BECHTEL CORPORATION Job 2000 LAKEHEAD EXTENSION FINAL REPORT

BECHTEL CORPORATION
Job 2000
LAKEHEAD EXTENSION
FINAL REPORT
February 1, 1954
GENERAL
The framework for a record of the construction of the Lakehead Extension is probably most clearly outlined by the day by day diary of
the most important meetings and events, which follows:
July 15th, 1952: Interprovincial Pipe Line Company started assembling maps and pertinent information covering possible routes for the
extension of the Interprovincial - Lakehead system from Superior,
Wisconsin to Sarnia, Ontario, in Edmonton. This material covered
two routes: One skirting around Lake Michigan by way of Chicago
and thence northeasterly to Sarnia; the other traversing the length of
the Upper Peninsula of Michigan to St. Ignace, crossing the Straits
of Mackinac and thence proceeding southeasterly to Sarnia.
July 21st: The Interprovincial Board of Directors discussed the possibility of extending the Lakehead system from Superior to Sarnia, and
authorized the expenditure of $100, 000 for a study of the possible
routes
August 15th: Representatives of Lakehead met with the U. S. Corps
of Engineers in Detroit and discussed the problem of crossing the
Straits of Mackinac and the St. Clair River with a crude oil pipeline.
September 19th: Missouri Valley Dredging Company of Omaha, Nebraska, was engaged by Lakehead to make a preliminary survey of the
Straits of Mackinac crossing.
September 29th: F. J. Stubbs, Assistant General Manager, and
Roger Clute, Chief Engineer of Lakehead, started aerial reconnaissance surveys of the Superior to Sarnia via the Straits of Mackinac
route.
The Interprovincial Board of Directors reviewed preliminary cost
estimates for the extension to Sarnia. The Board requested that
President T. S. Johnston visit Washington, D. C. to determine the
feeling of P. A. D. from the standpoint of approval of the project, and
the availability of steel for pipe.
cfiNFIDENTIAL
FL 6313047
October 6th: President Johnston advised his Board that the extension
would have the support of P.A. D. The Board authorized further studies
as to the size of line, and the estimated earnings.
October 9th: R. E. Trammell, General Manager, and Roger Clute of
Lakehead continued with the aerial reconnaissance of the northern route
and fixed a location if the crossing of the Straits of Mackinac proved
feasible. (Note: This location was eventually used for the length of the
line with a minimum of deviations being made during the final surveys.)
October 21st: The Board of Directors agreed that the Lakehead Extension seemed desirable, after examining estimates and studies that had
been prepared on this subject. The application for Po A. D, approval
was authorized. A meeting with Bechtel Corporation officials to determine what Bechtel could offer in the way of assistance to the over-all
project was also authorized.
Van W. Rosendahl, R. Lo Hamilton, H. H, Hall and Clark Rankin of
Bechtel Corporation scouted the two possible routes for the line by air,
flying north from Chicago to Superior, then following the Upper Peninsula of Michigan easterly to St. Ignace, then turning south to Port Huron
and Sarnia, then flying southeasterly to Chicago. This flight gave a
rough coverage of the route from Superior by way of Chicago to Sarnia,
and also the alternate route from Superior by way of the Upper Peninsula and the Straits of Mackinac to Sarnia.
October 22nd: S. D. Bechtel, Rosendahl, Hall, Hamilton and Rankin of
Bechtel Corporation and S. M. Blair of Canadian Bechtel Limited met
with T. S. Johnston, President; R. E. Trammell, General Manager;
F. J. Stubbs, Assistant General Manager; and R. Ho Clute, Chief
Engineer of the Interprovincial Pipe Line Company at Interprovincial's
office in Toronto, for discussions of the proposed Lakehead Extension.
October 23rd: As a result of the Toronto discussions, Bechtel Corporation was entrusted with the work of making cost estimates and the preparation of a report covering the economics of both routes for submission to
the Board of Directors of Interprovincial. Bechtel was also given the
responsibility of supervising the survey of the Straits of Mackinac.
October 24th: Hall started on a scouting trip by automobile, traveling
from Sarnia to Superior by way of the Straits of Mackinac.
