BILLINGS, Mont. - TransCanada executives said on March 3 they will consider letting Montana and North Dakota crude oil access a proposed pipeline to the Gulf of Mexico after hearing demands for access from U.S. oil producers.
Calgary-based TransCanada Corp. plans to start construction this year on the $12 billion, 1,980-mile Keystone XL pipeline to transport crude extracted from Canada's oil sands to refineries in the U.S.
The company initially rebuffed calls to build an onramp for crude from the Bakken oil fields of Montana, North Dakota and Saskatchewan, saying there was insufficient demand. But under political pressure to reconsider, TransCanada Vice President Robert Jones said Keystone XL was "open for business" with conventional crude producers in the United States.
Jones made that pledge after meeting with several dozen oil company representatives assembled in Billings by Montana Gov. Brian Schweitzer and North Dakota Gov. John Hoeven.
TransCanada said it will continue to meet with producers to work out the particulars of a potential entry point to the pipeline, Jones said.
Initial cost estimates range from $80 million to $200 million for a project that would ship crude out of Montana and North Dakota in 100,000-barrel batches.
Monday, March 8, 2010
Friday, March 5, 2010
Enbridge says new oil pipelines may run below capacity until 2017
NEW YORK - Enbridge Energy Partners LP, the Houston-based pipeline partnership controlled by Canada’s largest pipeline company, said it may take seven years to fill new crude oil pipelines from Canada to the U.S. because of excess capacity.
“It may be 2017 before we see all the pipes that are being planned to be full,” said Stephen Letwin, managing director of Enbridge Energy Co., the general partner of Enbridge Energy Partners, during an interview at Bloomberg headquarters in New York. “The fact that these pipes are not filling until 2017 is not critical because we know we are going to get our value back.”
Although the new Enbridge Alberta Clipper will operate as a common carrier line, Enbridge has throughput guarantees from several large producers in Canada’s oil sands. Because of the throughput agreements, Enbridge will collect about $180 million a year from its shippers regardless of the volume shipped. If the pipeline runs at reduced rates, shippers will pay a higher price per barrel - a fact that is leading the oilsands shippers who have signed throughput agreements to seek relief from the U.S. Federal Energy Regulatory Commission.
It will take about 6.4 million barrels of linefill to fill the Clipper and that will “likely be later in the year or even next year,” Mark Maki, the company’s chief financial officer, said.
“It may be 2017 before we see all the pipes that are being planned to be full,” said Stephen Letwin, managing director of Enbridge Energy Co., the general partner of Enbridge Energy Partners, during an interview at Bloomberg headquarters in New York. “The fact that these pipes are not filling until 2017 is not critical because we know we are going to get our value back.”
Although the new Enbridge Alberta Clipper will operate as a common carrier line, Enbridge has throughput guarantees from several large producers in Canada’s oil sands. Because of the throughput agreements, Enbridge will collect about $180 million a year from its shippers regardless of the volume shipped. If the pipeline runs at reduced rates, shippers will pay a higher price per barrel - a fact that is leading the oilsands shippers who have signed throughput agreements to seek relief from the U.S. Federal Energy Regulatory Commission.
It will take about 6.4 million barrels of linefill to fill the Clipper and that will “likely be later in the year or even next year,” Mark Maki, the company’s chief financial officer, said.
Thursday, March 4, 2010
Tank fire at Holly Corp. Navajo refinery kills two workers
ARTESIA, N.M. - A fire late on March 2 at an asphalt tank under construction at Holly Corp.’s Navajo oil refinery here killed two workers, a local police spokesman said.
Two contractors working at the tank died and two were transported to a hospital in Lubbock, Texas for treatment, said Sergeant Lindell Smith of the Artesia, N.M., police department, where the Navajo plant is located.
Holly, the owner of refineries and pipelines in the U.S. Southwest, in a statement on PRNewswire earlier, had said the fire at the asphalt storage tank under construction “likely” killed a worker. The blaze occurred at about 12:40 p.m. local time and was extinguished in about 90 minutes by the refinery’s fire-fighting units.
There was no impact to the operations of the 100,000 b/d plant.
The workers were employed by an independent contractor building the new tank, the statement said.
Two contractors working at the tank died and two were transported to a hospital in Lubbock, Texas for treatment, said Sergeant Lindell Smith of the Artesia, N.M., police department, where the Navajo plant is located.
Holly, the owner of refineries and pipelines in the U.S. Southwest, in a statement on PRNewswire earlier, had said the fire at the asphalt storage tank under construction “likely” killed a worker. The blaze occurred at about 12:40 p.m. local time and was extinguished in about 90 minutes by the refinery’s fire-fighting units.
There was no impact to the operations of the 100,000 b/d plant.
The workers were employed by an independent contractor building the new tank, the statement said.
