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Bluegrass Pipeline

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)

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Bluegrass Pipeline

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  1. Bluegrass Pipeline ALEXANDRA PASKAS, JOHN MURRAY, MATT KACHURAK, & ANDREW SABA

  2. 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)

  3. Natural Gas Liquids • Produced during natural gas processing and petroleum refining • Examples: ethane, propane, normal butane, isobutene, and pentanes plus • Texas – large supplier

  4. 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

  5. “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

  6. 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

  7. 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

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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.

  13. 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

  14. 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

  15. 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)

  16. 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?

  17. 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

  18. Works Cited • http://www.kentucky.com/2014/11/06/3524975/bluegrass-pipeline-opponents-brace.html • http://www.nobluegrasspipeline.com/ • http://www.courier-journal.com/story/tech/science/environment/2014/04/28/bluegrass-pipeline-put-hold/8430261/ • http://www.nobluegrasspipeline.com/map-1.html • http://www.kftc.org/blog/bluegrass-pipeline-will-cut-across-kentucky • http://wfpl.org/post/pipeline-natural-gas-liquids-could-cross-kentucky-heres-what-you-need-know

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