The Broe Group and Musket Corp. to Pursue Pipeline-by-rail Solution Within Great Western Industrial Park

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Jan 11, 2012, 02:00 ET

WINDSOR, Colo., Jan. 11, 2012 /PRNewswire/ -- The Broe Group today announced that Musket Corp. will establish a crude-oil export terminal within the Great Western Industrial Park on a newly-constructed loop track on the Great Western Railway. Due to the abundance of existing infrastructure, the site is easily scalable beyond the initial loading capacity of 5.8 million barrels per year.

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"With increasing oil production in the Denver-Julesburg (DJ) Basin and exploration of the Niobrara Formation, Northern Colorado needs a rail-served solution to efficiently transport crude-oil unit trains," said Rich Montgomery, vice president of The Broe Group, based in Denver, Colorado. "Our expertise in land development, railroads and energy will enable us to continue bringing solutions like this to the region."

"The Windsor facility is a great addition to our service platform, allowing customers to take advantage of the promising opportunities surrounding the Niobrara shale play," said J.P. Fjeld-Hansen, managing director of Musket Corp., based in Houston, Texas. "Musket was one of the first to make an investment in a pipeline-by-rail terminal in North Dakota's Bakken shale play, which has become a success. We are excited to extend this strategy to the DJ Basin."

Financial terms of the transaction were not disclosed.

Today's announcement follows the recent acquisition by Windsor Renewal 1, an affiliate of The Broe Group, of 320 acres of former Eastman Kodak Company property. Some of that property, now part of the 1,800-acre Great Western Industrial Park, will become the site of the Musket pipeline-by-rail facility. Fuel-storage tanks on the site, with a total capacity of 48,000 barrels, will be converted for crude oil storage. The terminal is intended to be unit-train capable.

Separately, the Great Western Railway will extend its railroad track to complete a four-mile long loop track within the Great Western Industrial Park to serve the Musket facility and other users within the park. The rail loop will add capacity to address the growing demand for rail service.

Great Western Railway interchanges with both the Burlington Northern Santa Fe and Union Pacific railroads. The Great Western Industrial Park's location, competitive rail service, and infrastructure have made it a center of manufacturing in the region. For more, see www.greatwesternindustrialpark.com.

In attracting companies such as Owens-Illinois, Front Range Energy, Reliant Holdings, Vestas and Hexcel to the Great Western Industrial Park, it has helped generate more than a thousand new jobs for the community. In 2011, the park will contribute $1.6 million to Weld County's tax base, $1.1 million to Windsor's, and $4.3 million to Windsor's school district. The $9.8 million Colorado Army National Guard Windsor Readiness Center, being built on a 17-acre parcel within the park, is scheduled to open later this year.

The Broe Group, based in Denver, Colorado, manages 29 million square feet of real estate throughout North America, including more than 750,000 square feet of industrial facilities in Northern Colorado. For more, see www.broe.com. The Broe Group's transportation affiliate, OmniTRAX, Inc., is a leading transportation services firm with railroad, port and terminal operations throughout North America, including the Great Western Railway. For more, see www.omnitrax.com. In addition to its railroad and land holdings, The Broe Group controls the Great Western Oil & Gas Company, which has grown to be one of the top oil producers in Colorado and the burgeoning Niobrara shale play. For more, see www.gwogco.com.

Musket Corp. is a privately held commodity supply, trading and logistics company with offices in Houston, Texas, Oklahoma City, Okla., Phoenix, Ariz., and Calgary, AB Canada. The company operates a rail fleet serving its crude, refined products and renewable fuel terminals across the U.S. and Canada. For more, see www.musketcorp.com.

SOURCE The Broe Group