November 2011 This month marks the 30[SUP]th[/SUP] anniversary of Farmrail’s arrival in western Oklahoma. The Company has grown from a 35-mile short line linking Clinton and Elk City to a 369-mile network radiating from Clinton and covering 12 counties. Most importantly, the customer base has expanded with the diversification of the regional economy, greatly reducing the railroad’s former dependence on agriculture. October 2011 Rail movements of crude oil are growing as additional logistics firms participate in the supply-line gathering process. Mercuria Energy has begun transloading at Okeene, Deeprock Energy Resources at Thomas and Hobart, and Gavilon at Sayre. Marquis Energy also will be locating at Sayre as the shift of regional shipments from road to rail continues in anticipation of strong production gains in western Oklahoma and the Texas Panhandle. September 2011 Crude oil is back on the rails in western Oklahoma after an absence of several decades. Anadarko Basin production has been revitalized by horizontal drilling, providing economic access to previously untapped reserves. Petroleum marketer Pacer Energy is loading the high-quality liquid at Sayre and forwarding it to the Cushing storage complex for pipeline delivery to various domestic refineries. August 2011 While underground hydrocarbon development activity continues at a high level, farmers on the surface have their eyes on the sky. The extended drought that began last October has seen only two inches of precipitation over most of western Oklahoma, severely affecting the 2011 winter wheat crop and now threatening next year’s. The parched earth contrasts with more northerly states where severe flooding has been the problem.