Wednesday, March 3, 2010
EPA orders Caribbean Petroleum to resume cleanup in Puerto Rico
SAN JUAN, Puerto Rico - The U.S. Environmental Protection Agency (EPA) said on Feb. 25 that it has ordered Caribbean Petroleum Refinery L.P. (CAPECO) to resume cleanup work in the aftermath of the October 2009 explosion and fire at it's facility in Bayamon, Puerto Rico.
A week earlier, contractors hired by CAPECO to perform cleanup actions walked off the job. That is the second time a contractor has quit work at the site, and EPA is ordering the company to address the situation. EPA will continue to provide oversight of the work being conducted by CAPECO's contractor at the property.
“The explosion, two-day long fire and subsequent oil spill at CAPECO's petroleum tank farm created a dangerous situation that impacted the adjacent wetlands and water bodies; the environmental impacts continue to pose a threat to human health and the environment,” EPA said.
"This facility is right in the middle of a densely populated community and it is very important that this cleanup continue," said Judith Enck, EPA Regional Administrator. "This work, performed under EPA's watchful eye, is critical to protecting the health and safety of nearby residents and to restoring the surrounding habitat."
Under an order issued by EPA, CAPECO must restart its work to repair damages at the facility, clean up oil, remove residual oil from damaged storage tanks, and clean up the fuel transfer pipeline. In addition, plans must be developed and implemented to monitor the air, conduct other sampling and analysis, and ensure the site is safe and workers and community members are protected.
A week earlier, contractors hired by CAPECO to perform cleanup actions walked off the job. That is the second time a contractor has quit work at the site, and EPA is ordering the company to address the situation. EPA will continue to provide oversight of the work being conducted by CAPECO's contractor at the property.
“The explosion, two-day long fire and subsequent oil spill at CAPECO's petroleum tank farm created a dangerous situation that impacted the adjacent wetlands and water bodies; the environmental impacts continue to pose a threat to human health and the environment,” EPA said.
"This facility is right in the middle of a densely populated community and it is very important that this cleanup continue," said Judith Enck, EPA Regional Administrator. "This work, performed under EPA's watchful eye, is critical to protecting the health and safety of nearby residents and to restoring the surrounding habitat."
Under an order issued by EPA, CAPECO must restart its work to repair damages at the facility, clean up oil, remove residual oil from damaged storage tanks, and clean up the fuel transfer pipeline. In addition, plans must be developed and implemented to monitor the air, conduct other sampling and analysis, and ensure the site is safe and workers and community members are protected.
U.S. Supreme Court says counties may tax gas in pipelines
WASHINGTON - The U.S. Supreme Court has rejected an appeal from Missouri Gas Energy over a court ruling that could allow counties in Oklahoma to collect taxes on natural gas that is shipped by pipelines that run through the counties.
The justices did not comment on March 1 on their order in an appeal filed by Missouri Gas. In 2008, the Oklahoma Supreme Court ruled that the natural gas is subject to taxation.
The ruling could mean millions for several counties in the state and could affect similar disputes in Kansas and Texas.
The justices did not comment on March 1 on their order in an appeal filed by Missouri Gas. In 2008, the Oklahoma Supreme Court ruled that the natural gas is subject to taxation.
The ruling could mean millions for several counties in the state and could affect similar disputes in Kansas and Texas.
Tuesday, March 2, 2010
U.S. Chemical Safety Board investigators rip gas purge practices
MIDDLETOWN, Conn. - Just prior to a Feb. 7 explosion that killed six workers and injured 27 at a Kleen Energy power plant in Middletown, a huge amount of natural gas was vented into a congested outdoor area between buildings.
About 400,000 cubic feet of gas - enough to fill a pro-basketball arena floor to ceiling with an explosive mixture - was vented amid vigorous construction activity at the new power plant, federal investigators reported at a news conference on Feb. 25. Several “potential ignition sources,” including welding, were present in the surrounding area, they said.
On the morning of the fatal accident, multiple pipe-cleaning efforts called “gas blows” sent natural gas surging through piping at 650 pounds per square inch and then outside through open pipe ends less than 20 feet off the ground. The investigators said the congested area “likely slowed dispersion of the gas,” which collected and was ignited by an undetermined ignition source.
The key problem was not ignition sources, which are widespread at construction sites, but the common practice of venting large amounts of gas from pipe cleaning into buildings or even outside. Insufficient attention was paid to this activity, which the investigators called “inherently unsafe.”
The safety issues raised by this accident are not limited to Connecticut (or) any particular company, facility, or individual,” Don Holmstrom, lead investigator for the U.S. Chemical Safety Board (CSB) told reporters. Thousands of workers are involved in building natural gas power plants nationwide. There are 84 gas-fired turbines in 35 different plants that are either being tested or are still under construction, according to the Edison Electric Institute. A study by the Interstate Gas Association of America Foundation (INGAA) estimates that as many as 62,000 miles of new pipelines could be built in the next 20 years.
