|
Citizens Demand Pipeline Protection from Dewhurst
July 30, 2002
Austin Safe Pipeline Coalition, Save Barton Creek Association, Sierra Club, Save Our Springs Alliance, vice chair of the City Environmental Board Tim Jones, Craig Smith of the Barton Springs
Aquifer District, and City Council Member Jackie Goodman are calling on Texas Land Commissioner David Dewhurst to deny easement permits for the Longhorn Pipeline due to the serious financial instability of the major partners in the company.
One major partner in the pipeline, Williams Cos., Inc., could be headed for a bankruptcy court filing. Most of the work on the pipeline was halted last Wednesday after Standard & Poor's Corp. cut the rating on their debt to junk status, citing the energy company's liquidity woes and tumbling share price.
The second major partner, Beacon Group Energy Investment Fund, is a subsidiary of JP Morgan Partners who had its long-term rating downgraded by Moody's Investors Service from "stable" to "negative" last Thursday. The report states that the negative rating for JP Morgan Chase & Co., includes all subsidiaries.
Williams and Beacon Group Energy Investment Fund together own 63 percent of Longhorn Partners Pipeline. With both major partners in financial disarray and liability insurance of only $15 million, local environmental groups are again raising concerns about Longhorn's ability to cover costs after an accident.
Texas' Land Commissioner David Dewhurst stated last week, while on the campaign trail in Odessa, that he plans to sign the easements required for the Longhorn Pipeline. The Land Commissioner has the authority to allow or deny access for pipelines through state lands and waterways.
Local groups are urging Commissioner Dewhurst to deny the permits based on these latest financial developments with the Longhorn Partners.
Click here to read the background report "Longhorn Partners Pipeline: A Bankrupt Company?"
Adobe Acrobat reader required
(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. This website has no affiliation whatsoever with the originator of this article nor is this website endorsed or sponsored by the originator.) When available, links to the original article are provided as a convenience to our readers and allow for verification of authenticity. However, as originating pages are often updated by their originating host sites, the versions posted here may not match the versions our readers view when following the links.