FERC approves Transco natural gas pipeline expansion

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1 FERC approves Transco natural gas pipeline expansion HOUSTON, Nov /22/2013 By OGJ editors Williams Partners LP has received approval from the US Federal Energy Regulatory Commission for the $300 million Transco Virginia Southside expansion for service to Dominion s 1,358-Mw facility in Brunswick County, Va. The gas-fired, electric powergeneration plant will replace generating capacity from retiring coal-fired plants, Tulsa-based Williams said. The 100-mile, 24-in. natural gas pipeline is expected to provide 270,000 dth/day of incremental transportation capacity by September 2015, extending from the Transco mainline in Pittsylvania County, Va., into Halifax, Charlotte, and Mecklenburg, terminating in Brunswick County, Va. More than 90% of the capacity will serve Dominion Virginia Power s new power plant while the remainder will serve Piedmont Natural Gas Co. s local distribution business in North Carolina. Transco s plan is to place the pipe parallel to its own existing pipeline alongside the existing utility corridor. Transco also is adding more than 21,000 hp of compression at Station 165 in Pittsylvania County, Va. The Transco growth projects, which consist of 11 projects in nine eastern states designed to increase system capacity by more than 35%, are scheduled by Williams Partners to be brought into service between Including the expansion, the projects total $2.2 billion. Since 2003, we have invested nearly $2 billion in 21 expansion projects that have increased Transco s transportation capacity by 55% stated Alan Armstrong, Williams chief executive officer. These vital infrastructure expansions connect the sizeable and growing markets along the Transco system with the new, long-lived natural gas reserves that the US is blessed to have in abundant supply, Armstrong added. Transco is a 10,200-mile pipeline system moving natural gas to the US Northeast and Southeast. Williams said current system capacity is million dth/day, enough natural gas to serve the equivalent of more than 42 million homes. Williams reported in April 2012 it was in discussions with potential shippers and other market inquiries about the Atlantic Access expansion of Transco, prompting the partners to increase the project s capacity to 2.3 bcfd from 1.8 bcfd (OGJ Online, Apr. 17, 2012). 1

2 A decade earlier, Williams was fined $1.4 million by the US Justice Department and the Environmental Protection Agency for violating environmental rules protecting soil and water quality (OGJ Online, Feb. 1, 2002). Virginia Virginia Southside Transco pipeline expansion designed to deliver additional natural gas supplies to Virginia and North Carolina. Appalachian Connector Transco pipeline expansion designed to connect abundant Western Marcellus and Utica natural gas supply areas in northern West Virginia with the Transco pipeline. Virginia Southside Expansion Historically low natural gas prices and the public s desire for cleaner energy have fueled the growing popularity of natural gas. Clean-burning natural gas currently produces one-quarter of all electric generation and heats about half of all U.S. homes and those numbers continue to climb. Williams, one of the leading energy infrastructure companies in North America, has developed a proposal to serve growing natural gas markets in Virginia and North Carolina. Williams Transco natural gas pipeline currently transports approximately one quarter of the natural gas consumed in Virginia and nearly all of the gas consumed in North Carolina. The Virginia Southside Expansion would expand the existing Transco pipeline facilities in southern Virginia by 2015, allowing the pipeline to increase deliveries by 270,000 dekatherms per day. The project is primarily designed to fuel Dominion Virginia Power s new 1,300-megawatt electric power plant planned in Brunswick County, Va. Output from the Brunswick County facility is designed to replace the electricity generated by coal units at two eastern Virginia 2

3 power stations, resulting in a net environmental benefit for the Commonwealth. In addition, the project will provide additional gas supply to Piedmont Natural Gas Company in North Carolina to serve its growing natural gas needs. Facilities The project is designed to consist of approximately 100 miles of new 24-inch diameter pipeline extending from the Transco mainline in Pittsylvania County, Va., and into Halifax, Charlotte, Mecklenburg, and terminating in Brunswick County, Va. In addition, as part of the proposal Williams is proposing to construct a state-of-the-art 21,800- horsepower gas turbine compressor station located in Pittsylvania County, Va. The facility would be located in close proximity to the existing Transco Station 165 in Chatham, Va. Construction is scheduled to begin in September Permitting Process Before the pipeline can be constructed, Williams must first obtain a federal Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), in addition to various state and local permits. In May 2012 Williams requested that FERC initiate a pre-filing environmental review of the pipeline proposal. The FERC pre-filing process is intended to solicit early input from citizens, governmental entities and other interested parties to identify and address issues with potential facility locations. The company hosted a series of public open houses in the affected areas to formally introduce the proposal to the public and solicit feedback. Public input is important to us and can help shape the final project scope. Following the pre-filing period, Williams filed its certificate application with the FERC in December 2012 seeking approval to construct the pipeline. The project was assigned docket number CP The FERC issued an Order granting a Certificate of Public Convenience and Necessity on Nov. 21, You may access the application and other project-related documentation at the FERC website. Developing a Pipeline Route By maximizing the use of our existing transmission corridor, our goal is to minimize the impact on property owners and the environment. The location of proposed pipeline facilities would be collocated with existing pipeline corridors or other easements for approximately 93% of the total route. A complete and thorough environmental analysis will be conducted as part of the FERC application process. 3