October 25th: Bechtel scouts set forth from Chicago by car to cover the
southern route. R. L. Hamilton commenced the preparation of the
economic and engineering reports in San Francisco.
CONFIRVIAL
-2-
ELI
6313048
October 29th: The taking of aerial photographs of the proposed routes
was started by Aero Exploration Co. of Tulsa, Oklahoma.
October 30th: Hall and the other Bechtel scouts reported to San Francisco with their field notes. The preparation of the estimates for both
routes was organized under the guidance of Van W. Rosendahl, R. L.
Hamilton and S. D. Bechtel, Jr.
November 12th: Hamilton and Rankin visited Edmonton, Alberta, for
meetings with Messrs. Trammell, Stubbs and Clute, for a review of
Bechtel's reports and estimates.
November 17th: The Bechtel Corporation report and proposal was submitted in Toronto to the Board of Directors of Interprovincial by S. D.
Bechtel and Van W. Rosendahl.
November 18th: S. D. Bechtel, Rosendahl, Colley, Blair, Hamilton
and Rankin of Bechtel Corporation attended meetings with Messrs.
Johnston, Trammell, Stubbs, Clute and the Directors of Interprovincial
which culminated in the decision that Bechtel Corporation should undertake the engineering and management of the Lakehead Extension. The
Board of Directors approved the northern route and the construction of
an initial pump station at Superior. The pipe size of 30-inch diameter
was selected for the line.
R. E. Trammell (Chairman), F. J. Stubbs and R. H. Clute of LakeheadInterprovincial, and Van W. Rosendahl, Senior Vice President and R. L.
Hamilton, Pipeline Consultant of Bechtel, were selected by the Board
as a Coordination Committee, charged with the full responsibility for
the construction of the project.
November 19th: A group of qualified contractors for the mainline construction was selected by Interprovincial and Bechtel, and were invited
by telephone to bid on the line.
November 20th: Lakehead-Interprovincial met with the First Boston
Corporation to discuss the financing of the project.
November 24th: Rosendahl met with the selected contractors in
Minneapolis for a briefing on the project before they looked over the
route. The date of December 20th was set for the opening of bids in
San Francisco.
November 25th: Hall and Rankin of Bechtel Corporation and Ford Bartlett of the engineering firm of Lockwood, Kessler & Bartlett, Inc.
started on a scouting trip over the line from Duluth. Bartlett had been
invited to make the trip in order that he might obtain the information
_3_
CONFIDENTIAl Oil 3049
necessary for his firm to bid on the location, mapping and survey work
on the line.
November 26th: Lakehead-Interprovincial met with the Bank of Montreal
to discuss financing.
November 28th: P. A. D. made a public announcement approving the allocation of steel for the project.
December 2nd: S. D. Bechtel, Rosendahl, Hamilton, McGough and
Rankin met with Trammell, Stubbs and Clute in Edmonton for discussions
of the pipeline and pump station specifications. Bartlett was also present
for discussions on the surveying of the line.
December 3rd: The specifications were agreed upon and conversations
were continued on the Straits of Mackinac, St. Clair and Saginaw subaqueous crossings. Bartlett was informed by Rosendahl that his firm
would perform the location, mapping and surveying of the line under the
direction of Bechtel Corporation.
December 5th: Bechtel Corporation moved into it headquarters office in
Saginaw.
December 8th: Missouri Valley Dredging Company submitted its final
report on the preliminary investigation of the Straits of Mackinac. This
report indicated that the pipeline crossing was feasible.
December 18th: Bechtel's Creveling, Chambers, Barker and Rankin,
and L. K.B. 's Bartlett met in Detroit with R. B. Burgess, Lakehead's
Chief Counsel; Messrs. Scupholm and Gust of the legal firm of Butzel,
Eaman, Long, Gust & Kennedy; Mr. Barstow of the Superior, Wisconsin
legal firm of Johnson, Fritschler, Barstow & Witkin; and Mr. Wotherspoon and Mr. Bridding, legal representatives of the Lakehead bondholders. This meeting was called by Mr. Burgess to Clarify the requirements of the bondholders of the pipeline for the acquisition of the pipeline
right-of -way.
