September 15, 2014 [Zacks] - Leading master limited partnership, Kinder Morgan Energy Partners L.P.’s Richmond, CA, rail terminal won a lawsuit filed by environmental groups. The plaintiffs had raised concerns over transportation of crude via train through the densely populated city of Richmond.
The partnership received a favorable ruling from a San Francisco Superior Court judge. The ruling dismissed the charges citing that the plaintiffs missed the 180-day window to request that the permit be revoked.
The number of trains ferrying crude oil by rail to California from Canada and North Dakota’s Bakken shale formation has jumped dramatically in recent years, prompting safety and environmental concerns. In Jul 2013, a train carrying crude oil got derailed and exploded in a town in the Canadian province of Quebec, killing 47 people.
Kinder Morgan is the largest independent owner and operator of petroleum product pipelines in the U.S. Its pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and other products, while its terminals store petroleum products and chemicals, and handle bulk materials such as coal and petroleum coke. It owns or operates more than 54,000 miles of pipeline and approximately 180 terminals.
For 2014, Kinder Morgan expects to declare cash distributions of $5.58 per unit, representing a 5% increase over its 2013 distribution of $5.33 per unit. It expects steady growth opportunities across all business segments, including the need for more midstream infrastructure to move and store oil, gas and liquids from the prolific shale play in the United States and the oilsands in Alberta.
