KINDER MORGAN WATCH

Agency honors coal shipper, hits it with fine

By Katy Stech
The Post and Courier
Wednesday, December 31, 2008

http://www.charleston.net/news/2008/dec/31/agency_honors_coal_shipper_hi...

State environmental regulators recently honored Kinder Morgan for its efforts to improve air quality at its shipping terminal on the Cooper River. At the same time, however, they were getting ready to assess the Texas company a five-figure fine for fouling Charleston's air with coal dust.

Kinder Morgan's self-nomination for the Spare the Air Awards.

http://media.charleston.net/2008/pdf/kmnomination_123008.pdf

Larry DiCenzo of West Ashley on his boat at the Cooper River Marina, where, he says, coal dust from the Kinder Morgan terminal collects. Kinder Morgan has made improvements at the facility, but DiCenzo says he has not noticed a difference in the past year.

Larry DiCenzo of West Ashley on his boat at the Cooper River Marina, where, he says, coal dust from the Kinder Morgan terminal collects. Kinder Morgan has made improvements at the facility, but DiCenzo says he has not noticed a difference in the past year.

The state Department of Health and Environmental Control two months ago ordered the company to pay $19,000 and change its operations to prevent coal dust from blowing off its waterfront site in the Charleston Neck Area.

The Oct. 21 consent order also calls for Kinder Morgan to operate a spray truck on the property, monitor dust collection systems and water down coal dust at the facility where it loads coal onto trains.

The enforcement action stemmed from a May 2007 site visit by state health inspectors who found coal chunks falling off a conveyor belt into the river, a water truck that did not effectively contain the coal dust and inadequate maintenance records.

Kinder Morgan came under scrutiny after it sought a permit from DHEC to expand the terminal to accommodate larger coal shipments. Local residents and boaters who dock at the nearby Cooper River Marina protested the request, complaining about existing levels of dust the company releases.

After a three-year fight, the expansion was approved by DHEC in November.

As the permitting process was coming to a close, and as the terms of the consent order were being considered, DHEC received an application from Kinder Morgan for the agency's new "Spare the Air" awards program, which recognizes efforts to improve air quality in South Carolina.
Self promotion

Kinder Morgan, which nominated itself, was recognized at a November ceremony; and it has since touted the honor to local residents who live near the Milford Street terminal.

"It was more of a mention," said Arthur Rudolph, the company's regional general manager. Rudolph noted that a Midlands hospital got the top award from DHEC, "but we were mentioned as a company that has made an effort in the past year."

Rudolph said he did not think it was misleading to highlight the award as the company was facing a fine for violating air standards.

"The consent order is from two years ago, and we've made a lot of improvements since then," he said. "We're not going to let down our efforts, and that's a promise we've made to the community."

Kinder Morgan said it has spent more than $1.5 million on environmental improvements at the site. Despite those efforts, fine specks of dust were still drifting onto the nearby marina Tuesday morning.

Marina manager Matt Driscoll pointed to piles of black dust that had accumulated on idle boats. One 38-foot sailboat that was washed on Monday had within a day collected fine lines of black dust along its raised edges.

In the distance, Kinder Morgan cranes scooped coal from the belly of a red cargo ship. Company officials have told marina boaters that the black dust might not have be coming from their facility, but several DHEC tests have shown that coal is the main air pollutant.

"They have got to be losing a lot of money," said sailboat owner Larry DiCenzo of West Ashley, who was preparing to wash off dust that had accumulated in the three days since the last cleaning. "It collects here everyday."

DiCenzo, who has docked his boat at the marina for five years, said whatever improvements Kinder Morgan has made have not reduced the amount of coal dust that collects on his boat.

Since the DHEC fine was issued, Kinder Morgan has held two meetings with its citizens advisory panel, a voluntary group of residents who meet with company officials to discuss their concerns and other matters.

Rudolph said he thought the fine had been discussed, but that is not reflected in the written minutes from the two most recent meetings. Two board members, including North Charleston resident Kristen French, said they do not recall hearing about the penalty.

"As a member of the CAP, I would expect that to come up because, in the spirit of full disclosure, we are trying to be very open and honest with each other, and that makes me think they aren't bringing everything to the table," French said.

"We shouldn't have to find out about it by reading about it in the newspaper or being contacted by someone from The Post and Courier," added fellow member Susan Graham.

During those two meetings, the company did talk about the "Spare the Air" recognition.

"I just think they want us to just be so happy with what they've done and stop bothering them, and I don't think they understand this is supposed to be a long-term relationship," French said.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.