December 19th: Bids for the construction of the seven mainline schedules
of the pipeline were opened in San Francisco by S. D. Bechtel, Rosendahl
and Hamilton, reprsenting Bechtel Corporation, and R. E. Trammell,
Stubbs and Clute, representing Lakehead,
December 20th: Mainline schedules were awarded to the successful
bidders as follows:
CONFIDENTIAL
Mahoney Contracting Co. - Schedule I
Anderson Brothers Corporation - Schedules II and III
F
-4-
6313050
Midwestern Constructors, Inc. - Schedule IV
Bechtel Corporation (Pipeline Division) - Schedule V
Conyes Construction Corporation - Schedules VI and VII
December 22nd: H. D. Barker, Project Engineer for Bechtel, met with
Mr. Millar and Mr. Humphrys of the Conservation Commission for a discussion of the procedures required to obtain easements for the pipeline
crossing of state lands. The same day he visited the State Highway Department and discussed the procedure for obtaining permits to cross the
highways of the state.
January 3, 1953: A meeting was held in San Francisco for the purpose
of studying the design to be used for the subaqueous crossing of the Straits
of Mackinac. Harry Britton, Vice President of Trans Arabian Pipe Line
Company; H. H. Hall, retired Vice President of Trans Arabian Pipe Line
Company and formerly Chief Engineer of Standard Oil Company of California; Mr. Glenn Woodruff, internationally famous bridge and submarine
foundation expert (consultants for Bechtel Corporation on this work); and
Van Rosendahl, Hamilton, McGough and Rankin attended.
January 13th: A meeting was held in Duluth for the purpose of opening
the bids for the pipe line coating and wrapping materials and the mainline valves. Trammell, Clute and Byrd represented Interprovincial.
Rosendahl, Hamilton, Barker, Wilson, Hyde, Groundwater, Giddings
and Rankin represented Bechtel Corporation. The low bidders were selected to supply both the coat and wrap materials and the mainline valves.
Hamilton introduced the bids submitted for the pumps, engines and speed
increasers. The selection of the manufacturers of these items was deferred for further study and consideration. A visit was made in the after noon to Lakehead's Superior Terminal and the site was selected on Terrn
minal property for the initial pump station.
January 14th: The morning meeting was attended by the same people as
the meeting on January 13th and was concerned with the selection of the
pumps and engines for the initial pump station. Again the decision as to
which units were to be selected was deferred. McGough, Weber and Jalowicz of the New York Office of Bechtel Corporation arrived in the morning
for discussions on the Mackinac, Saginaw and St. Clair crossings.
January 15th: Messrs. Trammell, Clute and Rankin drove from Saginaw
to Lansing for discussions with the Lands Division of the Michigan State
Department of Conservation regarding the Mackinac, Saginaw and St.
Clair crossings. Mr. Millar, head of the Lands Division, requested
that we supply letters and reports from qualified sources assuring the
Division that the crossings would not create a hazard of pollution of the
lake waters. Following this meeting, Trammell, Clute and Rankin
journeyed to Port Huron.
CONFIDENTIAL
,5-
Ft')
6313051
January 16th: Messrs. Trammell, Clute and Rankin were joined by Hamilton and Barker of Bechtel Corporation, and J. H. Mitchell of Lockwood,
Kessler & Bartlett. During the day the Canadian section of the line was
located and terminal sites were selected at both the Imperial Oil Company,
Ltd. and the Canadian Oil Refineries, Ltd. in Sarnia, and the location
was approved for the St. Clair crossing. Before leaving Port Huron,
Trammell and Clute made their selection of the pump station equipment.
January 19th: Lakehead-Interprovincial met with various financial houses
to discuss the junior financing and possible registration with the S. E. C.
January 22nd: The Agreement between Lakehead Pipe Line Company, Inc.
and Bechtel Corporation was signed in Toronto by T. S. Johnston, President of Lakehead, and Van W. Rosendahl, Senior Vice President of
Bechtel Corporation.
January 27th: President Johnston met with the S. E. C. in Washington to
discuss possible registration.
January 30th: President Johnston called on Governor Williams of Michigan to explain the project and to solicit his support of Bill 1095.
