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5 Questions With Rod Sands
Friday, June 26, 2009 11:51 AM


(Source: Tulsa World)trackingBy ROD WALTON

Rod Sands is CEO of Tulsa-based Explorer Pipeline Co., which operates more than 1,900 miles of pipeline that moves refined petroleum products to major population centers such as Houston, Dallas, St. Louis and Chicago. The company is owned by a consortium of major energy companies including ConocoPhillips, Chevron Corp. and Sunoco Logistics.

1 You retired as Explorer Pipeline Co.'s chief operating officer in October 2005 and returned as CEO in January. Why?

When I retired after 36 years in the pipeline industry -- 32 years with Explorer -- I was ready to do something different and had lined up a number of things. My plans included remodeling an old house, getting more involved with volunteer activities -- especially the Rotary Club of Tulsa, where I'm a 28-year member -- and opening up a Route 66 car lot for "Rod's Relics." I thought I would buy and sell project cars from the 1950s and '60s. My plate was pretty full.

I hadn't intended to go back to work full time, but when the opportunity came up, I decided to take on the challenge to make a short-term contribution to a company filled with excellent people.

2 How does a pipeline company turn a profit moving oil and refined fuels when production and commodity prices are still down significantly from historic highs?

The company remains profitable even though the prices and recession we have experienced since 2008 have negatively impacted our transportation volumes by about 30 percent.

We don't own the refined petroleum products and commodities that we ship for our customers. We have various tariff rates that we charge for pipeline transportation ranging from 3 cents to just over 4 cents per gallon.

3 Explorer is known for transporting both jet fuel and refined gasoline products through the same pipelines. So how tricky is that?

The pipeline is always full of product and only emptied in small sections when we have scheduled maintenance. Various refined product grades are moved in sequential batches over 10-day cycles. For example, we will pump gasoline for about six days followed by jet fuel and diesel for another four days.

Gasoline in the pipeline is kept separate from jet fuel and diesel fuel with the use of batching devices that are really just large neoprene spheroids.

They are a minimum of 2 feet in diameter and look like large black rubber balls. These batching spheres each weigh nearly 350 pounds and move along inside the pipeline with the product at about 6 mph, separating gasoline from jet fuel and diesel.

When the spheres reach their final destinations, they have to be trucked back to our pipeline origin points to be used again in following cycles. They will last 2,500 to 3,500 miles before we have to replace them due to wear. The Tulsa Zoo has some of our spheres for play toys for their elephants.

4 Explorer Pipeline got hit with a $3.3 million civil penalty earlier this year because of a jet fuel spill near Huntsville, Texas, two years ago. How does a company minimize its environmental impacts with so many miles of pipeline to watch?

Safety and pipeline integrity are our No. 1 priorities, and we're committed to a comprehensive risk management integrity program to protect the public, the environment and our employees from accidents. Pipelines are the safest form of transportation for petroleum liquids as compared to truck and rail, according to the National Transportation Safety Board. The $3.3 million penalty, although significant, was reduced by the EPA due to their recognition of the company's many risk management programs.

We continually monitor our pipeline and perform inspections.

5 How efficient are pipelines in the scheme of moving and storing fuels?

Pipelines are the most efficient method of transportation over long distances, especially when compared to truck and rail transportation of petroleum liquids. A typical transport truck holds about 200 barrels or just over 8,000 gallons. Explorer typically pumps at rates of 15,000 gallons per minute or more, the equivalent of nearly two truck loads per minute, and our pipeline operates 24 hours per day with some allowance for maintenance downtime and repairs.

Originally published by ROD WALTON World Staff Writer.

(c) 2009 Tulsa World. Provided by ProQuest LLC. All rights Reserved.

A service of YellowBrix, Inc.



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