Report Volume XXI, Number 19, June 1st, 2010

INDUSTRY NEWS (Portland, OR) – Northwest Natural Gas Co. will forge ahead with plans to build a portion of its Palomar pipeline through Eastern Oregon, despite failed plans to connect it to a proposed liquefied natural gas terminal at the Columbia River.

The announcement, made recently by Chief Executive Officer Gregg Kantor at the company’s annual shareholder meeting in Portland, comes despite opposition from environmental advocates, including some shareholders, who fear the pipeline’s construction will damage crucial habitats and displace landowners along its path.

NorthernStar Natural Gas Co. on May 4 declared bankruptcy and abandoned its proposed Bradwood Landing import facility in Oregon. The bankrupt company had contracted with NW Natural to build the Palomar pipeline, which would have connected the terminal to the interstate system. NW Natural, in return, would have purchased a portion of the imported liquefied natural gas to diversify its natural gas supply.

Now without the Bradwood terminal, NW Natural is in a bind. The company must find other new supplies of natural gas and NorthernStar still owes NW Natural $17.2 million for the contract, Kantor said recently.

“NW Natural is holding the only lien on the assets of that company so we’re confident they’ll be able to recover what little investment they’ve made so far,” said Michael Bates, a research associate with D.A. Davidson & Co.

That leaves the supply issue. The 217-mile Palomar pipeline would stretch across the Cascades into the Willamette Valley to provide a back-up supply of natural gas from Canada and the Rocky Mountain region.

The company will abandon the western portion of the pipeline, which would have connected Bradwood to the interstate pipeline system. But, he added, finishing the 111-mile eastern portion of the pipeline between Molalla and Madras is now even more crucial for maintaining reliability and supporting population growth.

INDUSTRY NEWS (Houston, TX) – Construction of a $3 billion gas pipeline from Wyoming to Oregon has been pushed back amid work to protect cultural sites and endangered species.

The 42-inch Ruby Pipeline will run 675 miles from Opal (oh- PAL’) in western Wyoming to Malin, Ore., crossing Utah and Nevada along the way. El Paso Corp. initially hoped to begin work this spring.

The BLM says it hopes to approve the project in early July, after the Federal Energy Regulatory Commission works out agreements with each state along the route to protect historic and cultural sites. The U.S. Fish and Wildlife Service meanwhile is working on a plan to protect endangered species.

An El Paso spokesman says he hopes the project can begin as soon as possible.

INDUSTRY NEWS (Ennis, TX) – Polyguard Products, Inc. received the President “E” Award, given by the United States Secretary of Commerce, in Washington D.C. Nate Muncaster, Global Business Development Director, and Shawn Eastham, VP of Corrosion Products Group, accepted the award.

“I always felt Polyguard had a very good shot at winning,” Muncaster said. “But it was never certain. The Commercial Service had after several years of doing the Gold Keys around the world, and starting to see sales come in, informed us we had as good a shot as any company, but it is never certain, as the competitiveness every year is so intense.”

According to the International Trade Administration Web site, the award was created by President John F. Kennedy in 1961, to recognize persons, firms, or organizations which contribute significantly in the effort to increase United States exports.

The site also states that during World War II more than 4,000 “E Pennants” were presented to war plants in recognition of production excellence. The famous flag with the big “E” emblazoned on it became a badge of patriotism in action.

Secretary of Commerce, Gary Locke, stated Polyguard’s achievement in enhancing export growth, helps strengthen the economy and create American jobs.

“I want to congratulate you on your achievement, and for supporting critical exportrelated jobs for American workers,” Locke said. “President Obama’s initiative was designed with one overriding goal: to get people back to work in jobs that provide security, dignity, and a sense of hope for the future. It’s businesses like yours with a proven record of success that are going to help us meet or exceed that goal.”

Shawn Eastham, VP of Corrosion Products Group, said the award was a great accomplishment for the company, and that it would have not been possible without dedication.

“I’m excited about our International growth opportunities for the next 10 years and beyond,” Eastham said. “Our International Division is a big part of our company’s future plans.” Muncaster is a member of the North Texas District Export Council.

“The award represents a successful accolade for 5 1/2 years of single minded focus and dedication, jet lag, disturbed sleep patterns, and heightened coffee consumption!” Muncaster said. “But it was a labor of love.”

Chic Hughes, VP of Pipeline Coatings, and Dolores Dlabaj, Supervisor/Global Sales Support, traveled with Muncaster and Eastham to receive the award.

INDUSTRY NEWS (Houston, TX) – Bringing the most advanced technology to the concrete coating process, CRC-Evans Engineered Systems has raised the levels of accuracy and efficiency that operators can achieve. Based on many years of customer input, CRC-Evans has put digital technology to work so that the coating process is completely consistent and reliable.

Now every aspect of the coating process is digitally controlled from a central console. When an operational parameter needs to be changed, all systems are updated simultaneously and automatically. The result is a remarkable level of efficiency in the field, day after day. Every coated pipe is on-spec, with recorded data to back it up. Gaining complete control over the process means that quality is always superior and productivity is assured.

“The digital applications we have made in our coating plants have revolutionized the process,” said CRC-Evans (title, name). “Our customers like being able to control the operation so easily, especially because it means a reliably good end product.”

INDUSTRY NEWS (Houston, TX) – Gaining greater efficiencies on a pipeline construction project means employing the most advanced technology to cut time and costs. With a double jointing operation from CRC-Evans Engineered Systems, right-of-way welds are reduced by half, as would be expected – but there are other advantages as well.

From long experience in the field, CRC-Evans knows what operators need and provides a choice of land-based double jointing equipment options. Standard systems are pre-engineered for typical and predictable applications. Modified systems can be custom engineered to accommodate special conditions, such as building footprints, automation needs and additional stations. If there is already a setup in place, CRC-Evans can refurbish and upgrade it. Or CRC-Evans experts can examine current setups, troubleshoot problems and present a system evaluation so that the owner can make improvements.

CRC-Evans double jointing systems come with an array of digital technologies that streamline the process and ensure quality. A digital control system allows the operator to increase weld speeds and improve efficiency in single or multi-arc applications. These digital enhancements provide up to 35% more throughput over standard multi-arc systems. Other CRC-Evans system advantages include: 95% power factor correction (for lower installation costs where multiple machines connect to the same plant); remote access; complete versatility in voltages and software; and waveform control technology for complete control of welding details. A user-friendly panel provides single-point control over all functions throughout the welding project and saves procedure data for later access.

With these advantages, CRC-Evans double jointing systems are designed to enhance productivity and efficiency, reduce repairs in the field, and help operators cover more ground faster – all leading to better profitability.