Transcript Rockies Express Pipeline Houston Pipeliners Association May 11, 2009

Rockies Express Pipeline
Houston Pipeliners Association
“Building the King of Pipelines”
May 11, 2009
Building the “King of Pipelines”
“The Rockies Express line will be the "King of
pipelines" providing a "significant market for
producers in the West," said FERC Commissioner
Suedeen Kelly.
-Intelligence Press (September 2006)
Rockies Express Pipeline (REX) System
Rockies Express Pipeline (REX) System
About Rockies Express (REX)
• 1,679-mile natural gas pipeline system
• 42” diameter high strength steel, underground
natural gas pipeline
• Originates in Rio Blanco County, CO, and
terminates in Monroe County, OH
• Will provide reliable and affordable natural gas to
Midwestern and Eastern markets
• Designed to transport up to 1.8 billion cubic feet
of natural gas per day
Rockies Express Pipeline (REX) System
About Rockies Express (REX)
• Significant investment in the U.S. energy
infrastructure; will help meet the nation’s growing
need for energy (will provide gas for 4.1 million
homes)
• Total project cost: $6.6 billion
• One of the largest natural gas pipelines built in
the past 25 years
• Developed by Rockies Express Pipeline LLC, a
joint development of Kinder Morgan Energy
Partners, L.P.; Sempra Pipelines & Storage, a
unit of Sempra Energy; and ConocoPhillips
Rockies Express Management
• Key Personnel
– Steve Kean, President, KM Gas Pipelines
– Doug Walker, President, REX
– Jordan Hunter, KM V.P., Major Expansion
Projects
– Alice Weekley, V.P. Rockies Express
Pipeline
– Crystal Heter, Project Manager, REX
– Allen Fore, KM Community Relations
– Chief Saddler, Construction Manager
– Ryan Childs, Environmental Manager
– Dirk Peterson, Environmental Compliance
Coordinator
– Dee Bennett, Senior KM Rep.
– Gayle Pritchard, Engineering Manager
– Kerry Malone, ROW Manager
REX Contractors
• Mainline Construction
• Facilities
– Associated
– Bluewater Construction
– Gregory & Cook
– Foltz
– HC Price
– Henkels & McCoy
– Latex
– Michels
– Price Gregory
– Ranger
• Services
– Michels
– Alliance Engineering
– Price Gregory
– Caprock International
– CADDATA Inc.
– Rockford
– Contract Land Staff
– Sheehan
– Mustang Engineering
– Welded
– Gulf Interstate Engineering
– Natural Resource Group
– WS Nelson Engineering
Milestone Schedule for REX West
Public Participation
Ongoing Discussion
Route Selection and FERC Certificate
Preparation
December 2005 – May 2006
FERC Final Environmental Impact Statement March 2007
Issued
FERC Certificate Received
April 2007
REX-West Construction
Commenced April 2007
Partial In-Service Date (first 500 miles of
REX-West)
December 2007
In-Service Date (all of REX – West)
May 2008
Milestone Schedule for REX East
Public Participation
Ongoing Discussion
Route Selection and FERC Certificate
Preparation, FERC Pre-filing Scoping Meetings
Filed Application for FERC Certificate
June 2006 – April 2007
Final Environmental Impact Statement Issued
April 2008
FERC Certificate Issued
May 2008
REX – East Pipeline Construction Commenced
June 2008
Targeted Partial In-Service Date (to points in MO,
IL, and IN)
May 2009
April 2007
Targeted Partial In-Service Date (to Lebanon, OH) June 15, 2009
Targeted In-Service Date (all of REX – East)
November 1, 2009
REX Infrastructure
REX Infrastructure
• Pipe
– 1,679 miles of pipe
– 8,865,120 feet of pipe
– 110,814 sections of 42” pipe
– 325 lbs per foot of steel pipe
– 26,000 lbs (13 tons) joint of 42”
steel pipe
– 1.4 million tons of steel pipe used
on REX
• Pipe Manufacturers
– Evraz Oregon Steel Mills
– Salzgitter Grossrohre
– Welspun Gujarat Stahl Rohren Ltd.
