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| February 03, 2012 |
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Swan Ranch could see oil unit trains
CHEYENNE — The operators of Wyoming’s newest railroad, the Swan Ranch Railroad, hope eventually to build a crude oil load-out terminal for unit trains of oil from the Niobrara Formation play. (A unit train is a train in which all the cars are shipped from the same origin to the same destination and typically contain a high-volume of a single commodity.)
Watco Transportation Services LLC, which has the contract to run the Swan Ranch short-line railroad for the industrial park’s developer, Granite Peak Development, says rail unit trains would give Niobrara producers an alternative to pipelines and take advantage of competition between the Union Pacific Railroad and Burlington Northern Santa Fe Railway in Cheyenne.
“Our goal is to grow volume, and one of our goals is to build and operate a unit train crude oil terminal that would ship crude out of the Niobrara,” said Allan Roach, senior vice president for business development for Watco Transportation’s parent company, Watco Cos. LLC.
“Inbound oilfield supplies obviously are a hot item right now, and hopefully you’ll have outbound trains of crude oil,” Roach told the Business Report in a recent interview. “Watco has extensive expertise in both of those areas.”
Watco, which is based in Pittsburg, Kan., is the third largest short-line holding company in the United States and the largest privately owned short-line railroad in the country as well as the largest railcar repair company in North America, Roach said. It operates 25 short-line railroads in 21 states with more than 3,700 miles of total track.
Short line railroads typically gather rail cars to and from smaller industrial users for transfer to and from long-haul Class I railroads like UP and BNSF.
The company is a big operator in the Bakken oil play in eastern Montana and western North Dakota and has experience designing, building, operating and maintaining crude oil terminals.
“We’re a very good fit for Swan Ranch because of our experience and expertise,” Roach said.
The Swan Ranch Railroad will have 10 employees initially, “based on the number of customers that require rail service in the industrial park right now, but that number will rise as business ramps up, he said. A crude oil terminal typically would require 50 employees, he said.
“This industrial park is in a fantastic location because it connects directly to the two class I railroads that run through Cheyenne, so it gives a rail shipper that optionality to get to market on one or both of those railroads,” he said.
Shipping oil by rail offers several distinct advantages over pipelines, according to Roach. Putting oil in tank cars keeps it “pure” because it is never mixed with other types of crude and producers don’t need long-term “take-or-pay” commitments as they do with pipelines, he said.
The Swan Ranch can aggregate tank cars to build a unit train or form a train from a single producer. A tank car typically holds 700 barrels of oil and a 100-car unit train 70,000 barrels.
Watco began switching cars at the Swan Ranch in December, using a locomotive it acquired from another of its subsidiaries, the Yellowstone Valley Railroad in Montana.
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AAA announces 4-5 diamond listings for Wyoming
The American Automobile Association has released its annual list of four and five-diamond-rated hotels and restaurants. The list includes nine businesses in Wyoming, all of them operating in Jackson Hole.
Wyoming’s only five-diamond destination is the Four Seasons Resort Jackson Hole in Teton Village. Five-diamond establishments are defined by AAA as “the ultimate in luxury and sophistication” expected to “meticulously serve and exceed all guest expectations while maintaining an impeccable standard of excellence.”
Hotels and restaurants designated by AAA as four-diamond include:
- Rusty Parrot Lodge & Spa, Jackson
- Jenny Lake Lodge, Grand Teton National Park
- Snake River Lodge & Spa, Teton Village
- The Wild Sage, Jackson Hole
- Westbank Grill, Teton Village
- Teton Mountain Lodge & Spa, Teton Village
- The Wort Hotel, Jackson
- Hotel Terra Jackson Hole, Teton Village
Four-diamond establishments are “upscale in all areas” with fundamental hallmarks that include “an extensive array of amenities combined with a high degree of hospitality, service and attention to detail.”
Representing the upper echelon of the hospitality industry, the 2,245 AAA/CAA four-diamond and 179 five-diamond establishments make up just 3.8 percent and 0.3 percent, respectively, of the total 59,000 AAA/CAA approved and diamond-rated lodgings and restaurants throughout the U.S., Canada, Mexico and the Caribbean.
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Correction: Pappas & Pappas in the lead for UW Gateway
DENVER — An eDaily article on Tuesday, Jan. 31, about the UW Gateway project contained some inaccuracies. An updated version of the story is below:
Wyoming architecture firm Pappas & Pappas Architects was recently selected as the first-ranked design firm for the University of Wyoming Gateway Center project in Laramie. Pappas & Pappas Architects have a design team of consultants that includes DLR Group from Denver and Advent, a branding and exhibition design firm from Nashville, Tenn.
"The selection of the design team is currently in the very preliminary negotiation stage," explained Chet Lockhard, AIA, the associate director of UW's Department of Facilities Planning. "A final decision has not been reached at this time."
The building will serve as a welcoming “gateway” to the campus, highlighting the legacy, achievements, mission and pride of UW.
The 40,000-plus-square-foot project will include a museum-like public reception area and visitors’ center with exhibit displays, personnel offices, office support spaces, reception, conference and seminar rooms, lounges, and an event-hosting and dining area with support spaces for a preparatory kitchen and storage rooms.
Primary office space tenants will be the University of Wyoming Foundation, Alumni Association, Career Services and Student Admissions.
This project will pursue a LEED Silver equivalent rating with alternative energy and approaches to sustainability. Construction is anticipated to begin in early 2013.
In the previous article, DLR Group described itself as a “Wyoming corporation.” This does not mean that it has any permanent office within the state (and, according to Heather Gill of DLR Group’s Denver office, DLR does not have a Wyoming office), only that it has registered with the Wyoming Secretary of State to do business here as a “foreign” (meaning out-of-state) corporation. DLR uses a registered agent, CT Corporation System of Cheyenne.
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national news
Komen reverses move to cut Planned Parenthood funding
NEW YORK (Reuters) - Susan G. Komen for the Cure said on Friday it was retreating from a decision to cut funding to Planned Parenthood, which provides abortion and birth control services, and apologized for a move that thrust the world's largest breast cancer charity into a deeply politicized controversy.
Jobless rate at three-year low as payrolls surge
WASHINGTON (Reuters) - The United States created jobs at the fastest pace in nine months in January and the unemployment rate unexpectedly dropped to a near three-year low, giving a boost to President Barack Obama.
Nasdaq at 11-year high after jobs report
NEW YORK (Reuters) - A surge in hiring in the world's largest economy last month drove U.S. stocks higher on Friday, with the Nasdaq hitting an 11-year high as optimism grew that the labor market is on a steady path to recovery.
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