U.S. Development Group Doubles Capacity at St. James, LA., Crude Oil Handling and Distribution Terminal

U.S. Development Group LLC (USD), a Houston-based developer of unit train logistics and terminal facilities, announced today that it has completed an expansion of its St. James Rail Terminal (SJRT), a crude oil and condensate handling and distribution hub located in the Gulf Coast region of Louisiana, doubling the terminal’s capacity to 130,000 barrels (or two unit trains) per day. SJRT, which began operations in summer 2010, is part of a nationwide network of crude oil/condensate facilities being developed by USD.

The expanded St. James facility consists of approximately seven miles of rail track and a fully automated 52-spot high-speed railcar offloading rack. In support of the growth in unit train volumes, USD also has begun construction on additional rail track at SJRT to be brought into service in June.

“U.S. Development Group’s expanded St. James terminal will allow it to keep up with growing demand from producers and marketers looking to obtain the best value for their oil and will give our refiner/blender customers greater access to a steady supply of high-quality sweet crude,” said Mike Day, U.S. Development Group vice president. “Our network of crude oil unit train hubs leads the industry in its reach and capacity, giving our customers maximum flexibility in moving oil and condensates to strategic markets.”

Served by the Union Pacific Railroad, SJRT currently receives unit train shipments of crude oil, condensate and related products from the Bakken, Niobrara and Eagle Ford shale plays. SJRT is connected via pipeline to an adjacent state-of-the-art crude oil/condensate storage terminal operated by Plains Marketing, L.P.

“Working with US Development on their expanded St. James Rail Terminal will result in significant value for our customers,” said Diane Duren, Union Pacific Railroad vice president and general manager – chemicals. “Shipping crude oil by rail is a safe and reliable transportation option that provides flexibility in delivering crude oil to markets. Union Pacific’s extensive network and logistics expertise, combined with USD’s state-of-the-art crude oil unit train terminal, form a comprehensive logistics solution for crude oil producers and marketers looking to transport their barrels to the Gulf Coast.”

USD, which pioneered the crude-by-rail/unit train hub concept, is actively developing several new origin and destination hub facilities. The expanding USD network will offer capacity for significantly higher rail volumes of oil and condensate from the Bakken, Eagle Ford, Niobrara and other major production areas into refining and oil distribution centers on the East, Gulf and West coasts of North America.

U.S. Development Group companies are engaged in designing, developing, owning and managing large-scale rail logistic centers in North America. U.S. Development Group is the industry leader in unit rail facility development for biofuels, crude oil/condensate and industrial product distribution. For more information, go to www.us-dev.com.

For additional information about the St. James facility, please contact Bill Swan at 713-445-6929.

For media inquiries, please contact Meg Martin at 405-397-6156.