– Berg Steel Pipe Corporation
REX Infrastructure
• Construction
– 15 compressor stations
(Seven compressor
stations on REX-West,
Eight compressor stations
on REX-East)
– 22 meter stations (9 meter
stations on REX-West,13
meter stations on REXEast)
– 83 mainline valves (41
mainline valves on REXWest, 42 mainline valves
on REX-East)
REX Infrastructure
• Right-of-way
– Approximately 21,850 acres of agricultural land
temporarily affected during REX construction on REXWest and REX-East
• Approximately 10,800 acres of agricultural land temporarily
affected during REX-West construction
– 3,285 acres will be affected by operation
• Approximately 11,050 acres of agricultural land temporarily
affected during REX-East construction
– 4,230 acres will be affected by operation
– 81 acres associated with the aboveground facilities
– 89.11 acres associated with the aboveground facilities
REX Infrastructure
• Right-of-way
– 4,845 land tracts on all of REX
• 1,741 total land tracts on REX-West
• 3104 land tracts on REX-East
– 7,028 landowners on all of REX
• 2,722 landowners on REX-West
• 4,306 landowners on REX-East
REX Infrastructure
• Right-of-way
– 75 railroad crossings on all of REX
• 39 railroad crossing on REX-West
• 36 railroad crossing on REX-East
– 1,455 road crossings on all of REX
• 775 road crossings on REX-West
• 680 road crossings on REX-East
REX Infrastructure
• Compressor Stations
– 15 Stations
• 460,000 Horsepower Installed
• 12 Gas Turbine Driven
Compressors
• 8 Electric Motor Driven
Compressors
• 23 Reciprocating Gas Engine
Driven Compressors
– Engineering
• 2 Engineering Companies
utilized
• 300+ assigned workers
• 125,000 hours expended
REX Infrastructure
• Compressor Stations
– Construction
• 2 Construction
Contractors utilized
• 7 crews
• 120+ employees per
crew – peak
• 1,500,000+ man hours
expended
– Operations
• 4 full time local
employees per site
REX Infrastructure
• Environmental/Regulatory
– Major Environmental Permits,
Licenses, Authorizations, and
Clearances
• Federal (FERC, USACE, Fish
and Wildlife)
– 13 Federal permits
• State (EPA, DNR, SHIPO)
• 41 permits over 6 state project
area
• Identified 1,485 surface waterbody
crossings
REX Infrastructure
• Ecological and Cultural surveys
– Surveys completed on approximately 15,515 acres
across 640 miles of ROW (REX-East only).
– 62 cultural sites eligible for listing in the National
Registry for Historic Places (NHRP) were identified
along the project route.
– 47 of these were successfully mitigated with the
remaining 15 successfully avoided.
– Negotiated a “Not likely to adverse affect” decision by
implementing appropriate and revolutionary methods to
protect the Indiana bat and its habitat.
– Negotiated an agreement with the USFWS to avoid
“take” of migratory birds and/or their habitat.
REX Infrastructure
• Engineering
– 28 crossings installed by HDD
on REX
– HDD crossings passed
beneath19 rivers, 3
archeological sites and several
highways and railroads.
– 2 of the river crossings are
installed under wild and scenic
rivers: Big Darby Creek and
Little Miami River.
REX Infrastructure
• HDD Crossings
– Crossings ranged from
1528 feet to 3846 feet
– The total length of all
the HDD is a little over
12 miles. Average
crossing length is ½
mile.
REX Infrastructure
• Engineering
– All HDD under rivers provide
a minimum depth of cover
under the river bottom of 35
feet and a maximum depth of
cover of 300 feet.
– HDD are installed in soils
varying from soft sand to hard
limestone.
REX Infrastructure
• Engineering Staffing
– 152 engineers, designers and
support personnel used on
REX
– More than 560,000 man hours
• REX-West 80 engineers,
designers and support personnel
• REX-West Man-hours 310,000 +
• REX-East 72 engineers,
designers and support personnel.
• REX-East Man-hours 250,000 +
REX Infrastructure
• Alignment Drawings
– More than 3800 alignment sheets, construction details,
site specifics, permit drawing, etc. developed for REX
• REX-West 1800+
• REX-East 2000+
• Plats
– Approximately 6,000 plats prepared for property of
easement acquisition on all of REX
– REX-West approximately 2,000 plats prepared
– REX-East approximately 4,000 plats prepared
REX Impact
• Economic Impact
– Total number of jobs at peak of
construction: Nearly 10,000
employees on all of REX
(approx 5,000 on REX-West,
5,000 on REX-East)
• Inspection employees: 396
• Construction/welding employees:
approx 4,000
• Survey employees: 114
• Technicians/Operators/Laborers/M
anagers/Misc.: 548
• Engineers: approx 450 (includes
mainline and facilities)
REX Impact
• Man hours
– Total number of man-hours: More than 20 million
man-hours on REX (to date)
• Total man-hours on REX-West: 7,865,601
• Total man-hours to date on REX-East to date (as of March 1,
2009): 10,592,835
REX Impact
• States impacted: 8 states
– 5 states on REX-West (Wyoming, Colorado, Nebraska,
Kansas, Missouri)
– 4 states on REX-East (Missouri, Illinois, Indiana, Ohio)
• Counties impacted: 63 counties
– 28 counties on REX-West
– 35 counties on REX-East
REX Impact
• REX has received numerous proclamations and
letters of support from officials across the REX
pipeline route, including:
–
Congressman Tim Johnson (IL)
–
City of Louisiana (MO)
–
Congressman Blaine Luetkemeyer (MO)
–
City of Pittsfield (IL)
–
Sen. Jimmy Stewart (OH)
–
Douglas County (IL)
–
Rep. William Coley (OH)
–
Senator Bill Brady (IL)
–
Rep. Sean Eberhart (IN)
–
Rep. Roger Eddy (IL)
–
City of Taylorville (IL)
–
Taylorville School District (IL)
–
City of Tuscola (IL)
–
Rep. Jill Tracy (IL)
–
Rep. Gary Hannig (IL)
–
Rep. Rich Brauer (IL)
–
Macon County Highway Department (IL)
–
–
Senator DeMuzio (IL)
Jacksonville Chamber of
Commerce (IL)
–
Rep. Steve Hobbs (MO)
–
–
South Fork Township (IL)
Greater Decatur Chamber of
Commerce (IL)
–
Christian County Farmers Supply Company (IL)
REX Impact
• Since the beginning of the REX project we have contacted
at least 1,350 elected officials and more than 450 officials
from nongovernmental organizations.
