STATE OF ILLINOIS COMMERCE COMMISSION

Dakota Access, LLC and Energy Transfer Crude Oil ) Company, LLC ) ) Joint Petition for an Order under Section 8-503 of the ) Docket 19-____ Public Utilities Act for authority to install additional ) pumping stations and pumping facilities on existing ) certificated pipelines in the State of Illinois. )

JOINT PETITION

To the Illinois Commerce Commission:

I. Introduction and Overview

1. Dakota Access, LLC (“Dakota Access”), and Energy Transfer Crude Oil Company,

LLC (“ETCO”), jointly petition the Commission for an order or orders pursuant to Section 8-503 of the Public Utilities Act (“PUA”), 220 ILCS 5/8-503, authorizing Dakota Access and ETCO to install additional pumping station facilities, as more specifically described in this Petition, on their existing certificated common carrier pipelines (the “Pipelines”) in Illinois, in order to promote the security and convenience of the public and to secure adequate service and facilities. Dakota Access and ETCO were granted certificates as common carriers by pipeline by the Commission in 2015

(Dockets 14-0754 and 14-07551) to construct and operate interconnected Pipelines in Illinois for the transportation of crude , and their respective, interconnected Pipelines have been in operation in Illinois, transporting crude petroleum for shippers, since June 2017.

2. As originally planned, construction and operation of the Dakota Access Pipeline did not include any pump stations or pumping facilities in Illinois, and construction and operation of the ETCO Pipeline included only one pump station in Illinois. However, greatly increased demands by shippers for transportation service to ship crude petroleum on the two Pipelines has resulted in demands for service on the Dakota Access and ETCO Pipelines greatly in excess of the

1 Dakota Access, LLC, Docket 14-0754, Order issued December 16, 2015; Energy Transfer Crude Oil Company, LLC, Docket 14-0755, Order issued December 9, 2015. Pipelines’ daily throughput of 570,000 barrels per day (“bpd”). Further, demand for crude oil transportation service on the Pipelines, particularly from the Bakken/Three Forks and Williston

Basin production regions of , is projected to continue to increase. Therefore, in order to meet the increasing shipper demand for transportation service on the Pipelines, secure adequate service and facilities, and promote the security and convenience of the public, in accordance with their obligations as common carrier pipelines under Illinois and federal law, Dakota Access and

ETCO are implementing a Capacity Optimization plan, which will include constructing and operating the following additional pump stations and pumping facilities in Illinois: (1) in Hancock

County, Illinois, near the City of Carthage, to install a new pumping station with pump motors aggregating 30,000 horsepower (“HP”); (2) near Vernon and Patoka, Illinois, adding two 6,000

HP pumps and replacing two existing pumps at the existing pump station; and (3) in Massac

County, Illinois, in or near the Village of Joppa, Illinois, installing a new pumping station with pump motors aggregating up to 18,000 HP.2

3. The addition of the proposed new pumping stations and pumping facilities will enable the Dakota Access Pipeline and the ETCO Pipeline to each transport up to 1,100,000 bpd of crude petroleum.3 The as-built design and construction of the Dakota Access and ETCO

Pipelines are sufficient to safely accommodate transportation of these increased daily volumes.

The current maximum operating pressures of the Dakota Access Pipeline and the ETCO Pipeline will not change. Operation of the Dakota Access and ETCO Pipelines at the higher daily

2 To facilitate accommodating the increased shipper demands for transportation service, at Patoka, Dakota Access and ETCO also plan to add increased storage capacity along with additions to or modifications of piping, control valves, and meters. None of these additions or modifications will require enlargement of the existing footprint of the Patoka pumping station. 3 The Dakota Access Pipeline is interconnected directly into the ETCO Pipeline at the Patoka terminal; however, during periods in which daily volumes transported by Dakota Access, or other pipelines, to Patoka for delivery into the ETCO Pipeline are greater than ETCO can accommodate, the existing and planned additional storage at Patoka will accommodate the excess volumes until they can be injected into the ETCO Pipeline for transportation to the Gulf Coast refinery area. Additionally, some volumes transported by Dakota Access to Patoka are transferred to other pipelines at the Patoka terminal facilities, for transportation to destinations other than the Gulf Coast refinery area, such as Midwestern refineries.

