REX pipeline to add compression to Chandlersville station
CHANDLERSVILLE - Local officials have reached an agreement with representatives of Rockies Express Pipeline that would allow the company to haul oversized loads along Muskingum County roads as they plan to expand power at their compressor station.
Signed on Jan. 25, the agreement holds REX liable for any damage the heavy hauling does to the roadways they use. In effect, the company is responsible for the costs that arise to both maintain and repair the roadways if any damage occurs, according to the maintenance agreement, which was signed by the county commissioners and REX Vice President Richard Sears.
Officials with REX plan to add compression to the existing Chandlersville station, said Phyllis Hammond, a spokesperson for Tallgrass Energy, which jointly owns the interstate pipeline with Sempra U.S. Gas & Power, and Phillips 66.
The project will not involve installing more pipeline, though officials will oversee the installation of three more compressors at the station, adding 36,000 more horsepower, Hammond said. It's part of an overall so-called "three capacity enhancement," whereby REX officials look to increase east-to-west delivery of natural gas across the Midwest.
But REX and county officials have run into trouble before when the company hauled heavy loads across county roads in 2011. It was during the construction of the pipeline at the 20-acre site near Philo that officials on both sides negotiated a settlement of $303,000 for road repairs after trucks with REX damaged the roads, according to past Times Recorder reports.
County commissioners at the time advanced County Engineer Doug Davis' funds to repair the road damaged by tractor-trailers hauling loads to the compressor station, which houses natural gas compressors and in which workers monitor equipment and valves as gas moves through the pipeline.
After the county reached the settlement with REX to pay for the repairs, pipeline officials also noted at the time that $70,000 in property tax revenues for the station would offset the difference between the settled amount and what Davis had requested, which was $478,000.
But despite past problems, Davis said he is optimistic about the upcoming project and does not foresee any more issues.
“This time all the pipelines are in. They already own the property,” Davis said.
If REX fails to properly maintain the roads, the county is required to call representatives to inform them of the problem and give them 72 hours to reply before taking action to repair the damage at REX's expense, according to the agreement. Both parties also agreed to contact each other and make a good-faith effort to resolve any disputes that arise.
The agreement allows REX to use multiple county and township roads, as well as U.S. and state routes. This includes portions of U.S. 40, U.S. 22, Ohio 60, Ohio 78, Ohio 37, Ohio 555, Ohio 669 and County Road 32 for the heavy hauling operation, according to the agreement.
As of now, the timeline for the project hinges on getting a certificate to move forward from the Federal Energy Regulatory Commission, which regulates the interstate transportation of electricity, natural gas, and oil.
The 1,700-mile pipeline transports natural gas from as far east as Monroe County in Ohio to as far west as northwestern Colorado and southwestern Wyoming. REX provides natural gas to millions of customers in Ohio, Indiana, Illinois, Kansas, Missouri, Nebraska, Colorado and Wyoming, Hammond said.
New facilities associated with the project will create up to 800,000 dekatherms of natural gas a day - the rough equivalent of 1,000 cubic feet of gas, Hammond said.
REX will oversee the construction of three new compressor stations - one in Pickaway County, one in Fayette County and the other in Indiana. Each station will house compressors to boost gas pressure and move gas through the pipeline.
elagatta@zanesvilletimesrecorder.com
740-450-6753
Twitter: @EricLagatta