Attend Georgia Department of Transportation Hearing (GDOT), it is our only chance to voice our concerns and opposition:

GDOT Public Hearing
Tuesday, April 21st, 5 p.m.
Richmond Hill City Center
520 Cedar Street
Richmond Hill, Georgia
http://www.pushbackthepipeline.com

There are currently more than two dozen suppliers of fuel that compete for Coastal Georgia’s fuel supply via pipelines and ocean transport.

1. Pipeline suppliers in North Augusta and Macon include: Motiva/Shell, Citgo, Phillips 66, Mystik, Valero, BP, Chevron, Texaco, Exxon, Sunoco, Gulf Oil, Flinthills, Marathon, Murphy, Colonial Oil, Placid, TransMontaigne, Sun, Noble, Coastal.
2. Ocean Terminal Suppliers in Savannah include: Western Refining, Colonial Oil, Exxon, BP, Sunoco, Chevron and Texaco.

Approximately 20,000 barrels per day (840,000 gallons).

Today, approximately 75% percent of Savannah’s fuel needs are trucked into Savannah from existing pipeline terminals in North Augusta and Macon. The remainder is supplied by competitors, Colonial Oil and Western Refining, through two ocean terminals on the Savannah River.

Kinder Morgan will not answer that question.

The Georgia Code requires that the application include:

1. A description of the project and its general route;
2. A description of the public convenience and necessity which support the proposed pipeline route;
3. The width of the proposed pipeline;
4. A showing that the use of the power of eminent domain may be necessary; and a showing that the public necessity for the petroleum pipeline justifies the use of the power of eminent domain.

It is part of the Georgia Code (OCGA 22-3), subsections 80-88.

Pipelines require permanent easements of 50-100 feet on property upon which owners could no longer build or plant. Owners would be offered one-time payments and must continue to pay property taxes on the impacted land forever.

Over 58% of the pipeline (210 of the 360 miles) and environmental exposure would be in Georgia.

Pipeline construction impact on private and public lands include pine plantations and various waterways and marshlands, as well as local farmers and area residents who depend on their land for their livelihood.

There is a legal provision in Georgia allowing a private company to apply for a Certificate of Public Convenience and Necessity, which, if granted, would entitle them to use our State’s power of eminent domain to take private land even if owners do not want to sell.

Eminent Domain is the power of the government to take private property and convert it into public use.

Kinder Morgan will only disclose it after the pipeline is approved.

Good question. The Georgia Public Service Commission handles all other pipeline regulation in Georgia.

Kinder Morgan gives virtually no details. First, Kinder Morgan says the “pipeline project will provide significant benefits to the energy industry.” They go on to claim that the pipeline “will greatly benefit the destination markets… because it will provide [them] with a second major source” of fuel and a more efficient supply of ethanol. Kinder Morgan also says it will “promote competition within the markets, which could serve to decrease prices.” Finally, Kinder Morgan says that pipeline will “help to ensure the supply needs of the markets are continuously served… and minimize the issues that affect availability of marine transport, such as inclement weather.”

No. The Commissioner’s decision is not subject to review unless he denies the application. If he approves it, the Georgia Code says it is final.

No, Russell McMurry was selected by the Georgia State Transportation Board and is an employee of Georgia Department of Transportation. He reports to Governor Nathan Deal.

According to Georgia Law (OCGA 22-3-83), the decision is in the hands of just one person, Russell McMurry, Commissioner of the Georgia Department of Transportation, or his designee.

We believe they are hiding the truth from the very public whose needs the pipeline purports to serve.

Pipelines require permanent easements of 50-100 feet on property upon which owners could no longer build or plant. Owners would be offered one-time payments and must continue to pay property taxes on the impacted land forever.

Over 200 jobs will be exposed.

Truckers, Port workers and U.S. Merchant Mariners.

Kinder Morgan is unclear about exactly where the jobs will be created, but they say the pipeline project will create no more than 28 permanent positions in total.

Savannah is just a pre-text. Kinder Morgan’s shippers are trying to reach Jacksonville, which has more expensive gasoline prices than Savannah. However, they cannot cost-effectively reach Jacksonville without using governmental powers of eminent domain to take Georgia citizens’ private property and cross Georgia’s marshlands. They cannot acquire that power without proving to Georgia’s Department of Transportation that their pipeline is needed for “public convenience and necessity.” Savannah is Big Oil’s excuse.

