Steven A. Davis

Crabbe, Brown & James LLP

~Attorneys at Law~


Craig M. Vandervoort

Sitterley & Vandervoort Ltd

~Attorneys at Law~

PROJECT STATUS UPDATE AUGUST, 2014


All of the land agents, surveyors, and permitting and environmental personnel have been let go, and the entire acquisition team is vacating the central Ohio base of operations. The following is a summary of the most critical obstacles that this project has encountered.

#1) The results of the open commitment period revealed that there was "Zero" demand to move product on the proposed Bluegrass line starting on the originally announced in-service date of 1/1/2016. It is our understanding that producers did, however, express interest in capacity on the line beginning 1/1/2017. This would help to explain why Bluegrass recently changed the proposed in-service date on its web site to reflect completion of the line in late 2016.

#2) The company suffered another setback March 25, when Franklin Circuit Judge Phillip Shepherd ruled that the Bluegrass does not have the legal authority to use eminent domain to acquire easements to pipe natural gas liquids across Kentucky. Bluegrass has appealed this ruling and are likely waiting for the results of the appeal to re-evaluate its right-of-way acquisition strategy in Kentucky.

Our group is nearly 15 miles strong, and we remain united and ready to negotiate when Bluegrass, or the next pipeline company commits to a project to install a pipeline to serve the growing production of NGLs. We wish to commend each of our members on the strength of your negotiating strategy. You remain free to negotiate for your preferred route, easement terms, and compensation amounts with whichever company wins the race to put in the next pipeline.

Do not presume that the Bluegrass pipeline is dead. Its official status is as follows:

A Project Ahead of Its Time

Proposed in 2013 as a solution to move natural gas liquids from the Utica and Marcellus Shale producing areas to the growing petrochemical market in the U.S. Gulf Coast, the Bluegrass Pipeline included constructing approximately 600 miles of pipeline from Pennsylvania to Kentucky and converting approximately 600 miles of existing natural gas pipeline from Kentucky to Louisiana to carry natural gas liquids.

Due to an insufficient level of firm customer commitments to ship products on the pipeline, the project and associated capital spending were suspended in May 2014.

The need to move NGLs from the liquids-rich Northeast region is very real and an important component of enabling the manufacturing renaissance in America. We continue to engage in discussions with potential customers and still believe the Bluegrass Pipeline project is the best long-term solution in the marketplace. Bluegrass Pipeline appears to be a project that’s ahead of its time.

UPDATE 4/28/2014


Williams Suspends Investment in Bluegrass NGL Pipeline Due to Insufficient Customer Commitments Company Focusing Capital on Other Projects in Its Large, Diverse Portfolio of Growth Opportunities
4/28/2014 7:00:00 AM CT

"Williams (NYSE:WMB) has suspended capital investments in the Bluegrass Pipeline, a proposed natural-gas-liquids project, primarily in response to an insufficient level of firm customer commitments. The company continues to engage in discussions with potential customers regarding the scale and timing of demand for services and the required firm contractual commitments that would support any future capital investments."


Bluegrass Pipeline has received the results of the open commitment period and has revised its right-of-way acquisition and construction plans. A current project update letter has been mailed to all Landowner Group members. If you are not already a member of this Landowner Group, there is still time to join. Please call either Craig or Steve. We’ll be happy to answer your questions over the phone.


  

To see other Landowner Group Attorneys
Across Ohio & Kentucky, click here.

  

We will be holding landowner information meetings at various locations in Ohio and Kentucky. Visit our upcoming events page for locations and dates nearest you.


~ Providing Negotiation and Litigation Assistance for Landowners affected by Pipelines since 1999 ~


Dear Property Owner:

Bluegrass Pipeline Company LLC, (“Bluegrass”), has announced plans to develop and construct a natural gas liquids pipeline that is to begin in Pennsylvania and cross Ohio and Kentucky in a westerly/southwesterly course, ultimately ending in Texas. In the near future, land agents for Bluegrass will begin the process of contacting landowners who may be affected by the pipeline's corridor to request survey permission and negotiate easements.

Two central Ohio law firms have joined forces to create Bluegrass Pipeline Lawyers in an effort to provide experienced, high quality representation to landowners in connection with the negotiation of easements and the litigation of eminent domain issues. The law firms of Crabbe, Brown & James LLP and Sitterley & Vandervoort Ltd, have extensive experience in oil and gas pipeline negotiations and litigation, as well as eminent domain proceedings. The firms have represented numerous clients successfully in matters regarding: (1) Atex Express/Enterprise Pipeline (2) the Rockies Express natural gas pipeline; (3) the Marathon – Cardinal liquid petroleum pipeline; and (4) the US Route 33 Bypass of Lancaster, Ohio – among other similar matters. Lawyers who represent landowners across Ohio & Kentucky are joining with our firms in this effort. Click the link above to see the most current members of our legal.

If you are contacted by land agents or other representatives of Bluegrass, our legal team can help. We have created this website where you can obtain additional information, including our fee structure.1

The pipeline company will have experienced attorneys and trained negotiators working for it. You need our proven experience in pipeline negotiation and litigation to protect your property and maximize the compensation you receive.

If you would like to learn more about how we can help you protect your property and enforce your rights, please call Craig Vandervoort, (740) 653-0461, or Steve Davis, (740) 689-1743, to schedule a free initial consultation.

Truly Yours,

Steven A. Davis, Esq.
Crabbe, Brown & James LLP
Craig M. Vandervoort, Esq.
Sitterley & Vandervoort Ltd
1 We only charge you 33 1/3% of the amount you receive ABOVE YOUR INITIAL OFFER FROM BLUEGRASS. Some restrictions apply; see website for full details.