1. Transportation Strategy SCMN 4780 Modal Analysis: Pipeline

2. Transportation Strategy SCMN 4780 2 2010 US Shipments(TONS) Truck12,49068% Rail1,77610% Pipeline1,4948% Intermodal1,3808% Water8605% Air120% Other3022% Total18,313 RAIL TRUCK Pipeline Share of US Transportation Market PIPELINE Transportation Pipeline : Long pipe with large diameter, moving products (natural gas, petroleum products) between cities, countries, continents. Pipeline

3. Transportation Strategy SCMN 4780 3 US Pipeline Volume Pipeline Annual volume of pipeline transportation is Pipelines are owned by shippers or operating companies Land is owned by corporate, private (right-of-way) and public (federal, state, local) Material in pipeline is owned by the shipper.

4. Transportation Strategy SCMN 4780 4 Transportation Pipeline Operation Pipeline field devices include instrumentation, data gathering units and communication systems. Operating equipment is installed along the pipeline at specific locations such as injection or delivery stations, pump stations (liquid) or compressor stations (gas), and block valve stations. Pipelines are controlled remotely from a central control room. Pipeline operating data is transmitted from RTUs along the pipeline. All data related to field measurement is consolidated into a single database. Pipeline

5. Transportation Strategy SCMN 4780 5 Pipeline US Petroleum Products Pipeline Network America depends on a network of 168,000 miles of liquid pipelines to safely and efficiently move energy and raw materials to fuel our nation’s economic engine. Pipelines are a vital part of our country’s infrastructure. Our nation’s transportation system could not run without pipelines transporting fuel from producing areas to refineries, and from refineries to distribution points. Pipelines are the safest, most reliable, economical and environmentally favorable way to transport oil and petroleum products and other energy liquids and chemicals throughout the U.S.

6. Transportation Strategy SCMN 4780 6 Petroleum Product Pipeline Information Liquid products move through pipelines at a rate of 3 – 8 miles per hour. Interstate pipelines deliver over 11.3 billion barrels of petroleum each year. 52% of the petroleum transported by pipelines is crude oil and 47% is in the form of refined petroleum products. Due to the significantly high volumes, liquid pipelines are the only feasible method for moving the quantities of petroleum that America requires to keep going each day. Replacing a modest-sized pipeline (150K barrels per day) would require:  750 tanker truck loads per day, a load delivered every 2 minutes around the clock.  225-car train to arrive and be unloaded every day. Pipelines have environmental and safety benefits. Compared to other transportion modes, pipelines do not congest highways and produce negligible air pollution. Pipelines have a lower spill rate per barrel of oil transported than competing modes of transportation, namely trucks and barges. Pipeline

7. Transportation Strategy SCMN 4780 7 Petroleum Product Pipeline Operation Pipeline

8. Transportation Strategy SCMN 4780 8 Pipeline US Natural Gas Pipeline Network The pipeline transmission system, the “interstate highway” for natural gas, consists of 220,000 miles of high-strength steel pipe 20 inches to 42 inches in diameter. It moves huge amounts of natural gas thousands of miles from producing regions to local natural gas utilities and sometimes directly to large users of natural gas.

9. Transportation Strategy SCMN 4780 9 Natural Gas Pipeline Information Natural gas pipelines connected to each other would stretch to / from the moon 3X. Robotic devices (pigs) are used to evaluate the inside of a pipeline to ensure it is safe. Pigs get their name due to the squealing sound they make when they travel through the pipelines. Pipelines are constructed of different material depending on size, pressure requirements and use. Transmission pipes, pipes used to transport gas from supply areas to distribution centers, are made of ¼ - ½ inch thick steel with special coating to protect against corrosion. Transmission pipelines are protected by an electrical shield called cathodic protection. This barrier is achieved by applying an electrical current to the pipeline. 98% of the natural gas transported / used in the US comes from North America. INGAA members operate over 202,000 miles of natural gas pipelines. Natural gas first placed in a transmission line receives a pressure of up to 1,500 psi. By the time it reaches a household piping system, pressure has been reduced to less than 0.25 psi or the pressure created by a child blowing bubbles through a straw. Pipeline

10. Transportation Strategy SCMN 4780 10 Serious Pipeline Incidents YEARnumberfatalitiesinjuries Damage (000) net spilled (barrels) 2002 36 12 49 $ 4,729 - 2003 61 12 71 $ 9,688 - 2004 44 23 56 $ 9,172 860 2005 39 13 47 $ 17,962 3,518 2006 32 19 34 $ 8,058 4,513 2007 45 15 50 $ 18,572 11,961 2008 38 9 57 $ 47,877 5,755 2009 47 13 65 $ 18,955 364 2010 34 19 104 $ 381,118 3,104 2011 40 15 65 $ 6,464 3,283 10 year average 42 15 60 $ 52,260 3,336 Significant Injury - the occurrence of a fatality or injury requiring hospitalization, $50,000 or more in property damage, spill of a volatile liquid of greater than 5 barrels and/or an unintentional fire or explosion. Pipeline

11. Transportation Strategy SCMN 4780 11 Pipeline Employee Safety Pipeline

12. Transportation Strategy SCMN 4780 12 Pipeline Environmental Safety* * measured as barrels of hazardous liquid (42 gallons) spilled and not recovered Pipeline

13. Transportation Strategy SCMN 4780 13 Keystone Pipeline What are the business, environmental and political issues (and consequences) associated with approving the construction of the Keystone Pipeline? Pipeline Handout Keystone article for reading and discussion