Kinder Morgan Energy Partners: Difference between revisions
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'''Kinder-Morgan Energy Partners LP''' {{NYSE|KMI}} {{NYSE|KMR}} {{NYSE|KMP}} owns or operates [[petroleum]] product, [[natural gas]], and [[carbon dioxide]] [[pipeline transport|pipelines]], related storage facilities, terminals, [[power plants]] and retail natural gas in the [[United States]] and [[Canada]]. Kinder-Morgan is a [[Master Limited Partnership]]. |
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⚫ | Kinder Morgan is one of the largest energy companies in North America with approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil and petroleum products; about 150 terminals that store and handle products like gasoline and coal; and over 1.1 million natural gas distribution customers. |
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⚫ | Kinder Morgan is one of the largest energy companies in North America with approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil and petroleum products; about 150 terminals that store and handle products like gasoline and coal; and over 1.1 million natural gas distribution customers.{{fact}} |
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==Accolaids== |
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Named by Fortune magazine as one of America’s Most Admired Companies, Kinder Morgan has built a company well known for openness, transparency and strong corporate governance. For example, annual budgets and environmental, health and safety performance on are posted on Kinder Morgan’s web site at (www.kindermorgan.com). |
Named by Fortune magazine as one of America’s Most Admired Companies, Kinder Morgan has built a company well known for openness, transparency and strong corporate governance. For example, annual budgets and environmental, health and safety performance on are posted on Kinder Morgan’s web site at (www.kindermorgan.com). |
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Chairman and CEO Richard D. Kinder, selected by Morningstar as its 2005 CEO of the Year, receives a salary of $1 a year, no bonuses, no option grants and no restricted stock. Additionally Kinder Morgan does not spend money on corporate jets, first-class airfare, sports tickets or other expensive perks. |
Chairman and CEO Richard D. Kinder, selected by Morningstar as its 2005 CEO of the Year, receives a salary of $1 a year, no bonuses, no option grants and no restricted stock. Additionally Kinder Morgan does not spend money on corporate jets, first-class airfare, sports tickets or other expensive perks.{{fact}} |
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Kinder Morgan asserts that it committed to public safety, protection of the environment and operation of its facilities in compliance with all applicable rules and regulations.[http://www.kindermorgan.com/ehs/] |
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==Regulatory oversite== |
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==Controversies== |
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In a controversial sale met with public protest, the company acquired Canada's [[British Columbia|BC-based]] [[Terasen Inc.]] on [[November 30]], [[2005]], which was subsequently renamed [[Kinder Morgan Canada Inc.|Kinder Morgan Canada]]. On May 30, 2006 it was announced that a group led by co-founder [[Richard D. Kinder]] offered to buy the company for $22 billion. Its other co-founder is [[William Morgan (businessman)|William Morgan]]. The company began in 1997 as a spinoff of some assets of [[Enron]], and now employs many former Enron employees, including former Enron whistleblower [[Jordan Mintz]]. |
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==Accidents== |
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Pipelines operated by this company have been involved in over thirty significant incidents in the United States. In some cases the pipelines have exploded without warning or even provocation (as from construction equipment), causing the incineration of passers-by. |
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===Susuin marsh diesel spill=== |
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On [[April 28]], [[2004]], a decrepit [[petroleum]] [[pipeline transport|pipeline]] owned and operated by Kinder-Morgan Energy Partners ruptured, spilling an estimated 1,500 barrels (240 m²) of [[diesel]] fuel into marshes adjacent to [[Suisun Bay]]. |
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===Walnut Creek gasoline fire=== |
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[[Image:WalCrkKMFire.jpg|thumb|right|200px|Pipeline fire flames]] |
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[[Image:WalCrkKMFireZ.jpg|thumb|right|200px|Pipeline fire wide angle]] |
