1. Pilgrim Pipelines 101
Kate Hudson, Director of Cross Watershed
Initiatives, Riverkeeper
Jennifer Metzger, Rosendale Town
Councilwoman;
Co-director Citizens for Local Power
www.StopPilgrimPipeline.com

2. 1. Crude Oil on the move: Where is
it coming from, how is it shipped,
what are the risks?
2. Proposed Pilgrim Pipelines
3. Pipeline impacts and costs
4. Where are the regulators: the
review and approval process
5. What actions we can take

3. • The domestic oil boom took off with
development of hydraulic fracturing
technology, which made it more
economical to exploit shale oil deposits
in the Bakken region of North Dakota.
• Bakken oil production grew from
143,000 barrels per day (bbd) in Nov.
2007 to 1.2 million bpd in Nov. 2015—
over a 700% increase in eight years. (1
barrel = 42 gallons.)
• Rail shipments of crude oil in the U.S.
increased from 9,500 carloads in 2008
to over 493,000 carloads in 2013—a
nearly 5,100% increase. (Each rail
carload contains approx. 725 barrels of
crude oil, according to the Assoc. of
American Railroads.)
Fracking, the oil boom and increase in
crude oil transport

4. Bakken-to-East Coast Virtual Pipeline Route
Crude Oil Trains, Barges and Ships
As industry has extracted more oil, it has employed
a “virtual pipeline” of trains, barges, and ships to get
Bakken crude from North Dakota and Canada to coastal refineries.
Approximately 20-25% of these rail shipments are destined for east coast
refineries in the New Jersey, Philadelphia, and Delaware area. All of this crude oil
travels through New York, either by rail or barge (Mouwad, 2014).

5. Hudson Valley Crude Oil Thoroughfare
Up to 4.84 billion gallons shipped Per Year
(more than 10 million gallons per day)
2 unit trains/day on CSX Hudson line
Approx. 3M gal. per train, 125 tank cars Philadelphia-area refineries
1 barge/day from Global Partners Albany terminal
Approx. 4M gal. per barge New Jersey refineries

6. Global Terminal Buckeye Terminal

7. Crude Oil = Unrefined Petroleum
Before 2012, little or no crude oil was sent through the Hudson Valley
Tar Sands Crude
Photo: Ben Garvin
Bakken Crude

8. Crude Oil Transport Risks
Train derailment of Bakken crude oil
Could lead to devastating explosions and fire and/or discharges of oil to
adjacent waterways, including the Hudson River or its tributaries.
On-Water Spill of Bakken crude oil
Federal spill responders have said that the best case spill response would
only recover 20-25% of the oil.
On-Water Spill of Tar Sands crude oil
Federal spill responders have said the best case spill response for heavy,
sinking oil would be 5% recovery.
Pipeline Spill of crude oil or refined products
Frequency and spill quantities much greater than other forms of
transport.

9. Proposed
Pilgrim
Pipelines-
a new risk

10. Pilgrim Pipelines Basics
 Two parallel pipelines are proposed to run from Albany, NY for 170
miles, more or less parallel to the NYS Thruway, from Albany (79%),
connecting to distribution points along the way, before turning east at I-
287 to reach refineries in and near New Jersey.
 One pipeline would carry crude oil south to these refineries, and the
other would carry refined products north (e.g., gasoline, kerosene, diesel
and heating oil).
 Each would be 20 inches in diameter with a 200,000 bpd (8.4 million
gallons) carrying capacity.
 The northbound pipeline could be reversed to carry crude in both
pipelines.
 In New York, the pipelines would cut through 31 towns, cities, villages in
Rensselaer, Albany, Greene, Ulster, Orange, and Rockland Counties.

11. The Pilgrim Pipelines project
would also construct:
 Five lateral pipelines along the route, connecting to the
Buckeye terminal in Albany (over 1 mile long); the IPT
Rensselaer Terminal (.71 miles long); terminals in the Town of
Bethlehem (.33 miles long); the Buckeye Roseton Terminal
(over 7 miles long); and the Global Newburgh Terminal (about
4.5 miles long).
 35 permanent access roads and many temporary access roads
at 1-mile intervals along the entire route.
 Block valves at a maximum of 10 miles apart.
 4 pump stations in Albany (.17 acre), the Town of East
Greenbush (nearly .5 acre), the Town of Ulster (.85 acre), and
the Town of Woodbury (over 2 acres).
 7 contractor and pipe yards for the duration of construction.