February 5th: R. E. Burgess of Lakehead and Rankin, Barker and
Weber met with Messrs. Eddy, Shuhsaker, Millar, Humphrys, Maclntyre,
Hardenburg, and Young of the Conservation Commission in Lansing, for a
thorough review of Lakehead's design for the Straits crossing. The Commission was satisfied with the design and specifications except that it insisted that an automatic, rather than manually operated valve, be installed
on the north side of the Straits. It was agreed to incorporate this type of
valve in the design.
February 6th: The Morton Salt Company refused to allow Lakehead to
cross their property on the American shore of the St. Clair River crossing,
necessitating a new location for the crossing and a new route through the
City of Marysville.
The Great Northern Railroad refused to allow Lakehead the right to lay
the line under its 33-track marshalling yard in Superior, which also necessitated a major and complicated line change.
February 8th: R. E. Trammell, Van Rosendahl, H. H. Hall, R. H. Clute,
Clark Rankin, H. E. Weber, M. C. McGough and R. E. Burgess held a
preliminary meeting in Saginaw for the purpose of discussing the details
of the St. Clair, Saginaw and Straits of, Mackinac subaqueous crossings
contracts.
CONFIDENTIAL
06-
F Di 6 3 1 3 0 5 2
February 9th: The bids for the crossing of the Straits of Mackinac were
opened. As none of the three bids was acceptable, the contractors were
asked to make new proposals.
February 10th: The bids for the St. Clair and Saginaw Rivers were opened.
The successful bidder for the St. Clair - Midwestern Constructors - was
asked to make a new proposal on the basis of a new location 1000 feet
south of the original location. Midwestern's new proposal was satisfactory to the committee and it was awarded the St. Clair crossing. W. J.
Meagher & Sons, Inc. was awarded the crossing of the Saginaw River,
and Merritt-Chapman & Scott was awarded the Straits crossing.
Senate Bill No. 1095 was ordered printed and referred to the Michigan
Senate Committee on Conservation. This bill authorized the Conservation Committee to grant easements and permits for the laying, maintaining and operating of pipelines on state lands, unpatented lands, overflowed lands and lake bottom lands. (The passage of this bill was necessary to Lakehead for the construction of the Straits of Mackinac crossing,
and the procurement of the right of way through the many parcels of land
owned by the state, on the selected route of the line).
February 13th: The Michigan Conservation Commission approved the
granting of a permit for the Straits crossing, provided Bill 1095 was
passed by the Legislature.
February 16th: Merritt-Chapman & Scott started making subaqueous
tests at the Straits.
February 19th: Barker and Creveling met with the Council of the City
of Marysville with regard to the proposed route of the line within the
city limits. Strong objection to the line being located anywhere within
the city limits was expressed by a group of the residents present at
the meeting.
March 3rd: The Senate of the Michigan Legislature passed Bill 1095,
and it was sent to the House of Representatives.
March 4th: T. S. Johnston, President, R. E. Trammell, General
Manager and R. B. Burgess, Counsel of Lakehead, met with key members of the Michigan House of Representatives in Lansing for the purpose of explaining the policy of Lakehead with regard to the construction and operation of the proposed pipeline. Certain of the Representatives brought out the fact that some of their constituents had raised an
objection to the price per rod offered for the right to lay the pipeline
on their land.
CONFIDENTIAL
-7-
F
6313053
March 5th: A meeting was held in Detroit, attended by Messrs. T. S.
Johnston, R. E. Trammell and R. B. Burgess of Lakehead, and by
Rankin, Creveling and Chambers of Bechtel. The policy was established
by Lakehead that henceforth right-of-way would be procured on an acreage
rather than a roddage basis.
Following this meeting, the above mentioned group joined with H. C.
Mockridge and Ian Douglas of the legal firm of Osier, Hoskins & Harcourt, Toronto; J.R. Rabon and J. R. Stevenson of the legal firm of
' Sullivan & Cromwell, New York; T. G. Long, T. Gordon Scupholm and
J. B. Book of the Detroit legal firm of Butzel, Eaman, Long, Gust &
Kennedy; B. B. Barstow of the Superior, Wisconsin legal firm of
Johnson, Fritschler, Barstow & Witkin; Ford Bartlett of the engineering
firm of Lockwood, Kessler & Bartlett; M. Van Hoesen of the San Francisco legal firm of Thelen, Marrin, Johnson & Bridges; and D. G. Waldon and P. G. Campfield of Lakehead.