2 throughput levels enabled by the new pumping stations and pumping facilities will continue to comply with all applicable regulations of the U.S. Department of Transportation Pipelines and

Hazardous Material Safety Administration (“PHMSA”), including PHMSA’s regulations at 49

C.F.R. Parts 194 and 195.

4. Dakota Access plans to install its new pumping station in Illinois in Hancock

County, near the City of Carthage, Illinois. Dakota Access has purchased an option to acquire land in fee, on which the pump station will be installed. ETCO plans to install its new pumping station in Massac County, Illinois, in or near the Village of Joppa, on available land owned by ETCO or its affiliates, adjacent to an existing natural gas compressor station. Petitioners will not seek eminent domain authority to acquire land for these new pumping stations, and are not requesting eminent domain authority in this Petition. At Patoka, Illinois, the additional pumping facilities will be installed on existing property of ETCO.

5. Given the direct connection of the Dakota Access Pipeline into the ETCO Pipeline to provide continuous crude petroleum transportation service from the Bakken/Three Forks production area to the Gulf Coast refinery area, the installation and operation of the proposed pumping stations and pumping facilities in Illinois will impact the operations of both Pipelines and enable both Pipelines to transport greater daily volumes. Therefore, Dakota Access and ETCO are jointly presenting, in a single Petition, this request pursuant to Section 8-503 to construct the new pumping stations and pumping facilities on their Pipelines in Illinois.

II. Description of Petitioners and of the Dakota Access and ETCO Pipelines

6. Dakota Access is a Delaware limited liability company with its principal offices at

3738 Oak Lawn Avenue, Dallas, Texas 75219. ETCO is also a Delaware limited liability company with its principal offices at 3738 Oak Lawn Avenue, Dallas, Texas 75219. Attachments 1 and 2 to this Petition are certificates of good standing from the Illinois Secretary of State showing that

Dakota Access and ETCO, respectively, are duly registered and in good standing to transact

3 business in Illinois.

7. Dakota Access is owned 75 percent by Dakota Access Holdings LLC and 25 percent by Phillips 66 DAPL Holdings LLC. ETCO is owned 75 percent by ETCO Holdings LLC and 25 percent by Philips 66 ETCO Holdings LLC. Dakota Access Holdings LLC and ETCO

Holdings LLC are owned by Bakken Pipeline Investments LLC which is owned 51% by Bakken

Holdings Company LLC and 49% by MarEn Bakken Company LLC. MarEn Bakken Company

LLC is a joint venture of Marathon Petroleum Corporation (“Marathon”) and Energy

Partners. The controlling owner of Bakken Holdings Company LLC is Energy Transfer, L.P.

(“ET”). The controlling owner of Phillips 66 DAPL Holdings LLC and Phillips 66 ETCO

Holdings LLC is Phillips 66.

8. As described in Dockets 14-0754 and 14-0755, operational services for the

Dakota Access Pipeline and the ETCO Pipeline are provided by DAPL-ETCO Operations

Management, LLC, a Delaware limited liability company, pursuant to Operating

Agreements. DAPL-ETCO Operations Management, LLC is an indirect subsidiary of ET.

9. In Docket 14-0754, Dakota Access was granted a certificate as a common carrier by pipeline pursuant to Section 15-401 of the CCPL, and authority pursuant to Section 8-503 of the PUA, to construct, operate, and maintain the Dakota Access Pipeline in Illinois, from the

Pipeline’s Mississippi River crossing point near Hamilton, Illinois, to Patoka, Illinois, for the transportation of crude petroleum as a common carrier by pipeline. The Dakota Access Pipeline was placed into service in Illinois in June 2017.

10. In Docket 14-0755, ETCO was granted a certificate as a common carrier by pipeline pursuant to Section 15-401 of the CCPL, and authority pursuant to Section 8-503 of the PUA, to construct, operate, and maintain the ETCO Pipeline in Illinois for the transportation of crude petroleum as a common carrier by pipeline. The ETCO Pipeline in Illinois, as certificated in

Docket 14-0755, is comprised of approximately 31 miles of newly built pipeline from Patoka,

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Illinois, to a point near Johnsonville, Wayne County, Illinois, where it connects to a pipeline formerly owned and operated by Trunkline Gas Company for the transportation of natural gas which has been refurbished and converted to transportation of crude petroleum. This portion of the ETCO Pipeline in Illinois then runs approximately 97 miles through Wayne, Hamilton,

Franklin, Johnson and Massac Counties to a crossing point of the Ohio River near Joppa, Illinois.

