Kinder Morgan Energy Partners
Kinder Morgan Energy Partners LP (Template:NYSE was) (KMEP) is a subsidiary of Kinder Morgan, Inc. The company, which is classified as an oil and gas master limited partnership (MLP),<ref name=":0">Template:Cite book</ref> owns or operates petroleum product, natural gas, and carbon dioxide pipelines, related storage facilities, terminals, power plants and retail natural gas in the United States and Canada.
HistoryEdit
Kinder Morgan Energy Partners LP, headquartered at One Allen Center in Houston, Texas, was co-founded by Richard Kinder and William Morgan. The company began in 1997, when Kinder, a former Enron executive, and Morgan purchased the liquid pipeline assets of Enron for $40 million.<ref>Template:Cite book</ref> It has since employed many former Enron employees, including former Enron whistleblower Jordan Mintz.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Kinder Morgan is credited for bucking the trend in MLPs that traditionally deliver low double-digit total return to investors.<ref name=":0" /> It has produced a 26 percent compound growth rate from its founding to May 2009.<ref name=":0" />
On March 1, 2002, Shares of Kinder Morgan Inc., fell to a 15-month low on concern that the company faced competition for assets and on investor wariness about its partnership arrangements.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> On March 1, 2002, Nova Chemicals Corp. sold its 20-per-cent share of the Cochin pipeline, and the sale, for $64 million (U.S.), is subject to right of first refusal by the other Cochin owners, which include subsidiaries of Kinder Morgan Energy Partners LP.<ref>Template:Cite news</ref>
In May 2013, the company acquired Copano Energy LLC (NASDAQ:CPNO, closed), which is now assigned under the company's Natural Gas Pipeline section as well as under Product Pipeline section.<ref name="Acquisition for Copnano">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> On August 10, 2014, Kinder Morgan announced it was moving to full ownership of along with two other partly owned companies, Kinder Morgan Management, and El Paso Pipeline Partners, in a deal worth $71 billion.<ref name="KinderAcquisitions">Template:Cite news</ref> Kinder Morgan announced its completion of the acquisition on November 26, 2014.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> The combined entity became the largest midstream energy company in North America.<ref>Template:Cite book</ref>
Regulatory oversightEdit
The majority of its pipelines fall under the regulatory oversight of the U.S. Department of Transportation. The company maintains a safety record and follows many regulations and procedures to monitor and ensure the integrity of its pipelinesTemplate:Citation needed, despite involvement in numerous accidents as outlined below. Interstate natural gas pipelines are subject to the rate and facility regulation of the Federal Energy Regulatory Commission under the Natural Gas Act.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
FacilitiesEdit
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- Calnev Pipeline (Hazardous Liquids)<ref name="primis.phmsa.dot.gov">Pipeline Operator Information, Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Department of Transportation, http://primis.phmsa.dot.gov/comm/reports/operator/Operatorlist.html, accessed June 22, 2014.</ref>
- Central Florida Pipeline (Hazardous Liquids)<ref name="primis.phmsa.dot.gov"/>
- Cypress Pipeline System (Hazardous Liquids)<ref name="primis.phmsa.dot.gov"/>
- Plantation Pipe Line (Hazardous Liquids)<ref name="primis.phmsa.dot.gov"/>
- Portland Jet Line<ref>{{#invoke:citation/CS1|citation
|CitationClass=web }}</ref>
- Rockies Express-West Pipeline (Gas Transmission)<ref name="primis.phmsa.dot.gov"/>
AccidentsEdit
Template:See also Pipelines operated by this company have failed throughout the United States.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Suisun Marsh diesel spillEdit
On April 28, 2004, a petroleum pipeline owned and operated by Kinder Morgan Energy Partners ruptured, spilling an estimated 1,500 barrels (240 m2) of diesel fuel into marshes adjacent to Suisun Bay.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
Walnut Creek gasoline fireEdit
