HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE:KMI) today announced it received notification
that the Georgia Department of Transportation (Georgia DOT) declined its
application for a Certificate of Public Convenience and Necessity
associated with the proposed Palmetto Pipeline.
“We are disappointed with the outcome of our proceedings with the
Georgia DOT. We believe that we have more than adequately demonstrated
that this project is in the best interests of Georgia’s consumers, as it
will result in lower costs and provide safer transportation of refined
petroleum products to many areas in the Southeast, including
specifically many communities in Georgia,” said Kinder Morgan Products
Pipelines President Ron McClain. “The fact the proposed pipeline is
fully supported by long-term commitments from multiple customers seeking
safer and more efficient supply options, and that it was so vehemently
opposed by certain existing refined petroleum suppliers with vested
economic interests in maintaining the status quo of artificially higher
prices, is itself compelling evidence that the pipeline will serve needs
that are not being met by current supply options. We continue to believe
in the viability of the project and its economic benefits to the
Southeast region and Georgia in particular, and we plan to pursue all
available options to move forward with the project,” said McClain.
McClain also noted, “We appreciate the feedback we have heard to date on
the project, as we heard numerous comments and questions. We will
continue efforts to foster an open dialogue with communities and
landowners along the proposed pipeline rights-of-way and share
information about the project to address concerns. We understand and are
sensitive to the issues surrounding the potential use of eminent domain,
which is rarely used (about 1 percent of land acquisitions on such
projects) and which in all cases results in an award to impacted
landowners based upon fair market value for access to their property. We
also note that approximately 88 percent of the proposed route is
co-located next to existing infrastructure – power lines, pipelines,
roadways and railways – and that over 80 percent of the landowners
potentially impacted by the Palmetto pipeline have already agreed to
have their property surveyed. We are also sensitive to environmental
concerns which have been raised, and note that a number of federal and
state agencies will be involved in the approval and oversight of the
project to ensure protection of the environment, including the U.S. Army
Corps of Engineers and the Georgia Department of Natural Resources. We
will continue to work to reach mutually beneficial agreements with
landowners, and to cooperate with applicable agencies and other
stakeholders in order to minimize or eliminate potential environmental
impacts.”
The proposed Palmetto Pipeline will enable refined petroleum products to
be transported from Baton Rouge, Louisiana, Collins and Pascagoula,
Mississippi, and Belton, South Carolina, to North Augusta, South
Carolina, Savannah, Georgia, and Jacksonville, Florida. The system will
have a design capacity of up to 167,000 barrels per day and will consist
of a segment of expansion capacity that Palmetto will lease from
Plantation Pipe Line Company between Baton Rouge, Louisiana, and Belton,
South Carolina. A new 360-mile pipeline from Belton, South Carolina, to
Jacksonville, Florida, will also be constructed as part of the system.
Kinder Morgan companies have an 80-year history of doing business in
Georgia, safely operating more than 3,000 miles of pipelines across 85
Georgia counties, and employing 300 people within the state. When
approved, this approximately $1 billion project will generate
approximately 1,200 temporary construction jobs, 28 permanent full-time
positions, and result in projected revenue to state and local taxing
bodies of over $12 million annually.
Pipelines are the safest and most environmentally sound way to transport
refined products, and Kinder Morgan’s safety and environmental
performance is significantly better than the pipeline industry average.
According to recent statistics, 99.999 percent of crude oil and
petroleum product barrels delivered by pipeline reach their destination
safely. While we do not consider any
release to be acceptable, Kinder Morgan’s spill rate is one-third of the
industry’s average (6.846 barrels per billion barrel miles over the last
three years versus the industry’s average of 23.578 barrels per billion
barrel miles). Overall, our operational performance was better than our
industry peers in 35 out of 36 environmental, health and safety
comparisons in 2014.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and 165 terminals. The company’s
pipelines transport natural gas, gasoline, crude oil, CO2 and
other products, and its terminals store petroleum products and
chemicals, and handle bulk materials like coal and petroleum coke.
Kinder Morgan is the largest midstream and third largest energy company
in North America with an enterprise value of approximately $130 billion.
For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan
believes that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, Kinder Morgan undertakes no obligation to update or
review any forward-looking statement because of new information, future
events or other factors. Because of these uncertainties, readers
should not place undue reliance on these forward-looking statements.