About 400,000 cubic feet of gas - enough to fill a pro-basketball arena floor to ceiling with an explosive mixture - was vented amid vigorous construction activity at the new power plant, federal investigators reported at a news conference on Feb. 25. Several “potential ignition sources,” including welding, were present in the surrounding area, they said.
On the morning of the fatal accident, multiple pipe-cleaning efforts called “gas blows” sent natural gas surging through piping at 650 pounds per square inch and then outside through open pipe ends less than 20 feet off the ground. The investigators said the congested area “likely slowed dispersion of the gas,” which collected and was ignited by an undetermined ignition source.
The key problem was not ignition sources, which are widespread at construction sites, but the common practice of venting large amounts of gas from pipe cleaning into buildings or even outside. Insufficient attention was paid to this activity, which the investigators called “inherently unsafe.”
The safety issues raised by this accident are not limited to Connecticut (or) any particular company, facility, or individual,” Don Holmstrom, lead investigator for the U.S. Chemical Safety Board (CSB) told reporters. Thousands of workers are involved in building natural gas power plants nationwide. There are 84 gas-fired turbines in 35 different plants that are either being tested or are still under construction, according to the Edison Electric Institute. A study by the Interstate Gas Association of America Foundation (INGAA) estimates that as many as 62,000 miles of new pipelines could be built in the next 20 years.
Monday, March 1, 2010
Seized gas sensor may determine criminal charges in Connecticut blast
MIDDLETOWN, Conn. - Criminal investigators probing the deadly Kleen Energy blast obtained a search warrant on Feb. 24 to remove a memory chip from a hand-held gas detector or “sniffer” to see if it has data on natural-gas levels at the power plant before the explosion.
To get the search warrant, police detectives had to convince a judge that there was sufficient evidence to believe that a crime occurred. The warrant application is the clearest indication so far that police are pursuing a criminal case. Prosecutors would ultimately decide whether to proceed with any charges. The Feb 7 explosion at the Middletown plant killed six and injured 26 workers.
Police and fire officials had been probing the blast site under an administrative warrant - a tool that fire marshals use to preserve a blast or fire scene, gain access to the site and seize evidence that is in plain view.
Police had already seized a security camera and the hand-held gas detector. Two of the workers who were killed, Chris Walters and Kenneth Haskell, were using hand-held devices to track gas levels right before the explosion.
The search warrant was needed to remove and examine the microchip and any video in the camera, said sources familiar with investigation.
Investigators have to identify what items they expect to seize and have two weeks to execute the search warrant and return it to the court, listing the items they seized.
The warrant will also enable police to seize about 75 other items of evidence from the site, sources said.
A former prosecutor and criminal defense lawyers said that blast investigators are likely to focus on two potential charges if they reach the conclusion that the deaths resulted from criminal conduct.
Prosecutors could pursue a manslaughter charge if they determine that negligence on the part of one or more individuals or a subcontracting company was responsible for the deaths.
Under state law, people or companies can be convicted of first-degree manslaughter - a felony - when they act in a fashion that shows "extreme indifference to human life" and engage in reckless conduct that causes a death.
Misdemeanor charges of criminally negligent homicide could be filed under less egregious circumstances if there is reason to believe that someone caused a death through criminal negligence, the lawyers said.
To get the search warrant, police detectives had to convince a judge that there was sufficient evidence to believe that a crime occurred. The warrant application is the clearest indication so far that police are pursuing a criminal case. Prosecutors would ultimately decide whether to proceed with any charges. The Feb 7 explosion at the Middletown plant killed six and injured 26 workers.
Police and fire officials had been probing the blast site under an administrative warrant - a tool that fire marshals use to preserve a blast or fire scene, gain access to the site and seize evidence that is in plain view.
Police had already seized a security camera and the hand-held gas detector. Two of the workers who were killed, Chris Walters and Kenneth Haskell, were using hand-held devices to track gas levels right before the explosion.
The search warrant was needed to remove and examine the microchip and any video in the camera, said sources familiar with investigation.
Investigators have to identify what items they expect to seize and have two weeks to execute the search warrant and return it to the court, listing the items they seized.
The warrant will also enable police to seize about 75 other items of evidence from the site, sources said.
A former prosecutor and criminal defense lawyers said that blast investigators are likely to focus on two potential charges if they reach the conclusion that the deaths resulted from criminal conduct.
Prosecutors could pursue a manslaughter charge if they determine that negligence on the part of one or more individuals or a subcontracting company was responsible for the deaths.
Under state law, people or companies can be convicted of first-degree manslaughter - a felony - when they act in a fashion that shows "extreme indifference to human life" and engage in reckless conduct that causes a death.
Misdemeanor charges of criminally negligent homicide could be filed under less egregious circumstances if there is reason to believe that someone caused a death through criminal negligence, the lawyers said.
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