HomeMy WebLinkAbout20111458 ONEOK
PARTNERS
May 31, 2011
Ms. Barbara Kirkmeyer
Weld County
915 10th Street
P.O. Box 758
Greeley, CO 80632
Dear Ms. Kirkmeyer,
Subject: Bakken Pipeline Update and Environmental Surveys
Tulsa-based ONEOK Partners is planning to construct an approximately 525-mile
pipeline that will transport raw, unfractionated natural gas liquids (NGL) from natural gas
gathering and processing facilities in the Bakken Shale region in North Dakota and
Montana through easternmost Montana and Wyoming and into northern Colorado to the
Overland Pass Pipeline.
Pending regulatory approval, the Bakken Pipeline is scheduled to become operational in
the spring of 2013.
You are receiving this letter either because the proposed route for the Bakken Pipeline is
located near your community or you were identified as someone who might be interested
in the proiect.
We have been working with landowners to obtain survey access agreements;
developing a preliminary pipeline route; conducting preliminary land surveys; and
consulting with various federal, state and local agencies on permitting requirements.
We have begun environmental survey work on individual properties. These surveys
typically consist of archaeological surveys and the identification of wetland areas that
may be affected by the project. Other studies on vegetation, wildlife, stream crossings
and soil testing may also be necessary.
During this survey work, crews will be working communities located in the project area.
All survey work on private property will be performed with landowner consent. Crew
members will carry proper identification, and they will place identifying signage in their
vehicle windows so that they are easily recognizable. The results of the surveys will be
used to complement the regulatory applications that are submitted to various agencies.
The surveys will last in to the fall of 2011. Because this work is largely dictated by
access agreements from landowners, it is possible that survey crews could make
multiple visits to these communities in the coming weeks and months.
While crew members will have general information about the Bakken Pipeline, they have
been instructed to refer inquires from landowners and the public to designated project
team members who will answer questions.
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The Bakken Pipeline will transport 60,000 barrels per day and provide producers in the
Bakken Shale region greater access to markets. Communities along the proposed route
will benefit from construction-related jobs and expenditures, as well as from tax
revenues over the life of the pipeline.
ONEOK Partners has established a website for the Bakken Pipeline where you can learn
more about the project and download project-related documents. There is also a project
phone number that is regularly checked.
www.oneokpartners.com/bakkenpipeline
(855) 217-7918
Enclosed for your information is a project fact sheet, which includes a map of the
preliminary route, and a document containing answers to questions frequently asked
about the Bakken Pipeline. Please feel free to contact the project team with any
questions about the Bakken Pipeline or the survey work being performed.
Your cooperation and consideration is greatly appreciated!
Sincerely,
Bakken Pipeline Project Team
Enclosures (2)
Bakken Pipeline
The ONE in Energy"
-=_ ONEOK
PARTNERS
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ONTOK
BAKKEN PIPELINE
New Pipeline Being Constructed in Your Area
A SUBSIDIARY OF ONEOK PARTNERS
www.oneokpartners.com/bakkenpipeline
Overview
Tulsa-based ONEOK Partners is planning to construct I
a $430 million to $500 million, approximately 500-mile
natural gas liquids (NGL) pipeline that will transport raw,
unfractionated NGLs from natural gas processing plants T, . F I/
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in the prolific Bakken Shale play to the company's 50- ,,f
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percent owned existing Overland Pass Pipeline.
The Bakken Pipeline will transport raw NGLs from
ONEOK Partners' extensive natural gas gathering and
processing assets and third-party natural gas processing
plants in the Bakken Shale south through easternmost I' -
Montana and Wyoming, where it will connect to the Overland Pass Pipeline in northern Colorado. Protecting Precious Resources
We will work carefully to survey and select a route that
Growth in the Bakken Shale protects and preserves environmental and cultural
Including the Bakken Pipeline project and related resources.
expansions, ONEOK Partners plans to invest $1 .5 billion This work involves collecting data and conducting studies
to $1 .8 billion for growth projects in the Bakken Shale. of localized wildlife, water and soil conditions.
