Transcript Bluegrass Pipeline - Wilkes University

Bluegrass Pipeline
ALEXANDRA PASKAS, JOHN MURRAY, MATT KACHURAK,
& ANDREW SABA
What is the Bluegrass Pipeline?

Proposed on March 6, 2013

An idea of transporting Natural Gas Liquids
(NGLs)

Constructing approximately 600 miles of Pipeline
(PA – KY)

Converting approximately 600 miles of existing
Pipeline
(KY – LA)
Natural Gas Liquids

Produced during natural gas processing and petroleum refining

Examples: ethane, propane, normal butane, isobutene, and
pentanes plus

Texas – large supplier
Bluegrass Pipeline Route
Puts more than 2 dozen KY
counties at risk
 Would pass through 120 miles
of karst terrain (sinkholes,
natural springs, caves)
 Crosses more than 700
waterways
 Would need a pipeline bridge
in different areas

“It is inevitable that as pipelines age,
as they are exposed to the elements,
eventually they are going to spill,
They are ticking time bombs.” –Tony
Lallonardo of the National Wildlife
Federation
Pros

Project developers say tax revenues will directly
benefit communities the pipeline passes through, in
same cases amounting to millions yearly

Creation of approximately 6,000 to 7,000 temporary
jobs during the construction of the pipeline and
approximately 30 full time employees to operate

Fair compensations for easements (property in the
path of the pipeline), and assurance that residents
retain ownership of their property

A promise from the company that the project will
help reduce American reliance on foreign energy
Cons

Increase in production has led to a glut of NGLs,
and the pipeline developers are looking to build
an export facility to ship overseas where prices
are higher

Exports are already driving up prices in Kentucky

“Moderate accidents” can affect a radius of
1,000 feet, even though the setback
requirement for homes is only 50 feet for the
Bluegrass pipeline
Williams & Boardwalk Safety
Record
-
The company has been involved with several
accidents, including a pipeline leak in 2013 that
went unnoticed for two weeks. The groundwater
there is still contaminated with cancer-causing
Benzine.
Williams & Boardwalk Safety
Record
A petro-chemical plant operated by
 W&B exploded in June 2013, killing two
 and injuring over 100 people.
-
OSHA cited W&B for 6 safety violations in
 connection with the explosion, including a
 “willful violation”, saying they failed to ensure the
safety of their workers.
-
Eminent Domain



Boardwalk and Williams have threatened using
eminent domain in order to get the property they
need for a crossing.
Kentucky House voted to approve
House Bill 31 which will strip NGL
pipelines of their right to use
eminent domain in the state
on March 21, 2014.
The measure now heads to the Senate.
Eminent Domain

In Louisville, Kentucky on March 25, 2014 at
Franklin Circuit Court Judge Phillip Shepherd
wrote in his opinion that private companies can
only enlist the help of eminent domain with an
explicit mandate from the state legislature.

Landowners have sued the company, saying
representatives have been forcing the use of
eminent domain on the people.
Eminent Domain

Judge Shepherd wrote that Bluegrass cannot
use the power of eminent domain as a threat
and that Bluegrass does not have the right to
take the property without consent by the
people.

Also, the pipeline was not for public use but for
the company’s private gain, because the
product was being transported through
Kentucky for distribution and export elsewhere.
Natural Gas Liquid Incidents
 1973
in Austin Texas
6 killed, 2 injured
 1975
in Devers, Texas
4 killed
 1976
in Cedardale Oklahoma
5 killed, 2 seriously burned
Natural Gas Liquid Incidents

1987 in Louisiana

2004 in Ivel Kentucky
 5 homes were destroyed
 2012
in Parachute Colorado
10,000 gallons of hydrocarbons reached soli
and groundwater
Permitting Required for Proposed
Bluegrass Pipeline




FERC Jurisdiction Appears to be limited to Approval
of Tariffs
Kentucky Public Service Commission does not
regulate siting of natural gas pipelines such as the
proposed Bluegrass Pipeline
US Army Corps of Engineers and Division of Water
have Regulatory Jurisdiction Over Impacts on
Streams, lakes and Wetlands
The U.S. Department of Transportation Pipeline and
Hazardous Materials Safety Administration (DOT
PHMSA)
Frequently Asked Questions

Will this pipeline create local jobs?

Isn’t transport by pipeline safer than rail or
truck?

What kind of tax revenue will this proposed
project create?
Pipeline Status

Supposedly the best long term solution

Has not received sufficient customer
commitments

Not continuing as of right now

Williams and Boardwalk are continuing to discuss
and converse with potential customers

Need to determine their needs, the markets
needs, and the project itself
Works Cited

http://www.kentucky.com/2014/11/06/3524975/bluegrass-pipelineopponents-brace.html

http://www.nobluegrasspipeline.com/

http://www.courierjournal.com/story/tech/science/environment/2014/04/28/bluegrasspipeline-put-hold/8430261/

http://www.nobluegrasspipeline.com/map-1.html

http://www.kftc.org/blog/bluegrass-pipeline-will-cut-acrosskentucky

http://wfpl.org/post/pipeline-natural-gas-liquids-could-crosskentucky-heres-what-you-need-know