Another pipeline wouldn’t help, officials say

The Atlanta Journal-Constitution

Wednesday, October 01, 2008

Last year, the Colonial Pipeline Co. tried to get an OK from Georgia’s legislature to fast-track construction of a new $2 billion, 460-mile fuel line from Louisiana to Cobb County.

Colonial officials said fuel traversing the two existing lines that stretch from Houston to New York often gets bottle-necked before arriving in Atlanta. But state House members killed the bill that would have eased the permitting process. Those who opposed the bill said it would erode property rights and evade environmental scrutiny.

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Pipeline officials say that even if the new line existed today, it would not have prevented the gasoline shortages that have plagued Atlanta drivers since back-to-back hurricanes Ike and Gustav hit Gulf refineries.

“Right now, the third line would not matter; we’re pumping everything we can get,” said Sam Whitehead, a spokesman for Colonial, which is headquartered in Alpharetta. “This is a refining problem, not a pipeline capacity problem. On the gasoline line, we’re at pre-hurricane rates.”

Colonial’s two existing 36-inch lines can deliver 100 million gallons a day to the Eastern Seaboard. They are now operating at less than 85 percent capacity, he said, adding that there is plenty of capacity to handle the extra gasoline that is arriving as refineries ramp up production to replenish empty Atlanta gas stations.

One pipeline is dedicated to gasoline, while the other transports diesel and aviation fuels, heating oil and other products.

Whitehead said Colonial can carry as many as 100 different products and has dozens of fuels running at any given time, as one product pushes the next one through the line. The bottle-neck is caused by the concentration of fuels in the first segments of the pipeline before it gets to Atlanta. Whitehead had to end the interview because he was waiting at a gas station to fuel his vehicle and his turn came up.

Colonial officials say the pipelines also are overburdened in summer when gasoline usage spikes and in winter, when demand rises in the Northeast for heating oil. The new line would increase Colonial’s capacity to 134 million gallons a day, accommodating the future growth in consumption, company officials say.

The proposed line would be constructed though 46 miles of Georgia — through Carroll, Haralson, Paulding counties, ending in Austell in Cobb County. The plan is currently moving through the state’s permit pipeline. The state Department of Transportation last year gave approval, saying a new line is needed. Colonial is now trying to obtain a permit from the state Environmental Protection Division. A decision is expected by March.

Last year’s legislation would have removed state transportation and environmental officials from the permitting process and eased limits on eminent domain. In the 1990s, the state mandated those two agencies oversee pipeline additions after a series of spills and amid concerns about the company’s vast powers to take property through eminent domain.

Colonial officials argue they must get approval from the U.S. Army Corps of Engineers for new construction, so state oversight is duplication.

Attorney Ed Hallman, who was hired by property owners last year to monitor the failed legislation, said Colonial’s request to build a new line seems “premature, because we’re trying to reduce energy consumption.”

State Rep. Rich Golick, R-Smyrna, voted against the bill, concerned that Colonial was trying to make an end-run of the process. However, he believes the additional capacity is needed and applauds the company for now going through the state regulatory process.

The pipeline, if approved by state and federal regulators and the company’s board, could be operating by 2012.

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