These projects include the construction of three new 100
million cubic feet per day natural gas processing facilities
in western North Dakota — the Garden Creek Plant, the Seeking Approval
Stateline I Plant and the Stateline II — that, when com- The Bakken Pipeline will require approval for construction
pleted, are expected to nearly quadruple the partnership's from a number of federal and state agencies. ONEOK
natural gas processing capacity in the region. Partners anticipates filing applications with these agencies
in early 2011 .
ONEOK Partners is the largest independent operator of
natural gas gathering and processing facilities in the Working With Landowners
Bakken Shale region, with a gathering system of more ONEOK Partners will work with landowners to establish
than 3,500 miles. easement agreements, which grant permission for the
pipeline to be built, operated and maintained on a specific
Meeting Demand piece of property. We will also work with landowners to
NGLs primarily consist of ethane, propane, butane and obtain temporary easements for workspace needed
natural gasoline. Demand for NGLs by the petrochemical during construction.
and plastics industries. as well as for refining and home
heating, is growing. The Bakken Pipeline will give natural Looking Ahead
gas producers in North Dakota and Montana greater Pending regulatory approval, construction of the Bakken
access to markets. Pipeline is anticipated to begin in the second quarter of
2012 and is currently expected to be completed during
the first half of 2013. The 12-inch diameter pipeline will
generally be buried three feet below the ground surface,
as required by the U.S. Department of Transportation
pipeline safety regulations.
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BAKKEN PIPELINE
Bakken Pipeline A SUBSIDIARY OF ONEOK PARTNERS
www.oneokpartners,com/bakkenpipeline
-_. . Safety Involving the Public
Pipelines are among the safest and most efficient ONEOK Partners is committed to proactive and
Hi_ : , methods of transporting NGLs. ONEOK Partners meaningful dialogue with landowners, communities and
operates extensive underground natural gas and natural other stakeholders in order to provide information and
"-- • gas liquids pipeline systems, compressor stations and a address their issues and concerns.
ti'; :i_.2,..,1_,' variety of other facilities.
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ONEOK Partners will work with landowners along the
When the Bakken Pipeline is operating, trained pipeline route to ensure that they receive fair
-' technicians will monitor and control the pipeline around compensation for an easement on their land.
-1 the clock using highly sophisticated sensors, computers
"'-• d , and communications technology. Safety valves can
Community Benefits
isolate segments of the pipe.
- '' ,Communities along the Bakken Pipeline will benefit from
,ti
construction-related jobs and expenditures, as well as tax
;;_ The pipeline will undergo regular inspections, using the revenues over the life of the pipeline.
.. ,, latest technology to ensure the integrity of our system.
•- ., . When completed, the Bakken Pipeline will help to alleviate
We are committed to the ongoing maintenance of our
.� the amount of truck traffic on local roadways by providing
;_,,.-.,_ rights of way and facilities. alternate takeaway options for NGLs from the region.
Ensuring Safety
Pipeline Location Signs
ONEOK Partners' highest priority is the safety of the Pipeline signs like the ones pictured below mark
public and its employees. We are committed to
the approximate location of the pipeline.
, operating safely, reliably and in an environmentally
responsible manner. Before being placed into service, L WARNING
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is operating, trained technicians will monitor the sensors,
computers and communications technology 24 hours a N
day. These signs are located where the pipeline intersects
; public road crossings, river crossings and railways and
provide contact information for questions regarding the
nearby pipeline.
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ONEOK
Bakken Pipeline Construction BAKKE" PIPELINE
A SUBSID.A 4Y OF°NECK PA.TNERS
www.oneokpartners.com/bakkenpipeline
Construction Overview Construction Sequence
The 12-inch diameter pipeline will be made of high-strength 1. The first step involves surveying the route and
steel and coated with a protective layer to prevent corrosion. staking the construction right of way. The right of way
The pipe will generally be buried three feet below the ground is then cleared and graded, if necessary, to create
surface, as required by the U.S. Department of Transporta- a working surface suitable for construction equipment
tion pipeline safety regulations. and workers.