• We have arranged nearly 250 public meetings with county
commissioners, farm bureaus, state legislative and
regulatory committees, city councils, township boards,
chambers of commerce, and service clubs to update them
on the project and solicit feedback that officials have
received from their constituents.
• REX stories in more than 100 media outlets including print,
TV, radio, and trade.
• Media hits with a combined circulation of more than 2
million in addition to several television and online
placements that do not provide circulation numbers.
Community Relations
Donations
REX donated materials to local
high schools and municipalities.
Seen above: REX donated $10,000
worth of lumber and materials to the
Franklin Local School District in
Muskingum County
School Tours
REX organized ROW
construction tours for area high
schools and welding students
across the route
Public Support
From The Miami Student:
“Congressman Steve Driehaus (D-Ohio) said the project will likely lower
energy prices for consumers…”
"The more areas of supply that you can draw from in bringing natural
gas into a region, the better that is for consumers," Driehaus said. "The
price of electricity and the price of natural gas coming into the household
is likely to go down.“
-Rep. Steve Driehaus (OH)
From The Middletown Journal:
“(Boehner) stressed the importance of the REX project, which is
expected to be the largest natural gas pipeline in the U.S. to deliver
natural gas from vast reserves under the Rocky Mountains.”
“Moving energy from where it is in the ground to the people who need it.
And this pipeline will be a critical source of moving natural gas from the
Rocky Mountains to the east.”
-Rep. John Boehner (OH)
Economic Benefits
Job Creation
• Thousands of union construction workers used during the pipeline
construction phase of the REX-East project.
• REX has worked with unions across the pipeline route:
– Laborer's International Union of North America
– International Brotherhood of Teamsters
– International Union of Operating Engineers
– United Association of Plumbers and Pipefitters
• REX employed nearly 10,000 construction workers during the height of the
construction phase of the pipeline and compressor stations on REX-East and
REX-West
Tax Revenue
• Counties along the REX-East pipeline route benefit from the state and local
taxes REX will pay that are attributable to the physical assets of the project
• States will receive revenue from sales and use taxes paid during REX
construction
Economic Benefits
Boost for Local Economy
• REX provided an economic boost for local businesses and vendors by
patronizing restaurants, hotels/motels, purchasing local goods, utilizing
local contractors, etc.
• At each of the construction headquarters located across the pipeline
route, REX pumps millions of dollars into local businesses for supplies
and purchases from local businesses for equipment and necessary
materials. REX will also drive increased revenue to local restaurants,
hotels/motels, and retailers from patronage by construction crews.
Access to Growing Supply Basin
• Increases supply reliability and diversity
Lower Prices
• REX is expected to provide cheaper fuel to customers along the
pipeline route, and could bring lower natural gas prices and heating
bills for homeowners.
Media Clips
REX-East Construction Activities
REX-East Construction (IL)
REX-East Construction Activities
Pipe Stringing in Illinois
Welding in Illinois
REX-East Construction Activities
REX-East Construction (IL)
• REX-East Pipeline stretches across cornfields in Illinois. Once construction
activities have been completed, all land on REX-East will be restored, as closely as
possible, to pre-construction conditions.
REX-East Construction Activities
REX-East Construction Photos
REX-East Construction Photos
REX-East Construction Photos
REX-East Restoration Photos
Restored land on Spread B- Illinois
REX-East Restoration Photos
Restored land on Spread B-Illinois
REX-East Restoration Photos
Restored land on Spread C-Illinois
REX-East Restoration Photos
Restored land on Spread A-2-Illinois
Land Use After Pipeline Construction
(Pictured above: A natural gas transmission pipeline crossing a real estate development)
(Pictured above: A natural gas transmission pipeline crossing Indiana farmland.)
Clean Up/Restoration
REX-West Restoration in
Kansas
REX –West Restoration in
Wyoming
REX-West Restoration in
Nebraska
REX-West Restoration in
Nebraska
REX-West Restoration in
Wyoming
REX-West Restoration in
Nebraska
Conclusion
Rockies Express Pipeline (REX)
• Significant investment in the U.S. energy
infrastructure; will help meet the nation’s
growing need for energy
• One of the largest natural gas pipelines
built in the past 25 years
• Domestic energy project for domestic use