Jacksonville, so shippers will be financially motivated to ship product to Jacksonville before sending the first drop to Savannah or North Augusta, at least in the beginning. After they successfully force competition out of Jacksonville, they will set their sights on Savannah and other markets.

Shippers are financially motivated to ship gasoline to the highest priced market net of transportation.

They can’t – the decision lies solely in the hands of the refiners/shippers.

Approximately 20,000 bbls/day (840,000 gallons).

North Augusta – 40,000 bbls/day (24%). Savannah – 25,000 bbls/day (15%). Jacksonville – 102,000 (61%).

North Augusta, South Carolina. Savannah, Georgia. Jacksonville, Florida.

Kinder Morgan cannot guarantee we will receive any of it, but the maximum amount that could be delivered is less than 15% of the planned pipeline capacity.

No. Gasoline and diesel demand are declining in Georgia and Florida. According to the US Energy Information Administration, Georgia’s petroleum demand peaked in 2005 and has declined 18% through 2012 (the most recently available year).

Yes.

Yes.

There will be no competition.

It won’t.

The independent shipper would have to both buy gasoline and space on the pipeline from the very companies against whom they need to compete, like Exxon and Marathon.

No. Kinder Morgan and Exxon are expanding the Plantation Pipeline’s capacity to be able to serve the Palmetto Pipeline, but this additional capacity is believed to be controlled by large oil companies.

There are two requirements:

1. A shipper must have access to an existing pipeline (like Kinder Morgan and Exxon’s Plantation Pipeline) to even reach the Palmetto Pipeline and
2. A shipper must buy gasoline from a refinery that ties into that same pipeline (like Exxon and Marathon Oil).

Exxon and Marathon Oil would control the entire supply chain from start to finish. Exxon and Marathon control key refineries at the beginning of the supply chain in Louisiana. They share a huge distribution terminal in Jacksonville, where it will end. The Palmetto Pipeline gives them control of everything in between.

Kinder Morgan has refused to answer this question, but industry insiders suggest it is likely Exxon and Marathon who have the most to gain.

Kinder Morgan owns 51% of the Plantation Pipeline and Exxon owns the remaining 49%.

The Palmetto Pipeline will branch off from the Plantation Pipeline, which originates in Louisiana. Large oil refineries tie directly into the Plantation Pipeline.

Approximately 11 cents.

Depending on the size of the advantage, big oil companies could gain monopolistic control over prices into Savannah and other markets. Kinder Morgan will not publicly disclose the details of its pricing tiers to fully evaluate.

The Palmetto Pipeline is different because the tariff is structured into tiers based upon volume. This structure could be used to advantage big oil refineries over smaller independent shippers and marketers.

Normally, on other pipelines, including the ones currently supplying 75% of Savannah’s demand, every shipper pays the same transportation cost regardless of volume. This pricing structure is important because it allows independent suppliers and marketers to supply fuel on a level playing field with major refineries and oil companies.

There is no way to answer this question if Kinder Morgan will not disclose its tariff.

Kinder Morgan has refused to answer this question.

To have the potential to reduce prices for consumers, two things must be true:

1. The pipeline’s transportation costs must be less expensive than current options;
2. There must be open, fair competition for access to the pipeline.

Kinder Morgan says only that it “could,” but they do not provide enough information to evaluate the competitive impact of this planned pipeline.

The majority of Savannah’s supply would be unaffected because it is already supplied from pipelines. Beyond that, there are 4 other major supply points within 2 hours of Savannah. They are located in Macon, Georgia, North Augusta, South Carolina, Charleston South Carolina, and Jacksonville, Florida.

No. In fact, when Hurricane Rita caused a supply disruption for pipelines, it was the ocean terminals that stepped in and ensured continuous supply for inland markets supplied only by pipeline.

Kinder Morgan has not disclosed how they calculate their number, including whether the $14 million is net of any decreased revenues from reduced property values, higher fuel prices and lost jobs.

Yes, Kinder Morgan claims the project will yield "estimated annual revenue to state and local taxing bodies… of over $14 million.”