The Edmond Sun

Business

October 17, 2012

Chesapeake sells oil pipeline stake

ENID — Chesapeake Energy has sold its stake in a proposed crude oil pipeline still being opposed by landowners in Major County.

SemGroup Corp., Gavilon LLC and Chesapeake together formed Glass Mountain Pipeline LLC in May, with plans to build a 210-mile pipeline to carry crude from Arnett and Alva to Cushing.

The initial formation of Glass Mountain Pipeline consisted of 50 percent ownership by Chesapeake, with the remainder split evenly between SemGroup and Gavilon.

SemGroup and Gavilon announced Wednesday they each had purchased an additional 25 percent share of the company, buying Chesapeake out of the construction and operation of the pipeline.

The buy-out option was written into the original joint venture agreement, according to a SemGroup press release, and Chesapeake will retain its long-term transportation agreement with Glass Mountain Pipeline, “providing the economic incentive for its construction.”

“Chesapeake is proud to be involved in this significant project to deliver increased volumes of Oklahoma oil to market,” said Chesapeake spokesman Michael Kehs. “This will benefit producers, royalty owners and the state.”

The Glass Mountain Pipeline will have an initial capacity of about 140,000 barrels per day and 440,000 barrels of intermediate storage, according to SemGroup figures.

The two lateral lines from Alva and Arnett will join near Cleo Springs in Major County, then continue east to Gavilon’s Cushing facility, where the joint venture will own one million barrels of crude oil storage.

A number of Major County landowners are resisting signing right-of-way contracts for the pipeline, citing concerns over the pipeline’s route atop the Cimarron River Aquifer, the major source of water for Major, Garfield and Kingfisher counties.

“We’re not against the pipeline, we just don’t want it going through that aquifer,” said Rhonda Regier, whose husband is trustee for family land on which the pipeline intersection is planned to be built.

The Regiers signed a contract to sell 34 acres of land to Glass Mountain Pipeline before more landowners came out in opposition to the project. Regier said SemGroup plans to build a storage and pumping facility on the land, including two 158,000 barrel tanks.

Regier said there is a dedicated group of landowners refusing to sign crossing contracts, but many of the affected landowners signed contracts because they didn’t see any other choice.

“We can’t get that many people excited about it, because they don’t want to be pressured by this company,” Regier said. “They’ve been putting a lot of pressure on the landowners to sign contracts. They’re a big company, and we’re just little people.”

Regier said those in opposition have set regular meetings, and even have consulted with Nebraska property owners involved in a protracted fight against the TransCanada pipeline.

“It’s been three years up there and it’s still going on, and they have a huge group,” Regier said. “We don’t have a huge group.”

She said it’s doubtful local landowners will be able to put up that kind of fight.

“We’re to the point we’re just trying to get a decent contract that has money in it for us, and spells out exactly what they’re going to do if there is a spill,” Regier said. “That’s our major concern, is what would happen with the water if there’s a leak.”

Enid City Manager Eric Benson said he has reviewed the pipeline project, and he is not concerned about its proximity to Enid’s largest water well field.

“My comfort level with it is very high, because I have studied it, my staff has studied it and we’ve studied it with the state’s resources and the company involved,” Benson said. “I am absolutely convinced the pipeline does not pose a threat to our water wells.”

He said current safety standards and technology in pipeline delivery are “unlike anything we’ve ever seen before.”

“The safety standards aren’t what you saw 30 years ago,” Benson said. “The state and federal guidelines are such that they provide a safe delivery product in that pipeline.”

SemGroup communication specialist Kiley Roberson said the company is working to ensure fair contracts with the affected landowners and a safe pipeline. SemGroup will operate the pipeline through its affiliated limited partnership, Rose Rock Midstream.

“We continue to work with landowners to reach fair agreements and safety is always our top priority,” Roberson said. “We consult experts like geologists and engineers about paths, water sources, soil type, rock formations and more.”

She said SemGroup is “focused on making sure our pipeline route is safe for the environment and those living around it.”

Roberson said pipeline safety is regulated by “very strict guidelines.”

“These standards include special coating to prevent corrosion, continuous, real-time monitoring and regular inspections using high-tech instruments to check for deterioration,” she said.

Roberson said the pipeline will be safer than other transportation methods, and will cut down on tanker truck traffic to Cushing.

“Energy resources are important for the country and for Oklahoma,” Roberson said. “In our state, we have a long history of energy development and a legacy of people and companies who have shaped the energy business, not only in Oklahoma but across the nation. Leadership in finding, producing and safely transporting energy resources is something Oklahomans know how to do.”

Roberson said the pipeline development will not be affected by this week’s ownership change, and SemGroup plans to complete the pipeline by the end of 2013.

