Another pipeline project proposed in PA

By SANDY LONG

WAYNE AND PIKE COUNTIES, PA — Those who attended a workshop to hear more about natural gas pipelines and associated infrastructure in Honesdale last week learned that in addition to the approved expansion of the 300 Line that traverses Pike and Wayne counties, Tennessee Gas Pipeline Company (TGP) is proposing another project to extend TGP’s “existing presence in the heart of the developing Marcellus Shale play.”

The Northeast Upgrade Project (NUP) aims to provide 636,000 dekatherms per day of increased capacity from TGP’s 300 Line in PA to an interconnect in New Jersey that will serve growing markets in the Northeast.

TGP has executed binding 20-year term agreements with Chesapeake Energy Marketing, Inc., a subsidiary of Chesapeake Energy Corporation, and Statoil Natural Gas LLC, a subsidiary of Statoil, for 100% of the major pipeline’s capacity.

A spring 2011 Federal Energy Regulatory Commission (FERC) certificate application filing date is anticipated, with a scheduled November 1, 2013 in-service date. The project is expected to cost approximately $400 million.

According to company spokesman Robert Newberry, the proposed project is a looping expansion which would run alongside the existing 300 Line and expand the current right of way. “Enough land is needed to minimize the chance of damage to the existing pipeline, and to allow adequate space for routine operation and maintenance with appropriate equipment,” wrote Newberry in an email. “TGP will propose an additional 25-foot permanent easement in most cases. In addition, TGP will need additional temporary workspace to install the pipeline so that the environmental impact is minimized.”

TGP is a subsidiary of El Paso Corporation, which owns North America’s largest interstate natural gas pipeline system and is one of North America’s largest independent natural gas producers. Visit www.elpaso.com/northeastupgrade/images/NortheastUpgradeProjectMap.pdf to view a map of the proposed project or call 866/683-5587 for more information. An open house with more extensive information will be conducted on September 16 from 6:30 to 8:30 p.m. at Wallenpaupack High School, 2552 Route 6, Hawley, PA.

Rights, regulations and the role of eminent domain

During the workshop, which was sponsored by the Penn State Cooperative Extension, TGP consultant project manager Mark Hamarich said the 300 Line Project is anticipated to begin in the next four to six weeks with staking and clearing activities. Hamarich described this as the “most shocking” stage due to tree removal. Controlled blasting may also be required.

Along with companies like Stone Energy, which has received a permit to withdraw 700,000 gallons of water per day from the West Branch of the Lackawaxen River, TGP will be lining up for its share of that same resource as it seeks to withdraw 4,000,000 total gallons from the narrow West Branch.

FERC representatives described the process of siting for natural gas infrastructure, noting that FERC is funded through costs recovered by fees and annual charges from the industries it regulates. The Natural Gas Act is the law that defines FERC’s areas of responsibilities. Regarding eminent domain, FERC’s stated preference is to utilize private contracts between the holders of approved projects and landowners, not to start condemnation proceedings, although the law allows for such if necessary.

Wayne Conservation District (WCD) resource conservationist Len Grover said that copies of the 300 Line construction plan are available for review at the Wayne County Public Library and the WCD office in Honesdale. Pipeline construction will affect 15.2 acres in Wayne County and 22.6 acres in Pike. “There will be stream crossings, wetlands crossings, lake and pond impacts,” said Grover. “We have to do the best we can to protect the waters. TGP did a really extensive environmental assessment to avoid impacts. There shouldn’t be any problems, but on most construction, there usually is. When they get done, they’ll restore it as best as possible.”

The construction right of way (ROW) will expand temporarily to 100 feet in most sections, with a permanent 50-foot ROW. If approved, the NUP project would add an additional 25 feet to this ROW. “You’re likely to lose trees and wildlife habitat,” said Grover, who advised contacting a registered forester or logger ahead of time to get the maximum value for timber (contact WCD at 570/253-0930 for a list). Grover also said it is possible to negotiate concerns with the TGP company.

Attorney Steve Saunders of Tressler Saunders LLC, Scranton, discussed issues related to gathering lines, which transport gas from wells to the major pipelines and are, in most cases, not regulated by FERC. Saunders explained right-of-way agreements for such lines, saying there is more leverage on the part of landowners. Such agreements usually constitute a one-time payment that compensates the landowner for loss of use of that land. Things to consider are the effect on property value, restrictions on the use of the land and re-sale considerations. Saunders said the forms, terms and conditions of agreements vary widely and that landowners should negotiate for their best interest, such as indicating the types of activities to be allowed on the property.

Attendees also learned that a pipeline can be installed within a foot of any structure, such as a home. FERC and TGP reps said they strive for a minimum distance of at least 50 feet but with looping projects, that is not always possible.