Commonly Asked Transmission Pipeline Questions

Transcription

1 Commonly Asked Transmission Pipeline Questions What is PennEast Pipeline Company, LLC? AGL Resources; NJR Pipeline Company; PSEG Power LLC; South Jersey Industries; Spectra Energy Partners; and UGI Energy Services (UGIES) are the member companies that form the PennEast Pipeline Company, LLC. Combined, the member companies have safely and reliably delivered energy to Pennsylvania and New Jersey customers for more than 400 years What is the PennEast Pipeline? PennEast is proposing the PennEast Pipeline to bring affordable, abundant natural gas to consumers in Pennsylvania and New Jersey. The approximately 110-mile, 36-inch underground pipeline will originate in Dallas, Luzerne County, in northeast Pennsylvania, and terminate at Transco s interconnection near Pennington, Mercer County, New Jersey. As an interstate natural gas pipeline, it is under the jurisdictional review of the Federal Energy Regulatory Commission (FERC). How will communities benefit from the PennEast Pipeline? The PennEast Pipeline is critical to providing families and businesses greater access to affordable, clean-burning natural gas. The increasing demand from the residential, commercial and industrial sectors, as well as for gas-fired electric generation, has driven the need for additional pipeline infrastructure. By helping to alleviate existing pipeline constraints, PennEast will aid in reducing the cost of gas and electric rates to consumers and also reduce price volatility in times of high demand, such as what was experienced in January It will also help to enhance gas and electric reliability, both of which were in peril in January Additionally, natural gas pipelines are essential to delivering natural gas to new electricity generation facilities. As coal-fired power plants retire or convert to natural gas, communities will enjoy environmental benefits of electricity derived from clean-burning natural gas.

2 In the near term, PennEast expects to hire a largely local workforce of approximately 2,500. There also will be an expanded economic benefit to local restaurants, convenience stores, fueling stations and other retailers. On a long-term basis, local communities will benefit from property taxes paid during the ongoing operation of the pipeline. Equally important, natural gas pipelines play a major economic development role as companies and industries look to locate their operations and accompanying jobs near affordable and reliable energy sources. Can you be more specific about the route? PennEast is in the early stages of a lengthy, multi-step project and has not determined a final route yet. Once PennEast has completed surveys and obtained input from potentially affected landowners and other stakeholders, PennEast will be able to finalize the route and share details. Early discussion with landowners through the survey permission process provides the greatest opportunity for PennEast to collaborate with landowners to develop a mutually acceptable route. As the project moves through the permitting and certificate process, there are fewer opportunities to adjust the route. To obtain early input and due to the length and complexity of the Project, PennEast has chosen to follow the pre-filing phase of the FERC process. This phase facilitates additional interaction with the various stakeholders before a preferred route is selected and formally submitted to FERC. As part of the pre-filing phase, PennEast hosted November 2014 open houses in Wilkes-Barre, Bethlehem and Palmerton, Pennsylvania, as well as in Lambertville, New Jersey. The open houses provided attendees an opportunity to visit different stations to talk with experts in the fields of pipeline safety, environment, construction, operations, and land. Attendees were able to select stations of greatest interest to them and talk with the respective project leads. Following the open houses, FERC is holding public meetings, known as scoping meetings. Scoping meetings provide interested parties another opportunity to voice their opinions. FERC will host the scoping meetings along the proposed route, notify landowners about the meetings

3 and publicize them in area newspapers. Click here to read FERC s Notice of Intent to Prepare Environmental Impact Statement for the Planned PennEast Pipeline. Another source of general information is the booklet An Interstate Natural Gas Facility on My Land? What Do I Need To Know? How does PennEast determine a final route? One of the first steps in developing a route is using a variety of resources to identify a corridor where the pipeline generally will begin and end. Resources include conducting aerial inspections and computer analysis, which involves gathering data from Geographical Information System (GIS) databases and conducting additional research. Information gathered during this initial phase helps our engineers and consultants develop several proposed route alternatives. Because there are so many environmental and socioeconomic factors (public water supplies, wetlands, protected and preserved areas, threatened and endangered species, etc.), that must be considered, it is important for our technical staff to conduct on-the-ground civil, environmental and archeological field surveys on public and private properties. When most of the field survey work is complete, and after we receive additional information from individual landowners, regulators and other stakeholders, we will have a better idea where we can construct a pipeline and other supporting equipment in a safe manner that minimizes impact to the community and environment. What factors does PennEast consider in selecting a pipeline route? PennEast s team of engineers and consultants balance the most direct pipeline route with numerous environmental, structural, conservation and land-use factors. Routes are designed to minimize impacts to the communities and environment. When possible, PennEast also will use existing utility corridors to help minimize impacts; however, co-locating infrastructure is not always an option and can be pursued only when safely and logistically feasible. Pipeline Safety What safety measures are required? Safety is PennEast s top priority. PennEast will adopt design features and operating practices that meet or exceed stringent industry and regulatory standards, including implementation of a comprehensive pipeline integrity management program. The US Department of Transportation

