Information Bulletin Number 0702007

Propane Issue

Wednesday, February 21, 2007 03:49 PM Eastern Standard Time

SEMO (State Emergency Management Office) received a call from NYSERDA (New York State Energy Research and Development Authority) concerning an emerging propane supply issue.

*The TEPPCO (Texas Eastern Products Pipeline Company) pipeline which transports propane from Texas to NY (terminates at Selkirk, Albany County) has developed a leak in Indiana and subsequently shut down.

*TEPPCO (Texas Eastern Products Pipeline Company) is reporting at this time it will take 3 to 4 days to assess problem, no time line for bringing back on line.

*Propane can be shipped via pipeline from Watkins Glen (Schuyler County) cavern storage to Oneonta (Otsego County) and Selkirk.

*Trucks can load at the three above locations but, since it is the end of the heating season the storage at Watkins Glen is low. Watkins Glen may run out of product by this weekend.

*When the pipeline is fixed, it will take 1 day to restore normal flow. Supply is building in Indiana.

*To complicate matters Canadian RR is on strike, thus no propane is coming into Northeast by rail, which it normally does.

*Other Northeast states are in worse condition already.

*Alternatives, which have been exercised previously; (remember pipeline explosion)

*Suppliers will manage shipments to customers to extend supply as much as possible.

*Suppliers can pick up limited contracted supplies at ship terminals in Providence RI or Portsmouth, NH

*Trucks (10,000 gallon tankers) can be sent to terminals in Todd Hunter, OH or to the storage facilities in Indiana

*NYSERDA (New York State Energy Research and Development Authority) recommended that we first of all, not create panic, but notify EM's (Emergency Managers) that propane will be in short supply and obviously the cost will increase in the short term.

Best GUESS for situation to be corrected is 7 days.