REX filed with FERC today a document detailing their actual costs on REX West versus their original budget estimates. In this case, they were only over 20%, or $324,000,000. REX West was a piece of cake compared to what they have encountered on REX East, as we told FERC from the very beginning. In any case, REX/Kinder Morgan was plenty inept, even though they were collocating with other existing pipelines much of the way. At least their ROW/Damage costs were more in line. I find it interesting that their material cost was actually less than budget while it was over budget in REX East. Labor was their biggest budget buster, for some strange reason. It would seem that would be one of the easier costs to forecast. Seems kind of strange that labor was over-budget by almost $400,000,000, or almost 95%!
Here is the link to the FERC docket posting and I pasted the comparison chart below:
On 11/18/2008, the following Filing was submitted to the Federal Energy Regulatory Commission (FERC), Washington D.C.:
Filer: Rockies Express Pipeline LLC
No Organization Found (as Agent)
Docket(s): CP06-354-000
CP06-354-001
Filing Type: Supplemental/Additional Information
Description: Rockies Express Pipeline LLC, Statement of Actual Costs of Facilities Constructed, REX-West Project under CP06-354-000, et. al..
To view the document for this Filing, click here
http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20081118-5016
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