The Project
About the Project AGL Resources; NJR Pipeline Company; PSEG Power; South Jersey Industries; Spectra Energy and UGI Energy Services (UGIES) comprise Company, LLC. Nearly $1 billion investment Approximately 100-mile, 36-inch pipeline from PA to NJ Deliver approximately 1 Bcf of gas per day o Enough gas to serve more than 4.7 million homes Will create approximately 2,000 jobs during construction The proposed project will bring low-cost natural gas to customers in Pennsylvania and New Jersey. 2
Need for New Infrastructure Infrastructure has not kept pace with increased demand for natural gas for home heating, industrial uses and electric generation Since 1990, Americans have increased their use of natural gas by nearly 7 trillion cubic feet Existing transmission pipeline capacity is fully subscribed Companies have already reserved 100 percent of PennEast pipeline capacity PennEast will provide locally produced, abundant supply of affordable natural gas to serve New Jersey and Pennsylvania Pennsylvania and New Jersey homes and businesses increasingly are turning to natural gas for their energy needs. 3
Benefits Increased opportunity to convert to clean, efficient and affordable natural gas Reduced rates Decreased price volatility Energy independence and security Reduced air emissions (oil/coal to natural gas conversion) States economy benefits from infrastructure investments Approximately 2,000 jobs throughout construction U.S. manufacturers are leveraging affordable natural gas to regain global competitiveness and reduce operating costs 4
Proposed Route From Luzerne County in northeastern Pennsylvania to Transco s Trenton- Woodbury interconnection in New Jersey Co-locate within existing infrastructure when possible and avoid densely populated areas Study corridor is 400 feet; permanent ROW is 50 feet 5
Moore Township 6
Upper Nazareth Township 7
East Allen Township 8
Lower Nazareth Township 9
Bethlehem Township 10
Williams Township 11
Lower Saucon Township 12
Federal Energy Regulatory Commission Interstate natural gas pipelines are regulated and authorized by the Federal Energy Regulatory Commission (FERC) o o o o Pre-filing Gives landowners, officials and others time to review a project before a Certificate Application is filed Open Houses Hosted by PennEast to provide opportunity for landowners and other stakeholders to learn about the project, talk one-on-one with project experts Public Scoping Meetings Hosted by FERC to provide community additional opportunity for input, ask questions and voice support or concern Certificate Application Filing The formal project application with FERC Permit applications for other federal, state and local agencies o Environmental Impact Statement (EIS) PennEast will be engaging a third-party contractor for this in-depth environmental analysis 13
Project Timeline Property owners contacted FERC Pre-filing application submitted (October) Open Houses Formal application for PennEast Pipeline filed with FERC (July) FERC issues final decision (December) Pending approvals, construction begins and is completed, providing local, affordable natural gas to area customers 2014 2015 2016 2017 14
First Steps Process Early stages of a multi-step, intensive process Routes PennEast first evaluates several different pipeline routes Surveys Conducted to determine which route will be least impactful to the environment and the local communities and best suited for construction Land Agents Will talk with landowners about accessing and surveying their property if it is along the proposed pipeline route Right-of-Way (ROW) Agreements If a property is selected for the final route, PennEast will ask the landowner to enter into a ROW agreement, which grants permission for PennEast to construct the pipeline on a specified portion of the property 15
Construction Construction will begin only after obtaining FERC approval, ROW agreements and permits Typically, site preparation cannot take place during critical migratory and breeding seasons and can be affected by weather and material availabilty Field crews will stay within the agreed-upon ROW Construction is expected to last approximately seven months Land can be used as it was prior to construction, including farming activities, but no permanent structures or trees can be placed or planted atop the ROW 16
Pipeline Safety Adopting design features and operating practices that meet or exceed stringent regulatory and industry standards o o o o Use of thicker pipe than required Applying the latest technology in corrosion control, including a fusion-bonded coating that provides increased durability Placement of shutoff valves within 10 miles of all points on the pipeline Use of X-ray during construction to ensure joints are properly welded Conducting an integrity test prior to placing the line into service Monitoring gas pressures along the pipeline 24/7 Conducting annual leak surveys Smart Pig interior electronic analysis 17
Pipeline Safety Continuous Monitoring PennEast will monitor pressure and how much gas comes into 24/7 the Pipeline with how much is delivered. Safest Safest Mode of Transportation When safety is measured by volume of gas transported, transportation of natural gas by pipeline is significantly safer than other forms of transportation, such as rail or truck Efficient Environment Efficient Transportation Environmentally Friendly Design Meet or exceed stringent industry and regulatory standards Monitor Walk the pipeline, conduct leak surveys and send sensors through the line to ensure system integrity 18
Additional Benefits Protecting the Environment Creating Jobs Reducing emissions Construction will require 2,000 jobs Serving Customers Enough natural gas to serve 4.7 million homes Investing $1 billion Economic Development We are committed to working with you to benefit New Jersey families and businesses 19 19
Contact and Follow PennEast Email: Answers@PennEastPipeline.com Submit Call: Toll-free: (844) 347-7119 Submit Visit: Submit @PennEastLine www.facebook.com/penneast 20