Marathon-Ashland expects pipeline project to be done by May 2003

Published 12:00 am Sunday, December 8, 2002

This spring, gasoline, diesel and jet fuel is likely to flow through Lawrence and nine other counties, but Marathon-Ashland's pipeline construction process hasn't always flowed smoothly.

After approximately two years of negotiating with local governments, government agencies and private citizens, the pipeline construction began in August. Nevertheless, the debate concerning the pipeline has not ceased and has still created lawsuits.

When construction is complete, the 149-mile Cardinal Products Pipeline will transport gasoline, diesel and jet fuel manufactured at the Catlettsburg refinery in Kentucky from a large tank farm in Kenova, W.Va., to Columbus. The pipeline crosses the Ohio River from Wayne County, W.Va. and passes through Lawrence, Gallia, Jackson, Vinton, Hocking, Fairfield, Pickaway and Franklin counties.

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THE REASONS FOR THE PIPELINE

High gasoline prices during the summers of 2000 and 2001 were related to supply shortages that showed the need for the pipeline, according to a fact sheet from Marathon-Ashland, and Ohio River Pipe Line, L.L.C. (ORPL), the Marathon-Ashland subsidiary that owns the pipeline estimated that the petroleum demand growth rate for Central Ohio is projected to be 2.9 percent per year for the next 10 years.

In its preparations for an Environmental Assessment for the pipeline, the U.S. Army Corps of Engineers also reviewed other means of transporting the petroleum such as rail, truck or barge, according to a recent summary judgment in Marathon-Ashland's favor by federal Judge Edmund A. Sargus Jr. The Corps determined that the other means would be more hazardous and costly than a pipeline, particularly in truck transportation because of highway accidents.

Currently more than 100 miles have been cleared for the pipeline, and approximately 30 miles of it has been laid, Jennifer Robinson, spokeswoman for Marathon-Ashland, said.

"It's an exciting time for us, and we continue to look forward to completion," she said. "Assuming mother nature cooperates with us, we expect to be operational by May 2003."

ROUTE CONTROVERSY

Opponents of the project, namely environmental group Stop the Ohio Pipeline (STOP), have criticized the project because the pipeline will cross state nature preserves such as Hocking Hills State Park. Also, STOP claims the pipeline crosses isolated terrain in which emergency response could be complicated and high concentrations of red bed clay, prone to slipping and causing rock falls.

"This is a time bomb because these are fragile and important lands in Ohio," Rick Sahli, an attorney for STOP, said.

STOP's Web site suggested building the pipeline along U.S. Routes 52 and 23, the Scioto River Valley Route, in order to provide faster emergency response and points to the Lansing, Mich., Wolverine Pipe Line Company's Spartan pipeline which will run along Interstate 96.

Tom Shields, a spokesman for Wolverine, said his company's route was selected because building the pipeline along an expressway right-of-way would give emergency personnel better access to it, and the location would also limit third-party damage because the public would not have access to it.

Marathon-Ashland's fact sheet states the Scioto River Valley Route was disqualified for two reasons: the proposed route runs through several population centers such as Circleville and Chillicothe and runs through the Scioto River floodplain, not an industry "best practice" to install pipelines next to floodplains for extended distances.

Also, the company selected the route because it not only avoids population centers, but also because it runs along existing utility corridors and areas less prone to development, Robinson said.

"Native soils [such as red bed clay] were taken into consideration in route selection, engineering and construction," she continued. "There is no evidence this will present a problem in the construction and maintenance of the pipeline."

One government protesting the construction of the Wolverine pipeline is the City of Lansing. Shields said the city is protesting because the pipeline's route is too close to the city's population.

James D. Smiertka, Lansing city attorney, could not be reached for comment Friday.

RISK OF EXPLOSION

Shortly after the pipeline construction began in August, an explosion along the Kanawha-Putnam County lines in West Virginia sent tremors into Lawrence County.

In August, a Columbia Gas line exploded in West Virginia, and in some areas of Lawrence County, the pipeline is near Columbia lines. However, Robinson said in August that the closest the lines will run in Lawrence County is 27 feet, and the lines will only be that close in 3.8 miles of Lawrence County.

Dr. Richard Bady, a Marshall University physics professor said in August if the pipeline were to rupture and spill petroleum, and the Columbia line were to rupture, catch fire, and somehow ignite the petroleum, a disaster could result. He said chances of that happening are very slim.

The pressure of the pipeline will be 1,200 psi (pounds per square inch) and will gradually decrease to 50 psi in Columbus. Sahli claimed that at 1,200 psi, a needle-sized hole would release liquid at a rapid rate.

However, Robinson claimed that the pressure is equivalent to the average person walking four miles per hour. Also, to ensure safety, she said the company is taking several measures such as X-raying all the pipeline's welds and flying the pipeline's route weekly.

"We're glad they [Marathon-Ashland] are taking these measures," Shaner said. "They owe that to the public. But, if you look up 'fool proof,' you'll find that it is theoretic."

ECONOMIC BENEFITS

Because of visiting workers along the pipeline route, Robinson said the construction will bring $3.5 million into the local economies, particularly in restaurants and hotels, with $1.25 million being spent in each area in which an office is located.

"We look at it as a boom to the local economies," she said. "These are positive times in light of a struggling economy."

Margie Conley, assistant general manager of the Grandview Inn in South Point, location of the first-Marathon-Ashland office, estimated that the inn's business increased 45 to 50 percent. The company will close its office this weekend, and the office will move to Jackson, then Lancaster.

The Ohio counties will also share in an $800,000 property tax payout, Robinson said.

RECENT LITIGATION

In August, STOP filed three separate actions, one against the U.S. Army Corps of Engineers and Ohio River Pipe Line, L.L.C., another against the Ohio Environmental Protection Agency, and another against the Ohio Department of Natural Resources.

On Nov. 22, Judge Edmund A. Sargus Jr. of the United States District Court for the Southern District of Ohio, Eastern Division, issued a summary judgment in the Corps and ORPL's favor. If the ruling had been the opposite, the pipeline construction could have been halted.

In this lawsuit, STOP alleged that the Corps acted unlawfully in failing to prepare an Environmental Impact Statement (EIS) and that some of the pipeline's environmental impacts received no meaningful consideration by the Corps. However, the Corps did prepare an Environmental Assessment (EA), which determines whether or not an EIS was needed. Based on the findings in the EA, the Corps determined that no significant environmental impact would occur, Sargus wrote.

Sahli said STOP will file a motion to reconsider because the organization believes Sargus's decision was erroneous and not a proper one. The other lawsuits are still pending, and the state administrative appeal filed against the Ohio EPA in the Ohio Environmental Appeals Commission in Columbus is scheduled for a hearing in April. However, the pipeline may be completed by the time that case is decided, Sahli said.