All regulations regarding construction of an NGL pipeline will 2. Sections of pipe are laid along the right of way,also
be complied with, and approved construction methods and known as"stringing." When necessary, pipe sections will
qualified contractors are being used to build the be bent to conform to the contour of the land. The pipe
pipeline. sections will then be welded together by qualified pipeline
welders.The welds will be X-rayed to verify their integrity
Inspectors are assigned to construction areas to monitor and then coated.A trench is dug for the new pipeline.
compliance with all local, state and federal rules and The depth of the trench may vary according to local
regulations. Lands, roads and other facilities will be conditions but will comply with regulatory standards. The
restored to their previous condition. entire pipeline coating is inspected prior to the pipe being
lowered in the trench.
3. After the pipeline is installed, the trench is backfilled.
The pipeline is filled with water and safely pressure-tested
to validate its design strength per federal regulations.
Finally, the construction area is restored and monitored
in accordance with permit requirements and landowner
agreements.
Design and Schedule
Design Project Schedule
• 12-inch diameter pipeline Spring 2011
• Introduce project to public officials, landowners and
•Made of high strength steel other stakeholders.
• Generally buried a minimum of three feet below ground • Begin environmental and cultural-resource surveys
• Environmentally friendly, electrically driven, •Submit major permit applications
pump stations will move product from eastern Montana
to northern Colorado •Acquire right of way
•Complete environmental and cultural-resource surveys
Second quarter of 2012
•Construction
First half of 2013
• Pipeline in service
ONEOK
Bakken Pipeline -= BAKKEN PIPELINE
A SUBSIDIARY CFF O NEOS VAR f NSAS
www.oneokpartners.com/bakkenpipeline
About ONEOK Partners Additional Information and Contacts
ONEOK Partners, L.P. is one of the largest publicly traded
master limited partnerships, and is a leader in the gathering, www.oneokpartners.com/bakkenpipeline
processing, storage and transportation of natural gas in the 855-217-7918
U.S. and owns one of the nation's premier NGL systems,
connecting NGL supply in the Mid-Continent and Rocky ONEOK Partners Contacts:
Mountain regions with key market centers.
Brad Borror, Corporate Communications
Its general partner is a wholly owned subsidiary of ONEOK, (918) 588-7582, (918)261-5678
Inc., a diversified energy company with headquarters in bborror@oneok.com
Tulsa, Okla.
Mick Urban,Government Relations
(785)271-3038, (785)221-9943
murban@oneok.com
Steve Johnson, Government Relations
(913)319-8604, (785)865-6130
sjohnson@oneok.com
11
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ONEOK
BAKKEN PIPELINE
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PARTNERS
ONEOK
Frequently Asked Questions == BAKKEN PIPELINE
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www oneokpartners.com/bakkenpipeline
What is the Bakken Pipeline?
Tulsa-based ONEOK Partners is planning to construct a$450 million to$550 million, approximately 525-mile natural gas
liquids(NGL) pipeline that will transport raw, unfractionated NGLs from the prolific Bakken Shale play in North Dakota
and Montana to the company's 50-percent owned Overland Pass Pipeline.
The Bakken Pipeline will transport raw NGLs from ONEOK Partners' and third-party natural gas processing plants in a
three-county area of western North Dakota to the Overland Pass Pipeline.
Is ONEOK Partners proposing other projects in the region?
Yes. Including the Bakken Pipeline project and related expansions, ONEOK Partners plans to invest approximately$1.5
billion to$1.8 billion between now and the end of 2014 for Bakken-related projects in its natural gas liquids and natural
gas gathering and processing business segments. These projects include the construction of three new 100 million
cubic feet per day natural gas processing facilities—the Garden Creek plant, Stateline I plant and Stateline II plant—that,
when completed, are expected to nearly quadruple the partnership's processing capacity in the region.
ONEOK Partners is the largest independent operator of natural gas gathering and processing facilities in the Bakken
Shale region, with a gathering system of more than 3,500 miles.
What are NGLs?
NGLs primarily consist of ethane, ethane/propane mix, propane, iso-butane, butane and natural gasoline. NGLs are
primarily used by agriculture, petrochemical and plastics industries, as well as for refining and home heating uses.
How are NGLs produced?
Natural gas processing consists of separating all of the various hydrocarbons and fluids from the pure natural gas in
order to produce what is known as 'pipeline quality' dry natural gas. Before the natural gas can be transported, it must
be purified and the methane must be separated from the NGLs.
What volume of NGLs would go through the line daily?