The principal subject of the meeting was the changing of the property
description in the option and easement form from the existing metes
and bounds description to a "floating easement" basis. L.K. B. and
Bechtel had found a metes and bounds description unworkable through
a great part of the land traversed by the line because of faulty original
surveys. After a thorough discussion of the situation, it was agreed by
all of the attorneys present that protection for the bond trustees and Lakehead as to title of right-of-way could only be had by using a "floating
easement" basis for the description of the right-of-way.
The remainder of the meeting was devoted to a study of the requirements
for obtaining the St. Clair River crossing permit.
March 6th: Butzel, Eaman, Long, Gust & Kennedy was chosen to act
as the Central Counsel in matters concerning bond mortgage.
March 7th: R. E. Trammell, R. H. Clute and M. P. Connolly of Lakehead and Rankin, Creveling and Barker of Bechtel met in Saginaw for
the purpose of discussing the Lakehead policy of right-of-way procurement.
This meeting developed the following decisions:
1)
The fair market value of the land traversed by the line will be determined by independent local appraisers on the basis of current
prices, tax assessments and other available data.
2)
Bechtel's right-of-way agents would pay the landowner for an option-easement for Lakehead on the basis of the appraised value per
acre. (Although the market price would be paid for the 60 foot
-8-
CONFIDENIIAL E6.,6313054
option-easement on the basis of the value of the land, the landowner
would retain title). Lakehead's easement would reserve the right
to lay one or more pipelines, the right of ingress and egress, etc.
3) The owner of the land would be paid fairly for crop damages only
for the period during which the line was being laid.
March 8th: Lakehead's counsel advised Bechtel's Project Manager that
the opposition to the pipeline by certain groups had developed to a point
that it was advisable to discontinue the procurement of right-of-way in
the sections where trouble was evident until after the passage of Bill 1095
and the granting of the permit for the pipeline by the Michigan Public
Service Commission.
March 9th: T. S. Johnston and R. B. Burgess of Lakehead testified
before the Michigan Public Service Commission as to the financial condition of Lakehead. At this hearing a committee of farmers objected
to the pipeline crossing their lands.
March 10th: Bechtel engaged the firm of W. W. Henry of Bay City to
appraise all of the private lands which the pipeline would cross in the
Lower Peninsula of Michigan.
Further meetings were held by Bechtel representatives with the •Lands
and Forestry Divisions of the Michigan Conservation Commission with
regard to the pipeline right-of-way over state owned lands.
March 12th: Representatives of Bechtel and L. K. B. again met with
H. A. Svenson of the United States Federal Forest Service in Milwaukee
for the purpose of clarifying the requirements for the construction and
operation of the pipeline through Federal lands of Wisconsin and Michigan.
March 16th: A public hearing was held in Ottawa before the Board of
Transport Commissioners in which Interprovincial petitioned for a
permit to construct the line in Canada.
March 17th: Permission was granted by the Board of Transport Commissioners for the Canadian construction.
Representatives Green and Smith of Bay County delayed the vote in the
House of Representatives on Bill 1095.
March 19th: A meeting was held in Lansing attended by T. S. Johnston,
Burgess, Stubbs, Clute and Dawson of Lakehead; T. G. Long and J. B.
Book of Butzel, Eaman, Long, Gust & Kennedy (Lakehead's legal
counsel for the Public Service Commission hearing); William Palmer,
6313055
F1
CONFIDENTIAL
-9-
Lakehead's political agent in Lansing; and Hamilton, McGough, Rankin,
Weber, Johnson and Professor Salvatore of Bechtel. Mr. Long outlined the questions he would ask each witness at the hearing the following
day.
March 20th: All of the Lakehead and Bechtel people who had attended
Mr. Johnston's meeting the previous night were at the Po S. C. hearing.
