US pipeline contractors anticipate a near-record year of work

The US Pipe Line Contractors Association reports 14 major projects will total more than 2,500 miles of pipe over the next 18-24 months.

Feb. 13, 2002

2 min read

By the OGJ Online Staff

HOUSTON, Feb. 13 -- Scott Summers, outgoing president of the US Pipe Line Contractors Association, has predicted that 2002 will be on of the most active year yet for PLCA members.

Summers, of ARB Inc., Lake Forest, Calif., spoke at PLCA's annual meeting last week in Bonita Springs, Fla. The association also elected officers for 2002.

Among the major projects slated for 2002 that Summers listed are Guardian pipeline, with 145 miles of 36-in. pipe; Kern River with 762 miles of 36 and 42-in. pipe; Columbia Gulf with 200 miles of 24-in. pipe; Millennium with 380 miles of 36-in. pipe; and Patriot with 300 miles of 12, 16, 20, and 24-in. pipe. In all, 14 major projects are expected to total more than 2,500 miles of pipe over the next 18-24 months.

Summers said the next 2-3 years "look great, but we have worked very hard with the unions the last 5 years trying to repair and recapture the work we lost during the last boom."

He explained that in boom periods, much work often goes to nonunion laborers. "History has shown that after each peak we have lost 13?30% of our marketplace to nonunion contractors."

He said PLCA will be holding wage talks with the United Association of Plumbers and Pipefitters (UA) and the Teamsters Union.

Summers said, PLCA was attempting to certify pipeline workers under the US Department of Transportation's "Operator Qualification" rule (OGJ, Jan. 7, 2002, p. 83). Under it a pipeline operator must "develop a qualification program to evaluate an individual's ability to perform covered tasks and to recognize and react to abnormal operating conditions that may occur while performing covered tasks."

Pipeline operators must complete the qualification of everyone performing covered tasks on their systems by Oct. 28. DOT has said the rule will cost industry $57.9 million/year for the first 6 years and $61.7 million/year in the 3 subsequent years, based on an estimated 175,000 covered pipeline employees.

Elected president for 2002 was James H. Nolan II, executive vice-president and CEO for Sheehan Pipe Line Construction Co., Tulsa. Additional posts filled for 2002 were Peter M. Billey of Right-of-Way Clearing & Maintenance Inc. as first vice-president and Paul C. Gregory of Gregory & Cook Construction Inc. as second vice-president.