12. Backyards in New Baltimore

13. Farmland Impacted

14. Backyards in Kingston

15. The Company: Who is Pilgrim
Pipeline Holdings, LLC?
 Pilgrim Pipeline Holdings LLC (the parent company) based in New Jersey,
and Pilgrim Transportation of New York (its subsidiary), were created for
this project. The company itself has no track record, and the company from
which its leadership is drawn—Koch Industries—has a checkered past:
 In January, 2000, Koch Industries, Inc., was made to pay the largest civil
fine ever imposed under federal environmental law at that time—a $30
million civil penalty—to resolve claims related to more than 300 oil spills
from its pipelines and oil facilities in six states.

16. The Company: Who is Pilgrim
Pipeline Holdings, LLC?
 Pilgrim President Errol B. Boyle, former President,
Koch Shipping, Inc.
 Pilgrim Vice President for Operations, Roger L.
Williams, former President Koch Oil Company
and former Vice President of Koch Industries
 The third principal on the team is Pilgrim Vice
President for Development. George J. Bochis, a
former executive and lawyer for a Florida-based real
estate investment trust.

17. Pilgrim claims that the pipelines project
would be a safer alternative to rail and barge
 FACT: The pipelines would involve serious
environmental risks and costs to the communities
through which they would run.

18. Pick Your Poison: Pipelines, Rail, or Vessel
 Pipeline spills are inevitable (Forbes, April 2014).
 From 2004 to 2012, pipelines spilled three times the oil that
trains did over the same period (International Energy
Administration).
 The 2003-2013 period witnessed 1,880 crude oil pipeline
incidents (on average, about one every other day),
resulting in 44 million gallons spilled, 26 fatalities and 56
injuries, and over $2.5 billion in property damage. (PHMSA)
 New pipelines are failing at a higher rate than the oldest
pipelines (1940s and earlier).
ttps://www.snl.com/InteractiveX/Article.aspx?cdid=A-
33791090-11060

19. Why Pipelines aren’t Safer
Photo: The Advocate
Photo: pbs.org
• Pipeline problems and pipeline spills can go undetected,
particularly when underground.
• Pipeline spills can release much larger quantities of oil.
• Pipeline infrastructure has insufficient regulatory
oversight.
• There are multiple ways that pipelines can be
compromised.
• PHMSA data indicates that 44% of pipeline leaks are due
to non-technology factors. Examples: excavation
damage, natural force damage, and incorrect operation.

20. The bathtub curve: just because its
new doesn’t mean its safe

21. Kalamazoo
River
Michigan,
2009
843,000
gallons of tar
sands crude
35 miles of
river
Cleanup at
$2B+

22. Tioga, North Dakota
September 2013 – Farmer finds 865,200 gallons of fracked oil spilled onto his
property from a pipeline leak, covering the equivalent of seven football fields.
One of the largest spills in state history, soils were contaminated to a depth of
30 feet.
Photo: John Wathen, Hurricane Creekkeeper
Source: Neal Lauron
The Pilgrim pipelines would threaten working farms
along the NYS Thruway right-of-way.

23. Santa Barbara, California
May 2015 – Pipeline breach spilled ~105,000 gallons of
crude oil near the coastline of southern Santa Barbara County,
contaminating Refugio State Beach.
Photo: The Advocate
Photo: pbs.org
Source: KTLA
• ~21,000 gallons passed
through storm drain to
ocean
• $3 million/day. $62
million as of 6/10/15
Source: LA Times

24. What Went Wrong in Santa Barbara?
The Smart Pig Didn’t Work!
Photo: The Advocate
Photo: pbs.org
• Devices (e.g., “Smart PIGs”)
used to detect corrosion not
always effective, especially in
high corrosion areas.
• Possibility of human error in
analyzing the results of tests.
• Preliminary PIG results
showing that the pipe had lost
half its metal near the break
vastly underestimated just how
thin the pipeline had become.
Pipeline Inspection Gauge (PIG). Source: PPSA

25. Resources at Risk
 The Pilgrim pipelines would cross the Hudson River
(2x), Wallkill River, Catskill, Moodna, Rondout, and
Esopus Creeks and other Hudson tributaries.
 Crosses 232 regulated streams, and an additional 25
surface resources crossed by laterals (DEC, 2015).
 Upstate Groundwater: crosses numerous groundwater
resources used for drinking water.
 296 wetland crossings (Pilgrim Pipeline DEIS).
 A minimum of 600 acres of forest (Pilgrim DEIS).
 Impacts to a minimum of 27 state and federally listed
endangered species (Pilgrim DEIS).
 Many working farms adjacent to the Thruway.