About seventy-five farmers and their attorneys, representatives of the
telephone company, and other interested oil and utility companies
crowded the hearing chamber to its capacity. The hearing lasted a full
day, two thirds of the time being taken by the farmers' fight to block
the permit for the line, and the remainder to the clarification of the
engineering features of the project.
March 21st: Burgess, Clute, Stubbs, Hamilton, McGough, Weber,
Stirling, Barker and Rankin met in Saginaw for discussion of the following subjects:
1)
The policy to be followed in handling Merritt-Chapman & Scott
Corporation's contract for the subaqueous crossing of the Straits
of Mackinac. It was agreed that the quality of the work would be
of first importance on this project, with time and cost to be given
secondary consideration.
2)
Three proposed subcontracts submitted by Merritt-Chapman &
Scott covering the land work at the Straits crossing were reviewed
in detail. It was agreed that Midwestern Constructors: Inc. should
be awarded this work.
3)
The Canadian land work was reviewed and a list of qualified bidders selected.
4)
Other matters were also covered, such as the awarding of the contract for supplying river weights, the selection of a list of bidders
for the Superior Pump Station, engineering details of the pump
station, the paper location of alternate routes around the City of
Marysville and the troublesome areas in Tuscola and Bay Counties,
and finally a discussion with Mr. Serre, Vice President of MerrittChapman & Scott, on the agreed policies previously set up for the
Straits crossing.
March 26th: Bill 1095 was unanimously passed by the House of Representatives.
Don Creveling and Herb Barker of Bechtel attended a meeting of the City
Commission of Marysville where they introduced a map of a new route
of the line which had been plotted at the Saginaw meeting of Lakehead
CONFIDENTIAL
-10-
ni 6313056
and Bechtel on March 21st.
March 27th: The City Manager of Marysville advised Bechtel by telephone that it would be necessary to clarify certain questions regarding
taxes with the City Attorney before a permit could be issued.
March 28th: Governor Williams of Michigan signed Bill 1095 at 4:03 p.m.
March 31st: The Michigan Public Service Commission approved the
construction and operation of the Lakehead Extension as a common carrier (thus also granted the right of eminent domain).
April 1st: R. E. Trammell, General Manager, F, J. Stubbs, Assistant
General Manager, J. L, Byrd, Division Manager and Mark Connolly,
Superintendent, of Lakehead met with R. L. Hamilton, H. D. Barker,
J. Don Creveling, J. V. Chambers and Clark Rankin of Bechtel Corporation, and M. Van Hoesen of the legal firm of Thelen, Marrin,
Johnson & Bridges, in Saginaw.
This meeting covered the following points:
1)
The locations of the ultimate pump stations were fixed and authorization to purchase the required properties was granted.
2)
The design problems resulting from the proposal to pump slugs of
Fosterton crude through the line were discussed at length.
3)
It was dicided that the valves on either side of the Saginaw River
were originally located too close to the river banks and should be
moved to higher ground. It was also decided to extend the concrete
coated (or clamp weighted) 1/2" wall pipe for the distance between
the valves at their new locations, a total length of 6000 feet.
4)
The paper relocations of the line made necessary by the continued
opposition in Bay and Tuscola Counties, and the City of Marysville,
to the original locations, were discussed, and the new routes
generally approved.
5)
Following a detailed study of the status of right-of-way procurement,
it was agreed that the date for the start of construction would be held
as May 1st for all of the mainline schedules.
R. B. Burgess, counsel for Lakehead, called Mr. Trammell from
Toronto to advise him that he had run into serious trouble in trying
to obtain the right to cross the Indian lands in Sarnia, and suggested that an alternate route around these lands be explored.
CONFIDEVIAt
-11-
F1, 6313057
April 2nd: R. E. Trammell, F. J. Stubbs, J. L. Byrd and Mark Connolly of Lakehead accompanied by H. D. Barker of Bechtel, flew to
Port Huron to scout an alternate route around the Indian lands in
Sarnia and to meet with officials of the Imperial Oil Co. Ltd. with regard to the terminus of the pipeline.
April 3rd: Canadian Bechtel Limited started flagging the alternate
route around the Indian lands in Sarnia.
April 4th: The detailed survey started on the new route in Sarnia.
