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News Release CONTACT:
Patty Dunn
Office: 651/292-8062
dunn@minncanproject.com
FOR IMMEDIATE RELEASE, JANUARY 3, 2006
MINNESOTA PIPE LINE COMPANY PLANNING EXPANSION PROJECT TO BRING ADDITIONAL CRUDE OIL TO LOCAL MARKETS
ROSEMOUNT, Minn . – Minnesota Pipe Line Company today submitted a Certificate of Need application to the Minnesota Public Utilities Commission for a pipeline expansion project. The $300 million MinnCan Project would create a pipeline to deliver additional Canadian crude oil to Minnesota refineries.
“Additional supplies of Canadian crude oil are expected to become available in the next several years,” said Larry Van Horn, MinnCan Project Manager. “The MinnCan Project would supply Minnesota refineries with needed crude oil safely and efficiently, and bring jobs and tax revenue to the communities through which it passes.”
Continued growth in crude oil consumption in the United States and abroad, the recent instability in some crude oil-producing nations in the Middle East and South America, oil and fuel supply disruptions due to hurricanes in the Gulf Coast, and a growing concern about the continued access to some foreign crude oil reserves have all contributed to tight crude oil supplies and rising fuel prices in Minnesota and across the nation.
The MinnCan Project would tap into expanding sources of crude oil from proven oil reserves in Canada, thereby creating more stability in the Minnesota market for the supply of gasoline, diesel, jet fuel, asphalt, and other petroleum products.
MinnCan Project
The 24-inch pipeline would cross 300 miles of the state as part of the company’s existing pipeline system, which is owned by Minnesota Pipe Line Company and operated by Koch Pipeline Company. As currently configured, the system has reached its capacity.
Using existing rights-of-way as much as possible, the northern portion of the new pipeline would follow the existing system’s route, which begins in Clearbrook, Minn. and extends south-southeast toward the Twin Cities. The proposed southern portion of the MinnCan Project would be constructed west and south of the Twin Cities in more rural areas . It would end at the Flint Hills Resources Refinery in Pine Bend, located in the southeastern metropolitan area of the Twin Cities. This endpoint will provide a direct interconnection with that facility and a direct interconnection, through existing pipeline facilities, with Marathon Petroleum Company’s St. Paul Park Refinery.
In 2006, the MinnCan Project team will work to secure rights-of-way and permits and complete design and other preparation work. Construction would take place in 2007, and the pipeline would be operational in early 2008.
Economic Impact
The project would serve as an economic stimulus, providing commerce for local businesses and an estimated 1,000 new construction and construction-related jobs during the anticipated eight-month construction period.
Once operational, the pipeline would contribute to the region’s industry and commerce, with little visible impact on surrounding communities. The MinnCan Project would generate about $9 million in annual local property tax revenues. Counties crossed by the pipeline would receive a portion of the local property tax revenues, depending on the number of pipeline miles in each county and the placement of pipeline-related facilities such as pump stations.
Working with Communities
Throughout the process of siting, constructing and operating the pipeline, the project team will keep local communities and interested parties informed, and will address community questions and gather local input. Minnesota Pipe Line Company will also work with landowners along the proposed pipeline route to help preserve the traditional use of their land.
Minnesota Pipe Line Company will individually notify each landowner affected by the project. Additionally, the company will participate in state-sponsored public meetings to review the project plan with landowners, community members, and business owners along the proposed pipeline route.
In addition, the MinnCan Project has a Web site (www.MinnCanProject.com) containing up-to-date project information and a toll-free number (877/796-7846) for the public to call with questions.
Safety and Environmental Impact
Safety and environmental stewardship are top priorities in the routing, construction and operation of the MinnCan Project. Koch Pipeline Company, as operator of the Minnesota Pipeline system, and Minnesota Pipe Line Company have engaged and will continue to work cooperatively with the appropriate agencies, such as the Minnesota Public Utilities Commission and the Minnesota departments of Commerce, Agriculture and Natural Resources as well as landowners and communities to select an optimal route and maintain good communication about the proposed project.
Minnesota Pipe Line Company has studied alternative routes for the proposed MinnCan Project. After considering how to best serve communities, landowners and environmental considerations, Minnesota Pipe Line Company selected the proposed route. The company will work with the appropriate state agencies to ensure that the proposed route is the optimum location for the pipeline.
“Regular communication with the public and open public meetings will inform the public of our plans and help keep project coordinators abreast of local input,” Van Horn said. “Minnesota Pipe Line Company is committed to working closely with landowners and other affected communities.”
Minnesota Pipe Line Company and Koch Pipeline Company
Minnesota Pipe Line Company is owned jointly by Flint Hills Resources, Marathon Pipe Line L.L.C., and Trof, Inc. The company’s crude oil pipeline system is operated by Koch Pipeline Company, L.P.
Koch Pipeline Company is a wholly owned, independent subsidiary of Koch Industries, Inc. Koch Pipeline Company owns or operates about 4,000 miles of pipeline that carry about 1 million barrels of crude oil, refined products, and natural gas liquids daily. The company’s Northern Division, headquartered in northern Dakota County, Minn., employs 52 people and operates five pipeline systems.
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