Longhorn Pipeline

Fifth Circuit Rules for Longhorn Pipeline

Fri, 12 Dec 2003 19:00:00 GMT

Ruling Clears the Way for Pipeline Operations

(DALLAS) – Longhorn Partners Pipeline said today that the Fifth Circuit Court of Appeals has ruled in its favor.

Judge E. Grady Jolly, writing for the 5th Circuit, said that the U.S. Environmental Protection Agency and the U.S. Department of Transportation’s Office of Pipeline Safety (“the Lead Agencies”) said “we should first note how exceedingly thorough and comprehensive” Longhorn’s Environmental Assessment (“EA”) was, commenting that this EA “is anything but rough cut or low-budget. One and a half years in the making, it consists of four lengthy volumes numbering over 2,400 pages.”

“Indeed,” the 5th Circuit continues, “in many ways this EA is more akin to a full-blown EIS; it is unclear exactly what more the Lead Agencies could have done to evaluate the significance of this pipeline’s impact.”

The opinion also commented “The assessment they (the Lead Agencies) prepared was noteworthy for its exhaustive and extensive nature.”

In issuing the opinion, the 5th Circuit confirmed the lower court opinion issued by Judge Sam Sparks of the Western District of Texas during July 2002, commenting that the lower court “found that the Lead Agencies had taken the requisite ‘hard look’ at the environmental impact of the Longhorn Pipeline and had reasonably determined that the impact would not be significant.”

The Longhorn Pipeline will be instrumental in supplying gasoline from Gulf Coast refineries to much of the Southwestern United States. Longhorn itself will transport gasoline from the Gulf Coast refining complex to the El Paso gateway market. From there, other pipelines will carry much of the gasoline to consumers in New Mexico and Arizona. Fuel planners in California have even commented that while the gasoline carried by Longhorn will not reach California, it will likely have a favorable impact on California gasoline supplies by reducing the amounts that state must export to Arizona.

Longhorn President Carter Montgomery said “this welcome news.” Longhorn is now completing its refinancing, then will complete the small amount of construction that remains, and move to line-fill and operation. Operation is most likely to begin sometime in the Spring of 2004.

Longhorn Partners Pipeline is a limited partnership based in Dallas. Its partners include Chisholm Holdings, a Dallas investment group, and affiliates of the Beacon Energy Fund, BP Pipelines, ExxonMobil Pipeline Company and The Williams Companies. The Longhorn pipeline will transport gasoline, diesel and jet fuel from Gulf Coast refineries to its million-barrel terminal in El Paso. From there, these fuels will be distributed to benefit consumers and the environment in West Texas and, via connections with other pipelines, other areas of the Southwest, including Arizona and New Mexico.

12-Dec-03 1:00 PM

Federal Study Gives Longhorn Pipeline a Green Light

Mon, 06 Nov 2000 23:00:00 GMT

Federal Official Calls Safety Plan "Unprecedented"

(Dallas, Texas) - Longhorn Partners Pipeline said today it has received notice that the federal Environmental Assessment (EA) of its proposed products pipeline has concluded with a Finding of No Significant Impact (FONSI). Today's announcement by the agencies conducting the study formally confirms the completion of the study that has been widely reported since last Friday. The FONSI brings the pipeline one step closer to operation.

Earlier today, the federal agencies jointly directing the EA - the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) - said they had completed the study, concluding a process that began more than a year and a half ago. It was originally scheduled for a period of 120 days (approximately four months).

The EA was set in motion by an agreement signed by Longhorn, the City of Austin, the Lower Colorado River Authority, the Barton Springs/Edwards Aquifer Conservation District, and several federal agencies. The study was conducted under terms established in that agreement and approved by a federal district court.

In announcing the FONSI, the government agencies said today in a joint press release, "Over the past 18 months, engineers, scientists and pipeline experts have conducted a mile-by-mile review of the proposed pipeline project to evaluate its safety and potential impacts on the environment."