April 6th: R. L. Hamilton was advised by Lakehead to order the additional heavy wall pipe required for transporting Fosterton crude
through the line.
April 7th: The permit for the St. Clair crossing was approved by the
Chicago District of the Corps of Engineers and forwarded to the
Chief of Engineers in Washington, D. C.
April 9th: An important meeting with the farmers of Bay County was
attended by Rankin, Creveling, Barker, Duke, Johnson and several
right-of-way supervisors and agents, at Kawkawlin, Bay County.
Lakehead's policy with regard to the procurement of right-of-way easements was set forth,
The City Commission of Marysville met and passed a motion to allow
Lakehead to survey the new route of the line within the city limits.
April 13th: Double ending of mainline pipe started on Schedule V.
Plans and specifications for the Superior Pump Station No. 1 were
mailed to prospective bidders,
April 14th: T. S. Johnston, President of Lakehead, visited New York
for the purpose of dissuading the New York Central Railway from exercising their requirement that mainline valves be installed on either
side of Lakehead's crossings of its tracks.
April 15th: The permit for the St Clair River crossing was granted
by the U. S, Corps of Engineers.
April 16th: Clearing for the pipe launch-way for the crossing of the
Straits of Mackinac was started on Point La Barbe, near St. Ignace.
Jack Mitchell of L.K.B. and H. D. Barker of Bechtel met with Mr.
Millar and Dr. Humphrys of the Lands Division, Michigan Conservation Commission, for a further discussion of the type of description to
be required for easement through state owned lands.
-12-
eL1NRAEYRI_
April 17th: Bay County farmers insisted that options and easements for
right-of-way be restricted to the construction of one pipe line only.
Ray Hamilton of Bechtel Corporation advised Clark Rankin by telephone
that additional heavy wall pipe would be required on the discharge side
of each of the pump stations to take care of higher pressures resulting
from pumping batches of Fosterton crude through the line. This additional heavy wall pipe would not be delivered in time to meet the
existing construction schedules, without major moves by several of
the contractors. Also, it would be necessary to move 9/32-inch wall
pipe, which has already been stockpiled in several locations, to new
locations dictated by the design changes in the line.
April 18th: The Board of Transport Commissioners for Canada issued
its permit for the crossing of the St. Clair River, which had also been
approved the previous day by the Governor General of Canada, upon
recommendation of the Minister of Public Works,
April 20th: The Bay County farmers held another meeting for discussion of the passage of the pipeline through their lands. Nothing
tangible was accomplished. The farmers merely rehashed the same
subjects formerly discussed.
Bechtel Corporation was advised by the "grapevine telegraph" that a
protest was being filed by the Lake Carriers Association with the U.S.
Corps of Engineers against the issuance of a permit for Lakehead's
crossing of the Straits of Mackinac.
Mr. Fritschler of Johnson, Fritschler, Barstow & Witkin, met with
Mr. Swanson in Milwaukee and established the details of the procedure
for the securing of pipeline right-of-way across Federal forests in
Wisconsin and Michigan.
April 21st: Burgess Book of Butzel, Eaman, Long, Gust & Kennedy
and Clark Root, Assistant Project Engineer„ of Bechtel again met
with Mr. Millar and Dr. Humphrys of the Conservation Department
in Lansing in an attempt to establish an acceptable form of description
of the pipe line right-of-way for the state lands easement.
R. B. Burgess and Jack Stubbs of Lakehead, T. G. Long of Butzel,
Eaman, Long, Gust & Kennedy, and H. D. Barker of Bechtel, met
with the City Attorney, City Manager and City Engineer of Marysville
and resolved the questionable points brought up with regard to the
pipeline passing through the city limits.
(Note: The City of Marysville was "a hard nut to crack." The people
insisted on calling the Lakehead Extension the "Canadian Line", and
-13-
CONFIDENTIAL
6313059
inasmuch as there was a feeling of jealousy because of the industrial
growth of the neighboring Canadian City of Sarnia (which the pipeline will
benefit) a distinct animosity against Lakehead developed. An illustration
of the depth of this feeling was the fact that they asked their representatives in Congress to use their influence in blocking the issuance of the
Presidential Permit for the crossing of the St. Clair River into Canada).
