Increasing Pipeline Safety Increasing Pipeline Safety Through Shared Planning Through Shared Planning

Pipeline Safety Trust Pipeline Safety Trust ConferenceConference

New Orleans, LouisianaNew Orleans, Louisiana9:30 a.m. Session, November 16, 20079:30 a.m. Session, November 16, 2007

TopicTopic

The need for policies The need for policies affecting the siting, width and affecting the siting, width and other characteristics of new other characteristics of new

pipeline rights-of-way (ROW)pipeline rights-of-way (ROW)

Presented byPresented by

Joseph Rust Joseph Rust Affected Landowner, REX Affected Landowner, REX East Natural Gas Pipeline, East Natural Gas Pipeline,

Greensburg (Decatur Greensburg (Decatur County), IndianaCounty), Indiana

BackgroundBackground

Most landowners affected Most landowners affected by the REX East natural by the REX East natural

gas pipeline received initial gas pipeline received initial notification of the project notification of the project

from REX in June 2006 via from REX in June 2006 via first class mail.first class mail.

Summary of Project: From Summary of Project: From www.rexpipeline.comwww.rexpipeline.com

Pipeline Route from REX websitePipeline Route from REX website

REX “Open Houses” Were Ineffective, REX “Open Houses” Were Ineffective, Even Harmful.Even Harmful.

Our Pipeline Path Apparently Changed

Panhandle Eastern Pipeline Path In Indiana

Various Reasons For Southern Route Various Reasons For Southern Route Given By REX At Different TimesGiven By REX At Different Times

The Real Reason May Well Have To The Real Reason May Well Have To Do With Waiver REX Received From Do With Waiver REX Received From PHMSA.PHMSA.

““Approximately 90 percent of the Approximately 90 percent of the Rockies Express pipeline will be Rockies Express pipeline will be located in Class 1 areas in a common located in Class 1 areas in a common right-of-way with other pipelines.” right-of-way with other pipelines.”

REX Changed The Formula But REX Changed The Formula But Wasn’t Challenged By FERC Wasn’t Challenged By FERC In their application of April 30, 2007, In their application of April 30, 2007,

REX stated “A majority of the pipeline REX stated “A majority of the pipeline (over 50%) will parallel existing utility (over 50%) will parallel existing utility corridor right-of-way…The majority of corridor right-of-way…The majority of the route…83%, traverses Class 1 (rural the route…83%, traverses Class 1 (rural and agricultural) areas.” (Pg. 16) and agricultural) areas.” (Pg. 16)

What happened and what are the What happened and what are the consequences? consequences?

Indiana Regulatory Agencies Were Indiana Regulatory Agencies Were Not Aware of the Project Not Aware of the Project

Some Pipeline Path Changes Were Some Pipeline Path Changes Were Made Behind Closed Doors Made Behind Closed Doors

REX Refused to Negotiate a REX Refused to Negotiate a Satisfactory Mitigation Agreement Satisfactory Mitigation Agreement with Agricultural Interests In A Timely with Agricultural Interests In A Timely Manner Manner

REX Did Not Do Their Homework REX Did Not Do Their Homework

REX Assumed the Process That REX Assumed the Process That Worked West of the Mississippi Worked West of the Mississippi Would Work East of It Would Work East of It

Poor Upfront Research Has Caused Poor Upfront Research Has Caused Numerous Changes Numerous Changes

Communications With Landowners in Communications With Landowners in the Field Are Poorthe Field Are Poor

What Can We Learn From This What Can We Learn From This and Help Future Pipelines and Help Future Pipelines Proceed More Efficiently?Proceed More Efficiently?

1.1. Any route following existing pipelines Any route following existing pipelines should proceed as today, subject to should proceed as today, subject to investigation in #6 below.investigation in #6 below.

2.2. Any new pipeline going into “virgin” Any new pipeline going into “virgin” territory needs to follow a different pre-territory needs to follow a different pre-routing procedure, including direct routing procedure, including direct involvement of the federal, state and involvement of the federal, state and local government agencies, including local government agencies, including agricultural interests, before a pipeline agricultural interests, before a pipeline route is route is pre-filedpre-filed..

3.3. Having all hearings open to public in this Having all hearings open to public in this pre-route time would eliminate the pre-route time would eliminate the mistrust. Encourage Area Planning and mistrust. Encourage Area Planning and Zoning Boards and County Commissioners Zoning Boards and County Commissioners to participate. Cast a wide net.to participate. Cast a wide net.

4.4. FERC should be in charge of the pre-FERC should be in charge of the pre-routing process and insure relevant routing process and insure relevant agencies are engaged, not just notify agencies are engaged, not just notify them. them.

5.5. D.O.T. (PHMSA) and FERC should work D.O.T. (PHMSA) and FERC should work together, not act like safety, routing and together, not act like safety, routing and environmental concerns are somehow environmental concerns are somehow separate concepts. Neither the public, nor separate concepts. Neither the public, nor state and local authorities, see them as state and local authorities, see them as separate, nor should PHMSA and FERC. separate, nor should PHMSA and FERC. This is bureaucracy at its worst. This is bureaucracy at its worst.

6.6. Before virgin routes are proposed, FERC Before virgin routes are proposed, FERC should determine whether existing should determine whether existing pipelines are in need of replacement with pipelines are in need of replacement with more modern, larger, and safer lines.more modern, larger, and safer lines.

7.7. Granting waivers should be a rare Granting waivers should be a rare exception.exception.

8.8. Realistic pipeline and compressor station Realistic pipeline and compressor station setbacks need to be developed by D.O.T. setbacks need to be developed by D.O.T. in conjunction with state pipeline safety in conjunction with state pipeline safety agencies.agencies.

9.9. Educate First Responders and disaster Educate First Responders and disaster preparedness agencies what they must preparedness agencies what they must plan for in case of a leak or rupture.plan for in case of a leak or rupture.

Better pre-planning groundwork will Better pre-planning groundwork will eliminate most of the mistrust and eliminate most of the mistrust and misunderstandings that exist today, misunderstandings that exist today, and will allow natural gas to flow in and will allow natural gas to flow in the best interests of the U.S., the best interests of the U.S., resulting in lower costs and safer resulting in lower costs and safer conditions for all.conditions for all.

SummarySummary

Thank YouThank You

I am available for questionsI am available for questions

Joseph RustJoseph Rust9597 E. Co. Rd. 550 N9597 E. Co. Rd. 550 NGreensburg, IN 47240Greensburg, IN 47240

joerust@dishmail.net joerust@dishmail.net