Report Volume XXI, Number 21, July 1st, 2010

INDUSTRY NEWS (Houston, TX) – PipeLine Machinery International (PLM), Caterpillar’s global pipeline equipment dealer, has recently teamed with LaValley Industries and is the exclusive distributor of the DECKHAND™ Pipe Handling System, for use in pipeline and directional drilling construction.

The DECKHAND system accomplishes precise pipe handling and placement without requiring ground crew to work in the vicinity of moving pipe. The system can also safely handle pipe in inclement weather and snow and ice conditions. “We are pleased to offer this new-generation pipe handling system to the industry,” said PipeLine Machinery International Senior Vice President Tony Fernandez. “Precision movement of pipe, until now, necessitated putting ground crew in close proximity to moving pipe in order to line it up, stabilize it and sometimes to clear it of snow or mud debris. Not anymore. The DECKHAND system is one more solution for our customers’ safety and operating challenges in the field.” The system consists of the main head which mounts to most excavators, as any other work tool, using the Quick Attach function. The excavator’s hydraulics and electrical systems are easily connected to the DECKHAND, using two quick couplers. Interchangeable grab arms are designed for use with directional drilling pipe casing (Directional Drilling Arms), multiple sizes of utility pipe (Utility Arms) and mainline pipe (Pipeline Arms).

Winter Conditions-The DECKHAND system performs as well as the excavator in extreme temperatures because it uses the excavator’s hydraulics and power. The grab arms can pick up even snow-covered pipe and hold it securely as it is lifted, lowered, rotated, tilted and moved.

Precise Control-The Directional Drilling Arms for the DECKHAND system securely grip pipe casing and easily maneuver it through various angles and either stack it or securely hold it for connection on the drilling platform. The DECKHAND head has full 360 degrees of controlled movement plus side-to-side and tipping capability. This allows the operator working with directional drilling operations to manipulate, stack and hold the pipe without endangering platform crew. The operator working with pipe stockpiling and stringing uses the tilt function to handle pipe in multiple working angles to allow for grade conditions. The shift function on the DECKHAND main beam allows the pipe to be moved 5.5 inches from side to side for clean, neat stockpiling. The DECKHAND Pipeline Arms are designed to securely grip the pipe without disturbing a stockpile or truckload of pipe. Specially designed pipe protection pads on the Pipeline and Utility grab arms are easily replaced as needed and with predetermined and preset hydraulic pressures, prevent damage to the pipe and coating. In addition, the grab arms can grip securely from an offcenter position on the pipe allowing for more control in areas with tight accessibility.

INDUSTRY NEWS (Pearland, TX) – Driver Pipeline, one of the country’s most successful pipeline construction companies, headquartered in Dallas, Texas, announced the addition of Anthony (Tony) Perot to its management team as Senior Vice President of Operation. In his new position, Mr. Perot will be responsible for operations in all five divisions of Driver Pipeline and report directly to Driver Pipeline President, Jim Shaffer.

In making the announcement, Shaffer stated that, “The addition of Tony Perot to the Driver Pipeline management team adds depth and tremendous experience to a group of managers that are already among the best in the industry. We are very excited that Tony has decided to join our family here at Driver Pipeline.”

A well know professional in the pipeline industry, Perot has held senior management position with several major oil and gas companies in Texas, Oklahoma, Arkansas and Louisiana. His extensive experience includes numerous large projects in most of the major oil and gas fields in the South and Southwest. A native of Columbia, Louisiana, Perot has degrees in both business and construction management from Northeast Louisiana University to go with his 40 years experience in pipeline construction and construction management. That experience includes both onshore and offshore pipelines, natural gas compressor stations, oil pumping stations, meter and regulator piping facilities. “Driver Pipeline has great people and terrific facilities,” Perot said. “I’m excited about joining a company that is so committed to their people and the incredible growth opportunities that are on the horizon. This is going to be exciting.”

Driver Pipeline operations include five divisions located in Dallas, Fort Worth, Pearland (Houston), Balch Springs, (Eastern Dallas County), and Haynesville (Shreveport).

INDUSTRY NEWS (Houston, TX) – Kinder Morgan Energy Partners, L.P. recently launched a 30-day non-binding open season to further gauge shipper interest for its Marcellus Lateral Project, which would enable the company to offer a new service for moving natural gas liquids (NGL) from the Marcellus Shale Basin to fractionation plants and petrochemical facilities near Sarnia, Ontario. The NGLs would be transported via approximately 230 miles of new pipeline and KMP’s existing Cochin pipeline system. Subject to regulatory approvals and necessary capital investments, Marcellus NGL shipments could begin as soon as mid-2012. Given appropriate levels of shipper support, Kinder Morgan could move over 150,000 barrels per day (bpd) at a rate as low as nine cents per gallon.

“We have developed our proposal based on discussions with Marcellus producers and gas processors and believe that Kinder Morgan offers the quickest and most efficient solution for the delivery of NGLs to the premium Ontario market,” said Don Lindley, vice president of business development for KMP’s Products Pipeline group. “We also anticipate, at some point in time, reversing a section of Cochin to offer service to Chicago area refiners, fractionation plants and petrochemical facilities.” Cochin is a multi-product pipeline consisting of approximately 1,900 miles of 12-inch pipeline operating between Fort Saskatchewan, Alberta, and Windsor, Ontario. Cochin traverses three provinces in Canada and seven states in the United States, transporting propane, butane and natural gas liquids to the midwestern United States and eastern Canadian petrochemical and fuel markets. The pipeline includes 31 pump stations spaced at 60-mile intervals and five U.S. propane terminals. Underground storage, owned by third parties and KMP, is available at Fort Saskatchewan and Windsor.