Roadrunner Gas Transmission Pipeline Project Overview
New Pipeline Being Constructed in Your Area Overview Tulsa-based ONEOK Partners has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (Fermaca), a Mexico City-based natural gas infrastructure company, to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico. The Roadrunner Gas Transmission Pipeline project, to be constructed in phases, includes approximately 200 miles of new, 30-inch diameter pipeline currently designed to transport up to 640 million cubic feet per day (MMcf/d) of natural gas, with up to 570 MMcf/d to be transported to Mexico s growing markets. The estimated cost of the project is approximately $450 million to $500 million. Construction Construction of the Roadrunner Gas Transmission Pipeline in West Texas began in August 2015. The project has been split into three phases and is expected to be completed in its entirety in 2019. ONEOK Partners is working closely with third-party construction contractors throughout the construction phases of the project. ONEOK Partners will manage the construction of the project and will be the operator of the pipeline upon its completion Meeting Demand ONEOK Partners strategically integrated assets position us well to provide natural gas to the Comisión Federal de Electricidad (CFE), Mexico s national electric utility, and a subsidiary of Fermaca, and will service expanding natural gas markets in Mexico to meet ongoing demand needs of large natural gas consumers in Mexico. The pipeline will connect with ONEOK Partners extensive existing natural gas pipeline and storage infrastructure in Texas and create a platform for future cross-border development opportunities. These integrated assets also will provide markets in Mexico access to upstream supply basins in West Texas and the Mid-Continent, which adds location and price diversity to their supply mix and helps CFE replace oilbased power plants with natural gas-fueled power plants. Protecting Precious Resources We have worked carefully to survey and select a route that protects and preserves environmental and cultural resources. This work involved collecting data and conducting studies of localized wildlife, water and soil conditions. Seeking Approval Roadrunner is subject to the jurisdiction of the Railroad Commission of Texas, however, there are a number of other federal, state and local agencies that will issue approvals in connection with the construction of the pipeline. Roadrunner has applied for all preconstruction permits and continues to comply with all railroad commission regulations. In addition, this project is subject to the Nationwide Permit 12 as governed by the U.S. Corps of Engineers and continues to work with the Federal Energy Regulatory Commission (FERC) for necessary approvals regarding the border crossing. Working With Landowners ONEOK Partners has worked diligently with landowners to establish easement agreements, which grant permission for the pipeline to be built, operated and maintained on a specific piece of property. 2
Safety Pipelines are among the safest and most efficient methods of transporting natural gas. ONEOK Partners operates extensive underground natural gas and natural gas liquids pipeline systems, compressor stations and a variety of other facilities. When the Roadrunner Gas Transmission Pipeline is operating, trained technicians will monitor and control the pipeline around the clock using highly sophisticated sensors, computers and communications technology. Safety valves can isolate segments of the pipe. The pipeline will undergo regular inspections, using the latest technology to ensure the integrity of our system. We are committed to the ongoing maintenance of our rights of way and facilities. Ensuring Safety We are committed to operating safely, reliably and in an environmentally responsible manner. Before being placed into service, new pipelines are filled with water and safely pressurized beyond their normal operating conditions to validate the design strength of the pipeline. Involving the Public ONEOK Partners is committed to proactive and meaningful dialogue with landowners, communities and other stakeholders in order to provide information and address their issues and concerns. ONEOK Partners worked with landowners along the pipeline route to ensure that they received fair compensation for an easement on their land. Community Benefits Communities along the Roadrunner Gas Transmission Pipeline will benefit from construction-related jobs and expenditures, as well as tax revenues over the life of the pipeline. When completed, the Roadrunner Gas Transmission Pipeline will help to alleviate the amount of truck traffic on local roadways by providing alternate takeaway options of natural gas from the region. Pipeline Location Signs Pipeline signs like the ones pictured below mark the approximate location of the pipeline. When the Roadrunner Gas Transmission Pipeline is operating, trained technicians will monitor the sensors, computers and communications technology 24 hours a day. These signs are located where the pipeline intersects public road crossings, river crossings and railways and provide contact information for questions regarding the nearby pipeline. 3
Construction Overview The 30-inch diameter pipeline will be made of high-strength steel and coated with a protective layer to prevent corrosion. The pipe will generally be buried three feet below the ground surface, as required by the U.S. Department of Transportation pipeline safety regulations. All regulations regarding construction of a natural gas pipeline will be complied with, and approved construction methods and qualified contractors are being used to build the pipeline. Inspectors are assigned to construction areas to monitor compliance with all local, state and federal rules and regulations. Lands, roads and other facilities will be restored to their previous condition. Construction Sequence Crews begin by staking the construction workspaces and pipeline trench prior to clearing and grading the right-of-way to create a working surface suitable for construction equipment and workers. Next, sections of the pipe are laid along the right of way, also known as stringing. Then equipment will dig the trench separating topsoil from subsoil where necessary. Pieces of pipe will be bent and ultimately welded together to form one long, continuous piece that conforms to the contours of the land. The pipe sections will be welded together by qualified pipeline welders and will be X-rayed to verify their integrity. Coating will be applied over the welds to protect against corrosion. Specialty equipment will be used to lower the welded pipe into the ditch and backfill the subsoil over the pipe. Finally, after the pipeline is installed, the topsoil will be returned and stabilized. The pipeline is then filled with water and pressure-tested to validate its strength as per federal regulation. The right of way is restored as close as possible to its pre-construction condition in coordination with landowners. Design and Schedule Design 30-inch diameter pipeline Made of high strength steel Generally buried a minimum of three feet below ground Project Schedule Spring 2015 Conclude environmental and cultural-resource surveys Submit major permit applications Acquire right of way Third quarter of 2015 Construction begins First quarter of 2016 Phase 1 complete - 170 MMcf/d First quarter of 2017 Phase 2 complete - increase to 570 MMcf/d During 2019 Phase 3 complete - increase to 640 MMcf/d 4
About ONEOK Partners ONEOK, Inc. (pronounced ONE-OAK) (NYSE: OKE) is the sole general partner of ONEOK Partners, L.P., a publicly traded master limited partnership engaged in the natural gas gathering and processing, natural gas liquids and natural gas pipeline businesses. Its general partner is a wholly owned subsidiary of ONEOK, Inc., a diversified energy company with headquarters in Tulsa, Okla. Additional Information and Contacts 855-217-7918 ONEOK Westex Gas Control (800)562-5879 ONEOK Partners Contacts: Stephanie Higgins, Corporate Communications (918) 591-5026, (918) 855-1055 shiggins@oneok.com Brad Borror, Corporate Communications (918) 588-7582, (918) 261-5678 bborror@oneok.com Anne Billingsley, Government Relations (512) 467-4945, (512) 971-3221 abillingsley@oneok.com Steve Johnson, Government Relations (785) 435-8401, (785) 865-6130 sjohnson@oneok.com Buz Bohmeyer, Land Acquisition (918)732-1437 bbohmeyer@oneok.com Baylin Berg, Operations (432)943-2003 bberg@oneok.com 5
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