Parnon Gathering, Inc., a wholly owned subsidiary of Parnon Holdings, Inc., will construct a crude oil pipeline in Central Oklahoma. The project entails laying approximately 109mi of new 8in pipeline from Cherokee, Oklahoma to Cushing, Oklahoma and is designed to move 18,000 barrels of crude oil per day with an option to up rate to 35,000 barrels per day. The “Great Salt Plains Pipeline” will ship production from Central and Western Oklahoma and interconnect with Parnon’s crude oil tanks in Cushing. Right-of-way negotiations are well advanced and pipe order has been confirmed; the line is scheduled to commission in March 2012. Plans are being prepared to extend the Great Salt Plains Pipeline (Phase II) further west to serve the Granite Wash and other new tight sands plays, in response to interest from producers with acreage in Western Oklahoma. The second phase of the project could run concurrently with Phase 1 and could commission as soon as midyear 2012.