New York (Platts)--5Dec2012/939 am EST/1439 GMT

Plains All American Pipeline has agreed to acquire four operating crude oil rail terminals, one terminal under development and a variety of contractual arrangements from US Development Group for $500 million, the Houston-based midstream company said Wednesday.

Plains said in a press release that the deal has already received early termination of the waiting period under the Hart-Scott-Rodino Act and is expected to close before the end of the year.

The assets being purchased include three crude oil rail loading terminals located in the Eagle Ford, Bakken and Niobrara producing regions with an aggregate daily loading capacity of around 85,000 b/d, a rail unloading terminal at St. James, Louisiana, with capacity of about 140,000 b/d, and a project to construct a crude oil unloading terminal near Bakersfield, California, Plains said.

"These assets represent a very attractive addition to our existing North American rail activities, substantially improving our scale, scope, and flexibility," Plains Chairman and CEO Greg Armstrong said. "Given recent and projected increases in North American crude oil production and volumetric and quality imbalances expected to occur in certain regions over the next several years, we believe that strategically located rail loading and unloading assets will continue to play an important role in the transportation of crude oil in North America."

Following completion of the acquisition and taking into account other projects it now has under development, Plains will have a North American crude oil rail business network that includes five loading terminals and three unloading terminals. Its crude oil loading capacity is expected to total about 250,000 b/d, with five of its facilities located "in or near key producing areas extending from the US Rockies to South Texas," the company said.

Plains' unloading capacity will total 335,000 b/d, from terminals located on the East Coast, Gulf Coast and West Coast. Its West Coast project will connect with the company's West Coast pipeline and terminal network, giving it access to the refining markets in both northern and southern California, the company said.

Plains said it expects to have some 6,700 railcars under lease by the end of 2013.

--Robert DiNardo, robert_dinardo@platts.com --Edited by Alisdair Bowles, alisdair_bowles@platts.com