26. Resources at Risk:
Drinking Water Supplies
 Over 100,000 people draw their water from the Hudson River
(Poughkeepsie, Lloyd, Hyde Park, Rhinebeck, Port Ewen and Highland)
 3 million people would be threatened because the Ramapo Valley
aquifer is their sole source aquifer (Tuxedo, Harriman, Sloatsburg,
northern NJ)
 Crosses the Delaware and Catskill Aqueduct, which supplies drinking
water to 9 million New Yorkers
 5.4 million people get all or some drinking water from NJ Highlands.
 Over 3 million people in northern NJ use surface and groundwater of
Passaic River Basin for their drinking water; PP would cut across
Passaic River and Buried Valley Aquifer in multiple locations (Matt)
 Over 26,500 local residents in New Jersey drink water from the Rahway
River, also crossed by the Pilgrim Pipelines

27. Pipeline Construction Impacts
 Impacts on homeowners : Noise and air
impacts associated with clear-cutting,
blasting and drilling, and construction
vehicle traffic, among others
 Construction across key waterbodies
including important tributaries to the
Hudson River (e.g., Wallkill River, Quassaic
and Moodna Creeks)
 Wetland disturbance: federal and state
 Stormwater impacts due to vegetation
removal
 Potential impairment of sensitive
aquifers on which residents depend for
drinking water
 Destruction of habitat
 Destruction of forest, soils and
bedrock

28. Other Community Costs & Impacts
of Pilgrim Pipelines
 Condemnation - A minimum of a 168 properties could be subject to
taking by eminent domain to allow for the construction of the pipeline
and related infrastructure.
 First responder preparedness costs
 Homeowners insurance premiums - Presence of an oil pipeline can
cause homeowners insurance premiums to rise for that property and
potentially for adjacent properties.
 Spill clean-up costs and damages
 Impact on property values, not only as a result of a spill, but even
because of proximity to an oil pipeline (lower property values means
lower property tax revenue)

29. Pilgrim implies their pipelines
will reduce other modes of
transport
 FACT : The pipelines would add crude oil
transport capacity, not replace rail and marine
transport. If there is a global demand for it, more
crude oil will move through New York, increasing
the risks to New Yorkers.

30.  Pilgrim has not designed the pipelines to be big enough to end both rail
and river transport.
 The “bomb trains” traveling south through New York on their way to
Philadelphia Energy Solutions (PES), the largest east coast refinery and
largest consumer of Bakken crude in the country, will not be served by
this pipeline. PES has a rail capacity of two 125-unit trains.
 No one can require that rail or vessel transport be moved to the
pipelines. It will depend on the choices that the industry makes, which
no one can predict.
“When we look at the modes of transportation, our
industry – the oil and gas industry – we take an all of
the above approach.” Robin Rorick, who oversees
transportation of oil and gas from well to market for the
American Petroleum Institute.

31. The bottom line: The Pilgrim Pipelines would
increase the risk of spill or other accident in
New York.
 It is just as likely that the
building of Pilgrim Pipelines
will increase the amount of oil
being transported down the
Hudson Valley, increasing the
risks to Hudson Valley
communities.
 Crude-by-rail traffic to
Albany could grow as well
with the added transport
capacity of the pipelines.

32. Pilgrim Claims their Pipelines
will meet New Yorkers’ Need
for a More Reliable Fuel Supply.

33. Are New Yorkers demanding more
refined products made from crude oil?
“One of the significant trends affecting U.S. refiners is
the declining demand for refined petroleum products
in U.S. markets. Consumption of refined products in
the U.S. has fallen from 18.7 million barrels per day in
2005 to 16.4 million barrels per day recently, a decline
of roughly 2.5 million barrels per day or 13%.” --
American Petroleum Institute, 2014
Answer: No!