The Bakken Pipeline will initially transport up to 60,000 barrels per day(bpd)of NGLs from ONEOK Partners'extensive
natural gas gathering and processing assets and from third-party natural gas processing plants. With additional pump
facilities, the pipeline could eventually transport up to 110,000 bpd.
What will be the pipeline's operating pressure?
The proposed operating pressure of the Bakken Pipeline is 1,440 pounds per square inch(psig). During operation, the
overall pressure in the pipeline would fluctuate depending on whether the product is traveling to or from a pump station.
After the NGLs leave the pump station, the pressure decreases uniformly along the pipeline until it reaches the next
pump station.
What other facilities will be needed?
Unmanned pump stations used to pressurize the pipeline would need to be constructed at various points along the
pipeline route. ONEOK Partners anticipates needing five pump stations along the pipeline. Each pump station would
occupy approximately two acres of land.
ONEOK
BAKKEN PIPELINE
Frequently Asked Questions
www oneokpartners.com/bakkenpipeline
How was the preliminary route for the Bakken Pipeline selected?
ONEOK Partners worked with engineering and environmental firms to develop the preliminary route. As the Bakken
Pipeline routing process proceeds, the company will work with local, state and federal agencies to determine a route
that minimizes impacts to humans and the environment and allows for an efficient and cost-effective means to transport
NGLs.
Many factors go into selecting a pipeline route, including:
• Human—choosing a route that minimizes impact and ensures public safety;
• Environmental—choosing a route that minimizes disturbances to biological and cultural resources; and
• Constructability—terrain and obstacles such as roads,waterbodies, and other utilities must be considered to
achieve safe and efficient construction.
What experience does ONEOK have in designing, building and operating pipelines?
ONEOK Partners is one of the largest publicly traded master limited partnerships and is a leader in the gathering,
processing, storage and transportation of natural gas and natural gas liquids in the United States. The company
operates one of the nation's premier natural gas liquids systems--connecting NGL supply in the Rocky Mountain and
Mid-Continent regions with key market centers. In addition, the company owns and operates:
• 15,500 miles of gathering pipelines;
• 7,000 miles of transmission pipelines;
• 52 billion cubic feet of storage capacity;
• 13 processing plants; and
• 770 million cubic feet per day of processing capacity.
ONEOK Partners'general partner, ONEOK, has owned and operated natural gas pipelines since 1906.
Will ONEOK Partners own the Bakken Pipeline?
Yes. When completed, the Bakken Pipeline will be owned and operated by ONEOK Partners through a subsidiary.
Why is the Bakken Pipeline needed?
Demand for NGLs by agriculture and the petrochemical and plastics industries, as well as for refining and home heating,
is growing. The Bakken Pipeline will initially transport approximately 60,000 bpd for these important uses. Furthermore,
the Bakken Pipeline will give natural gas producers in North Dakota and Montana opportunities to grow.
Are there other ways to get NGLs to market?
Yes, NGLs can be transported by truck or by rail. However, United States Department of Transportation statistics show
that pipelines are the safest, most efficient way to transport these products, particularly across long distances.
How will the Bakken Pipeline benefit the communities along the proposed route?
Communities located along the Bakken Pipeline would benefit from construction-related jobs and expenditures and
from tax revenues over the life of the pipeline. ONEOK Partners also invests in programs that align with its values and
enhance the quality of life and economic well-being in the communities where it operates and where its employees work
and live.
_ _= ONEOK
Frequently Asked Questions = BAKKEN PIPELINE
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www.oneokpartners.corn/bakkenpipeline
What is the expected schedule (regulatory, construction, etc.)?
The Bakken Pipeline will require approval for construction from a number of federal and state agencies. ONEOK
Partners anticipates filing applications with these agencies in early 2011. Pending regulatory approval, construction on
the Bakken Pipeline will begin in early 2012 and be completed by mid-2013.
Spring 2011 Introduce Bakken Pipeline to public
Spring 2011 Begin environmental and cultural surveys
Winter 2010-Spring 2011 Submit permit applications to regulatory agencies;Acquire right of way
Fall 2011 Complete environmental and cultural surveys
Spring 2012 Begin construction (pending approval)
2013 Pipeline in service (anticipated)
Will the Bakken Pipeline be safe?
