full newsletter PDF - Atlantic Sunrise Pipeline Project

Atlantic Sunrise Project
www.williams.com/atlanticsunrise
Spring 2015
Williams Files Application Seeking Federal
Approval for Pipeline Expansion
W
illiams has filed a certificate
application with the
Federal Energy Regulatory
Commission (FERC) seeking
authorization to expand the existing
Transco transmission pipeline to connect
natural gas producing regions in northern
Pennsylvania to markets in the MidAtlantic and southeastern states by 2017.
We are providing this newsletter to parties
who may be affected or have an interest in
the pipeline proposal.
The Atlantic Sunrise project is an
expansion of the existing Transco natural
gas pipeline, which currently transports
about 10 percent of the nation’s natural
gas. The project would add about 180
miles of new pipeline to expand and
extend the reach of the existing Transco
pipeline to Susquehanna County, Pa.,
transporting about 1.7 billion cubic feet
of natural gas per day – enough to serve
approximately seven million homes.
Inside This Newsletter
Exceeding Safety Standards.....................Page 2
Anatomy of a Certificate Application.......Page 3
FAQ............................................................Page 4
Project: $1.6 Billion Economic Impact....Page 5
The project would also include two
new pipeline segments (loops) located
along the existing Transco pipeline in
Pennsylvania which total about 12 miles
(Chapman Loop and Unity Loop), two
and a half miles of existing pipeline
replacement in Virginia, two new
compressor facilities in Pennsylvania and
other facility additions or modifications
in four other states (Maryland, Virginia,
North Carolina and Georgia).
The certificate application recently
filed with FERC is a comprehensive
document that describes the proposed
project, its need and potential
environmental impacts.
Since last spring the company has
been involved in the FERC pre-filing
process, soliciting input from citizens,
governmental entities and other
interested parties to identify and address
issues with potential facility locations.
The proposal filed with FERC reflects
adjustments to nearly half of the original
pipeline alignment introduced during
public meetings last spring. These
adjustments were a result of feedback
received from agencies, communities
and other interested parties. Additional
route adjustments may still be adopted
as the company continues to dialogue
with agencies, landowners and other
stakeholders.
ATLANTIC SUNRISE
BY THE NUMBERS
47%
Percent of route that has
changed since last year
100+
Number of incorporated
route changes as a result of
stakeholder feedback
11
Months spent in pre-filing
process, gathering data
& soliciting input from
stakeholders
7
Million homes that could
be served by natural gas
transported by the project
Among other things, the certificate
application contains a description of the
new facilities, detailed maps, schedules,
and various environmental reports which
detail the studies and analyses that have
been conducted. This information helps
determine what effect construction and
operation of the pipeline could potentially
have on the environment and community.
Continued on page 2.
Williams Files Application Seeking Federal Approval for Pipeline Expansion
Continued from page 1.
The FERC application also contains
various environmental resource
reports, which include an analysis of
route alternatives, water resources,
vegetation and wildlife, cultural resources,
socioeconomics, soils, geology and
land use.
Within the next few months, the FERC
will submit a preliminary draft of its
Environmental Impact Statement (EIS)
to all cooperating state and federal
agencies. The draft EIS will describe
the proposed facilities and construction
methods, identify environmental
resources and potential impacts, and
evaluate proposed mitigation. It will
also identify and evaluate alternatives,
analyze impacts on public safety, and
recommend additional mitigation and/or
conservation measures to further reduce
impacts on the affected environment.
The draft EIS will be issued for public
comment, which may include additional
meetings in the project area to gather
public feedback.
Protecting the Pipe: Exceeding Industry
Safety Standards
As the Atlantic Sunrise project is
designed, constructed and operated,
Williams is committed to maintaining
the highest standards of safety, utilizing
construction and operational procedures
that exceed already stringent industry
regulations. Once operational, the new
pipeline will be maintained and operated
according to procedures outlined
in the company’s Pipeline Integrity
Management Program. These procedures,
many of which exceed minimum federal
industry regulations, include monitoring
of the pipeline 24 hours a day, 7 days
a week.