34. New Yorker’s Energy security =
Reducing fossil fuel dependence
through improved efficiency and
investments in local, renewable sources

35. Will the pipelines mean cheaper
fuel for New Yorkers?
From the American Petroleum Institute:
“Crude oil and petroleum products are global
commodities and, as such, their prices are
determined by supply and demand factors on a
worldwide basis. They are shipped from many
sources to many markets.”
Answer: No!

36. Exporting Crude Oil
 With the export ban lifted, Pilgrim Pipelines could
enable more crude oil from the Bakken region and
Canada to be exported to the world market.
 New York Harbor, the largest petroleum products
hub in the Northeast, has the capacity to store
over 75 million barrels of petroleum products.
(U.S. Energy Information Agency).

37. Net US Exports Increasing
“Over the past decade, domestic refinery output of petroleum products has grown significantly
while consumption has declined, resulting in a major increase in product exports. Petroleum
product exports averaged 4.1 million barrels per day (b/d) in the first four months of the year,
an increase of 0.5 million b/d over exports the same time last year. Product imports are also
higher than last year, but to a lesser extent, leading to an increase in net petroleum product
exports.” EIA, July 8 2015

38. Pilgrim claims that its pipelines
project will be good for the climate.
NASA

39. Climate Impacts of Pilgrim Pipelines
 More oil transported encourages more fossil fuel
extraction, accelerating climate change.
 The Obama administration rejected the Keystone XL
pipeline because of its effects on climate change. So
should New York.
“...A decision to approve this proposed Project would
undermine U.S. objectives on climate change; it could
call into question internationally the broader efforts
of the United States to transition to less-polluting forms
of energy and would raise doubts about the U.S. resolve to
do so.“ (U.S. Dept. of State, Record of Decision and
National Interest Determination, TransCanada Keystone
Pipeline)

40. Bakken Shale Boom or Bust?
Will the Climate be Helped by Over Investment
of Fossil Fuel Infrastructure?
 A recent report by CNBC (Jan. 2016) suggests that half of U.S.
shale oil producers could go bankrupt because of the comparatively
high costs of shale oil production, even if oil prices rise again.
"Half of the current producers have no legitimate right to be in a
business where the price forecast even in a recovery is going to
be between, say, $50, $60,” said Fadel Gheit, a senior oil and gas
analyst for Oppenheiner & Co. “They need $70 oil to survive.“
 New York risks becoming a victim of over-investment in crude oil
infrastructure with a life span of 50-100 years, diverting
investment away from essential transitioning to renewable energy.

41. New York’s Vision of its
Energy Future Does not
Include Pilgrim’s Pipelines

42. Cuomo Climate Change Commitments
 NY targets: reduce carbon emissions by 40% in 2030 and
80% by 2050 below 1990 levels.“
 Reforming the Energy Vision (REV)
 Phase out coal power plants by 2020
 50% Renewable Energy in Electricity and reduce GHG
emissions 40% by 2030
 500,000 homes retrofitted for energy efficiency
 300 wind turbines; 150,000 new solar panels; $1.5 billion in
clean energy finance for state owned buildings
 $32 billion for Climate mitigation & adaptation in 2016
budget

43. 18 New York communities pass resolutions
opposing the pipelines before a permit
application for the project was filed.
 City of Kingston
 Cornwall
 Esopus
 Marbletown
 New Paltz, Town of*
 New Paltz, Village of
 Newburgh, City of*
 Newburgh, Town of*
 Plattekill*
34 New Jersey Municipal
Resolutions also passed
 Red Hook
 Rhinebeck*
 Rochester
 Rosendale*
 Saugerties (No confidence
resolution)
 Tuxedo Park
 Ulster County*
 Wawarsing
 Woodstock
* www.stoppilgrimpipeline.com

44. Pilgrim Pipelines:
The Permitting Process
 No federal agency with overarching authority
to permit oil pipelines as FERC does with gas
pipelines.
 Multiple approvals and permits are required
from 5 Federal and 1o state agencies and 38 county,
town and village governments.
 Before any permits can be granted, a full
environmental review of all of the project’s
environmental impacts is required, pursuant to
governing state and federal law (SEQR/ NEPA).

