HomeMy WebLinkAbout20080038.tiff Robert A. Bassett
HOLLAND&HART°
Phone(303)290-1603
THE LAW C Li T W L s T Fax(303) 290-1606
bbassett@hollandhart.com
March 10, 2008
Board of County Commissioners
Weld County
918 10th Street
Greeley, CO 80631
Re: Oneok NGL Gathering, L.L.C.'s lateral pipeline for connection to
Overland Pass Pipeline Facility
Dear Board of County Commissioners:
On Tuesday, February 19th, Bruce Barker, County Attorney, took the time to meet with
myself and a representative of our client Oneok NGL Gathering, L.L.C., an affiliate of
Overland Pass Pipeline Company LLC. Oneok NGL Gathering, L.L.C. is planning to
construct a new natural gas liquids lateral pipeline (the "Lateral Pipeline") to connect to
the Overland Pass Pipeline currently under construction in northeastern Weld County.
The purpose of meeting with Mr. Barker was two-fold: to introduce the County to the
project, and to explain our understanding that a Use By Special Review Permit is not
required for the Lateral Pipeline.
You will recall that the Overland Pass Pipeline is a 750-mile-long interstate natural gas
liquids pipeline that runs from Opal, Wyoming, through the corner of northeastern
Colorado (including Weld County) to processing facilities in Conway, Kansas. In June
of 2006, representatives of Overland Pass made a presentation to the Board about the
pipeline project as part of the review of a Department of Planning Services
determination. The Board determined, as part of that process, that the Overland Pass
Pipeline is exempt from the Use By Special Review Permit requirement of the Weld
County Code because the pipeline will not serve any customers in Weld County and
because of the extensive Federal government's oversight of the pipeline for safety and
operational matters.
The Lateral Pipeline is an extension of the Overland Pass Pipeline. The Lateral
Pipeline will gather natural gas liquids from sites in Weld and Adams Counties and
transmit them to a connection with the Overland Pass Pipeline in northern Weld
County. We delivered to Mr. Barker a full-sized map of the Lateral Pipeline, a reduced
copy of which is attached to this letter. The current phase of the Lateral Pipeline will
be constructed between its junction with the "Fort Lupton Lateral" and the Overland
Pass Pipeline north of State Highway 14. We explained to Mr. Barker how the Lateral
Pipeline will primarily cross private lands and how Oneok NGL Gathering, L.L.C. is
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Holland&Hart LLP
0 //U Phone [303]290-1600 Fax [303]290-1606 www.hollandhart.com
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HOLLAND &HART... in Board of County,
Commissioners
March 10, 2008
Page 2
currently in the process of obtaining easements on those lands, most of which will
parallel existing utility corridors.
Like the Overland Pass Pipeline, the Lateral Pipeline will not exceed 16 inches in
diameter, and will be buried 36" below ground level or deeper from the top of the pipe
to the ground surface. The pipeline system will include all parts of the facility through
which natural gas liquids move in transportation, including, valves, pumps, meters and
other appurtenances connected to the line pipe.
Oneok NGL Gathering, L.L.C. is not a public utility under Colorado law, and none of
the companies which operate the facilities at either end of the pipeline are regulated as
public utilities in the states of Wyoming and Kansas. The Lateral Pipeline will move
natural gas liquids between fixed points. Overland Pass will not provide service to the
public, and there will not be any delivery taps on the line for public usage. Most
importantly, the public will not have the right to demand service from the Lateral
Pipeline. Because of these facts, the Lateral Pipeline is not a public utility and thus
does not require a Use By Special Review Permit under Chapter 23 of the Weld County
Code.
The Lateral Pipeline, like the Overland Pass Pipeline, will be comprehensively
regulated and permitted under federal regulations. These pipelines are regulated under
standards established by the United States Department of Transportation ("DOT") for
the transportation of hazardous liquids by pipeline. See 49 C.F.R. Part 195. The DOT
regulations require pipelines to meet design requirements and comply with numerous
DOT requirements during the construction. The DOT regulations require a pipeline
right-of-way to avoid "as far as practicable, areas containing private dwellings,
industrial buildings, and places of public assembly." The regulations state in specific
detail the requirements for materials inspections, construction inspections, welding,
cover over buried pipelines, backfilling, valves, pumping equipment, etc., and require
that a complete construction record be,maintained for the life of the project. DOT
regulations will continue to gov.ern how the pipelines are operated and maintained after
they are constructed.
You will recall that the Overland Pass Pipeline traversed federal lands in Wyoming and
Colorado, and thus required preparation of an environmental impact statement by the
Bureau of Land Management to analyze the siting of the project on federal, state and
private land. After extensive public participation in the process, BLM issued the final
Environmental Impact Statement and approved construction of the pipeline in 2007.
Under the federal permits, the federal agencies maintain regulatory control over
construction, operation and decommissioning practices relating to the pipeline. Finally,
the Federal Energy Regulatory Commission ("FERC") also regulates the pipelines,
providing commercial oversight.
T. Board of County
HOLLAND &HAR
Commissioners
March 10, 2008
Page 3
In sum, there is continuous federal regulation and oversight through the development,
construction and operational phases of the entire project. Because the Lateral Pipeline
is regulated and permitted under these federal regulations, the exemption in Weld
County Code Section 23-1-90 applies to the Lateral Pipeline project and a Use By
Special Review Permit is not required for the project.
We believe the meeting with Mr. Barker was a helpful introduction to the Lateral
Pipeline project as an extension of the Overland Pass Pipeline. Mr. Barker orally
confirmed our understanding that a Use By Special Review Permit is not required for
the Lateral Pipeline. He asked that we write this letter to you, again introducing the
project, and he stated that he would prepare a letter in response confirming our
understanding.
Of course, Oneok NGL Gathering, L.L.C., any of its representatives, or I, will be glad
to answer any additional questions whenever they may arise.
Thank you for your understanding, and thanks again to Mr. Barker for his time and
efforts.
Very truly,
Robert A. Bassett
for Holland & Hart c.LP
RAB
Enclosure
cc: Bruce Barker, Weld County Attorney
Bob Behrens, Oneok
Steve Allen, Oneok
Tim Koch, Trigon EPC
Rachel Yates
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