The press release continued, "Over 6000 public comments were reviewed by EPA/DOT during its assessment and resulted in many important changes to the draft environmental assessment and improvements to Longhorn's [safety] plan."

Carter Montgomery, Longhorn's president, said "The federal agencies have conducted a very thorough study - the most extensive study ever conducted on a products pipeline prior to operation. We are pleased to have been able to work with the Federal Agencies and interested members of the public to develop a comprehensive safety and environmental protection plan for the Longhorn pipeline."

In a September 7, 2000 letter to the EPA and DOT, the White House Council on Environmental Quality called Longhorn's mitigation plan "unprecedented," saying it "not only exceeds existing industry standards and regulatory requirements, but also meets and probably exceeds even proposals now being aired or advanced in Congress and elsewhere for possible future pipeline safety regimes."

"The approach the federal agencies used can give people comfort that their safety is foremost on the minds of everyone in this process," Montgomery said.

Longhorn Partners Pipeline is a limited partnership based in Dallas. Its partners include Chisholm Holdings, a Dallas investment group, and affiliates of the Beacon Energy Fund, BP-Amoco Pipeline Company, ExxonMobil Pipeline Company and Williams Pipeline Company. The Longhorn pipeline will transport gasoline, diesel and airplane fuel from Gulf Coast refineries to Odessa, Texas and the El Paso gateway market. From there, these fuels will be distributed to benefit consumers and the environment in West Texas and, via connections with other pipelines, other areas of the Southwest, including Arizona, New Mexico and California.

###

Complete documentation of the Environmental Protection Agency's
Final Environmental Assessment for Longhorn Pipeline is available at:
http://www.epa.gov/earth1r6/6en/xp/longhorn.htm

6-Nov-00 5:00 PM

EPA, DOT Release Longhorn’s Draft EA and Preliminary Finding of No Significant Impact

Fri, 22 Oct 1999 16:00:00 GMT

Longhorn Partners Pipeline said today that the federal agencies conducting an Environmental Assessment (EA) of its pipeline from Houston to El Paso have released for public review a Draft EA report and a preliminary Finding of No Significant Impact (FNSI).

The purpose of the EA, jointly directed by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation’s Office of Pipeline Safety (DOT), is to evaluate Longhorn’s proposed petroleum products pipeline in order to determine whether its proposed operation will significantly affect the quality of the human environment. The Draft EA has been prepared by Radian International, L.L.C., an independent contractor hired by EPA and DOT.

"EPA and DOT are conducting a very thorough, detailed study of Longhorn’s pipeline," said Carter Montgomery, Longhorn’s president. In conducting the study, the agencies divided the 700-mile pipeline into 8,100 segments (7,800 sections along the main pipeline) and conducted studies that evaluate the safety of each individual segment.

The study categorizes each segment of the pipeline as either normal (Tier 1), sensitive (Tier 2) or hypersensitive (Tier 3) and establishes "target scores" for each type of segment. Scores are based upon characteristics unique to each area, such as the population density and environmental sensitivity of the area.

As part of the EA, Longhorn was asked to submit a "mitigation plan" consisting of Longhorn’s commitments to safety enhancements it will make before start-up and during the operation of the pipeline. The segment-by-segment approach allowed Longhorn to address the unique needs of each area by responding to specific needs where the pipeline crosses rivers and streams, using "thicker-wall" pipe over the Edwards Aquifer recharge zone near Austin, enhancing its testing and monitoring of the pipeline, and taking other measures in accordance with the needs of each area.

This let the EA evaluate the safety of each pipeline segment, taking into account the sensitivity of the area and the relative safety of the pipeline, after enhancements, in that area.

"The approach EPA and DOT are taking should give people all along the pipeline a great deal of comfort that their safety and the protection of the environment is foremost on the minds of everyone in this process," Montgomery said.