The ETCO Pipeline was placed in service in Illinois in June 2017.

11. As described in detail in Dockets 14-0754 and 14-0755, the Dakota Access and

ETCO Pipelines in Illinois are part of a larger pipeline system and network running from the

Bakken/Three Forks crude petroleum production area in North Dakota to the Midwest and Gulf

Coast regions. The Dakota Access Pipeline originates near Stanley, North Dakota, and terminates at a crude oil distribution complex near Vernon and Patoka, Illinois. Crude petroleum transported by the Dakota Access Pipeline can be transferred to other pipelines at Patoka for shipment to other

Midwestern refineries. The ETCO Pipeline originates at Patoka and terminates at two crude oil distribution terminals in Nederland, Texas. Crude petroleum transported to Patoka via the Dakota

Access Pipeline or other pipelines can be transferred to the ETCO Pipeline at Patoka for shipment to Nederland, Texas, and the Gulf Coast refinery region.4 The Dakota Access Pipeline and ETCO

Pipeline are therefore capable of providing pipeline transportation for shippers of crude petroleum from the Bakken/Three Forks production area to the Gulf Coast refinery region with aggregate refinery capacity of some 8.5 million bpd, comprising a significant portion of the total Gulf Coast refining capacity of 9.3 million bpd, which in turn constitutes 50% of total U.S. refining capacity.5

The Gulf Coast refineries accessed by the Pipelines produce refined petroleum products that serve

4 Petroleum Administration for Defense District (“PADD”) II, which includes Illinois and other Midwestern states, holds approximately 22% of total U.S. crude petroleum refining capacity. However, the PADD II region is a net importer of refined petroleum products from other regions, including from PADD III, which includes the Gulf Coast refinery area. 5 These refineries typically maintain only minimal inventories of crude petroleum, and therefore are dependent on continuous deliveries of sufficient supplies of crude petroleum to be able to maintain refinery operations and production of refined products for the consuming public.

5 markets and customer demands throughout the U.S., including Illinois, which ranks as the sixth highest petroleum-consuming state in the U.S. according to the U.S. Energy Information

Administration (“EIA”).6

III. Need for the New Pumping Stations and Pumping Facilities in Illinois

12. As described in Dockets 14-0754 and 14-0755, the initial anticipated daily throughputs for the Pipelines were approximately 450,000 bpd for the Dakota Access Pipeline and

400,000 bpd for the ETCO Pipeline, and the anticipated ultimate daily throughput for both

Pipelines was 570,000 bpd, with the only pumping facilities in Illinois being installed at the beginning of the ETCO Pipeline at Patoka. No other pumping facilities were needed in Illinois to achieve these daily throughput levels.

13. At the time the certificate applications for the Pipelines were filed in Dockets 14-

0754 and 14-0755, shippers had entered into long-term transportation contracts with Dakota

Access for 405,000 bpd and with ETCO for approximately 360,000 bpd of transportation service.

In addition, in accordance with Federal Energy Regulatory Commission (“FERC”) common carrier regulations, Dakota Access and ETCO each were, and continue to be, required to reserve approximately 10 percent of the capacity of their Pipelines for walk-up shippers.

14. Dakota Access and ETCO have experienced a substantial increase in the demand for crude petroleum transportation service on their respective pipelines from the levels of demand originally anticipated. Seven new shippers participated in a December 2018 Open Season, and the existing and potential new shippers have expressed significant interest in contracting for additional capacity to meet their expected future transportation needs at volumes that well exceed the

Pipelines’ current capacity (without the Capacity Optimization). The additional pumping capacity added as part of the Capacity Optimization will allow the Pipelines to meet the growing demand

6 Illinois consumes about 244 million barrels of petroleum per year, which far exceeds the amount of petroleum produced within the State. See https://www.eia.gov/state/print.php?sid=IL (April 2019).

