Transcript No Slide Title

Natural Gas Transmission
Networks:
So You Want To Build A
Pipeline?
Raymond James,
Infrastructure
Office of Energy Projects
Federal Energy Regulatory
Commission
At
Wyoming Pipeline Authority
Monthly Meeting
August 2003
Casper, Wyoming
FERC
What Does FERC
Regulate?
• Natural Gas Industry
– Interstate transportation rates and services
– Interstate gas pipeline construction and
oversee related environmental matters
• Electric Power Industry
– Interstate transmission rates and services
– Wholesale energy rates and services
– Corporate transactions, mergers, securities
issued by public utilities
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Office of Energy Projects
FERC
What Does FERC
Regulate? (con’t)
• Oil Pipeline Industry
– Interstate transportation rates and
services of crude oil and petroleum
products
• Hydroelectric Industry
– Licensing of nonfederal hydroelectric
projects
– Oversee related environmental matters
– Inspect nonfederal hydropower projects
for safety issues
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Office of Energy Projects
FERC
Regulation of Interstate
Construction
Natural Gas Policy Act (NGPA)
Natural Gas Act (NGA)
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Office of Energy Projects
FERC
NGPA OR NGA?
• NGA Certificate Grants a Right of
Federal Eminent Domain
• NGPA Does Not Confer Any Rights
of Federal Eminent Domain;
Pipeline May Seek State Eminent
Domain
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Office of Energy Projects
FERC
Natural Gas Act
NATURAL GAS ACT
Section 7(c)
Interstate
Case
Specific
Blanket
Authority
Automatic
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Section 3
Import/Export
Case
Specific
Prior
Notice
Office of Energy Projects
FERC
Natural Gas Act
• Blanket Certificate
• Automatic Authorization
• Cost of facilities is less than $7.6 million
• Facilities are “eligible” facilities
• Prior Notice
• Cost is between $7.5 and $21.2 million
• 45-day notice period prior to construction
• Facilities are “eligible” facilities
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Office of Energy Projects
FERC
Natural Gas Act
• Case Specific Section 7(c) Certificate
• Conduct a full review of proposal
including engineering, rate, accounting,
and market analysis
• Conduct an environmental review by
preparing an Environmental Assessment
or an Environmental Impact Statement
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Office of Energy Projects
FERC
Project Evaluation
How Does FERC Evaluate All
Of These Major Projects?
What Is The Criteria Used in
This Evaluation?
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Office of Energy Projects
FERC
PL99-3-000
Certificate Policy
• Apply Threshold Test
– Subsidization  Incremental Rates
– No Subsidization  Rolled-in
Treatment
– System improvements for existing
customers  Rolled-in Treatment
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Office of Energy Projects
FERC
PL99-3-000
Certificate Policy
• Develop Record
– Adverse Impacts on
• Existing Customers and Pipelines
• Landowners
• Communities
– Specific Benefits
– Need and Market
– Condemnation Impact
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Office of Energy Projects
FERC
PL99-3-000
Certificate Policy
Needs
and
Benefits
Record
Adverse Impacts
n
n
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Balance Benefits and Impacts
Complete Traditional Environmental
Process
Office of Energy Projects
FERC
Commission Action on Pipeline
Projects in the Rockies
• Since mid-1999, the Commission has
approved 17 projects to increase
pipeline capacity to move gas out of the
Rockies
– 3.8 Bcf per day of capacity
– 1,788 miles of pipeline
– 394,689 horsepower of compression
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Office of Energy Projects
FERC
Major Pipeline Projects
Certificated (MMcf/d)
January 2002 to July 2003
Georgia
Straits (96)
Northwest
(162)
WBI
(80)
Tuscarora
(96)
Northwest
(175)
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1
2
4
CIG
(272,92)
Greenbrier (600)
East Tennessee (510)
Kern River (282)
1. Algonquin (285)
2. Islander East (285)
3. Iroquois (85)
4. Columbia (165,270)
North Baja (500)
Southern (330)
7.3 BCF/D Total
2,225 Miles
Tennessee
(320)
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Office of Energy Projects
FERC
Interstate Pipeline Capacity Out of
Wyoming
0.2 Bcf
Note: Williams Gas Pipelines Central Inc.
is now Southern Star Central Gas Pipeline.
Opal
Hub
2.2 Bcf
Cheyenne
Hub
3.1 Bcf
Source: RDI PowerMap and various flow diagrams on file at the FERC.1
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Office of Energy Projects
FERC
Productive Capacity vs.
Pipeline Capacity
• EIA shows that the Rockies could produce up
to 6 Bcf per day through 2003.
• Wyoming Energy Commission shows that the
Rockies could produce up to almost 8.0 Bcf
per day by 2005 and 11.0 Bcf per day by
2010.
• Both of these totals are greater than the
current pipeline capacity of the region.
