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PSC lauds planned Killdeer pipeline

BISMARCK -- A planned 33-mile oil pipeline from near Killdeer to Dickinson will give North Dakota producers one more way to sell their oil at the best price, state officials said Wednesday.

Plains All American Pipeline LP, a Texas company, plans construction next year on the $16 million project.

It has notified the Public Service Commission that it will apply for a permit to place the line. The commission voted Wednesday to accept an $80,000 filing fee and waive a waiting period, which means the company can file its application immediately.

The six-inch line will carry 10,000 barrels a day of crude oil from Plains' existing Killdeer crude oil gathering line system in Dunn County to a connecting point on its existing pipeline two miles northwest of Dickinson, and thence to the Guernsey, Wyo., hub, the company says.

Even though it is six inches in diameter, "It's still a significant pipeline," said Commissioner Susan Wefald.

Commissioner Tony Clark said that the oil the new line would carry is currently "locked in to Tesoro" and the new line would give North Dakota producers an outlet to Guernsey and possibly higher prices.

"This is just one more way to transport this oil efficiently," said Commissioner Kevin Cramer.

Construction will begin and be completed in the first half of 2009, the company says.

Janell Cole works for Forum Communications Co., which owns The Dickinson Press.