The Transco natural gas pipeline has
operated pipelines safely in Pennsylvania
for decades. For the Central Penn Line,
we will demonstrate our commitment to
safety by exceeding federal regulations in
a number of critical areas, including:
yyThe pipe material will meet and
generally will exceed the industry
requirements;
yyUse a higher design factor for all
fabricated mainline valve assemblies;
yyThicker steel pipe (Class 2) will be
installed in less populated locations
in order to increase the safety factor;
yy100% nondestructive inspection
of mainline welds (for example 49
CFR 192 requires only 10% of the
2
welds to the be tested in less populated
locations);
yyProviding additional cover depth at
certain locations (36 inches in Class 1
locations where only 30 inches of
cover is required; 60 inches of cover
under ditches of all public roads and
railroad crossings where only 36
inches is required); and
yyPrior to placing the line into service,
the pipe will be hydrostatically
tested at a maximum pressure that
will exceed industry standards
identified in 49 CFR 192 (1.5 times
the maximum allowable operating
pressure).
Anatomy of an Application for a Certificate of
Public Convenience and Necessity
environment. This section also makes the
case that the public benefits of the project
outweigh potential adverse effects.
The siting and construction of interstate
natural gas pipelines is regulated by the
Federal Energy Regulatory Commission
(FERC). An integral component to
FERC’s review of a proposed project is
the Application for a Certificate of Public
Convenience and Necessity (Certificate
Application). The Certificate Application
is a comprehensive document that
describes the proposed project, its need
and potential environmental impacts.
We recently filed our Certificate
Application with FERC for its Atlantic
Sunrise project. You can view the
application online at www.ferc.gov. Just
search for Docket Number CP15-138.
The application includes the following
information:
Description of Proposed Facilities
A description of the new pipeline facilities
and an overview of their location
and cost.
Market Support
Identification of the customers who
have executed contracts to be part of the
project, as well as the gas volumes that
they have requested.
Tariff
Description of the proposed rates that
project customers will pay for the
gas service.
Public Convenience and Necessity
Included is a description of the company’s
efforts to minimize or eliminate potential
adverse effects, including impacts
to customers, landowners and the
of facilities that are considered Critical Energy
Infrastructure Information (CEII). Those
materials are not available electronically.
We anticipate that once the Certificate
Application is filed, the FERC will require an
additional eight to 10 months to make a final
decision on whether to issue a Certificate
Order authorizing construction of the
pipeline. If authorized, the Certificate Order
Other Exhibits
will detail the conditions of the approval,
Included in the Certificate Application are including the final route that FERC has
many exhibits that support the proposal.
authorized, and construction and mitigation
measures that we must follow.
These exhibits include detailed maps,
market and cost data, as well as all the
Viewing the Application
various environmental reports. Exhibit
F-1 contains the Environmental Resource
A copy of Williams’ Atlantic Sunrise
Reports that detail the various studies and
project application recently submitted
analyses which have been conducted to
to FERC is available on FERC’s website
determine what effect construction and
at www.ferc.gov (select the “Documents
and Filing” tab, then “e-library” and then
operation could potentially have on the
“General Search”). In addition, copies of
environment and community and how
the application are accessible for public
those effects can be effectively minimized
inspection at the following public libraries.
or eliminated.
Timing for Approval
The requested in-service date, as well as
the date in which the company would like
to receive approval of the application.
The Environmental Resource Reports
include an analysis of route alternatives,
as well as an analysis of potential impacts
to water resources including wetlands
and groundwater, vegetation and
wildlife including threatened and
endangered species, cultural resources,
socioeconomics, soils, geology, land use
including proposed developments and,
noise and air quality, alternatives,
and safety.
Following the end of the scoping period,
we filed Draft Environmental Resource
Reports with the FERC.