4 (DOT) regulations require pipelines to have a number of safety measures that must be designed and built into the applicable facilities. These include, but are not limited to: design of pipeline material; testing procedures to ensure the pipeline can more than adequately operate within the designated operating pressure limits; cathodic protection system design; valve spacing; testing and qualification of employees; ongoing monitoring and inspection of the pipeline facilities; internal inspection of the pipeline, welding procedures and testing; pipeline depth; public awareness programs; and odorization requirements. How does PennEast ensure pipelines operate safely? PennEast adopts design features and operating practices that meet or exceed stringent industry and regulatory standards, as well as implements a comprehensive integrity management program. PennEast regularly will walk the pipeline; conduct leak surveys; and send sensor equipment through the line to ensure integrity has not been compromised. PennEast also will monitor 24/7 how much gas is transported, operating pressures and temperatures throughout the system, along with other critical operating data. This is done in real-time through our gas control center. If anything unusual surfaces, PennEast will immediately dispatch field personnel to address the issue and respond in the best interest of protecting the community. Additionally, the pipeline will be clearly marked at all road crossings, creeks, property lines, and fence lines to minimize the potential for third-party damage. Do you train or coordinate with local first responder agencies? Yes, first response agencies are an integral part of the PennEast commitment to safe operations. The PennEast partners have a long history of proactively engaging local first response agencies and will continue this strong working relationship. We will train and coordinate with all first responder agencies along the project route, starting with communicating construction plans and expanding into broader training and coordination during ongoing operations. How does transportation of natural gas by pipeline compare to other modes of transportation? Pipelines are the safest, most environmentally friendly and efficient mode of transporting natural gas, according to the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA). In fact, data shows that while natural gas demand has increased, the frequency of serious pipeline incidents has decreased by 90 percent over the last

5 three decades alone, primarily as a result of significant efforts by pipeline companies to upgrade and modernize infrastructure. For additional information about pipeline safety, please visit the following websites: pdf Permitting & Siting Who decides if a pipeline project gets built? FERC regulates interstate natural gas pipelines, such as the PennEast project. As such, FERC requires operators to obtain a federal Certificate of Public Convenience and Necessity, in addition to various state and local permits, before any pipeline facilities are built. I ve been approached about surveying my property. What will be the next steps? PennEast first evaluates several different pipeline routes. To determine which route will be best suited for construction and minimize impact to the community and environment, prospective routes are surveyed. PennEast s land agents talk with landowners about accessing and surveying their property if it is along one of the proposed pipeline routes. If a property is selected for the final route, PennEast negotiates a right-of-way (ROW) agreement with the property owner. Permission to survey does not grant permission to build the pipeline. That is handled through the ROW agreement process. What is a right-of-way (ROW) agreement? A ROW agreement enables PennEast to build a portion of the pipeline on a section of property. PennEast offers landowners financial compensation in exchange for granting a permanent easement. A contract for a ROW is a standard easement agreement, but it generally can be tailored to meet a landowner s unique concerns. What is an easement? An easement is a limited right to use land for specific purposes. PennEast compensates landowners for the right to construct, operate and maintain an underground pipeline, and in

6 limited cases, related aboveground equipment. Will the ROW agreement specifically mention and/or show exactly where the easement will be located on the designated property before construction begins thereby giving the property owner the chance to make any changes if necessary? Property exhibits will be generated for each landowner. Landowners are encouraged to request changes to the route very early during the negotiation process. Requests to adjust the location of the pipeline will be carefully considered when PennEast representatives receive reasonable evidence that the proposed route could affect existing uses or future plans. Once FERC approves a final route, fewer options are available to the landowner and PennEast. Despite what some rumors suggest, PennEast is eager to engage landowners in its development of the route. Early discussion with directly affected landowners is important to ensuring the final route resolves as many concerns as possible. Requests to adjust the location of the pipeline will be carefully considered when PennEast representatives receive reasonable evidence that the proposed route could affect existing uses or future plans. When will we know the exact proposed route of the pipeline? PennEast expects to determine a final route in early In accordance with FERC regulations, all landowners affected by the project will receive specific notice. Can PennEast use eminent domain? PennEast is committed to building relationships with landowners and other stakeholders. While FERC-approved transmission pipeline projects carry this option, PennEast will make every reasonable effort to reach a fair agreement with landowners when compensating them for being able to build a portion of the pipeline on their property. The notion that PennEast wants to invoke this option simply is untrue. Not only would it undermine the opportunity for PennEast to establish long-term relationships with landowners and the community, it would be an exhaustive, socially and financially costly process for all involved. If eminent domain is used, will I lose my home? Eminent domain enables a company to access property to survey land, and to construct and operate infrastructure. Property owners will not lose their home or ownership of their property.

