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Company hopes to begin pumping gasoline in early summer
Company hopes to begin pumping gasoline in early summer
Austin American-Statesman
Wednesday, January 7, 2004
After an 18-month hiatus, Longhorn Partners Pipeline LP resumed refurbishing its pipeline Tuesday and said it hopes to complete work in the spring and begin shipping gasoline and other fuels in early summer.
Work on the pipeline, which starts in Houston, passes through South Austin and ends in El Paso, was suspended in July 2002 while additional financing was sought.
Carter Montgomery, president and chief executive officer of Dallas-based Longhorn, said the company obtained additional financing involving "some new partners," but he declined to identify them.
"It's all coming to fruition," he said Tuesday. "It's very strong, very dedicated financing."
Longhorn has also cleared a significant legal hurdle. The 5th U.S. Circuit Court of Appeals ruled last month that a federal review of the pipeline's environmental and safety impact was more than ample. Federal regulators conducted the review -- which found that the pipeline would pose no significant impact -- after the City of Austin, the Barton Springs-Edwards Aquifer Conservation District and two Hill Country landowners sued. The plaintiffs argued that a more exhaustive study was needed.
Renea Hicks, a lawyer for the conservation district and the two Hill Country landowners, said a decision had not been made on whether to appeal to the U.S. Supreme Court.
The pipeline's critics, who also include many environmentalists and safety advocates, are concerned about the risk of leaks, fires and explosions, in part because of the pipeline's age and location. Most of it was built more than 50 years ago to carry crude oil to Houston refineries. It has been idle since 1995.
The pipeline passes through densely populated neighborhoods in South Austin and Houston, and it crosses the Edwards Aquifer and other environmentally sensitive areas.
Federal officials say the precautions Longhorn is required to undertake as a result of the legal challenge are unprecedented. Those precautions include testing for weaknesses and other defects in the pipe, installing safety valves, replacing some pipe segments and installing a leak-detection cable in the Austin area.
Much of the work already has been completed. On Tuesday, silt fence repairs and other work began just east of Brodie Lane in South Austin. Electrical and mechanical work is to be done at a pumping station just west of Austin, and clearing of vegetation will take place at many points along the route between Houston and El Paso. Various containment berms will be built to hold fuel in the event of a spill.
"We have work to do all up and down the pipeline," said O.B. Harris, Longhorn's vice president and asset manager.
Longhorn began seeking additional financing in July 2002 when the Williams Companies Inc. could no longer front money for modifications. The Fluor Corp. has replaced Williams as construction manager, but Williams remains an equity partner and the pipeline's operator.
The other original equity partners are BP Pipelines North America, ExxonMobil Pipeline Co., Chisholm Holdings and the Beacon Energy Fund.
Austin American-Statesman
Wednesday, January 7, 2004
After an 18-month hiatus, Longhorn Partners Pipeline LP resumed refurbishing its pipeline Tuesday and said it hopes to complete work in the spring and begin shipping gasoline and other fuels in early summer.
Work on the pipeline, which starts in Houston, passes through South Austin and ends in El Paso, was suspended in July 2002 while additional financing was sought.
Carter Montgomery, president and chief executive officer of Dallas-based Longhorn, said the company obtained additional financing involving "some new partners," but he declined to identify them.
"It's all coming to fruition," he said Tuesday. "It's very strong, very dedicated financing."
Longhorn has also cleared a significant legal hurdle. The 5th U.S. Circuit Court of Appeals ruled last month that a federal review of the pipeline's environmental and safety impact was more than ample. Federal regulators conducted the review -- which found that the pipeline would pose no significant impact -- after the City of Austin, the Barton Springs-Edwards Aquifer Conservation District and two Hill Country landowners sued. The plaintiffs argued that a more exhaustive study was needed.
Renea Hicks, a lawyer for the conservation district and the two Hill Country landowners, said a decision had not been made on whether to appeal to the U.S. Supreme Court.
The pipeline's critics, who also include many environmentalists and safety advocates, are concerned about the risk of leaks, fires and explosions, in part because of the pipeline's age and location. Most of it was built more than 50 years ago to carry crude oil to Houston refineries. It has been idle since 1995.
The pipeline passes through densely populated neighborhoods in South Austin and Houston, and it crosses the Edwards Aquifer and other environmentally sensitive areas.
Federal officials say the precautions Longhorn is required to undertake as a result of the legal challenge are unprecedented. Those precautions include testing for weaknesses and other defects in the pipe, installing safety valves, replacing some pipe segments and installing a leak-detection cable in the Austin area.
Much of the work already has been completed. On Tuesday, silt fence repairs and other work began just east of Brodie Lane in South Austin. Electrical and mechanical work is to be done at a pumping station just west of Austin, and clearing of vegetation will take place at many points along the route between Houston and El Paso. Various containment berms will be built to hold fuel in the event of a spill.
"We have work to do all up and down the pipeline," said O.B. Harris, Longhorn's vice president and asset manager.
Longhorn began seeking additional financing in July 2002 when the Williams Companies Inc. could no longer front money for modifications. The Fluor Corp. has replaced Williams as construction manager, but Williams remains an equity partner and the pipeline's operator.
The other original equity partners are BP Pipelines North America, ExxonMobil Pipeline Co., Chisholm Holdings and the Beacon Energy Fund.
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