When the Certificate Application is
filed and a Certificate Proceeding (CP)
docket number is assigned, a copy of the
entire application will be made available
for viewing at public libraries, as well as
via the FERC website by referencing the
project’s docket number (CP15-138).
Please note that the application will
contain detailed drawings and schematics
• Clinton County – Renovo Area Library,
317 7th St., Renovo, Pa.
• Columbia County – Bloomsburg Public
Library, 225 Market St., Bloomsburg, Pa.
• Northumberland County – Shamokin-Coal
Township Public Library,
210 E. Independence St., Shamokin, Pa.
• Lancaster County – Columbia Public Library,
24 S. 6th St., Columbia, Pa.
• Lebanon County – Annville Free Library,
216 E. Main St., Annville, Pa.
• Luzerne County – Back Mountain Library,
96 Huntsville Rd., Dallas, Pa.
• Lycoming County – James V. Brown Library,
4298 Pennsylvania 42, Unityville, Pa.
• Schuylkill County – Tri Valley Public
Library, 633 E. Main St., Hegins, Pa.
• Susquehanna County – Montrose Main
Library, 18 Monument St., Montrose, Pa.
• Wyoming County – Tunkhannock Public
Library, 220 W. Tioga St., Tunkhannock, Pa.
• Prince William County – Bull Run Regional
Library, 8051 Ashton Ave., Manassas, Va.
• Howard County – Howard County Library,
9421 Frederick Rd., Ellicott City, Md.
3
Frequently Asked Questions:
Atlantic Sunrise Project
Is the route now considered final?
The route filed with FERC in the 7(c)
Certificate Application reflects the current
preferred alignment incorporating data,
comments and input received through
Dec. 1, 2014. As additional data is
gathered the preferred route may still be
adjusted after filing the 7(c) application
with FERC. Alternatives that have been
and are being considered for the project
were filed with FERC as part of the 7(c)
application.
How much of the route has changed since
last spring?
The route identification process is fluid
and has changed as a result of input from
landowners and other stakeholders.
As of the FERC filing, nearly half of the
Central Penn Line had been altered as
a direct result of stakeholder feedback.
This includes more than 57% for CPL
South and 21% for CPL North based
on input from landowners, agencies,
municipalities etc.
Existing Transco pipeline easement in Pennsylvania
We intend to avoid cemeteries of any
age, ethnic affiliation, or type. If we
are made aware of a cemetery, we will
revise the route accordingly to avoid all
cemeteries, either Euro-American or
Native American.
What is an easement?
An easement is a limited right to use the
land for specific purposes. It does not
transfer ownership of the property. When
purchasing an easement, we compensate
the landowner for the right to construct,
Are you crossing Conestoga Indian Town?
operate and maintain the pipeline.
We intend to avoid both Conestoga Indian
How will the value of the easement
Town and the hill presumed to be the
be determined?
final resting place of Chief Civility. We are
The valuation of the easement is
very aware that Conestoga Indian Town
determined by the market value of land
is a sensitive area and we understand the
in the area as determined by independent
importance of proceeding cautiously to
sources. These sources can be county
thoroughly gather information to ensure
deed and tax records, local appraisers,
we avoid cultural resource impacts. In
real estate brokers and other real estate
fact, we have discussed the location in
professionals. Factors considered
detail with local experts from Millersville
generally include length, width, existing
University and the Conestoga Area
land use and comparable land sales in
Historical Society to ensure we have a
the area.
comprehensive understanding of cultural
In addition to the value of the easement,
significance and known resources in
the landowner is compensated for any
the area.
actual damages to their property during
4
construction. Such damages may include
loss of crop, timber, pasture, or landscape
features (or landscape use). Settlement of
damages may occur before or after pipeline
construction. Damage to fences, gates,
roads, drainages, etc., will be repaired
prior to the contractor leaving the site. The
landowner will be asked to acknowledge
completion of and satisfaction with the
restoration activities.
Can I still farm the land after the pipeline
is installed?