With today’s publication of the Draft EA, the environmental assessment now enters a public comment phase that will run through November 29. During this period, the public can participate in the EA process by reviewing the Draft EA and preliminary FNSI, providing comments to Radian, attending one of the five public meetings that will be held in November, and in other ways. EPA and DOT have stated they will place a copy of the complete Draft EA and preliminary FNSI in the office of each County Clerk along the pipeline route. Public meetings will be held in Houston (November 9), Austin (November 16), Fredericksburg (November 17), Bastrop (November 18) and El Paso (November 22).

After reviewing the comments received during the public comment period, EPA and DOT will make a final determination of whether the Longhorn project should receive a FNSI. It is expected that the final decision will be published by EPA and DOT during the last week of January, 2000.

"This public comment period gives everyone who wants to a chance to participate in the process. We hope people who are interested will review the study, submit their comments and come out to a public meeting," Montgomery said.

In its mitigation plan, Longhorn takes numerous additional steps to enhance its pipeline’s safety, protect the environment and reduce the probability of a spill. These mitigation measures have focused on: (1) preventing outside damage, which is the leading cause of pipeline accidents; (2) preventing damage from corrosion; (3) preventing human error; (4) preventing damage from defective materials; and (5) enhancing leak detection and control.

"Longhorn’s goal is 100 percent safe operations every day. This Environmental Assessment process, as it is being conducted by EPA and DOT and with the participation of the City of Austin, the Lower Colorado River Authority and other parties, has made a positive contribution to meeting that goal," Montgomery said.

Longhorn Partners Pipeline is a limited partnership based in Dallas. Its partners include Chisholm Holdings, a Dallas investment group, and affiliates of the Beacon Energy Fund, BP-Amoco Pipeline Company, Exxon Pipeline Company and Williams Pipe Line Company. Longhorn is developing a pipeline to transport gasoline, diesel and airplane fuel produced at refineries along the Gulf Coast to Odessa, Texas and the El Paso gateway market. From there, these fuels will be distributed to benefit consumers and the environment in West Texas and, via connections with other pipelines, other areas of the Southwest, including Arizona and New Mexico.

# # #

To view the EA Executive Summary,
please visit the Environmental Protection Agency website at http://www.epa.gov/earth1r6/6en/xp/longhorn.htm

22-Oct-99 11:00 AM

Summary of Settlement Agreement

Thu, 25 Feb 1999 19:00:00 GMT

Longhorn Pipeline and most other parties to the litigation in U.S. District Court in Austin, styled Spiller v. Walker, have reached an agreement to conduct a comprehensive environmental review of the Longhorn Pipeline. Details of the agreement include the following.
Management:

The U. S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) will be joint lead agencies in the preparation of an Environmental Assessment (EA) of the Longhorn Pipeline Project.

EPA will be the lead agency for environmental impact analysis.

DOT will be the lead agency for pipeline safety and technology analysis.

EPA and DOT may designate other "cooperating agencies" to assist in preparing the EA.

Radian International, LLP, has been selected as the contractor to prepare the EA. EPA and DOT will direct its work.

of the Longhorn Pipeline Project.
Content:

The EA prepared by the Contractor will include:

An identification of the Longhorn project.

An identification of alternatives to the proposed actions, including a "no action" alternative, a rerouting alternative and any appropriate mitigation measures.

A description of the affected environment, including environmentally sensitive areas, densely populated areas and populated areas within the jurisdiction of the City of Austin, including neighborhoods in proximity to the pipeline.

An analysis of the safety and environmental effects, including health effects, of the proposed actions and reasonable alternatives;

Consideration of relevant information submitted on a timely basis by the parties, cooperating agencies or the public

An identification of the Longhorn project.
Scope:

The scope of the assessment includes:

Identification of resources that may potentially be affected by the pipeline operation, including water, land, flora, fauna and recreational and cultural resources.
, including water, land, flora, fauna and recreational and cultural resources.
A pipeline integrity analysis that includes an evaluation of:
that includes an evaluation of:

Whether the existing pipeline, new facilities and testing of the pipeline have complied with governmental safety standards (and are consistent with industry safety standards) for the operation of products pipelines.