7 I told the land agent that I do not want to grant survey permission, and I don t want the pipeline on my property. Why is the land agent still calling me and coming to my house? FERC reviews the location, construction and operation of an interstate natural gas pipeline. If FERC approves the project and an easement agreement has not been reached, access to, and compensation for use of, the land is set by the court. During that process, a company must demonstrate every effort was made to reach an amicable agreement with the property owner. Pipeline Construction How deep are pipelines placed underground? The U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) regulates natural gas pipeline safety, including depth. In normal soil conditions, the minimum required is three feet between the top of the pipeline and the land surface. Additional cover is provided at road and waterbody crossings. Where agricultural practices or other issues warrant additional cover, the pipeline could be placed between four feet and five feet underground. Depth specifications will be incorporated in ROW Agreements. How will you ensure the minimum depth restriction is met? PennEast will have inspection staff monitoring construction work. These inspectors along with as-built data, will ensure the pipeline is installed at the required depth or greater. If a pipeline is installed that does not meet the minimum depth requirement, adjustments will be made prior to the construction contractor exiting the project. Additionally, depth restrictions will be incorporated in ROW Agreements. Will this pipeline be above ground for any reason? The PennEast Pipeline would be an underground pipeline. The pipe will be visible only during construction. To help ensure the safe and reliable operation of the pipeline, there will be an aboveground compressor station, as well as valves, test stations (for cathodic protection) and meter stations spaced along the line. The aboveground facilities will be fenced in a small area and exact locations finalized as the project progresses. Should the pipeline route travel through difficult conditions, such as shallow soil and bedrock, how do you plan on addressing it? The PennEast team of engineers takes soil, rock and other formations into account when designing a pipeline. Bedrock will be hammered as warranted. As with all aspect of

8 construction, permits will be obtained through the appropriate regulatory agencies to help ensure safe construction practices. What if I do not like the look of aboveground pipe vents and shutoff valves and prefer to maintain the rural, natural look of my land? Collectively, PennEast successfully has accommodated similar requests with landowners on other projects and will make every effort to do the same with landowners along the PennEast Pipeline route. How much land is involved during active construction? In general, the temporary workspace within the survey corridor will vary from 90 feet wide to 125 feet wide along the pipeline route. The digging of the trench and installation of one section of line involves a work area that will vary in size depending on local factors, such as terrain, geology, waterways, roadways, and existing structures. Once pipeline construction is complete, the permanent right of way will be 50 feet within the survey corridor. Generally, what does the construction process entail? More than one section may be under construction at one time. Field crews stay within the agreed-upon corridor, as specified by the individual ROW agreements and as approved by FERC and state regulatory agencies. Initially, survey crews will stake the boundaries of the construction area. Crews will begin the construction process by clearing and grading the work area. Subsequently, additional crews begin to string the pipe material along the ROW and begin digging the trench. Equipment is needed at times to shape the pipe to fit the route. Welders will begin to weld the pipe. The pipe is then laid in the trench and backfilled. The pipeline will be tested in accordance with pipeline safety regulations and well in excess of the proposed operating limits. Finally, restoration will begin in accordance of all applicable permits, regulations and best management practices. When does construction begin? Pending FERC regulatory approval, PennEast expects to begin construction in spring In most cases, site preparation will not take place during the winter or critical migratory and nesting seasons.

