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8.3. SR 06-01-2015 �j Elk = - Request for Action River To Item Number Mayor and City Council 8.3 Agenda Section Meeting Date Prepared by General Business June 1, 2015 Cal Portner, City Administrator Item Description Reviewed by Resolution in Support of the Sandpiper Pipeline Project Reviewed by Action Requested Approve a resolution of support for the Sandpiper Pipeline Project. Background/Discussion The Sandpiper Project is an approximately 616-mile interstate crude oil pipeline that will bring growing supplies of North Dakota crude oil from our Beaver Lodge Station south of Tioga, North Dakota, to Clearbrook, Minnesota, and then into an existing Enbridge terminal in Superior,Wisconsin. The Sandpiper pipeline will follow Enbridge's existing Line 81 Pipeline to Clearbrook, then follows existing pipelines and transmission lines south and east to Superior. Subject to receiving applicable permits, Sandpiper will be in service in 2017. The mayor and city administrator met with Todd Olson of the National Resource Group to discuss the project and the current and future rail line impacts on Elk River. Mr. Olson has asked the city to support the project,which would lessen future oil transport through Elk River by rail. On April 13, 2015, the Administrative Law Judge assigned to the Sandpiper Pipeline Project recommended that the Minnesota Public Utilities Commission (MPUC) grant a Certificate of Need Permit for the Project. This recommendation is significant and the MPUC will make a decision on the Certificate of Need next week. Sandpiper has broad and deep support throughout Minnesota. In January, more than 900 landowners and elected officials along our route, laborers, farmers, business people and more came out en masse to provide direct personal stories as to why this project is needed and how it will benefit Minnesota. They outnumbered opponents by more than a 2:1 margin. Approximately 60 Minnesota state legislators, 12 Chambers of Commerce, 6 county commissions and a variety of city, township, farm bureau, economic development groups and agricultural coops signed letters urging support of the Project. Several spoke from personal experience and testified to the company's commitment to safety and environmental stewardship. Sandpiper is important for the State of Minnesota. It will help address rail congestion throughout the state by transporting increased Bakken oil supplies by pipeline. Sandpiper will benefit Northern Minnesota communities with economic stimulus by generating an estimated $25 million in annual property taxes. Sandpiper also will create 1,500 family-sustaining construction jobs while providing an economic boost to the region's businesses during construction. p 0 W I R E a 0 NA UREJ Key facts: • Between 60-70% of North Dakota crude oil is transported by rail or truck, much of it through Minnesota. • Sandpiper's capacity of 225,000 barrels leaving North Dakota equals 1,700 rail cars every day. • Rail congestion cost Minnesota agriculture $100 million in reported losses in 2014. Power, mining and paper industries experienced similar rail congestion challenges. • Rail congestion can trap first responders and equipment on the wrong side of the tracks in an emergency. • Oil car traffic increased 4,190% in 5 years from 9,500 car loads in 2008 to 407,642 cars in 2013. • Sandpiper will free up rail capacity for other products important to Minnesota trade. • Denying the Sandpiper Project would increase the reliance on rail as the primary mode of transportation for Bakken crude oil. • Where pipelines are available, they are the preferred mode of transportation for crude oil due to lower costs and more dependable service. • Many of Minnesota's major industries rely on the rail system for efficient delivery of goods For additional information visit www.enbridge.com/SandpiperProject. Financial Impact N/A Attachments • Resolution • Freight Rail Map • Proposed Sandpiper Route Map N:APublic Bodies\Agenda Packets\06-01-2015\x8.3 sr Sandpiper Projectdocx City of Elk River Resolution 15- A Resolution of the City of Elk River in Support of the Sandpiper Pipeline Project WHEREAS, there has been tremendous increase in crude oil transport by rail and the State of Minnesota has experienced delays and lost production due to lack of available trains for other commerce;and WHEREAS, the City of Elk River is concerned about increased crude oil train traffic and safety along the rail line; and WHEREAS, much of the Sandpiper Pipeline will follow Enbridge's existing pipeline or other utility right-of-way in North Dakota, Minnesota, and Wisconsin;and WHEREAS, the pipeline will help address rail congestion throughout the state by transporting increased Bakken oil supplies by pipeline; and WHEREAS, the proposed Sandpiper Pipeline project will provide for 1,500 family- sustaining construction jobs while providing and economic boost to the region's businesses during construction;and WHEREAS, the Bakken Oil Production Field will reduce the nation's reliance on foreign oil and provide a safer local supply. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk River, Minnesota, supports the construction of the Sandpiper Pipeline project. Passed and adopted this 1s`day of June 2015. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk P U N E R E O R Y NAWREJ 5/29/2015 AppendixF­M innesotaFr eightRailroadMap.jpg (1275×1650) http://www.r ur almn.org/wp­content/uploads/2015/01/AppendixF­M innesotaFr eightRailroadMap.jpg 1/1 Fry�Ont n C Pembina —� Joliet 81 Nolth Oa ota Pipeline Line 81 Company LLC T ioga ND NORTH DAKOTA MANITOBA Kittson Hallock \ \O Donaldson d9 � A � ++ Marshall �y L P Seto �O.A � d� Viking Warren 0 _ Thief River Falls 75 `� Pennington rand Forks Plummer G Red Lake Falls t, Crookston Red Lake Clea MINNESOTA Polk G3 ENBR/DGE MINNESOTA PROJECTS 0 Upgrade to Existing Line 67 Pump Station (Phase 1 _ Line 3 Replacement Preferred Route & 2) ONew Line 67 Pump Station at or near Existing Sandpiper Preferred Route Enbridge Facility (Phase 2) Line 67 - Former Alberta Clipper Terminal -- Existing Line 3 to be Deactivated Existing Pipeline Corridor Line 3 Maintenance Segment Replacements Existing Electric Transmission Line Corridor NEA Date: 8/14/2014 Beltrami 0 Wadena Forest Cass Crow Wing Brainerd O Itasca Deer River Grand Rapl 169 AitJ ONTARI Clearbrook West (Proposed) Clearwater County 0 Hibbing Floodwood Thunder Bay 0 1 � x nneapolis t. Paul Green Bay St. Louis Cloqu 0, -- Carlton Clearbrook North (Existing) r ■ r �- `superior WISCONSI! -. Douglas Bag/e Bemid'i Ch _W , Cass L Clearwater t r r I Walker X Hubbard CD CD -- n � r Park Rapids o � a0 r Wadena 0 Wadena Forest Cass Crow Wing Brainerd O Itasca Deer River Grand Rapl 169 AitJ ONTARI Clearbrook West (Proposed) Clearwater County 0 Hibbing Floodwood Thunder Bay 0 1 � x nneapolis t. Paul Green Bay St. Louis Cloqu 0, -- Carlton Clearbrook North (Existing) r ■ r �- `superior WISCONSI! -. Douglas