ONEOK Partners' highest priority is the safety of the public and its employees. The Bakken Pipeline will be designed
and constructed to meet or exceed government and industry standards, monitored daily during construction, inspected
regularly to ensure pipeline integrity and tested prior to going in service. When the Bakken Pipeline is operating, trained
technicians will monitor and control the pipeline around the clock using highly sophisticated sensors, computers and
communications technology. ONEOK Partners will work with the public on how to live and work safely near the pipeline
and inform local emergency responders of how to respond to any emergency situation.
How will the Bakken Pipeline be monitored?
Pipeline control personnel provide 24-hour electronic surveillance of ONEOK Partners' pipeline operations. In addition,
ONEOK Partners uses a number of inspection methods and processes to mitigate corrosion and minimize the potential
for third-party damage to the pipelines. These include regular right-of-way patrols, inspections of cathodic protection
equipment and coordination with the State One-Call Centers to mark the pipeline or be present during excavation to
ensure the public's safety and the integrity of the pipeline.
What happens if the Bakken Pipeline were to leak?
While ONEOK Partners goes to great lengths in the design, construction, operation and maintenance of its pipeline
system to ensure safety and reliability, the possibility of a leak does exist. If a leak were ever detected on the Bakken
Pipeline, the company would stop the flow of product automatically from its control center. ONEOK Partners continues
to establish and maintain contact with appropriate fire, police and other public officials. This communication establishes
the responsibility and resources of each government organization that may respond to a pipeline emergency. The
company also acquaints officials with the abilities of the pipeline operator when responding to an emergency. In all
cases, emergency responders are directed to protect people first, then the environment and next property.
How will the public know where the pipeline is once it's in the ground?
Pipeline signs mark the approximate location of the pipeline in the right of way. These signs indicate what material is in
the pipeline, the name of the pipeline operator and its telephone number and are located where the pipeline
intersects public road crossings, river crossings and railways. However, these signs do not indicate the exact location of
the pipeline, nor the depth of the pipeline. The pipeline may not follow a straight line between the signs. Also,
someone may have moved or damaged the pipeline sign without the operator's knowledge. When excavation work is
done in close proximity to the pipeline, ONEOK Partners marks the location of its pipeline with temporary signs.
ONEOK
Frequently Asked Questions = BAKKE" PIPE""E
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www.oneokpartners.com/bakkenpipeline
What steps will ONEOK Partners take to protect the surrounding environment?
ONEOK Partners is committed to protecting the environment during all phases of construction of the Bakken Pipeline.
Before construction begins, surveys of the pipeline route will be conducted to identify wetlands, streams, threatened and
endangered species, cultural resources, agricultural areas and special land-use designations. In consultation with state
and federal agencies, the company will develop mitigation plans to protect these sensitive areas during and after
construction. Once the pipeline is operational, ongoing monitoring and maintenance activities will be implemented to
ensure the safe operation of the pipeline.
Will landowners be notified before crews begin survey work?
Yes. Landowner representatives will contact all landowners to receive their permission before any survey activities are
conducted on private property.
How will ONEOK Partners acquire the rights to build the Bakken Pipeline on private land?
ONEOK Partners will negotiate easement agreements with affected landowners to give the company the right to
construct, operate and maintain the pipeline along a specified portion or corridor of each landowner's property in return
for monetary compensation. The company will seek a permanent pipeline easement,with an additional temporary
easement during construction. When applicable, the company will offer additional compensation for damages resulting
from pipeline construction, such as the loss of crops.
How wide will the easement be?
A permanent 50-foot easement will be sought for the construction of the Bakken Pipeline. An additional 25-foot
temporary easement will be necessary during the construction phase of the project. This temporary easement will be
reclaimed and could return to normal use once construction is complete.
What restrictions will there be on the right of way?
In general, landowners will have the right to use and enjoy the right of way just like they have in the past, with minimal
restrictions that will be specified in the easement agreements. Those restrictions are in place to ensure public safety
and the integrity of the pipeline facilities. Examples of restrictions could include prohibiting the construction, excavation,
drilling, blasting, installing or erecting of any structure within the easement without the prior written consent from ONEOK
Partners and the planting of deep-rooted trees or crops. There would be no restrictions for crossing the right of way with
normal farming equipment. However, if landowners plan to cross with heavy equipment or excavate near the right of
way, the company requests that they first contact ONEOK Partners or their local One-Call service to ensure it's done in a
safe manner.