6 from shippers by optimizing and fully utilizing the existing pipeline infrastructure, without the need to install new pipelines, and without the need for shippers to use less safe and efficient means of transportation, such as rail. Additionally, the recent demands for transportation service on the

Pipelines from walk-up shippers have exceeded the capacity available under the FERC’s 10 percent holdback requirement. As Dakota Access and ETCO will show in testimony, the existing capacity of 570,000 bpd is now substantially oversubscribed by shippers holding or seeking long- term transportation contracts, and without taking into account the need to reserve a portion of the capacity of the Pipelines for walk-up shippers.

15. The increased demand for transportation service on the Pipelines has been driven primarily by increased production from the Bakken/Three Forks region specifically and the

Williston Basin production area generally. The presence of in-place drilling and production facilities (enabling producers to respond rapidly to changes in customer demand and price) and ongoing advances in drilling technology have driven this increased production. At the time the

Dakota Access and ETCO Pipelines went into operation in June 2017, production from the

Williston Basin was approximately 1,045,000 bpd. As of December 2018, production from the

Williston Basin was approximately 1,349,000 bpd, an increase of approximately 304,000 bpd

(29%). Further, current forecasts show continued trends of 350,000 bpd to 450,000 bpd of incremental production volumes over the next five years.7 Recent industry analyses indicate substantially increased projections of recoverable reserves in the Bakken/Three Forks region resulting from the advances in drilling and recovery technology.8 Current production forecasts also show that beginning in the 2019-2022 time frame, and continuing thereafter, projected

7 Source: North Dakota Pipeline Authority, See https://ndpipelines.files.wordpress.com/2019/01/ndpa-january-15-2019-update.pdf

8 Source: https://www.spglobal.com/platts/en/market-insights/latest-news/oil/103018-continental- resources-doubles-estimate-for-bakken-oil-recovery

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Williston Basin production of crude petroleum will exceed existing outbound pipeline capacity.9

16. The Dakota Access Pipeline and ETCO Pipeline cannot accommodate the increased shipper demands for crude petroleum transportation service resulting from increased production in the Bakken/Three Forks and Williston Basin production regions without adding pumping capacity at various points along the Pipelines, including in Illinois.

17. Under both federal and Illinois law, Dakota Access and ETCO, as common carrier pipelines, are obligated to meet customer demands for the transportation services they offer, without discrimination or delay. Section 8-101 of the PUA (220 ILCS 5/8-101), made applicable to common carriers by pipeline by Section 15-101 of the CCPL (220 ILCS 5/15-101), states in pertinent part:

A public utility shall furnish, provide, and maintain such service instrumentalities, equipment, and facilities as shall promote the safety, health, comfort, and convenience of patrons, employees and the public and as shall be in all respects adequate, efficient, just, and reasonable. . . . A public utility shall, upon reasonable notice, furnish to all persons who may apply therefor and be reasonably entitled thereto, suitable facilities and service, without discrimination and without delay.

18. Section 8-503 of the PUA, also made applicable to common carriers by pipeline by

Section 15-101 of the CCPL, states in pertinent part:

Whenever the Commission, after a hearing, shall find that additions, extensions, repairs or improvements to, or changes in, the existing plant, equipment, apparatus, facilities or other physical property of any public utility or of any 2 or more public utilities are necessary and ought reasonably to be made or that a new structures or structures is or are necessary and should be erected, to promote the security or convenience of its employees or the public . . . or in any other way to secure adequate service or facilities, the Commission shall make and serve an order authorizing or directing that such additions, extensions, repairs, improvements or changes be made, or such structure or structures be erected, at the location, in the manner and within the time specified in said order. . . .

