MAJOR PROJECTS AND NEWS ITEMS - Pipeline Intelligence

1 Pipeline Intelligence Report, October 1, 2010 1 Box 2726 Sugar Land, Texas 77487-2726 (281) 499-3131 FAX (281) 499-3223 Volume XXII, Number 3 2714 Cypress Point, Suite D, Missouri City, Texas 77459 E-mail: October 1, 2010 Continued on page 5 MAJOR PROJECTS AND NEWS ITEMS gether so they could work out all the issues related to this special feasibility hole we did in advance. Design-build is relatively new to the HDD industry, Fluharty said.

2 Design-build offers a subtle but important difference from the typical procedure for HDD PROJECTS . In the typical process, a com-pany such as TECO would hire an engineer to develop plans, pro-cure a construction company to implement those plans and then construct the project -- often called design-bid-build. Design-bid-build requires multiple contracts. With design-build, however, a single company is hired to engineer and to build the project, all under a single contract. Susan Hines of the Design-Build Institute of America says utiliz-ing design-bid-build can create contention between the engineer or designer of a project and the company that constructs the pro-ject. She said it creates a disconnect between the two parties which can often turn contentious because of concerns of liability and litigation.

3 For instance, Hines said when the construction company finds changes need to be made to designs during con-struction, it takes paper work and dialogue for the changes to be approved and implemented. It slows things down a lot, she said. In the end, design-build PROJECTS help to improve two important aspects of any project: money and time. Design build PROJECTS cost at least 6% less than design-bid-build PROJECTS and are con-structed 12% faster, according to the Design-Build Institute of America. At the same time, the institute reports that design-build PROJECTS earned the highest owner satisfaction than other project concepts. One of the main advantages of design build is the fact that every-one on the design and construction job is on the same side, Hines said.

4 They are all sharing in the risks and the rewards of a job well done. She added: Owners save money, they save time. 830-792-5445 THOUSANDS OF HARDWOOD MATS & SKIDS AVAILABLE INDUSTRY NEWS (Rosebush, MI) Mears Group, Inc. com-pleted in April a 7,400-foot Horizontal Directional Drilling bore in Jacksonville, Florida, a design-build project that allows a re-gional energy producer to expand its natural gas Pipeline to serve new facilities. To complete the project, Mears drilled a 7,400-foot pilot hole beneath the St. Johns River at a depth of 130 feet below river bottom to install the 16-inch steel pipe. It is an essential link in a 50-mile Pipeline that ends at the Jacksonville Electric Author-ity (JEA s) Greenland energy Center.

5 Though just miles of the 50 mile Pipeline , the section under the St. John s River proved the most daunting in planning stages. This was the biggest obstacle to go from one side to the other, said Mark Haney, director of engineering for TECO Peoples Gas, the company that owns the Pipeline . Haney said HDD was virtually the only option to install the pipe-line through that area. Other than HDD, there were no other good options. But project officials said the timing of the project was also a MAJOR issue. Haney said that the Pipeline providing service to the power plant will be operational by Jan. 1, 2011. That means JEA was depend-ent on the Pipeline being in place in time to move forward on the operation of the power plant.

6 To help ensure a timely project, TECO hired Mears to complete a design-build project. If it is not built on time you literally have a billion dollar power plant there with no fuel, said John Fluharty, project manager for Giese Operations, Mears sub-consultant that handled engi-neering duties. Fluharty says design-build allowed Mears to drill a pilot hole months in advance to pulling product pipe to ensure the project was feasible. (TECO) wanted to know that early enough in the process so they would know if they needed to go another direc-tion, Fluharty said. (TECO) wanted a true partnership put to- Pipeline Intelligence Report, October 1, 2010 3 Company Length Diameter Location/Description Approx. Bid Date/ Awarded Contractor Enterprise Products Houston, TX 17 mi.

7 20 OD natural gas gathering Pipeline located in Dimmit county, TX. Construction 4th quarter 2010 Gulf South Pipeline Houston, TX Comp. Station 2,370 HP Add additional compressor unit to the existing Airport compressor station located in Mobile county, AL. Construction 1st quarter 2011 Gulf South Pipeline Houston, TX Comp. Station 10,311 HP Add additional compressor unit to the existing Clarence compressor station located in Natchitoches Parish, LA. Construction 3rd quarter 2011 Iroquois Gas Shelton, CT 135 mi. 36 NYMarc Penn Option to be located in PA and NY. Also includes one com-pressor station east of the Millennium Pipeline . Could be 2014 Tennessee Gas Pipeline Houston, TX 7 mi. 30 Looping project located in Bradford and Tioga counties, PA.

8 Will file with FERC fall 2010 Construction early 2012 New Listings Pipeline Intelligence Report, October 1, 2010 4 Company Length Diameter Location/Description Approx. Bid Date/ Awarded Contractor AES Corp. Arlington, VA 88 mi. 30 Mid Atlantic Express Pipeline project is part of the Sparrows Point LNG project. The line would run from the LNG facility to near Eagle, PA. Delayed Air Products & Chemicals Allentown, PA 180 mi 16 or 20 Project located in Pennsylvania Construction 2011 Algonquin Gas Transmission Boston, MA 32 mi. mi. 36 30 Take up 24 line and relay with 36 pipe. Also includes new lay of mi. 30 . Pro-ject located near Medway & Canton, MA. Filed w/FERC 1st quarter 2008 Construction could be mid 2010 Algonquin Gas Transmission Boston, MA mi.

9 36 East-West Expansion project will con-nect LNG from its east end to markets in New England, NY & New Jersey. Could be late 2010 Arizona Natural Gas Storage Westport, CT 27 mi. 12 , 16 , 24 Project located in Pinal Co, AZ Could be early 2012 Bay State Gas South Hadley, MA mi. 12 Project runs from Ganby, MA to near North Hampton, MA. Project to be done in late 2010 Updated Listings (A bold listing indicates a change) Pipeline Intelligence Report, October 1, 2010 5 Mears drilled the feasibilitypilot hole for the project in No-vember 2009. Product pipe was pulled in April 2010. Mike Maxwell, Mears project superintendent, said the crew drilled from both sides of the St. Johns River and intersected the two holes under the river -- a waterway lined with stately homes and used mostly for rec-reational purposes.

10 A 330,000-pound rig was used for the pilot hole on one side of the river and a 140,000-pound rig was used to drill from the opposite side. Mears utilized its 500,000-pound rig to per-form the reaming and to pull the product pipe through the hole, Maxwell said. Maxwell said the crews reamed the bore to 24-inch diameter and then swabbed the hole before pull-ing the product pipe. The crew drilled through sandy silt be-fore making it to clay for the drill s running depth. It was fairly easy going; we were able to use a jetting bit all the way through, he said. Maxwell said the length of the drill com-bined with the unique aspects of the job, made it a satisfying accomplishment.