Tallgrass, the Denver-based energy infrastructure operator, said Friday it is launching a 30-day open season for incentive tariff rates on two of its crude oil pipeline systems, offering shippers binding commitments for transportation from Bridger Pipeline’s Guernsey Hub in Wyoming.
The open season, which commenced August 21, covers both the Pony Express Pipeline and the Seahorse Pipeline, each operated by Tallgrass subsidiaries. The program utilizes existing capacity rather than requiring new construction, and the joint tariff structure was developed with Bridger Pipeline LLC, headquartered in Casper, Wyoming.
Prospective shippers can review program details after executing a confidentiality agreement, with inquiries directed to Matt Hester at Tallgrass. The company did not disclose specific rate levels or volume targets in the announcement.
The open season structure allows shippers to lock in incentive rates for crude oil transportation from the Guernsey Hub, a key gathering and storage point in eastern Wyoming that connects production from the Powder River Basin and surrounding regions to downstream markets.
Tallgrass operates more than 10,000 miles of multicommodity pipelines across 14 states. Its Pony Express system runs from Guernsey, Wyoming, to Cushing, Oklahoma, a major crude storage and pricing hub. The Seahorse Pipeline serves as another artery in the company’s Rocky Mountain crude transportation network.
Bridger operates roughly 3,700 miles of oil pipelines across North Dakota, Wyoming, Montana, and South Dakota, and holds a 25 percent equity stake in the Liberty Express Pipeline joint venture with Tallgrass. The company and its affiliates have been privately held by the True Family since 1948.
Strategic Positioning in the Rockies
The dual open season reflects Tallgrass’s push to strengthen utilization across its existing asset base while providing shippers with cost certainty amid fluctuating crude differentials. By offering incentive rates tied to existing capacity, the company positions itself to capture incremental volumes without the capital expenditure and regulatory hurdles associated with pipeline expansion.
For producers in the Powder River Basin and nearby regions, the joint tariff structure could streamline access to both Cushing and other market destinations, depending on which pipeline a shipper selects. The binding nature of the commitments suggests Tallgrass and Bridger are seeking to convert interest into firm, multi-year transportation agreements.
The announcement comes as U.S. crude production from the Rockies continues to face takeaway constraints, making pipeline access and rate competitiveness critical factors for producers weighing development plans.
Tallgrass cautioned that statements regarding the length of the open season and related expectations are forward-looking and subject to risks that could cause actual results to differ materially. The company said it does not intend to update forward-looking statements except as required by law.