Does ONEOK Partners have the power of eminent domain? Will it be used?
On most pipeline projects, the vast majority of easement agreements are reached through negotiations between
landowners and the project proponents. ONEOK Partners is committed to this process and would only use eminent
domain authority as a last resort in the uncommon event that an agreement cannot be reached with an individual
landowner.
ONEOK
BAKKEN PIPELINE
Frequently Asked Questions = =
www.oneokpartners.comlbakkenpipeline
What happens if a community or an individual landowner doesn't want the pipeline on their
property?
ONEOK Partners will seek input from communities and landowners who will be directly impacted by the Bakken Pipeline.
The company will consider suggestions put forward by the communities and landowners and make every effort to
address raised concerns.
Will the proposed pipeline route be on private or public lands, or a combination of the two?
The preliminary route currently being analyzed is mostly on private lands, although there are sections that cross public
lands.
What can the public expect during construction?
• The first step of pipeline construction involves surveying and staking the pipeline right of way and then clearing
and grading it, where necessary, to create a suitable working surface for workers and equipment. A trench,the
depth of which may vary according to local conditions but must comply with regulatory standards, is then dug for
the pipeline.
• The second step involves laying the pipe along the right of way, also known as"stringing." When necessary,
the pipe sections are bent to conform to the contour of the surrounding land.The pipe sections are then welded
together by qualified welders. Welds are then x-rayed to verify their integrity before being coated and inspected
prior to being lowered into the trench.
• The third and final step involves backfilling the trench. Through a process call hydrostatic testing, the pipeline
is then filled with water and safely pressure tested to validate its design and strength. Finally, the construction
area along the entire pipeline right of way is restored and monitored in accordance with permit requirements and
landowner agreements.
How will construction impact landowners' properties?
While landowners could experience temporary disturbances during construction, ONEOK Partners will make every effort
to minimize disturbance and inconvenience to landowners. Construction equipment and personnel will be working within
the right of way—typically 75 feet—and any other areas specified in the easement agreement that are needed for
temporary work space. The company is responsible for restoring the right of way and temporary work spaces to their
former condition. Right-of-way agents will discuss any concerns that arise during construction and will be available to
landowners to address any concerns they might have during the pipeline construction and the cleanup of the disturbed
areas on their land.
How long will construction last?
Pending regulatory approval, construction is scheduled to begin in the spring of 2012 and continue until complete or as
weather permits in the winter months. If required,the construction activity will resume in the spring of 2013 and
conclude with restoration activity and placing the pipeline into service.
ONEOK
= BAKKEN PIPELINE
Frequently Asked Questions
www.oneokpartners.comlbakkenpipel i ne
How deep will the pipe be buried?
The pipeline will be buried to a depth necessary to allow consistent use of the land as agreed to in the easement
agreements. That being said, the pipeline will generally be buried three feet below the ground's surface in order to meet
the requirements of the U.S. Department of Transportation pipeline safety regulations.
When will ONEOK Partners begin consulting with stakeholders?
ONEOK Partners will begin formal outreach to communities, landowners and other stakeholders in early 2011. This
outreach will continue through all phases of the Bakken Pipeline.
What opportunities will the public have to learn about and comment on the Bakken Pipeline?
ONEOK Partners is committed to proactive and meaningful dialogue with landowners, communities and other
stakeholders to inform them about the Bakken Pipeline and identify their issues and concerns.The company will provide
stakeholders with opportunities to learn about the Bakken Pipeline and share their views.
Additional Information and Contacts:
www.oneokpartners.com/bakkenpipeline
Toll-free telephone number: 855-217-7918
ONEOK Partners Contacts:
Brad Borror,Corporate Communications
(918) 588-7582, (918)261-5678
bborror@oneok.com
Mick Urban,Government Relations
(785) 271-3038, (785)221-9943
murban@oneok.com
Steve Johnson, Government Relations
(913) 319-8604, (785) 865-6130
sjohnson@oneok.com
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