Report Volume XXI, Number 11, February 1st, 2010

INDUSTRY NEWS (St. Louis, MO) – Corrpro Companies, Inc. a subsidiary of Insituform Technologies, Inc., announced recently that it has received a $3.6 million task order from the United States Navy. This order was received under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract valued at up to $8.0 million per year. The United States Navy has the option to renew the contract, which expires in September 2010, for up to four years at a value of up to $8.0 million per year.

The task order requires Corrpro to perform engineering services as well as design and installation of cathodic protection systems, field inspections and surveys in military installations worldwide. It is expected that the majority of the work will be located in the United States, Japan, Korea and the South Pacific Islands. Other locations may include military installations in Western European countries. Corrpro has worked with the US Navy on similar projects for over 15 years. Corrpro recently completed a similar IDIQ contract valued at $4.0 million per year, under which it performed approximately $15.0 million of work over five years.

Spencer Turpin, Regional Vice President of Corrpro said, “We are extremely pleased to perform these services for the US Navy around the world. Identifying and installing cathodic protection systems assists the US Navy in protecting important military infrastructure from corrosion. Our certified engineers and corrosion experts are committed to providing quality service and materials on this project.”

Corrpro was selected to bid on the project after undergoing a thorough pre-qualification process. As the general contractor, Corrpro will work with several subcontractors, including locallyowned small businesses, minority-owned businesses and womenowned businesses.

Corrpro will begin work on this project immediately and expects to complete this portion of the work by August 2010.

INDUSTRY NEWS (Pearland, TX) – Driver Pipeline, one of the country’s most successful pipeline construction companies, headquartered in Dallas, Texas, has opened its fifth regional field office in Waskom, Texas, approximately 15 miles from Shreveport, Louisiana. Driver chose the six and a half-acre site as their primary headquarters for servicing the needs of its customers in the Haynesville Shale located in Louisiana, southwestern Arkansas and eastern Texas.

A major player in helping to bring the Barnett Shale to market in north Texas, Driver expects to supply the same pipe-in-ground resources in the Haynesville field. “We are excited about our new Haynesville Division and the opportunity to build a new facility in the area” said Jim Shaffer, President of Driver Pipeline. “Our goal is to bring the experience we have gained helping our Barnett customers to the Haynesville field.”

Harold Peters, District Manager of Driver’s Haynesville Division, is equally optimistic about the prospect of Driver’s newest Division. “Many of the production companies we work with in other areas such as the Barnett field already have operations in the Haynesville field, which is very encouraging” Peter’s said. “That alone doesn’t guarantee us anything unless we perform at the same high level as we have in the past. So far, the reception has been very encouraging. ”

According to Peters, when fully operational, Driver’s Haynesville Division will employ between 150 to 200 people laying anywhere from 4” to 36” pipe. As drilling and production in the Haynesville Shale continues to expand, the need for the pipeline infrastructure that Driver Pipeline supplies will continue to grow.

While the price of natural gas remains somewhat anemic, the rig count in North Louisiana remained positive at 129 in late January 2010. Understandably, with the expectations that Haynesville will become the largest natural gas producing field in North America by 2019, surpassing the Barnett Shale, Driver Pipeline’s Haynesville Division fully expects to play a major role in bringing the gas to the marketplace.

In 2007, Driver completed the construction of its new shops and offices consisting of 5 buildings located on over 30 acres in Irving, TX. These facilities have greatly enhanced the company’s ability to support its teams out in the field. The move has provided additional space for a growing fleet of trucks and equipment, as well as, a greatly expanded fabrication shop, new 18 bay maintenance shop, training center and corporate offices.

What began as a small family business serving a single customer has grown into a fully integrated oil and gas pipeline construction company known for its vast equipment fleet, talented pipeliners, “can-do” spirit and commitment to safety.

INDUSTRY NEWS (Tulsa, OK) – Magellan Midstream- 3.6 billion gallons a year. 1,800 miles long. $4 billion dollars. 20-inch diameter. These numbers describe a new ethanol pipeline plan unveiled last week by Poet Ethanol Products and Magellan Midstream Partners. If built, this would be the first long-distance pipeline in the U.S. and would run from the midwest to the east coast. In some areas, the biofuel pine would run alongside existing petroleum pipelines. In others, it would need to blaze new paths. Poet and Magellan say that 80,000 new jobs would be needed to build the thing, and then 1,100 people would be employed operating it. The soonest that the pipeline could be opened would be four years from now, which would be early 2013. In late 2008, Kinder Morgan Energy Partners successfully tested ethanol in a pipeline, so the technology apparently works. There has also been political support for a project like this, and Poet and Magellan say that the pipeline is dependent on getting a U.S. Department of Energy loan guarantee.

INDUSTRY NEWS (Houston, TX) – Duke Energy is considering a multimillion-dollar plan to install a 19-mile natural gas pipeline that would cross the Ohio River from Kentucky and run along the Southern Indiana shoreline to reach the utility’s Gallagher Station near New Albany. Under a December legal settlement with the U.S. Justice Department and the Environmental Protection Agency, Duke is considering converting two of its four coal-burning generators to gas. The goal of the project — estimated to cost about $80million with the pipeline and other upgrades — is to cut emissions and improve the region’s air quality. But the project is likely to raise new environmental concerns about the impact of drilling and installing the pipeline beneath the river and on riverside wetlands. Army Corps of Engineers spokeswoman Carol Laboshosky said regulators don’t know much yet about Duke’s plans, but any permit application would have to address how water quality would be protected and damage to the river and wetlands would be minimized.

Officials at two environmental groups — American Rivers, based in Washington, D.C., and the Kentucky Waterways Alliance — declined to comment, saying they had little information about the project. Duke representatives sent letters in early January to affected property owners. They’ve begun meeting with local political leaders to explain the proposal, which involves connecting a 20- inch steel line to an existing Texas Gas pipeline near the Kosmosdale area in Louisville and extending it west across the river, then north along Ind. 111 to the power plant. Besides requiring approval from the Corps of Engineers, the Federal Energy Regulatory Commission and other regulatory agencies, Duke would need to buy easements from dozens of Hoosier landowners, a water company, a sand quarry and the Horseshoe Southern Indiana Casino.

It’s not clear if the project would affect area natural gas supplies or prices charged to Louisville Gas and Electric Co. customers. Duke planners haven’t estimated how much gas the utility would need annually but said they don’t expect the amount would affect the flow to Louisville.

INDUSTRY NEWS (New York, NY) – Millennium Pipeline Co said recently it would begin a binding open season on Jan. 25 in order to gauge interest in natural gas transportation on its system, linking production areas in the Marcellus Shale to New York’s City’s island of Manhattan. The Marcellus Shale, located in parts of Pennsylvania, New York and West Virginia, is reported to contain enough natural gas trapped in rock to meet domestic needs for a decade or more.

The open season for firm transportation will run through Feb. 12, for service beginning Nov. 1, 2013, the company said in a statement.

“Our initiative improves the state’s energy infrastructure and encourages development of the state’s gas production and storage resources consistent with the New York State energy plan resulting in economic stimulus and job creation for New Yorkers,” said Millennium’s president Dick Leehr.