1
Text Only
Business
  • Lankford, James 2011.jpg Lankford, rest of Oklahoma delegation vote to sue president

    A Democratic leader said the House does not have standing to sue the president after members of Oklahoma’s congressional delegation voted to do just that.
    At 6:28 p.m. Wednesday, members of the House approved by a 225-201 partisan margin H. Res. 676, which gives House leadership the authority to file a lawsuit challenging actions by President Barack Obam

    July 31, 2014 1 Photo

  • MS_prisons 1.JPG DOC action could save $36.8 million annually

    The Oklahoma Department of Corrections expects to avert more than 2,100 offenders by 2021 saving more than $36.8 million annually, an audit states.
    Tuesday, State Auditor and Inspector Gary Jones  released the results of a performance audit of the DOC that was requested by Gov. Mary Fallin. The audit for the period July 1, 2007 through June 30, 2013, distinctly focused on governance, financial management and capacity management.
    Audit recommendations included:

    July 30, 2014 2 Photos

  • food bank.jpg Regional Food Bank receives donation

    At a special celebration event Wednesday, Walmart and the Walmart Foundation announced that over the last fiscal year they gave more than $30 million in cash and in-kind contributions to charitable organizations throughout Oklahoma. Additionally, the retailer and its Foundation have partnered with local food banks to provide more than 15 million pounds of food to residents.

    July 30, 2014 1 Photo

  • City spends $1.7 million on ITS

    Public safety will benefit by the Intelligent Transportation System with its implementation by the City of Edmond, said Steve Commons, assistant city manager.
    More vehicles are added to traffic volume as Edmond’s population grows. ITS connects all of the city’s traffic signals in order to improve traffic flow in present time with greater efficiency, Commons said Wednesday.
    “Some of that can be done through computer automation that tracks how traffic is changing,” Commons said.

    July 30, 2014

  • Downtown Master Plan accepted by council

    The 2014 Downtown Master Plan Study was accepted by a 3-0 vote Tuesday evening by the Edmond City Council.
    Fort Worth-based consulting group Freese and Nichols presented their final update to the 1998 Downtown Master Plan. The city hired the group at a cost of $300,000 to make recommendations for future development of Broadway in the central business district.
    “There are clearly some short-term (parking) options that we feel should move forward,” said Cody Richardson, of Freese and Nichols consultants of Fort Worth. “Better signage at existing parking lots.”

    July 29, 2014

  • Lambrecht Construction to build office

    The commercial site plan of a physician’s office was approved recently by the Edmond Planning Commission by a vote of 4-0.
    Lambrecht Construction plans to build the office at 3917  E. Covell Road in the Fairfax Business Office, north of Covell and west of Sooner Road, said Bob Schiermeyer, city planner.

    July 29, 2014

  • jc_ITS map.jpg City to improve traffic flow

    The Edmond City Council this week approved a services agreement with Electronic Technology, Inc. For the  installation of Intelligent Transportation Systems’ video wall system at a cost of $314,620. The vote was 3-0.
    ITS is a fiber optic, wireless or hybrid communication system of monitoring road events and equipment in the field, data archiving and predicting traffic volume, said Kent Kacir, an engineer with Kimley-Horn and Associates Inc.

    July 29, 2014 1 Photo

  • sales tax holiday.jpg Oklahoma sales tax takes a holiday

    Beginning at 12:01 a.m. on Friday, Aug. 1 and ending at midnight Aug. 3, Oklahomans will be able to participate in a sales tax holiday giving shoppers the opportunity to purchase certain clothing and shoes free of sales tax.
    Yes, retailers may not charge tax, including state and local sales taxes on items that are tax-exempt during the sales tax holiday weekend. The sales of clothing and shoes priced at less than $100 are exempted from sales taxes.

    July 28, 2014 1 Photo

  • Karan & Rwanda.jpg Peace through Business empowering women entrepreneurs

    Peace Through Business is part of the Institute for Economic Empowerment of Women (IEEW) based in Oklahoma City. It is a program that connects small business entrepreneurs in Afghanistan and Rwanda with business owners in Oklahoma. One such entrepreneur found out about the program from a friend, applied, and was accepted to take part in this year’s session.
    Upon earning a master’s degree in Civil Engineering from the Universite de Sciences et Technique de Lille in Belgium, Lyliose Nduhungirehe began her career working for a construction company in Brussels, but she quickly switched paths to Information Technology.

    July 28, 2014 1 Photo

  • Anderson Properties continues to grow

    Berkshire Hathaway HomeServices Anderson Properties recently announced the acquisition of Tulsa-based Prudential Alliance Realty, an eight-office, 150-agent brokerage operating in Tulsa and Oklahoma City and Edmond.
    The transaction gives Anderson Properties, a full-service real estate agency a total of 38 offices and more than 600 agents.

    July 28, 2014

Stocks