Whether Longhorn’s proposed operational standards and spill/leak response plans comply with governmental and industry standards.

Any corrective measures that need to be taken by Longhorn.

Whether computers affecting the pipeline’s safety and operation are Y2K compliant.

An environmental effects and risk assessment that includes:

Analysis of safety and environmental consequences, including health consequences, of potential leaks.

An overall risk assessment consistent with recognized professional risk assessment standards.

Analysis of any environmental justice issues, including but not limited to issues raised by the price of fuels in El Paso and other markets and the location of the pipeline in certain residential areas.

Identification and analysis of alternatives, including "no action," rerouting and pollution control alternatives.
, including "no action," rerouting and pollution control alternatives.
includes:
Schedule

The schedule for completing the Environmental Assessment includes:

The contractor (Radian International) will endeavor to complete work on the proposed draft EA within 120 days.

EPA and DOT will publish notice that the draft EA is available as promptly as is practical its receipt.

EPA and DOT will allow 30 days for written comments and public meetings on the draft EA. Public meetings will be held in Houston, Austin, El Paso and two additional locations within the service area of the Lower Colorado River Authority.

Within 30 days following the public comment period, the Contractor will prepare the final EA for EPA and DOT approval.

After completion of the EA and public hearings, EPA and DOT will issue an EA Decision in accordance with NEPA regulations and policy. An EA Decision is either:

A Finding of No Significant Impact ("FONSI"), or

A notice of intent to prepare an Environmental Impact Statement ("EIS").

Until 30 days after an EA Decision is issued, Longhorn will not transport or place any petroleum product in the pipeline, except those used for purposes of maintenance, construction or testing.

includes:
For other terms of the agreement, please see the "Settlement Stipulation." To request a copy of the settlement stipulation, please call 1-800-863-9691, or contact: Jackson Harrell or David Dunnigan (214-954-9544), Don Martin (512-328-4055), Gay Erwin (512-480-3216), Lynn Hancock (713-782-7502) or Joe Lopez (915-772-8018).

25-Feb-99 1:00 PM

Longhorn Pipeline, City of Austin Agree to Conduct Environmental Assessment of Pipeline

Thu, 25 Feb 1999 17:00:00 GMT

Provides Safety Assurance; Speeds Economic, Environmental Benefits

(DALLAS) – Longhorn Partners Pipeline said today that the Austin City Council has voted to approve the City of Austin entering into an agreement that would settle their current dispute with Longhorn and initiate an Environmental Assessment (EA) of the pipeline. Longhorn anticipates that most other parties to the Spiller v. Walker lawsuit will also agree to the settlement within the next few days, the company said. Parties to the agreement would then submit their settlement agreement to the U.S. District Court in Austin, seeking the court’s approval.

Under terms of the agreement, the EA will be prepared at the joint direction of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation’s Office of Pipeline Safety (OPS). The EPA will conduct the environmental impact analysis, with OPS responsible for pipeline safety and technology analysis. An independent third party contractor, Radian International, LLP, will prepare the EA with direction from EPA and DOT. The study will be conducted according to federal regulations governing environmental reviews.

Carter Montgomery, Longhorn’s president, said, "We are proud that the parties have been able to negotiate a settlement which addresses their individual concerns, but which also will assure the public of the pipeline’s safety. We believe it brings closer the day when El Paso, the Gulf Coast, West Texas, New Mexico and Arizona can enjoy the economic and environmental benefits this pipeline will provide."

"Longhorn’s goal is 100 percent safe operations. We have taken steps well beyond those required by law to ensure our pipeline will operate safely," Montgomery said.

