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Building the “King of Pipelines”

Rockies Express Pipeline Houston Pipeliners Association “Building the King of Pipelines” May 11, 2009. Building the “King of Pipelines”.

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Building the “King of Pipelines”

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  1. Rockies Express Pipeline Houston Pipeliners Association“Building the King of Pipelines”May 11, 2009

  2. 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)

  3. Rockies Express Pipeline (REX) System

  4. 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

  5. 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

  6. 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

  7. REX Contractors • Mainline Construction • Associated • Gregory & Cook • HC Price • Henkels & McCoy • Latex • Michels • Price Gregory • Rockford • Sheehan • Welded • Facilities • Bluewater Construction • Foltz • Michels • Price Gregory • Ranger • Services • Alliance Engineering • CADDATA Inc. • Caprock International • Contract Land Staff • Gulf Interstate Engineering • Mustang Engineering • Natural Resource Group • WS Nelson Engineering

  8. Milestone Schedule for REX West

  9. Milestone Schedule for REX East

  10. REX Infrastructure

  11. 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

  12. 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 REX-East) • 83 mainline valves (41 mainline valves on REX-West, 42 mainline valves on REX-East)

  13. REX Infrastructure • Right-of-way • Approximately 21,850 acres of agricultural land temporarily affected during REX construction on REX-West 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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.

  20. 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.

  21. 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.

  22. 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.

  23. 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 +

  24. 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

  25. 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/Managers/Misc.: 548 Engineers: approx 450 (includes mainline and facilities) REX Impact

  26. 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

  27. 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

  28. REX Impact • REX has received numerous proclamations and letters of support from officials across the REX pipeline route, including: • Congressman Tim Johnson (IL) • Congressman Blaine Luetkemeyer (MO) • Sen. Jimmy Stewart (OH) • Rep. William Coley (OH) • Rep. Sean Eberhart (IN) • City of Taylorville (IL) • City of Tuscola (IL) • Rep. Gary Hannig (IL) • Macon County Highway Department (IL) • Senator DeMuzio (IL) • Rep. Steve Hobbs (MO) • South Fork Township (IL) • Christian County Farmers Supply Company (IL) • City of Louisiana (MO) • City of Pittsfield (IL) • Douglas County (IL) • Senator Bill Brady (IL) • Rep. Roger Eddy (IL) • Taylorville School District (IL) • Rep. Jill Tracy (IL) • Rep. Rich Brauer (IL) • Jacksonville Chamber of Commerce (IL) • Greater Decatur Chamber of Commerce (IL)

  29. 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. REX Impact

  30. 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

  31. 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)

  32. 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

  33. 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. Economic Benefits

  34. Media Clips

  35. REX-East Construction Activities REX-East Construction (IL)

  36. REX-East Construction Activities Pipe Stringing in Illinois Welding in Illinois

  37. 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.

  38. REX-East Construction Activities

  39. REX-East Construction Photos

  40. REX-East Construction Photos

  41. REX-East Construction Photos

  42. REX-East Restoration Photos Restored land on Spread B- Illinois

  43. REX-East Restoration Photos Restored land on Spread B-Illinois

  44. REX-East Restoration Photos Restored land on Spread C-Illinois

  45. REX-East Restoration Photos Restored land on Spread A-2-Illinois

  46. 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.)

  47. Clean Up/Restoration REX-West Restoration in Kansas REX –West Restoration in Wyoming REX-West Restoration in Wyoming REX-West Restoration in Nebraska REX-West Restoration in Nebraska REX-West Restoration in Nebraska

  48. 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

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