Proposed pipeline could be located in county
Staff reporter
It won't occur for a few more years but plans were proposed Thursday for a major crude oil pipeline to run through part of Marion County.
Jim Prescott, of Prescott Communications Inc., represented TransCanada for a project called The TransCanada Keystone Pipeline Project.
The proposed main pipeline will begin in Hardisty, Alberta, Canada, and enter the U.S. in North Dakota. The line then will run through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Illinois, ending at Wood River and Patoka, Ill.
Two extensions are being proposed — from Hardisty to Fort Saskatchewan, Alberta, and south through Kansas, and Marion County, to Cushing, Okla.
"The project was announced before last year's hurricanes," said Prescott. The disasters demonstrated the supply issues, he added.
The $2.5 billion project will transport approximately 435,000 barrels of crude oil per day through 1,830 miles of pipelines from an oil-supply hub near Hardisty to Wood River and Patoka, Ill.
Prescott said TransCanada had a "very successful" negotiations or "open season," as it's referred to by the oil industry, where commitments were made by companies to participate in the project.
The project is in its early stage with some survey work just beginning in the northern states.
Previous indications were the pipeline could be located near U.S.-77. Exact locations were not announced at the meeting.
Easements will be sought from property owners — a 50-foot permanent easement and a 110-foot construction easement. Landowners will be compensated for property damages.
Surveyors will only enter properties after they have received permission, said Prescott.
The majority of the land in Marion County affected by the project will be farm land, said Prescott. Farming practices will be taken into account in planning construction through the Midwest.
When soil is removed for the burying of the pipeline, the soil must be returned in the same order as removed. Excess soil can be dispersed per the landowner's request. If additional soil is needed, local vendors probably will be used, Prescott said.
Open house meetings are planned in the coming months and will be held in the area. Landowners within the proposed pipeline area will receive letters about the project and an invitation to the open house.
Detailed maps will be available the open house.
"The open house meetings are important," said Prescott. "Significant route changes have been made as a result of the meetings."
The 30-inch diameter pipe will be laid four feet deep. Pump stations will be located every 50 miles to push the thick crude oil through the pipes.
Land for pump stations will be acquired, said Prescott, and house three to six electric engines.
Three engines are used at a time with three in reserve. When asked the number of employees the pump station will require, Prescott said he wasn't sure because much of the monitoring will be done electronically in Manitoba, Canada.
One pump station will be located in Marion County.
The pipeline route will be constantly monitored for security reasons and for leaks. Aircraft will fly the route on a regular basis. Regular inspections also will be made to assure the integrity of the pipe is maintained.
The oil originates in oil sands in Hardisty.
"It will take one barrel of oil 30 to 35 days to be pushed through the pipes from Hardisty to Wood River," said Prescott.
Counties with the pipeline will see an "enormous amount of economic activity" as a result of the project, said Prescott.
Although he didn't have an exact amount of tax revenue for Marion County, he said the other Kansas counties — Marshall, Nemaha, Brown, and Doniphan — will receive more than $100,000 annually.
In addition to tax revenue, contracts for construction of the pipeline will be bid within a 250-mile radius of the project.
Each section of the project will take approximately 10 to 12 weeks to complete.
The project includes the conversion of approximately 530 miles of existing TransCanada pipeline facilities from natural gas to crude oil transmission.
Timeline
So far in 2006, TransCanada has received commercial commitments. Other plans in 2006 include preparation and submission of regulatory applications, and beginning environment assessments and field studies.
Marion County landowners will be contacted in the coming months. Easement negotiations on the main line will begin this fall.
In 2007, engineer design and material procurement will continue. The company anticipates receiving approvals and licenses for the construction and operation of the project.
Construction will begin in 2008, with completion in 2009. The system will be in service and operating in 2009.
About Canada and TransCanada
Canada has the second largest deposits of oil in the world and produces 175 billion barrels per year. Saudi Arabia produces the most at 260 billion barrels per year.
The oil sands in Canada has an enormous reservoir of oil reserves, said Prescott.
The sands are not drilled but instead are stripmined.
TransCanada has approximately 25,600 miles of pipelines that transports the majority of western Canada's natural gas production to key Canadian and U.S. markets. TransCanada owns or has interest in approximately 6,700 megawatts of power generation in Canada and the U.S.
The company has more than 50 years of experience in building and operating one of the largest underground pipeline systems in North America.
Pipelines are constructed with high quality steel and specialized welding techniques are developed specifically for high-pressure pipelines.
During construction, non-destructive examination equipment is used to inspect all welds, and then a coating is applied to the weld to help protect it from corrosion. All new pipeline sections are pressure tested with water up to at least 125 percent of the pipeline's maximum allowable operating pressure prior to being placed into operation.
