture in North Dakota.

Soaring oil production in North Dakota has triggered the development of several diesel-oriented refineries in the state.

According to the PSC, Belle Fourche plans to build a 20-mile, 10-inch diameter crude oil pipeline in Billings, Dunn, and Stark Counties, N.D. Throughput capacity will be 100,000 bbl/d.

Besides serving the new MDU/Calumet refinery, the new crude line also will supply the “Bakken Oil Express” crude-by-rail facility, according to the PSC.

“According to evidence provided by Belle Fourche, oil production in western North Dakota has more than tripled in the last three years,” according to the PSC.

“This project represents a response to the need for additional takeaway pipeline capacity. Trucking crude oil was identified as a primary alternative to the project. This alternative would cause additional wear and tear on county and state roads.

“Belle Fourche indicated transporting crude oil by pipeline is a more efficient and safer mode of transportation. Belle Fourche indicated that siting the majority of the project within or adjacent to existing Belle Fourche right of way provides the benefit of utilizing its existing pumping station and equipment, and will minimize additional impacts to the environment,” the PSC found in its conclusions.

Jack Peckham can be reached at jpeckham@hartenergy.com.