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Rangeland Signs Multi-Year Contract with Halliburton


According to the Rangeland Reporter-Telegram, Rangeland Energy’s RIO Hub under construction on 300 acres near Loving, N.M., has received a significant boost with an agreement with a major company.Halliburton has signed a multi-year contract for Rangeland to provide frac sand rail unloading storage and distribution services in the Delaware Basin.

Chris Keene, president and chief executive officer of the Sugar Land-based company said Halliburton was “the 1,600-lb. gorilla” that not only established, but validated Rangeland’s concept for the RIO hub.

“When I say Halliburton validated our strategy, I mean everything from drilling activity to sand demand and the location where we’re building our hub. As in real estate, it’s location, location, location,” Keene said.

In the terminal business, it can be a matter of getting that first domino to fall, Keene said. “Getting that 1,600-lb. gorilla” like Halliburton and contracting to move substantial volumes “paves the way for future growth opportunities and kickstarts future development opportunities,” he said.

While he didn’t go into specific details of the agreement, Keene said Rangeland will be terminaling the vast majority of the frac sand for Halliburton in the area. In addition, he said the contract allows for expansion capabilities.

“We will try to move to unit trains for Halliburton and others,” he said. The company has been talking with companies that are sand suppliers or specialty sand supplies, he said.

He said the company expects to be offering Halliburton transload services next month and building silos for Halliburton and other customers to store frac sand and other goods in the second quarter of next year.

The company is also seeing interest on the crude oil side, Keene said. The hub not only offers frac sand storage and distribution, but also crude oil and condensate storage, stabilization and outbound rail transportation services through BNSF Railway. Rangeland’s RIO Pipeline will connect the RIO Hub to the pipeline network at Midland.