Spring completion seen for oil pipeline

COMMENT: Someone in BC reading this headline might panic. After all, it's about Enbridge, and it's about two pipelines, one to transport oil from Alberta's tar sands, and the other to transport diluent to the tar sands. Sounds a lot like the Enbridge Northern Gateway project.

But Gateway's other end point is Kitimat BC, whereas the pipelines in this article terminate in the US midwest, at one of the largest North American petroleum near Chicago.

In recent years, forecasts have indicated dramatically increased oil production from the tar sands, and investments in tar sands mining projects have been consistent with the forecasts. Pipeline companies have introduced expansion projects on existing pipelines, and completely new pipeline proposals, which would accomodate that increased production, and move all that new oil to markets.

Fill 'Er Up! is an article I wrote a couple of years ago about these pipeline proposals.

Enbridge, TransCanada, and Kinder Morgan dominate the project list. TransCanada's Keystone and Enbridge's Clipper/Southern Access both go into the US midwest. KM's Trans Mountain expansion (TMX) ends in Burnaby, BC, where increased capacity will all result in more tankers leaving the port, to California and other Pacific delivery points.

In BC, Enbridge is generating most of its headlines with the Gateway project, an oil export pipeline going west and a diluent or condensate import pipeline going east.

In its first round, Gateway made it as far as an application to the National Energy Board, strong resistance from First Nations along the route, fierce opposition from the Haida and others who won't tolerate oil tankers on BC's north coast. Then it collapsed in 2006 when Chinese participants (investors and shippers) bailed.

But early in 2008, it reappeared, and Enbridge is now conducting open houses along the route, and is attempting to mollify First Nations once again.

It ain't workin'. The Haida have resoundingly re-rejected the project because of the tankers and marine issues. Council of the Haida Nation objects to oil pipeline plans

The Haida and other First Nations introduced a resolution at the First Nations Summit insisting that First Nations will conduct their own review process for the Gateway project. Approval Process for Enbridge Gateway Flawed: BC First Nations

Gateway is a doomed project, and Enbridge should pack up its bags and leave BC. Nobody is in the market for this oil today. With oil prices in freefall, and now in a price range that makes tar sands development uneconomic, producers are fleeing Alberta. Over $40 billion in projects were shelved in October alone. That figure may be matched by more cancellations announced in November and December. Global economic collapse is definitely not working in Enbridge's favour. Despite the rah-rah boosters in the BC government and the greedy forecasters in Enbridge's head office. Enbridge's shareholders are likely getting pretty edgy right about now, too, about money being spent on Gateway.

So this article is not about Gateway, it's about Enbridge's Clipper/Southern Access/Southern Lights. Pretty poor odds right now that we'll ever see one like it about Gateway. And the newspaper from Ottawa? That's Ottawa, Illinois.

Here's a map from Enbridge. La Salle County is just west of Chicago.
WI-IL-map.gif


Spring completion seen for oil pipeline

Charles Stanley
The Times, Ottawa, Illinois
December 3, 2008


If you want a look at the Enbridge oil pipeline being installed in La Salle County, do it now: by next April there should be little above ground evidence left.

"A big part of the project is to restore the land to its previous contours and appearance after the construction is completed," said Dave Henderson, an Enbridge spokesman. "Our goal is when it's all said and done and you drive down the road the only thing you will see different is the pipeline markers along the highway."

But in the meantime, he said, "I think people find it sort of fascinating how the pipeline moves along."

Actually, two pipelines are being put in: a 42-inch pipeline that will carry crude oil mostly from Western Canada but also from Montana and North Dakota.

There also is a 20-inch pipeline for light hydrocarbons — called diluent — from the refineries and other suppliers in the Chicago area to be shipped to Western Canada.There it will be blended with the heavy crude oil produced up there to dilute it enough to make it transportable by pipeline.

"So it will be like one big recycling loop."

The first 321 miles of that dual pipeline that runs in Wisconsin from Superior to a pumping station in Whitewater was completed last April.

The section from Whitewater to the Flanagan terminal north of Pontiac is scheduled for completion by Wednesday, April 1.

The completed 42-inch pipe will have the capacity to transport 400,000 more barrels of crude oil per day.

Enbridge bores under major highways, roads and even rivers to install the pipeline.

In the case of the Illinois River, a technique called horizontal directional drilling is employed. An arc is drilled 30 to 40 feet beneath the river bed and comes up on the other side.

Most of the pipe installation, however, takes place in farm ground.

Not everyone was willing to provide property access. In La Salle County, four eminent domain lawsuits were filed by Enbridge. Three were settled and one is listed as remaining active, according to court records.

The pipeline installation is driven by industry installation practices and the agricultural impact mitigation agreement Enbridge signed with the Illinois Department of Agriculture, said Henderson.

"That lays out all of the techniques that we are utilizing to try to insure that the farmers get their crop productivity back relatively soon after the pipeline construction is completed."

For instance, when trenches are dug, topsoil and subsoil are kept separate and then put back in the proper order. Also, any drain tiles that were cut or damaged are restored or repaired.

Before the pipe is covered over, it is tested several ways.

"We run tools through the pipes called pigs to thoroughly clean it out."

There also are pipe sections filled with water and pressure tested for leaks.Then another tool called a caliper is run through to re-inspect the inside of the pipe.

Restoration is dependent on weather conditions, which means some of that work may have to wait until spring.

The project has been a boon to local economies, said Henderson.

The first section employed 2,000 workers at its peak, while the shorter section now under way has about 1,500 workers.

"A lot of the workers are local workers hired out of the union halls."

They include operating engineers, welders, pipefitters and laborers.

"So it does create a pretty nice increase in employment and general economic stimulation. It's a pretty good influx of workers that are making purchases in restaurants, service stations and all sorts of retail establishments."

More information on the project, including maps, is available online at www.enbridge-expansion.com.

Posted by Arthur Caldicott on 04 Dec 2008