19. Accordingly, Dakota Access and ETCO request issuance of an order, pursuant to

Section 8-503 of the PUA, authorizing Dakota Access and ETCO to construct the new pumping

9 Source: North Dakota Pipeline Authority, See https://ndpipelines.files.wordpress.com/2019/01/ndpa-january-15-2019-update.pdf

8 stations and pumping facilities on the Dakota Access and ETCO Pipelines in the State of Illinois, as more fully described in the next section of this Petition, to enable them to meet the increased shipper demand for the crude petroleum transportation services provided by the Pipelines.10

20. Installation of new pumping stations and pumping facilities on the Pipelines in

Illinois (and in other states, as described below), in order to increase the daily throughput of the

Pipelines and meet increased shipper demands for crude petroleum transportation services, is a superior, more efficient, safer, and faster alternative compared to other potential means of meeting the increased shipper demands for transportation of crude petroleum. Installing new pumping stations and pumping facilities on the existing Pipelines will enable increased volumes of crude petroleum to be transported via the existing Pipelines, and is a superior, and obviously much faster, alternative to construction of a new pipeline or physical enlargement of one or more existing pipelines. No additions or modifications to the existing, in-the-ground Dakota Access and ETCO

Pipelines will be necessary in Illinois. No new pipeline construction will be needed. Installation of the new pumping stations and pumping facilities will make efficient use of the existing, constructed, in-place Pipelines to transport additional volumes of product as demanded by shippers; and will enable Dakota Access and ETCO to optimize and fully utilize their existing, permitted pipeline infrastructure.

21. Further, without an increase in the capacity of the Pipelines to meet the increased shipper demands for crude petroleum transportation service from the Bakken/Three Forks and

Williston Basin production areas, the increased shipper demands for transportation service will inevitably be met through increased transportation of crude petroleum by railcars and trucks,

10 Because Dakota Access and ETCO hold certificates in good standing for the Pipelines and are seeking to add new structures and equipment to the existing, certificated Pipelines, they believe that Section 8-503 is the appropriate statutory provision under which to request and be granted authority to construct and install the new pumping stations and pumping facilities to meet increased customer demand. However, Dakota Access and ETCO would not object were the Commission to conclude that their certificates in good standing should also be amended in this proceeding, pursuant to Section 15-401 of the CCPL, to reflect authorization to construct and install the additional structures and equipment.

9 including through the State of Illinois, as occurred in the past prior to construction of the Pipelines.

Industry data and projections, including information from the North Dakota Pipeline Authority, indicate that although transportation by railroad from North Dakota production areas decreased substantially as outbound pipeline capacity came into service, the volumes of crude petroleum transported by rail approximately tripled between July 2017 (the Dakota Access Pipeline went into operation in June 2017) and November 2018 as production in the region has increased and the use of available pipeline capacity has been maximized. Transportation of crude petroleum by railcars and trucks presents safety issues not presented by pipeline transportation, and also diverts railroad and trucking capacity away from other uses such as transportation of grain and other farm products to market and processing centers and transportation of consumer and industrial products.

22. In summary, installing new pumping stations and pumping facilities on the

Pipelines is a safer and more efficient means of meeting the increased shipper demand for crude petroleum transportation service from the Bakken/Three Forks and Williston Basin regions than are other potential alternative approaches to meeting increased customer demand.

IV. Description of the Proposed New Pumping Stations and Pumping Facilities

23. Dakota Access and ETCO propose to construct and install the following new pump stations, and additional pumping and related facilities at an existing pumping station, on the

Pipelines in Illinois:

a. A new pumping station will be installed on the Dakota Access Pipeline in

Hancock County, Illinois, near the City of Carthage. Attachment 3 to this Petition depicts

the location of this new pumping station along the Dakota Access Pipeline route. Pumps

will be installed at this pumping station totaling up to 30,000 HP. Depending on timing of

receipt of necessary permits and approvals, the anticipated in-service date for the Hancock

County pumping station is the third quarter of 2020 but no later than the first quarter of

2021. More specifically, from the date that construction is authorized to proceed, it is

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projected that approximately eight to ten months will be required for construction and

installation at the site in order to bring the initial set of pumps into commercial operation.

Dakota Access has purchased an option on, and will own, the land for this pumping station

in fee rather than through an easement.

b. At the existing Patoka Terminal, where the Dakota Access Pipeline

terminates and the ETCO Pipeline begins, ETCO will add two new 6,000-HP pumps and

replace two existing pumps, bringing the total pumping capacity at Patoka to 24,000 HP.

