Agralite Electric Loans
Category: Agralite, Business, Cooperatives
Alliance Midstream receives loan through Agralite Electric Cooperative
BENSON, Minn. — A critical, longtime propane delivery terminal at Benson will continue to operate thanks to a loan secured through Agralite Electric Cooperative. Alliance Midstream LLC, which was developed to keep the terminal operational, has received a $500,000 loan through Agralite Electric to acquire and develop the strategic propane terminal in Benson.
“We’re extremely pleased to be able to help Alliance Midstream keep what has long been an extremely critical propane terminal operating in our area,” said Agralite Electric General Manager Kory Johnson. “Agralite Electric members depend on this resource and it’s been an important piece of our community for decades.”
The terminal had been in operation since 1979 and supplied propane gas from Canada to the U.S. through the Cochin Pipeline. But in June 2014, the pipeline stopped delivering propane and sold off the assets of the propane loading operation in Benson, which included storage tanks and truck loading equipment.
With the loan, Alliance Midstream modified the terminal by building rail track and rail tank car offloading equipment so the facility can continue to operate. The terminal had been an important propane supply point to the local market.
Alliance Midstream is a partnership between Jason Doyle, Randy Dooley and Tom Dooley. The Dooleys are brothers whose father started Dooley’s Oil Company in 1956. The company is now known as Dooley Petroleum Inc. (DPI) and employs 150 people in the Benson area. DPI had been distributing propane from the terminal, and after the pipeline shut down they have worked to keep it operational.
The loan was approved through Agralite’s Rural Electric Economic Development Fund (REED Fund), a revolving economic development fund which provides business and community project financing.