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On [[November 9]], [[2004]] in [[Walnut Creek, California]], a [[petroleum]] [[pipeline transport|pipeline]] carrying gasoline to [[San Jose, California|San Jose]] owned and operated by Kinder-Morgan Energy Partners (here KMEP) was struck by a [[backhoe]] used by Mountain Cascade Inc., a contractor operating in the construction of a water pipeline for the [[East Bay Municipal Utility District]]. A massive [[gasoline]] spill was subsequently ignited, likely by welders of subcontractor Matamoros Welding working inside the water pipe, resulting an explosive fireball that caused the deaths by burns of four workers and their supervisor and the severe injury of four others. Several nearby homes were ignited and one was partially destroyed. The fire burned for several hours before being brought under control by [[firefighters]] from departments throughout the central [[Contra Costa County, California|Contra Costa County]] region. Preliminary indications are that the location of the petroleum pipeline was staked out with an error of five feet by KMEP. EBMUD contract with MC specifies that "contractor shall verify location" <nowiki>[</nowiki>of the KM pipeline prior to construction (in this section)<nowiki>]</nowiki>. EBMUD had terminated the first Contractor, Modern Continental (MC) for moving too slowly, with MC pointing out the need for caution due to a previous staking error of 13 feet in another location. KM claims that it is not its responsibility to determine exactly the location of the pipeline <nowiki>[</nowiki>1<nowiki>]</nowiki>. Contrary to established procedures, KMEP had no representative on site at the time of the disaster. EBMUD denies rushing its contractors and is currently suing Modern Continental for breach of contract. Investigation by State of California authorities was completed and the results announced on May 5, 2005. CalOSHA (California Occupational Safety and Health Administration) placed principle blame on the pipeline operator (a unit of Kinder-Morgan) for failure to accurately stake out the pipeline location, with some responsibility shared by the other parties. |
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Further details were released in a State Senate report published June 11, 2005 and widely reported throughout the Bay Area. According to a Contra Costa Times article published June 19th, 2005 the report noted that the KMEP "line rider" (the person with primary responsibility for locating the pipeline) was unable to read blueprints. Furthermore a second line KMEP line rider had stated in response to subcontractor inquires that the pipe would be bent only where it was to go around a tree and since no tree was present there was not a bend in the pipe. (The tree had been removed prior to the construction.) KMEP continues both to deny responsibility and to press its legal appeals. |
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On Wednesday, July 7, 2005, the [http://osfm.fire.ca.gov/aboutus.html California State Fire Marshal] assessed a fine of $500,000 upon KMEP, the largest ever levied within the state. |
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==External links== |
==External links== |
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===Kinder morgan information]=== |
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*[http://www.kindermorgan.com/ Kinder-Morgan web site] |
*[http://www.kindermorgan.com/ Kinder-Morgan web site] |
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*[http://www.terasenpipelines.com/bins/index.asp Kinder Morgan Canada] |
*[http://www.terasenpipelines.com/bins/index.asp Kinder Morgan Canada] |
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*[http://www.terasengas.com/default.htm Terasen Gas] |
*[http://www.terasengas.com/default.htm Terasen Gas] |
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*[http://www.hoovers.com//free/co/factsheet.xhtml?COID=43587 Hoover's Online] Third party fact sheet. |
*[http://www.hoovers.com//free/co/factsheet.xhtml?COID=43587 Hoover's Online] Third party fact sheet. |
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===News articles=== |
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*[http://www.ktvu.com/news/3951364/detail.html TV Station KTVU (Oakland, California) concerning event] |
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*[http://sfgate.com/cgi-bin/article.cgi?file=/n/a/2005/05/05/state/n183234D35.DTL Chronicle web site on CalOSHA investigation results] |
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*[http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/06/11/BAG1AD71BI1.DTL&hw=Walnut+creek+Kinder+Morgan+fire&sn=001&sc=1000 Reporting on the State Senate investigation] |
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[[Category:Energy companies of the United States]] |
[[Category:Energy companies of the United States]] |
Revision as of 17:29, 10 October 2006
Kinder-Morgan Energy Partners LP NYSE: KMI NYSE: KMR NYSE: KMP owns or operates petroleum product, natural gas, and carbon dioxide pipelines, related storage facilities, terminals, power plants and retail natural gas in the United States and Canada. Kinder-Morgan is a Master Limited Partnership.