Burgess Book of Butzel, Eaman, Long, Gust & Kennedy and Clark Root
of Bechtel again visited Mr. Millar and Dr. Humphrys in Lansing for
discussions on the state land easement form and land descriptions.
April 22nd: Messrs. Stubbs and Barker visited Imperial Oil in Sarnia
and agreement was reached on the location and terminal points of
Interprovincial's pipeline in the tank farm. During this time, Mr.
Burgess met with Mr. F. P. Dawson in Sarnia and discussed Canadian
land permit problems.
The same day, Messrs. Stubbs, Burgess, Dunsmore and Connolly of
Lakehead, and Creveling, Barker and Rankin of Bechtel, met in
Saginaw. The principal subjects covered by this meeting were:
1)
The right-of-way situation for the start of construction on May lst.
It was decided that a meeting would be held in Edmonton and a
decision reached as to whether or not the contractors of each
schedule would be allowed to start work on May 1st.
2)
The meeting with the officials of the City of Marysville on April 21st
was reviewed. It was brought out that a suggested form of permit
embodying all of the points agreed to by the city and Lakehead was
being prepared by Mr. Long for submission to the City Attorney.
Jack Mitchell of L.K.B. and Clark Root of Bechtel again visited Mr.
Millar and Dr. Humphrys in Lansing for discussions on descriptions for
state land.
April 23rd: Messrs. Stubbs, Burgess, Connolly, Rankin, Creveling and
Barker continued a discussion on easements on private, state and Federal
lands.
The easement for the Straits of Mackinac was granted by the Michigan
Conservation Department,
The United States Corps of Engineers advised Bechtel by letter that the
Lake Carriers Association had filed a protest against the issuance of a
permit for the crossing of the Straits of Mackinac by Lakehead, and that
the protest would be withdrawn:
C
ONFIDENTIAl
6313060
-14-
"If the pipelines be buried a depth of six feet for the entire distance across the Straits, or
"If the construction of the pipeline proceeds as proposed by
Lakehead, the permit shall contain a proviso that Lakehead
will assume all responsibility for all damage which might be
caused by the fracturing of the pipelines by a ship's anchor. "
Clark Root of Bechtel attended a meeting of the City Council of Marysville where the easement form and location drawings were discussed.
Nothing definite was resolved at this meeting°
April 24th: Ray Hamilton advised from San Francisco that a further
study of the hydraulic gradient using Fosterton crude made it necessary
to move Pump Station No. 3 from Water srneet to Iron River, a distance
of 32 miles.
April 25th: Van Rosendahl of Bechtel met in Edmonton with R. E.
Trammell, F. J. Stubbs and R. H. Clute of Lakehead, for the purpose of determining the starting date for construction of each schedule.
It was decided that all mainline contractors would probably be allowed
to start May 1st with clearing and grading operations, but it was hoped
that pipelaying could be deferred until June 1st in order to allow for the
acquisition of additional right of way. It was decided to defer official
notification to the contractors of the starting date until after the Lakehead Coordination Committee met in Saginaw on April 29th.
April 27th: R. E. Trammell, R. H. Clute, R. McGill and J. L. Byrd
of Lakehead, and R. L. Hamilton, Co Rankin, C. Root, E. F. Quiett,
C. M. Sanford, and W. H. Groundwater of Bechtel, met in Lakehead's
office at Superior, Wisconsin, for the opening of bids for Pump Station
No. 1. Walco Engineering & Construction Co. of Tulsa was the low
bidder and was awarded the contract.
April 28th: The Presidential Permit was signed for the St. Clair crossing.
Jack Mitchell of 1,, K. B. and H. D. Barker met with T. G. Long of
Butzel, Eaman, in Detroit and Messrs. Millar and Humphrys in
Lansing and received final agreement on land descriptions for use with
state easements.
April 29th: R. E. Trammell and R. H. Clute of Lakehead met with
Hamilton, Rankin and Barker of Bechtel, for the purpose of determining
the dates for issuing specifications and receiving bids for the Canadian
land line, tank farm and terminal facilities work.
C NFIDENI141.
-15-
FC; 631 3061