Yes. After construction of the pipeline,
most uses of the surface of the land will be
allowed, including farming activities such
as crop production or raising livestock.
Two notable exceptions include planting
trees within the easement or placing a
permanent structure within the easement,
both of which are prohibited.
Penn State Study: Atlantic Sunrise Project Expected
to Generate $1.6 Billion Economic Impact
The design and construction of the Atlantic
Sunrise natural gas pipeline project will
generate approximately $1.6 billion in
additional wages, revenues and investments
to the regional and state economies of
Pennsylvania and Virginia, according
to a study authored by researchers at
Pennsylvania State University.
“Economic Impacts of the Atlantic
Sunrise Pipeline Project,” lead author
Seth Blumsack Associate Professor of
Energy Policy at Penn State, finds that
the proposed project would have a
major, positive economic impact on the
Pennsylvania and Virginia economies
where new pipeline facilities would be
built and operated.
According to the researchers, the design
and construction of the Williams
Atlantic Sunrise pipeline project could
support approximately 8,000 jobs and an
associated $870 million in economic value
added during the construction period.
Additionally, the ongoing operation of the
pipeline would generate approximately
$1.9 million in annual economic impact,
supporting 29 jobs.
Mid-Atlantic regions could have saved
$2.6 billion from 2012–2014 due
to increased access to lower-priced
Pennsylvania gas supply because of
Atlantic Sunrise.
Key findings from the analysis include:
yyThe majority of the direct
expenditures will be in Pennsylvania,
with some materials and labor
sourced from other states.
yyThe multiyear construction phase
of the project is expected to result
in overall economic impact of
$1.6 billion and could engage
8,270 workers in Pennsylvania and
Virginia; the 10-county Pennsylvania
region of the project is expected to
recognize the majority of this impact.
yyThe ongoing operations of the project
are predicted to generate an annual
economic impact of $1.96 million
and support 29 direct and indirect
jobs in two Pennsylvania counties
(Columbia and Wyoming) where two
new Greenfield compressor facilities
are proposed.
yySignificant federal, state and local
taxes would also be generated
during the approximate one-year
construction phase, including an
estimated $31 million in federal
taxes and $18 million in state taxes
across all county locations hosting
construction activity for the project.
The complete economic impact analysis
is available at www.williams.com/
atlanticsunrise. The site contains an
economic impact tool that calculates
economic impacts at each local level.
The economic modeling exercise was
funded by Williams and uses IMPLAN,
a widely used commercial software
designed to perform input-output
economic analysis, to estimate impacts
on workforce demands, economic output
and value added to each of the counties
where construction is expected to occur.
IMPLAN is used by state governments
across the nation for economic modeling
and predicting.
In a related report titled “Estimating the
Impact of the Atlantic Sunrise Project
on Natural Gas Consumers,” lead author
Andrew Kleit, Professor of Energy and
Environmental Economics at Penn State,
found that consumers served by the
Transco pipeline in the southeast and
5
Williams – Transco
300 Laird Avenue, Suite 200
Wilkes Barre, PA 18702
Connect with us!
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For More Information
Preliminary Project Schedule
Project website: www.williams.com/atlanticsunrise
Spring 2014 –­ Field surveys begin
Toll-free information line: 844-785-0455
Spring 2014 – FERC pre-filing process begins
E-mail: [email protected]
Late Spring 2014 – Open houses and informational meetings
Land Department:
Summer 2014 – FERC scoping meetings
Williams – Transco
300 Laird Avenue, Suite 200
Wilkes Barre, PA 18702
Fall 2014 – Submit draft resource reports to FERC
Williams – Transco
303 Schoolhouse Road
Mahoning Township
Danville, PA 17821
March 2015 – Submit 7(c) application to FERC
Summer 2016 – Anticipated construction start
July 2017 – Target in-service
Williams – Transco
2578 Interstate Drive
Harrisburg, PA 17110
© 2015 The Williams Companies, Inc. All rights reserved.