Kinder Morgan is one of the largest energy companies in North America with approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil and petroleum products; about 150 terminals that store and handle products like gasoline and coal; and over 1.1 million natural gas distribution customers.[citation needed]
Accolaids
Named by Fortune magazine as one of America’s Most Admired Companies, Kinder Morgan has built a company well known for openness, transparency and strong corporate governance. For example, annual budgets and environmental, health and safety performance on are posted on Kinder Morgan’s web site at (www.kindermorgan.com).
Chairman and CEO Richard D. Kinder, selected by Morningstar as its 2005 CEO of the Year, receives a salary of $1 a year, no bonuses, no option grants and no restricted stock. Additionally Kinder Morgan does not spend money on corporate jets, first-class airfare, sports tickets or other expensive perks.[citation needed]
Kinder Morgan asserts that it committed to public safety, protection of the environment and operation of its facilities in compliance with all applicable rules and regulations.[1]
Regulatory oversite
The majority of its pipelines fall under the regulatory oversight of the U.S. Department of Transportation.
Controversies
In a controversial sale met with public protest, the company acquired Canada's BC-based Terasen Inc. on November 30, 2005, which was subsequently renamed Kinder Morgan Canada. On May 30, 2006 it was announced that a group led by co-founder Richard D. Kinder offered to buy the company for $22 billion. Its other co-founder is William Morgan. The company began in 1997 as a spinoff of some assets of Enron, and now employs many former Enron employees, including former Enron whistleblower Jordan Mintz.
Accidents
Pipelines operated by this company have been involved in over thirty significant incidents in the United States. In some cases the pipelines have exploded without warning or even provocation (as from construction equipment), causing the incineration of passers-by.
Susuin marsh diesel spill
On April 28, 2004, a decrepit petroleum pipeline owned and operated by Kinder-Morgan Energy Partners ruptured, spilling an estimated 1,500 barrels (240 m²) of diesel fuel into marshes adjacent to Suisun Bay.
Walnut Creek gasoline fire
On November 9, 2004 in Walnut Creek, California, a petroleum pipeline carrying gasoline to San Jose owned and operated by Kinder-Morgan Energy Partners (here KMEP) was struck by a backhoe used by Mountain Cascade Inc., a contractor operating in the construction of a water pipeline for the East Bay Municipal Utility District. A massive gasoline spill was subsequently ignited, likely by welders of subcontractor Matamoros Welding working inside the water pipe, resulting an explosive fireball that caused the deaths by burns of four workers and their supervisor and the severe injury of four others. Several nearby homes were ignited and one was partially destroyed. The fire burned for several hours before being brought under control by firefighters from departments throughout the central Contra Costa County region. Preliminary indications are that the location of the petroleum pipeline was staked out with an error of five feet by KMEP. EBMUD contract with MC specifies that "contractor shall verify location" [of the KM pipeline prior to construction (in this section)]. EBMUD had terminated the first Contractor, Modern Continental (MC) for moving too slowly, with MC pointing out the need for caution due to a previous staking error of 13 feet in another location. KM claims that it is not its responsibility to determine exactly the location of the pipeline [1]. Contrary to established procedures, KMEP had no representative on site at the time of the disaster. EBMUD denies rushing its contractors and is currently suing Modern Continental for breach of contract. Investigation by State of California authorities was completed and the results announced on May 5, 2005. CalOSHA (California Occupational Safety and Health Administration) placed principle blame on the pipeline operator (a unit of Kinder-Morgan) for failure to accurately stake out the pipeline location, with some responsibility shared by the other parties.
Further details were released in a State Senate report published June 11, 2005 and widely reported throughout the Bay Area. According to a Contra Costa Times article published June 19th, 2005 the report noted that the KMEP "line rider" (the person with primary responsibility for locating the pipeline) was unable to read blueprints. Furthermore a second line KMEP line rider had stated in response to subcontractor inquires that the pipe would be bent only where it was to go around a tree and since no tree was present there was not a bend in the pipe. (The tree had been removed prior to the construction.) KMEP continues both to deny responsibility and to press its legal appeals.
On Wednesday, July 7, 2005, the California State Fire Marshal assessed a fine of $500,000 upon KMEP, the largest ever levied within the state.
External links
Kinder morgan information]
- Kinder-Morgan web site
- Kinder Morgan Canada
- Terasen Gas
- Hoover's Online Third party fact sheet.