The steps Longhorn is taking to assure the operating integrity of the pipeline include: testing the structural integrity of the entire line; upgrading safety by installing remote controlled block valves at river crossings and on each side of the Edwards Aquifer; installing an extra pump that will lower operating pressures over the Edwards Aquifer; and placing pipeline markers closer together, decreasing the risk of accidental damage.

Once in operation, Longhorn will monitor the pipeline from a central control room 24 hours a day. Volumes entering and exiting the pipeline will be metered every few seconds. Pumping station pressures will also be continually monitored. Longhorn will visually inspect the entire length of the line once a week, more often than required. Going forward, Longhorn will identify maintenance needs before they can become problems by conducting new structural integrity tests more frequently than the law requires.

"The environmental assessment will provide an independent review of our safety procedures, giving the public assurance of the line’s safety," Montgomery said. "We believe this will bring Texans one step closer to enjoying the considerable economic and environmental benefits our pipeline will produce."

Studies conducted by The Perryman Group, a leading Texas economic consulting firm, concluded that Longhorn Pipeline will, in its first five years, account for an increase of nearly $360 million in Gross State Product and produce more than 7,700 person-years of employment. After the first five years, total economic advances for the state associated with operations and consumer savings are expected to be more than 1,000 permanent new jobs a year and an annual increase of nearly $40 million in Gross State Product.

Longhorn’s pipeline is also expected to contribute to improving environmental conditions along the Texas/Mexico border in West Texas. Longhorn will deliver cleaner-burning fuels that are produced at sophisticated Texas Gulf Coast refineries. Making these fuels more abundant in West Texas, and perhaps in Northern Mexico, can enhance the border area’s attempt to improve air quality.

Similar environmental and economic benefits can also be expected in New Mexico and Arizona, as some of the gasoline delivered to the El Paso gateway market is transported via other pipelines to metropolitan areas in those states. The Phoenix area, in particular, can benefit from the increased availability of California CARB and other cleaner-burning fuels Longhorn can transport. These fuels are needed in greater abundance to meet that area’s air quality improvement goals.

Under terms of the agreement, Radian will endeavor to complete work on a proposed draft EA within 120 days. EPA and DOT will then publish notice that the draft EA is available and allow 30 days for written comments and public meetings. Public meetings will be held in Austin, El Paso, Houston and two additional locations within the service area of the Lower Colorado River Authority. Within 30 days after the public comment period, Radian will prepare the final EA for EPA and DOT approval.

After completion of the EA, EPA and DOT will issue an EA Decision in accordance with National Environmental Policy Act regulations and policy. An EA Decision may be either: a Finding of No Significant Impact (FONSI), or notice of intent to prepare an Environmental Impact Statement (EIS).

Montgomery said, "We are confident that the review will show Longhorn is among the safest and most reliable state-of-the-art pipelines that exist today. We have always had confidence in the pipeline, but we are willing to take these steps to assure others of its safety and integrity, as well."

Longhorn has agreed not to transport or place any petroleum product in the pipeline until 30 days after an EA Decision is issued, except for court-approved pipeline maintenance, construction or testing.

"Completion of the study will allow the pipeline to move forward and allow us to bring substantial economic and environmental benefits to Texas and the Southwest, while assuring that the pipeline will be operated safely and with environmental integrity," Montgomery said.

The Austin City Council voted today to enter into the settlement agreement. Longhorn’s board of directors had previously taken action to enter into the agreement, as well.

Longhorn Partners Pipeline, LLP, is developing a refined products pipeline to deliver gasoline, diesel and jet fuel from Gulf Coast refineries to West Texas and the El Paso gateway market. When it begins operation, Longhorn Pipeline is expected to deliver approximately 72,000 barrels per day, with an ultimate capacity of about 225,000 barrels per day.

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A summary of the settlement agreement is available. For a copy of the Settlement Stipulation, please call one of the contacts above, or call 1-800-863-9691.

25-Feb-99 11:00 AM