In addition, Dakota Access will install control valves and make certain meter modifications

and additions in the Patoka area, and ETCO will make facility piping modifications. These

facility additions and modifications will be made on the existing properties of Dakota

Access and ETCO at Patoka, and no acquisition of additional land or land rights is required.

c. A new pumping station will be installed on the ETCO Pipeline in Massac

County, Illinois, at or near the Village of Joppa. Attachment 4 to this Petition depicts the

location of this new pumping station along the ETCO Pipeline route. Pumps will be

installed at this pumping station up to 18,000 HP, following installation of the Hancock

County pumping station. ETCO plans to install the pumping station on available land

currently owned by an affiliate of Dakota Access and ETCO, on which a natural gas

compressor station is already located. ETCO will take fee title from its affiliate to the

portion of the property on which the new crude petroleum pumping station will be installed.

Attachment 5 to this Petition is a map showing the as-built routes of the Dakota Access Pipeline and ETCO Pipeline in Illinois, the location of the existing facilities at Vernon and Patoka, and the locations of the proposed Hancock County and Joppa pumping stations.

24. The placements of the new pumping stations in Hancock County and Massac

County, Illinois, were selected to meet the hydraulic requirements for the Dakota Access and

ETCO Pipelines to optimize their daily crude petroleum transportation capabilities. In addition,

11 the location of the new pumping station in Massac County, Illinois, enables efficient co-location of the facilities on available property at an existing natural gas compressor site owned by an affiliate of Dakota Access and ETCO.

25. Dakota Access and ETCO will also be installing new pumping stations and pumping facilities and other facilities in other states along the route of the Pipeline. Additional pumping facilities or improvement to existing pumping facilities will be installed on the Dakota

Access Pipeline in North Dakota, , and , in addition to in Illinois. Additional pumping facilities and/or improvement to existing pumping facilities will be installed on the ETCO

Pipeline in Tennessee, Mississippi, Louisiana, and Texas, in addition to in Illinois.

26. A general contractor or contractors will be selected to construct and install the new pumping stations and facilities in Illinois using ET’s standard procedures. It is the practice of ET and its subsidiaries to hire only experienced, highly-qualified contractors for their facilities and infrastructure projects. All contractor candidates will go through ET’s standard prequalification process as a condition for the contractor being invited to bid on the work. ET’s standard prequalification process involves a detailed review of the contractor’s financial capabilities and credit standing, capabilities to perform the scope of work, and past performance, including safety record, in the industry on similar projects in similar regions. Contractors will be selected for a project that are familiar with both the resources available in the area of the project and the concerns specific to construction of such facilities in the Midwest.

27. The estimated cost for the new pumping station in Hancock County is $35 million to $40 million. The Hancock County pumping station will be owned by Dakota Access and the construction and installation costs will be funded by Dakota Access. The estimated cost of the additions and modifications to existing facilities at Patoka is approximately $120,000,000. These facilities will be owned by either Dakota Access or ETCO and the cost will be funded by Dakota

Access and ETCO. Dakota Access and ETCO plan to fund the construction of these new and

12 modified facilities in Illinois through internal cash generated from operations and, if necessary, equity infusions from the parent companies.

28. The estimated cost for the new pumping station in Massac County is $35 million to

$40 million. The Massac County pumping station will be owned by ETCO and the construction and installation costs will be funded by ETCO. ETCO plans to fund the construction of this new facility in Illinois through internal cash generated from operations and, if necessary, equity infusions from its parent companies.

29. Dakota Access and ETCO and their parent companies have the financial capabilities to fund the construction and installation of the new pump stations and other facilities.

The ultimate parent companies of Dakota Access and ETCO are ET, Marathon, Enbridge Energy

Partners, and Phillips 66. These companies or their parent companies are four of North America’s nation’s largest pipeline and/or refining companies. At December 31, 2018, and for the year then ended, ET had annual revenues of approximately $54.1 billion, total assets of approximately $88.2 billion, total equity of approximately $30.1 billion, and net income of approximately $3.37 billion.

At December 31, 2018, and for the year then ended, Marathon had revenues of approximately $97 billion, total assets of approximately $92.9 billion, total equity of approximately $44 billion, and net income of approximately $3.61 billion. At December 31, 2018, and for the year then ended,

Enbridge, Inc., had revenues of approximately $46.4 billion, total assets of approximately $166.9 billion, total equity of approximately $73.4 billion, and earnings of approximately $3.33 billion.

