Joey Mahmoud for Dakota Access: Bakken Pipeline Hearing Iowa Utilities Board 12/1/15

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• published: 02 Dec 2015
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December 1, 2015 continuing Iowa Utilities Board hearing for the Dakota Access bakken crude oil pipeline proposed to cross Iowa diagonally through 18 counties. Dakota Access LLC witness Joey Mahmoud testifies about the pipeline route, insurance 0:00 witness Chad Carter sworn in; no questions 3:40 Dakota Access witness Joey Mahmoud sworn in & updates written testimony. route crosses 1294 tracts of land and 75.2% are "closed"; 13 railroad xings, 11 are closed. Sunoco blends 52 mil gallons of gas a month. Approval secured for DOT crossings 9:33 Mr Taylor Sierra Club questions: parent companies are Energy Transfer Partners, Sunoco Logistics, and Phillips 66. Guarantees of assets are for liability coverage. They are confidential, discussed in closed session. 12:52 how would a land owner get reimbursed? In an emergency parents fund reclamation. No mechanism for land owner. Because of how LLC works. The parental guarantee is a form of financial back stopping that is triggered by an event. If spill happens, the company responds to shut down pipe and do clean up, then DA works with land owner to compensate for damages. 19:30 insurance policies - $25M damage policy covers 1st, then financial back stopping and other ins pol's. 23:13 operator of pipeline is a different company w/ diff ins. Summary of ins disclosed in confidence to all parties 27:20 oil spill trust fund does only apply to waterway spills. A landowner may be able to collect from fund if DA does not fulfill obligations. Act of God, act of War, gross negligence or misconduct would not qualify 33:30 facility response plan is confidential 34:20 DA would be a common carrier transporting oil for a shipper. The shipper as the customer is sending oil to a refinery that makes fuel products that come back to Iowa. The crude oil product is delivered to Patoka, IL 37:45 SD public utility hearing - no guarantee that product would return to SD. Iowa is more unique b/c pad 2 refinery products are redistributed back to Iowa, but no guarantee. 41:20 DA argues pipeline would reduce # of oil trains. 40% of bakken crude 1M barrels/day would be transported thru this pipeline. don't know impact. 45:08 pipeline starts in ND near Canadian border. possible to connect to other pipelines like KXL. Would have to get a Presidential permit to go across border, diff permit for diff type crude. Board takes a 5 min break 54:15 reconvene - eminent domain and easements. No royalty payments. Voluntary easements are one time payment, full value of property, plus 50% for temp use, plus 3 yrs damages. they still own land and can use it except for minor exceptions. wind pays royalties 58:25 DA's goal to be complete by end of 2016, commitments to shipper customers. Planning and commitments in process for years. construction to start in spring if not wet or cold. topsoil can't be segregated when frozen. wet soil problems can be mitigated with equip and techniques 1:06:10 winter plan will come when they know they need it. horizontal directional drilling may start 1st. construction costs $1M/day. 3-5 contractors on multiple construction spreads which are 50-150 miles. 3 spreads in Iowa will run concurrently. trenching and pipe laying done sequentially like an assembly line. Clear & grade, stringing pipe, dig ditch, weld, coating, lowering in crew, back filling crew, restoration. 1.5 miles per spread per day 1:13:00 some river and streams will be trenched instead of horizontal drill. streams will be closed to rec use for 24-48 hrs. any stream over 100 ft wide is drilled. others individually eval'd for safety, protect, environment, people, and work force. roads and bridges restoration covered by $15M bond 1:25:00 pipeline cannot be routed along existing roads b/c the routing is done to minimize interaction with people by putting it in a remote place. cannot follow property lines b/c too many bends in pipe 1:30:30 AC mitigation is to mitigate stray current from overhead utility lines, zinc ribbon parallel to pipe absorbs current. 1:32:46 County inspectors; "I and S" firm, who worked for DA, is soliciting for Counties. If I and S becomes County inspector they would be paid by DA. 1:35:15 DA is paying for the room for this hearing and a lot of other expenses 1:36:20 DOT approval for all crossings conditional on getting permits 1:37:55 SC ex 1 Iowa Rural Water Assn letter abt impacts on rural water system. DA will talk to them and the drainage districts 1:41:50 break 1:53:00 reconvene 1:54:00 2174 parcels of land, 316 do not yet have easements 1:55:25 financial responsibility Iowa law requires $250,000 bond. no law requires liability insurance 1:57:30 2015 legislation 2:01:32 insurance policies are confidential video courtesy Iowa Utilities Board original stream link https://iub.iowa.gov/live-video-pipeline-hearing https://www.facebook.com/Iowa99Media https://twitter.com/iowa99media http://original.livestream.com/iowa99media Iowa99Media@gmail.com