Boston, MA 11/23/2014 (wallstreetpr) – Kinder Morgan Inc. (NYSE:KMI) has resumed drilling at its Trans Mountain pipeline after days of protests from people in the area who are opposed to the construction. The company has already confirmed that heavy machinery is in place, and that test drilling has already reached 250 meters below the ground. The company is trying to bore a tunnel under the mountain for the rerouting and expansion of the existing pipeline.
Impact of Drilling
Kinder Morgan Inc. (NYSE:KMI) maintains that its crew have the right to continue drilling having received a court order despite the ongoing protests. The company plans to drill six-inch test holes work `over the next 10 to 12 days with the drilling taking place 24 hours. Protesters continue to raise concerns over the impacts of the ongoing drilling in terms of drilling with the area designated for conservation. The company is already setting up a fence and lights as part of the drilling work.
The impact of the ongoing drilling has already been felt with Horizon restaurant at the top of the mountain being forced to lay off 60 staff since police closed and the road to the location. Police have already arrested a number of protesters who continue to avoid the drilling. Kinder Morgan Inc. (NYSE:KMI) hopes to triple the capacity of its existing 300,000 barrel per day pipeline with the drilling of two holes into the mountain.
More People Arrested
Environmentalists are vehemently opposed to the expansion arguing that the project will result in the shipping of more tar sands crude from Alberta to a port on Vancouver. On Thursday, Canadian police arrested 26 people with eight more arrested on Friday. Kinder Morgan has already filed proposals with regulators to expand its 60-year old Trans Mountain pipeline awaiting review amidst the ongoing protest.
Simon Fraser university science professor, Lynne Quarmby, was among those leading the protests with Fifty-three protesters having already been arrested.
Kinder Morgan Inc (NYSE:KMI) has topped out in near term with stock falling since last three trading sessions on increasing volume. Going forward the stock has strong support near its 20-Day EMA of $39.04 below which it can fall all the way down till $36, $33 respectively.
