Energy Transfer CEO: Still Committed to Dakota Access Pipeline

Kelcy Warren, Chief Executive Officer of the Dakota Access pipeline developer Energy Transfer Partners, told his employees in a memo Tuesday that the company is committed to completing the pipeline project despite a temporary halt in construction ordered by Obama’s administration.

The memo, which was released to some media outlets, stated that the 1,172-mile pipeline project is about 60 percent complete and that the Standing Rock Sioux Tribe’s claim that the pipeline would impact their local water is unsupported.

Thousands of Native American tribal members have been protesting the pipeline near a reservation in North Dakota saying the pipeline would be built under sacred burial sites and could potentially affect the local drinking supply if a spill were to occur.

Warren stated in the memo that the company has “designed the state-of-the-art Dakota Access pipeline as a safer and more efficient method of transporting crude oil than the alternatives being used today.”

Warren also noted that if the government determines the fate of the project based on science and engineering, the Dakota Access pipeline will become operational.

The federal government on Friday required a temporary halt on construction of the pipeline near Lake Oahe in North Dakota so that previously approved permits could be re-examined.

Protestors told media outlets Friday that they will not budge until the pipeline is completely stopped.

Source:
Houston Chronicle

Energy Transfer and Williams Merger Fails; Six Williams Board Members Resign

Just a day after Energy Transfer backed out of the $33 billion acquisition of Williams, nearly half of Williams’ board members resigned after a failed attempt to oust Williams’ CEO Alan Armstrong.

Former board member Eric Mandelblatt stated in a public letter that he and five other board members quit Thursday after the current board members were against pushing out Armstrong who Mandelblatt said is “incapable” of increasing shareholder value and “lacks the necessary judgment and character” that is needed to lead Williams after the turmoil with Energy Transfer.

The merger of Energy Transfer and Williams would have created one of the country’s largest pipeline companies. As the oil and gas prices continued to plummet last year and into this year, Energy Transfer no longer found the merger feasible and formally called off its deal to buy Williams on Wednesday.

Believing Energy Transfer is breaching contract by ending the deal, Williams will seek damages against the company that could be up to $10 billion.

Source:
Fortune
PennEnergy