EXCLUSIVE: Kelcy Warren talks to us about the safety of DAPL and much more

FULL TRANSCRIPT:

(Please note - this transcript was copied from an electronic captioning service. We apologize for any errors, spelling, grammatical, or otherwise.)

Chris Berg:
In part two of my interview with Kelcy warren, the C.E.O. of energy partners, we talk about the safety issues surrounding this pipeline and much, much more.

VIDEO:
CB:
You mentioned safety a few times. Help people understand, because I don't think anybody can relate, they're not an expert like you are, the technology you're using in this pipeline and that the safety measures that you put in place to ensure that, hey, everything is going to be A-Okay with this.

KW:
Let's start with this is three-quarter-inch steel, it's designed to operate at a lot greater pressure than its operating, it's impenetrable by a bullet or anything like that. It's very, very safe. A vast majority of leaks are caused by human error, someone digging where they're not supposed to dig or somebody doing something they shouldn't be doing. In our case, the no. 1 concern is sabotage. Think about what I just said. These people call themselves water protectors that we're having to stop from drilling holes in our pipe, trying to stop from blowing up our pipes. There were to be a rupture, it sits real time, in just the pounds of pressure drop, your max amount -- we've got a very safe product, but if the very unlikely event something were to occur, we will deal with it very quickly.

CB:
We saw one of the valves today. What do you do to ensure that those don't get sabotaged? Do you have extra security measures?

KW:
Our game has changed forever, because of North Dakota. We never had the security we have today. I'm going to be careful not to talk too much about what it is. But we have increased security by tenfold, and we should have. It was time. It's not just, it's the entire industry. Other competitors of mine are watching what's happening to us, and they're doing the same thing. They know we all have to do it. We have had to ramp up our security quite a bit.

CB:
You mentioned, I think, today about how water is lighter than oil or something to that effect. The oil that's flowing under the river, help people understand the safety measures you put there, 200 feet below the river, give specifics and security around what's happening there.

KW:
You bet. In the old days of pipelining, you would just open ditch a line. In fact, there's two natural-gas lines at the same location that were done that way, they were just ditch. We chose to directly drill under bedrock. The likelihood of oil coming up into the river is extremely remote, because it would go down the pipeline first if it were to rupture. What I said earlier is oil is lighter than water, so actually, the easiest thing to clean up when you have an oil spill is what is in contact with water because it floats. That's relatively easy to remove. Soil contamination is more problematic. That's where we would spend a lot of resources. But again, this is -- absent sabotage, this is not something people really need to worry about.

CB:
You know, we spend, gosh, over a billion dollars in infrastructure in our state, the former biennium, the former legislative session, and you're going to be taking potentially 500,000 barrels of oil off our roads. Explain the infrastructure savings, now that we won't have these two-ton trucks beating up the roads, how much money we'll spend by not beating up infrastructure.

KW:
Rail can't compete, roads can't compete. These heavy trucks loaded with oil that create potholes and tear up roads, it happens in Texas, too, those need to be removed, with pipelines. But oftentimes what happens is pipeliners won't take a risk until volumes get large enough to take that risk. We stepped up and did that. There are 1100 miles. Count the mileage to Chicago. It goes all the way to the gulf coast of Texas. It's almost double that in total length. We have a pipeline that goes from the Bakken shale to Beaumont, Texas. Where else but America could you hear such a thing? And that almost didn't happen because of some things in America, but, yeah, so it's going to be safe shall it's going to improve everybody's life, it's going to improve the economy. I just don't see anything negative about it.

CB:
With Mr. Ramsey earlier, give people a sense of how much this whole protest has cost your company from a revenue standpoint.

KW:
Well, our tariff and its published now is a little over five dollars per barrel. If we are moving a half million barrels a day at five dollars, that is pretty math, right? 2.5 million dollars a day. It adds up. So it's been costly for us, in fact, I got a kick out of a justice lawyer the other day bragged about how much money they've cost us and therefore that's a victory. Wow, that's interesting if that's what you get up and work for every day, but it has cost us tremendous amounts of money, and that's okay. We're going to be okay.

CB:
Thanks again to Kelcy warren for coming to North Dakota and obviously giving us an exclusive interview. Earth justice ecstatic about how much they have cost energy partners. You're talking about 80 million dollars a month in lost revenue, you're talking 480, nearly 500 million in lost revenue to ETP, not to mention the revenue lost to North Dakota. More of this flu -- throughout the week. We'll have more of the e. T. P. Partners. We'll hear from you next, and what it will be like to save money from the infrastructure standpoint in the great state of North Dakota. Send us a voicemail. We'll be right back.



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