At December 31, 2018, and for the year then ended, Phillips 66 had annual revenues of approximately $111.5 billion, total assets of approximately $54.3 billion, and net income of approximately $5.9 billion.11

30. In negotiating with landowners to acquire the land for the new pumping station in

11 The cited financial data is as reported in the respective companies’ 10-K reports for the year ended December 31, 2018. The data for Enbridge, Inc., is stated in Canadian dollars.

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Hancock County, Illinois, Dakota Access is complying with and following, and will continue to comply with and follow, applicable Commission regulations in 83 Ill. Adm. Code Part 300.

V. Operation of the Pipelines with the Additional Pumping Capacity

31. As described in Dockets 14-0754 and 14-0755, the Dakota Access and ETCO

Pipelines were constructed of high-strength carbon steel with a 0.429 inch wall in non-sensitive areas, increasing to a 0.625 in wall in unusually sensitive areas and at road crossings and water body crossings. Additionally, both Pipelines were constructed in compliance with all applicable governmental requirements, including PHMSA’s regulations at 49 C.F.R. Parts 194 and 195, and applicable codes and standards. The portion of the ETCO Pipeline that is a converted and refurbished natural gas pipeline has been thoroughly evaluated to ensure that its design parameters

(outside diameter, wall thickness, and grade) are sufficient to accommodate the higher daily throughput volumes that will be attained with the increased pumping capacity. Both Pipelines have cathodic protection systems to prevent external corrosion. The design and construction specifications and as-built condition of the Dakota Access Pipeline and the ETCO Pipeline, including the refurbished natural gas pipeline portion of the ETCO Pipeline, are sufficient to safely accommodate the increased maximum daily throughputs that will be attained as a result of the installation and operation of the additional pumping stations and pumping facilities.

32. Operation of the Dakota Access and ETCO Pipelines at the higher daily throughput levels enabled by the new pumping stations and pumping facilities will continue to comply with all applicable PHMSA regulations, including 49 C.F.R. Parts 194 and 195.

33. The installation and operation of the additional pumping stations and pumping facilities and the resulting higher daily throughput volumes will not require or result in an increase in the Pipelines’ maximum operating pressures. Through the use of proper, existing operating controls, operation of the existing pumping capacity on the Pipelines, the addition of the additional pumping capacity to the Pipelines, and the use of drag reducing agent, the Pipelines can safely

14 provide additional throughput capacity within the specifications of the original as-built design and without exceeding their maximum operating pressures, enabling the Dakota Access Pipeline and the ETCO Pipeline to each achieve a daily throughput of up to 1,100,000 bpd. Drag reducing agent helps to increase the throughput capacity of the Pipelines by reducing frictional losses, thereby allowing crude petroleum to flow through the Pipelines more efficiently.

34. The operations and conditions of the additional pumping stations and pumping facilities, along with the entirety of both Pipelines, will be monitored on a 24 hours per day, seven days per week, 365 days per year basis using the Pipelines’ System Control and Data Acquisition system and other remote monitoring applications at the dedicated Control Center Console operating the Dakota Access and ETCO Pipelines. The Control Center Console is located at the

Energy Transfer Liquids Control Center in Houston, Texas. Additionally, operations and maintenance personnel of the Pipelines will be stationed at or close to the new pumping stations.

V. Additional Matters

35. Dakota Access and ETCO request that the persons shown below be placed on the official service list maintained by the Chief Clerk for this proceeding. Pursuant to 83

Illinois Administrative Code §200.1050, Dakota Access and ETCO agree to accept service by electronic means.

Keegan Pieper Owen E. MacBride Associate General Counsel Ryan C. Granholm Dakota Access, LLC and Schiff Hardin LLP Energy Transfer Crude Oil Company, LLC 233 South Wacker Drive, Suite 7100 1300 Main Street Chicago, IL 60606 Houston, TX 77002 (312) 258-5680/ 5633 (713) 989-7003 [email protected] [email protected] [email protected]

VI. Conclusion

For the reasons stated in this Petition, Dakota Access, LLC and Energy Transfer Crude Oil

Company, LLC respectfully request entry of an order pursuant to Section 8-503 of the PUA (1) authorizing Dakota Access and ETCO to construct and operate the following additional pump

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