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Office of Energy Projects
FERC
Major Pipeline Projects
Pending (MMcf/d)
July 2003
Maritimes (400)
Algonquin
(200)
El Paso (140)
Calypso
(832)
4.0 BCF/D Total
580 Miles
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Ocean Express
(842)
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Office of Energy Projects
FERC
Major Pipeline Projects
in Pre-filing (MMcf/d)
August 2003
Ruby Pipeline (125)
Weaver’s Cove Energy LNG
(400)
Sound Energy Solutions LNG (700)
(Mitsubishi)
1.2 BCF/D Total Pipeline Capacity
1.1 BCF/D Deliverability Capacity
1
1,570 Miles
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Office of Energy Projects
FERC
Planned Projects To Move
Gas in the Rockies
• Staff is aware of 15 projects to move
Rockies’ gas that would have a potential
capacity of 7.3 Bcf per day.
• In addition, there is a project in
planning that would reverse flow on a
Rockies’ pipeline, allowing for more
flexibility in moving Rockies’ gas
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Office of Energy Projects
FERC
NEPA Pre-Filing Guidelines
• Applicant Must:
– File a written request
– Explain reasons and timing
considerations
– Verify other major state and federal
agencies support the process
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– Describe consultations completed to
date
Office of Energy Projects
FERC
NEPA Pre-Filing Guidelines
• Applicant Must:
– Propose options for third-party
contractor
– Agree to file complete application
– Preliminary route maps (if possible)
– Prepare a Public Participation Plan
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Office of Energy Projects
FERC
You Need a Plan
for Public Participation
• A Plan is required for NEPA Pre-filing and is
strongly encouraged in the traditional process
• Must be an intentional Component
• The Plan may include setting up a Website, a
toll-free 800 telephone number, quarterly
newsletter, a commitment to place all filings and
information in libraries, and holding communitystyle “Open Houses”
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Office of Energy Projects
FERC
NEPA Pre-Filing Guidelines
Staff Activities
• FERC will assign a PF docket number
• Issue a scoping notice
• Examine alternatives
• Attend site visits and meetings
• Initiate preparation of NEPA document
• Review draft resource reports
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Office of Energy Projects
FERC
NEPA Pre-Filing Guidelines
Staff Activities
• Identify affected parties
– Landowners
– Agencies
– Others
• Facilitate:
– Issue identification
– Study needs
– Issue resolution
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Office of Energy Projects
FERC
Timeline
Traditional vs. NEPA Pre-filing
Announce
Open
Season
File
Develop
Prepare Resource At
Study
FERC
Reports
Corridor
Conduct
Scoping
Announce
Open
Season
Develop
Study
Corridor
Conduct
Scoping
0 1 2 3 4 5 6 7
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Issue
Draft
EIS
File
Prepare Resource At
FERC
Reports
Review Draft
Resource Reports
& Prepare DEIS
Issue
Draft
EIS
Issue Issue
Final Order
EIS
Issue Issue
Final Order
EIS
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
(months)
Office of Energy Projects
FERC
An Example:
Kern River Expansion
•
•
•
•
716 miles of pipeline looping
through CA, NV, UT, WY
3 New Compressors
$1.2 Billion
885.6 MMcf/day of additional
capacity
– Doubles Kern River’s capacity
from 845.5 MMcf/day to 1.7
Bcf/day
X
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PROPOSED COMPRESSOR STATION
PROPOSED PIPELINE LOOPING
Office of Energy Projects
FERC
Kern River Expansion
Environmental Highlights
• Environmentally Acceptable
– New pipe parallels initial right-of-way.
– Mitigation measures minimize potential impacts.
• First Major Project to utilize NEPA Pre-Filing
– Order issued less than 1 year from initial filing date - Final
EIS completed in June 2002 which was 11 months from
filing date.
– In comparison, FEIS and certificate for Gulfstream
required 16 months from initial filing date; Kern River’s
initial greenfield project required 30 months for the FEIS.
– Interagency cooperation contributed to meeting Federal
and state environmental requirements.
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Office of Energy Projects
FERC
An Example:
Greenbrier Project
279 miles of
pipeline through
WV, VA, and NC
– 2 New
Compressors
Stations
– $0.5 Billion
– 600 MMcf/d of
new capacity
– Order issued 10
months after initial
filing
– FEIS issued 8
months after initial
filing
–
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Office of Energy Projects
FERC
Benefits of NEPA Pre-filing
• More interactive NEPA process, no shortcuts
• Earlier, more direct involvement by FERC, other
agencies, landowners
• Goal of “no surprises”
• Time savings realized only if we are working
together with stakeholders
• FERC staff is an advocate of the Process, not
the Project!
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Office of Energy Projects
FERC
What It All Means to You
• Things will be perfect forevermore!
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• Signatory agencies stand ready to assist
• Consistent key agency contacts
• Increased need for consistent and timely
information from project sponsors
• Good stakeholder communication is
imperative, must be transparent
• Better project design, quicker decision
process
Office of Energy Projects
FERC
Contact
Raymond E. James
[email protected]
202-502-8588
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Office of Energy Projects