4 Ground Surveys Ground surveys are a preliminary first step in gathering critical information that can be used in developing a pipeline proposal. Initial ground surveys (environmental, cultural and civil surveys) began in the spring of After receiving permission from the landowner, each property will be visited by various specialists in land, engineering and environmental sciences. These may or may not be concurrent visits but should not last longer than one or two days each. Some properties may need to be revisited to obtain additional data. All information collected will be used to help us determine the best location of the proposed pipeline facilities. Schedule May 2012 Pre-filing process began May 2012 Ground surveys began July 2012 Open Houses and Informational Meetings September 2012 FERC scoping hearings December 2012 Submit 7(c) application to FERC November 2013 FERC issued order approving the project September 2014 Proposed pipeline construction start September 2015 Target in-service Project Benefits The project is designed to fuel the need for additional power generation in the region with cleanburning natural gas, replacing two coal-fired power plants in eastern Virginia. The change from coal to natural gas will reduce air emissions, resulting in a net environmental benefit for the State. There will be significant short-term economic impact during the construction phase of the project. Restaurants, hotels/motels, and retailers will experience increased activity from construction crews. The state and local community will benefit economically through state and local sales and use taxes for the materials and equipment purchased to be installed at the job sites. Local communities will also benefit from property taxes that Williams will pay during the ongoing operation of the pipeline, estimated to be approximately $350,000 per year. According to a 2012 economic impact study conducted by Chmura Economics & Analytics, the one-time construction of the Virginia Southside project can inject a total of $97.7 million into the economy of southern Virginia from 2014 to 2015, supporting 1,024 cumulative jobs in two years. The ongoing operations of the pipeline will have an annual impact of $2.1 million that supports nine jobs in the region. 4

5 Our Commitment Williams is committed to working with landowners, as well as local, state and federal agencies, to design and construct the project in a manner that minimizes environmental and landowner impacts. We are committed to extensive public outreach in advance of submitting our application to the FERC. Our goals are to: Generate a broad awareness of the project, its purposes and value to the region s economy and to meeting the future energy needs of the state and region. Ensure that community residents and a broad range of stakeholders have ample opportunity to understand the process and their rights, ask questions, voice concerns and present ideas about the project. Ensure that Williams hears and understands the full range of stakeholder questions, concerns and feedback, and responds clearly and in a timely manner. Create an atmosphere of openness, disclosure and public dialogue in which we can respond to questions, concerns and suggestions presented by the community and other stakeholders. Contact Us If you have any questions, feel free to contact us anytime. Toll-free hotline: PipelineExpansion@williams.com You may also call or write our land office, located at: Virginia Southside Expansion Land Office 102 North Mecklenburg Avenue South Hill, VA (434)

6 Project Maps All map data is considered preliminary and subject to change. Virginia Southside Expansion 100 miles of 24-inch pipe, one compressor facility Pittsylvania County, Va miles, 24-inch pipe Halifax County, Va miles, 24-inch pipe Charlotte County, Va. 4.7 miles, 24-inch pipe Mecklenburg County, Va miles, 24-inch pipe 6

7 Brunswick County, Va miles, 24-inch pipe Project News Dec. 9, 2013 Project Update Newsletter December 2013 Dec. 20, 2012 Project Update Newsletter Winter 2012 Dec 19, 2012 Williams Partners Seeks FERC Approval to Serve Growing Virginia, North Carolina Natural Gas Markets Dec. 19, 2012 Submittal of FERC Certificate Application Oct. 16, 2012 Submittal of the Draft Resource Reports 1 through 12 June 28, 2012 Project Update Newsletter Summer 2012 April 4, 2012 Williams Partners Transco Pipeline Executes Precedent Agreement, Announces Open Season for Virginia Southside Expansion Project Compressor Facilities As part of the proposal, Williams is proposing to construct a state-of-the-art 21,800-horsepower gas turbine compressor station located in Pittsylvania County, Va. The facility would be located in close proximity to the existing Transco Station 165 in Chatham, Va. Compressor stations, sometimes called pumping stations, are the engine that powers an interstate natural gas pipeline. As the name implies, the compressor station compresses the natural gas, (increasing its pressure) to push the gas through the pipeline. Pipeline companies install compressor stations along their pipelines, typically one every 40 to 100 miles. The size and the number of compressors vary, based on the diameter of the pipe and the volume of gas to be moved. Nevertheless, the basic components of a station are similar. Most compressor stations are automated so that the compressors can be started, controlled and stopped from a central control location regardless of the weather conditions, time of day, or day of the week. The automation system also acts to protect the equipment, facility, and surrounding area in the event that the equipment is not operating as it was intended. The operators of the system continuously monitor and adjust the mix of compressors that are running to maximize 7

8 efficiency as well as keeping detailed operating data on each compressor station. The control center also can remotely operate shut-off valves along the pipeline system. Location Some of the criteria that will be used to evaluate potential facility locations include property availability, access to electric power, pipeline hydraulics, compatibility with local zoning, land use and land development, site terrain, water table and storm water management, and site accessibility. Williams will also evaluate a number of environmental factors, including potential impacts to nearby residences. This will include a detailed analysis of the project s effect on wildlife, vegetation, wetlands, water bodies and groundwater, geology, soils, land use, air and noise quality. Sound As part of the design process, an independent acoustical consultant will be engaged to conduct a sound study to assess the impact to nearby Noise Sensitive Areas (NSAs), which are defined as residences, schools or hospitals. The design for this facility will be based on certificate conditions expected to be set forth by the Federal Energy Regulatory Commission (FERC). The current FERC policies limit the noise attributable to the new facility to a day-night average of 55 dba at nearby NSAs. This is the approximate equivalent sound of a normal household refrigerator. Safety & Security The station will be equipped with federally-required and industry-recognized safety features such as pressure relief valves, emergency shutdown systems, and gas detection devices. The facility is planned to be staffed by onsite personnel during normal business hours. Outside normal business hours, the station will be fully automated for remote operation and monitored 24/ Issuance /22/ /22/2015 CP Environmental Compliance Monitoring Program Report re the Virginia Southside Expansion Project for the period January 4, 2015 to January 10, 2015 under CP Availability: Public Highlighted Version 8