45. Overview of the SEQR Process
 Lead Agency Designation – of the more than 60 lead
agencies, who will oversee the environmental review
process?
 Determination of Significance - does the proposed project
have the potential for significant environmental impacts?
 Scoping – what should the environmental impact study be
required to consider? What impacts, alternatives,
mitigation?
 Draft Environmental Impact Statement (DEIS) – who
prepares? Who reviews?
 Final Environmental Impact Statement (FEIS) and
Findings – needed before any involved agency can make a
decision to issue an approval or permit
 Opportunities for Public Input and Advocacy

46. Where are we and where
do we go from here?
 Aug. 7, 2015: Pilgrim submitted an application to the NYS Thruway
Authority for a Use and Occupancy permit to construct the pipeline within
the Thruway’s right-of-way, triggering a State Environmental Quality
Review (SEQR) of the project.
 Nov. 16, the NYS Thruway Authority notified “involved agencies” in the
review of its intention to serve as lead agency in the environmental review.
(An involved agency is any agency or municipality with permitting
authority over some aspect of the project.)

47. Municipalities Have Already Taken Action
 Between Nov. 16 and Dec. 17: 29 municipalities that are
involved agencies denied their consent to Thruway Authority
lead agency, and urged the NYS Department of Environmental
Conservation to serve in this capacity.
 Dec. 21: The NYS DEC sent a letter to the Thruway Authority
recommending that DEC be a “co-lead agency.” The same day,
the Thruway Authority sent a letter to DEC accepting the
proposal.
 Early Jan., 2016: The City of Kingston and the Town of
Rosendale deny consent to lead agency, arguing that only DEC
meets the SEQR criteria for review of this project. The Towns
of Cornwall and New Paltz formally request that the DEC
Commissioner resolve the lead agency dispute, and express
their willingness to serve as lead agency if necessary.

48. Next Steps in the SEQR Process
 Resolving the lead agency dispute - the DEC
Commissioner has 20 days after receiving comments
from involved agencies to decide.
 Release of a draft Scope (the table of contents for the
DEIS)
 Because opportunity for public input on the scope
may be limited, get ready to comment now. Gather
information re impacts of concern to you and your
town. Particularly important to identify local impacts.

49. Pilgrim’s Application to Use the
NYS Thruway Right-of-Way
 Pilgrim proposes to be 79% of its pipelines on Thruway Authority property.
If the Thruway Authority denies permission for use of its right-of-way, the
viability of project will be in question.
 The Thruway Authority cannot grant Pilgrim the use of its right of way
without approval from both the NYS Department of Transportation and the
Federal Highway Administration.
 Pilgrim must seek a “exception” to the Agreement between Federal
Highway Administration and NYS Department of Transportation which
only allows communications utilities to longitudinally occupy NYS Thruway
property.
 Criteria that NYSTA and FHWA must consider in deciding whether to grant
an exception include project need, public use, highway and traffic safety,
disruption during installation, etc.
 Opportunities for public input in this process, other than through SEQR,
are not identified.

50. 4 Actions We Can Take
on Pilgrim Pipelines
 Become involved in the environmental review process yourself and
encourage your elected representatives to be involved as well.
Submit comments on the scope of that review and what impacts and
alternatives must be considered, including climate impacts.
 Write to the Governor and the NYS Thruway Authority and
Department of Transportation and urge them to deny Pilgrim the
ability to use the Thruway right of way for their pipelines.
 Work in your community to introduce and pass County and
local/municipal resolutions opposing Pilgrim Pipelines and a zoning
ordinance prohibiting oil pipelines that do not bring products or
services to town residents.
 Join the Coalition Against Pilgrim Pipelines email list and weekly
phone calls to join the grassroots opposition.
www.stoppilgrimpipeline.com

51. Why a town resolution can
make a difference?
 A resolution by the Town Board opposed to the pipelines that directs
the sending of letters to the NYS Thruway Authority, the Department
of Transportation and other regulators, combined with those of
many other Towns, could:
 Influence their decision about granting or denying access to the
Thruway right of way;
 Impact decisions that Pilgrim makes re route selection;
 Result in a more comprehensive environmental review process
being required by state and federal regulators;
 Send a message to investors in the pipelines that this is not a good
capital investment for them. Without investors, the Pilgrim
pipelines project may fail to move forward.

52. Further Information and
Resources on Pilgrim Pipelines
 Further information available at
stoppilgrimpipeline.com and riverkeeper.org/crude.
 Kate Hudson, Riverkeeper khudson@riverkeeper.org
 Citizens for Local Power localpowerny@gmail.com
THANK YOU!