9 How long does construction take? Once PennEast obtains all necessary permits from various state and federal agencies, the construction phase is expected to last between seven months and one year. Construction is subject to many variables, including availability of material, labor, weather and length of the pipeline. Who will be installing the pipeline? Highly trained and qualified contractors will be chosen through a rigorous bidding process in which PennEast will assess each contractor s qualifications, safety record, employee training procedures, health, safety & environmental (HSE) plans, and its overall commitment to safety and compliance. After the contracts have been awarded, independent inspectors employed by PennEast, as well as government inspectors, will be on site throughout the construction process to ensure compliance with permits, regulations and industry best practices. How will PennEast properly restore the soil for future farming? When the ROW is prepared for construction, any topsoil that is present is stripped off the top and placed on the edge of the ROW. Once construction is complete, the top soil will be returned to the ROW and restored to the original grade. Farming activities can resume as they did before construction. Proper restoration is required and monitored through the FERC process and state regulatory agencies. After construction, the ROW will be regraded, seeded and temporary erosion control devices installed in accordance with state laws, regulations and best management practices. What if I have specific requests regarding restoration? These requests should be discussed with PennEast representatives early in the process. Each request will be considered and documented in the ROW agreement. Whose responsibility is it to maintain the ROW soil and vegetation? For the portions of the permanent ROW not farmed, PennEast will perform routine maintenance, such as mowing and tree clearing, on the ROW. Areas that wash, subside or are damaged due to natural causes will be maintained and repairs performed by PennEast. In areas where landowners use ATVs to cross the pipeline ROW or cause erosion by other means, it will be the responsibility of the landowner. Is the ROW unusable for recreation, business or residential use? Land can be used just as it was before a pipeline was installed as long as no permanent

10 structures are built or trees planted on the right of way. Soon after completion of pipeline construction, PennEast s environmental team will restore vegetation in the area. What construction techniques will you use to ensure that there is no degradation of the mandatory buffers near streams and waterbodies? PennEast will employ best management practices during pipeline construction with the appropriate environmental controls in place. Additionally, all stream crossings for the pipeline must be approved by each state s Department of Environmental Protection. Will you avoid building in areas that are considered critical natural resources areas? PennEast will attempt to avoid environmentally sensitive areas. As we conduct surveys and complete our analysis, we likely will make several adjustments to the proposed route in an effort to minimize impacts to these areas as much as possible. If landowners grant a ROW, does that preclude them from entering into any other land agreement, for example, with a drilling company? Property owners have every right to pursue other uses of their property as long as such uses remain outside the permanent ROW. Drilling, for example, could take place as long as it is outside the ROW. Drilling companies often look for properties in close proximity to a transmission or gathering pipeline as a means of providing an outlet for their gas. Once a property owner has signed a ROW agreement with PennEast, can it be used for other pipelines or future uses? The ROW agreement is between the landowner and PennEast. Other companies interested in building a pipeline along the same property will need to reach a separate agreement with the landowner. After the PennEast contract expires in 15 years, is it possible for another company to purchase the pipeline and ROW? PennEast Pipeline Company, LLC, was created to build, operate and maintain the PennEast Pipeline. There are no plans to dissolve or sell the company. Regardless of ownership, protections that would be included in the ROW agreement would cover the land and be unaffected by any change in pipeline ownership.

11 Does pipeline construction involve tearing down buildings or structures? PennEast pursues all other options and routes before contemplating routes that intersect buildings or structures. Additionally, it is highly unusual the razing of any structure occurs without the approval, and often desire, of the property owner. Pipeline Operations What will be the operating pounds per square inch (psi) of this pipeline? As currently contemplated, the maximum allowable operating pressure is approximately 1480 psi. Will the natural gas in this pipeline be in a gaseous form or liquid form or both simultaneously? The natural gas will remain in a gaseous form. What are the safety issues between these different forms of gas? The PennEast Pipeline will transport natural gas only in a gaseous form; however, liquid products are transferred through pipelines in the same way and have the same safety features. In the event of a natural disaster, is your pipeline steel able to handle the stress of earthquakes of 2.0 or greater? A geo-hazard study will be conducted during the engineering phase. The results of that sitespecific study will allow PennEast to design the pipeline in accordance with existing pipeline construction specifications and industry best practices. In areas that historically have higher risks of natural disaster activity, are you willing to use the highest strength grade steel in pipeline construction? The current planned grade of steel is X70. Utilizing a stiffer grade steel than X70 does not grant as much flexibility of the steel as the current planned grade. The flexibility of steel is important in during an earthquake.

12 Additional Frequently Asked Questions If a pipeline runs from Pennsylvania into a neighboring state, does that open the door for hydraulic fracturing in an adjacent state? Pipeline construction does not require hydraulic fracturing, which is a technique used for the last 65 years in the natural gas extraction process. A pipeline that originates in Pennsylvania has no effect on an adjacent state s laws and regulations pertaining to natural gas extraction. How can I learn more? Visit FERC: which evaluates whether interstate natural gas pipeline projects should be approved. Visit the U.S. Department of Transportation Office of Pipeline Safety (PHSMA): which enforces regulations of the nation s 2.6 million mile pipeline transportation system. If you have questions about the PennEast Pipeline Project, please send an to answers@penneastpipeline.com or call toll-free (844)