On November 9, 2004 in Walnut Creek, California, a petroleum pipeline carrying gasoline to San Jose owned and operated by Kinder Morgan Energy Partners (KMEP) was struck by a backhoe used by Mountain Cascade Inc. (MC), a contractor operating in the construction of a water pipeline for the East Bay Municipal Utility District (EBMUD). A massive gasoline spill was subsequently ignited, likely by the unaware welders of subcontractor Matamoros Welding<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> working inside the steel water pipe, resulting in an explosive fireball that caused the deaths, by burns, of four workers and one supervisor and the severe injury of four others. Several nearby homes were ignited and one was partially destroyed. The fire burned for several hours before being brought under control by firefighters from departments throughout the central Contra Costa County region. CalOSHA (California Occupational Safety and Health Administration) cited KMGP Services Company (a subsidiary of Kinder Morgan) for failure to accurately stake-out the pipeline location.<ref>Officials Dole Out Fines In Fatal Pipeline Explosion Template:Webarchive</ref> On Wednesday, July 7, 2005, the California State Fire Marshal assessed a fine of $500,000 upon KMGP, the largest ever levied within the state.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>
On September 22, 2007, KMGP was convicted on six felony charges related to the Walnut Creek Explosion. They were fined $15 million in connection with the case.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> Over $90 million in legal settlements were paid to the various victims of the explosion.<ref>Victims Have Rights in the San Bruno Explosion Template:Webarchive</ref>
Burnaby crude oil spillEdit
On July 24, 2007, a crude oil pipeline owned and operated by Kinder Morgan Energy Partners was ruptured by an excavator digging a storm sewer trench. The rupture was a few hundred meters from the final location at the Westridge Marine Terminal. It resulted in almost 2,000 barrels of crude oil being released into the residential neighborhood and the ocean near Inlet Drive in Burnaby, British Columbia.<ref name=Burnaby>British Columbia Ministry of Environment. Burnaby Oil Spill. Retrieved on: February 8, 2017.</ref><ref>Vancouver Sun (July 25, 2007). Huge Burnaby Oil Spill. Retrieved on: February 8, 2017.</ref> The crude oil sprayed 11 houses on Inlet Drive and caused an evacuation of the area, forcing 250 residents from their homes.<ref>CBC News ( July 24, 2007). Cleanup continues on B.C. oil spill. Retrieved on: February 8, 2017.</ref> Approximately 600 barrels of the oil flowed into Burrard Inlet, the resulting cleanup costing more than $15 million. The cleanup operation ultimately recovered 1,800 barrels of oil from the Inlet and coastline.<ref name = Burnaby/><ref name="TSB">CBC News (March 18, 2009). Transportation Safety Board releases report on Burnaby oil spill. Retrieved on: February 8, 2017.</ref>
The Transportation Safety Board released a report on the incident in 2009, which concluded that the pipe, which was 610 mm in diameter, was struck and punctured by a contractor’s excavator bucket during excavation of a trench for a new storm sewer line along Inlet Drive in Burnaby.<ref name="TSB" /> On October 3, 2011, three companies—two contractors and Kinder Morgan—each entered guilty pleas to a 21-count indictment in Provincial Court. The Crown sought a sentence of a $1,000 fine and a $149,000 contribution to the Habitat Conservation Trust Foundation, which works to protect B.C.'s fish, wildlife and habitats. Kinder Morgan was also asked to contribute $100,000 to an educational and training program.<ref>CBC News (October 3, 2011). 3 Companies plead guilty to Burnaby oil spill. Retrieved on: February 8, 2017.</ref>
Burnaby Mountain oil spillEdit
On May 6, 2009, a contractor discovered that oil was leaking from one of the tanks Kinder Morgan's Burnaby Mountain terminal. In total, almost 1,700 barrels of crude oil were spilled. Fire and HazMat teams were called to the scene and contained the spill.<ref>Darcy Wintonyk (May 7, 2009). Major oil spill at Kinder Morgan B.C. facility. CTV News.</ref>
Abbotsford oil spillEdit
On January 24, 2012, an oil spill was discovered at Kinder Morgan's Sumas terminal in Abbotsford. Local residents began reporting a strong gas-like smell coming from the area as early as 4:30 a.m. The spill was reported to be limited to a "containment area."<ref>Andrea Woo (April 3, 2012). Oil spill at Abbotsford tank farm raises concerns over pipeline expansion. Vancouver Sun. Retrieved on: 2012-04-23.</ref>
ReferencesEdit
External linksEdit
Kinder Morgan informationEdit
- Kinder Morgan website
- Kinder Morgan Canada
- Terasen Gas
- Kinder Morgan Energy Partners listing in Hoover's