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Figure 2A - Alpine High - Infrastructure & Pipeline July, 2018 Update

Alpine High July, 2018 Infrastructure Update

Notice that Figure 2A is an updated version of Figure 1, which includes the recent announcements of infrastructure additions within the Alpine High footprint. The first announcement was by Apache and Salt Creek Midstream, LLC (“Salt Creek”). The two companies announced the formation of SCM Alpine, LLC (“Alpine”) to develop a 445,000 Bbl/d capacity natural gas liquids (NGLs) header system to transport NGLs to Waha. Apache has an option to acquire a 50% stake in the system, which consists of two pipeline segments: a north/south segment from Apache’s Diamond Cryo Complex and an east/west segment from Salt Creek’s facility under construction just south of Toyah, Texas. At Waha, the NGL pipeline will connect to other pipelines to access markets in Mont Belvieu and Corpus Christi.

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// See that 42-inch gas line from Mexico that passes to the East of Alpine and goes to Waha at Coyanosa? On the west side of that pipeline northeast of Alpine is the developmental complex of Apache at the old abandoned town of Hovey on the railroad. Apache is building a ‘Central Processing Facility’ there (a euphemism for a BIG Cryogenic Natural Gas Liquids extraction plant) and will put their product on that 42-inch line to be distributed all over. That 42-inch line from Mexico also conveniently passes by the 350 Million CFD Energy Transfer Plant being built there now. Apache is developing the whole area in a vertically integrated fashion of area or regional modules.