Dakota Access Pipeline Project Proposal Sydney Pressley

Request for Proposal

The city of Bismarck, North Dakota

Department of Engineering

Sydney Pressley, Intern

February 24, 2017

Re: Request for Proposal for the Financing an construction of the Dakota Access Pipeline

The city of Bismarck desires to enter into an installment financing agreement in a principal amount not to exceed $2,800,000,000 for the purpose of construction the Dakota Access Pipeline. The city is soliciting your proposal to provide the necessary financing subject to the terms and conditions set forth in the Request for Proposal.

The city reserves the right to accept or reject any proposal as the result of this request. All information conveyed on this proposal will be kept confidential and will not be shared with anyone other than the county’s approval committee.

Dakota Access Pipeline:

The Dakota Access Pipeline in a crude oil pipeline ranging from Three Forks in North Dakota to Pakota, Illinois. The pipeline spans about 1,172 underground and has already created about twelve thousand jobs since it first began production in 2014. Energy Transfer Partners is the current overseer of construction of the DAPL and has already spent over $3.54 billion dollars and is already over 75% complete. The purpose of the pipeline is to create an environmentally friendly method of oil transportation that would help reduce the use of train cars, boats, and trucks.

Contract Specifications:

- $2.8 billion dollars have been awarded by the building committee for the development of the pipeline

- A 10 year timeline in order to pay off the $2.8 billion loan with a 2.5% interest rate and renewable terms in the event of project delays

- Energy Transfer Partners (ETP) receives clearing from government for building pipeline 25 miles further from Standing Rock Reservation

- The Federal Government acts within the National Historic Preservation Act guidelines and receives proper permitting

Scope:

With the increase in distance from the Standing Rock Reservation, the cost of construction will increase by $250 million. In order to accommodate for the increase in cost, Energy Transfer Partners should increase the time spent in a day working on the pipeline from 8 hours to 12 hours in order to decrease machinery costs in the long run. The pipeline should be finished in an estimated two year timespan following cultural guidelines pertaining to the Standing Rock Reservation and would have to pass a minimum of two Federal inspections for safety and regulations each year.

Conflict of Interests:

For conflicting reasons, the Army Corps of Engineers will not be able to access information relating to the production and construction of the Dakota Access Pipeline and will not be able to be involved in the regulating process of the Dakota Access Pipeline which oversees the maintaining of cultural ideals relating to Standing Rock. This conflict of interest arises from the lawsuit relating to the Army Corps not following proper procedures and standards when considering the construction of the pipeline through the Standing Rock reservation. In addition to this, a new welding company had to be hired due to the some of the crew having family and religious ties with the people of Standing Rock in which they felt conflicted in the construction of the pipeline under Lake Oahe, a lake primarily used for drinking water in the reservation.

Expression of Interest:

Your proposal must be received by 3pm on 1, March 2017 at the office of the Department of Engineering in Bismarck, North Dakota.

Proposals must specify at a minimum the following information with applicable items to be submitted with the attached form. Other information may be submitted if desired.

1. Loan financed worth $2.8 billion

2. 2.5% fixed interest rate

3. Renewable terms over a 10 year span

4. No prepayment penalty will be issued

We reserve the right to request additional information from the bidders and reserve the right to reject all proposals. Although the selection will be based on the lowest total financing costs, we reserve the right to select the bidder that best meets the needs of this project.

If you have any questions regarding this Request for Proposal, please contact Sydney Pressley at pressleys15@students.ecu.edu.

Thank you in advance for your consideration of this proposal.

Sincerely,

Sydney Pressley

Department of Engineering, Intern

Credits:

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