Rover Pipeline will supply natural gas to manufacturing businesses located throughout the United States, utilities that will use it to generate electricity, and to distributors who sell it to heat homes and businesses throughout the Midwest, Gulf Coast and Great Lakes Region. In addition to the benefit of providing domestically produced, clean burning energy, Rover will also provide economic benefits to the areas in which the pipeline crosses.
The Rover project will deposit millions of dollars into the local communities along the pipeline path via supply chain economics for goods and services, direct purchase of major materials such as the pipe and other related equipment, and a direct tax benefit to the states traversed by the project.
During construction, which is currently underway, goods and services will be procured from local businesses along the entire route. The spending and respending for goods and services will generate significant sales tax revenue for local economies. To date, the project has trained more than 10,000 construction employees that are staying at local hotels, eating in restaurants and shopping in stores. Additionally, the use of local professional services, such as engineering, real estate and legal, and skilled trades, such as surveying and construction, will generate income tax revenues.
Rover Pipeline has contributed more than $1.2 billion in direct spending to the United States economy as it is always a priority to buy local when possible. An estimated 76 percent of the pipe will be manufactured in the United States, along with all compression assembly and packaging. Additionally, the majority of the remaining major materials are being purchased, manufactured or assembled in the United States, including all compressor units used on the project. Ariel Corporation is providing the compressors, which are manufactured in Mount Vernon, Ohio, which will be used exclusively on the Rover Pipeline Project.
Furthermore, those workers will be supporting the local economies by dollars spent for food, housing, healthcare and other needs. It is estimated that Rover will contribute nearly $1 billion in direct spending to the U.S. economy.
Rover has spent more than $1.2 billion purchasing major materials and goods needed for the construction of the 713-mile pipeline from companies across the United States. Specifically, in states across the project route, Rover has spent more than $125 million including companies like Ariel Corporation, Industrial Piping Specialists and Emerson Process Management. These orders include parts used for piping, compression, steel, and bearings, along with construction contractors, and pipeline workers.
Property Tax Benefits
The property tax revenue generated by Rover will provide funds for local entities. Property taxes are paid to local taxing authorities, which are then responsible for distributing the money based on the decisions of each taxing jurisdiction entity and used to support local needs such as libraries, roads, hospitals, health departments and senior citizen centers. In total, the Rover Pipeline will generate more than $147 million in ad valorem taxes across the entire route the first year the pipeline is in operation.
Ad valorem taxes are based on the actual value of the pipeline which is the sum total of the materials used to build the pipeline, labor costs and other aspects. These taxes are paid annually while the pipeline is in service.
To date, more than 11,000 personnel have participated in our safety and environmental training as part of required training to work on the Rover Pipeline construction. The Rover Pipeline has made a commitment to hire 100% union workers for the construction of the pipeline, and when possible, to hire as many workers from local union halls as possible. An estimated $620 million will be paid for labor to the various contractors working on the project. Rover Pipeline is estimated to create between 30-40 permanent positions for employees that will live and work around the areas where the pipeline operates, creating an additional long-term tax base for families that live in the communities in which they work.
Construction breakdown per state for workers: