DAVE MESSERSMITH MARCELLUS EDUCATION TEAM PENN STATE EXTENSION Pennsylvania Natural Gas Pipeline Roundup
DAVE MESSERSMITH MARCELLUS EDUCATION TEAM PENN STATE EXTENSION
Pennsylvania Natural Gas Pipeline Roundup
• Project Updates.
• Review of Pipeline Safety Act.
• Review of Pipeline Placement Report.
• Proposed Pipeline Legislation
• Questions?
PA Natural Gas Pipeline Roundup
Natural Gas Pipelines in Pennsylvania
Gas Transmission 10,081 mi
Total Gas Pipeline
61,037 mi http://primis.phmsa.dot.gov/comm/reports/safety/PA_detail1.html
PA Gas Transmission by County
http://primis.phmsa.dot.gov/comm/reports/safety/PA_detail1.html | Report generated on: 04/08/13
6
Marcellus & Utica Shale Projects
Source: FERC
Appalachian Basin
Oakford
Tennessee Station 219
Corning
Leidy
Linden
Rivervale
Transco Compressor Station 195
Princeton
Lambertville
Marcellus Shale Projects
Clarington
Approved or Pending Projects Potential Projects
Keystone (Dominion/Williams)
Northeast Supply (Williams)*
* Combined Transco’s Rockaway Lateral and Northeast Connector Projects
Appalachia to Market Expansion
TEAM 2013 & U2GC Project (TETCO)
NYMarc (Iroquois)
New Penn (NiSource)
Marcellus to Manhattan (Millennium) NiSource & UGI
MPP Project (Tennessee)
N Bridge, TIME 3, TEMAX (TETCO) NiSource/MarkWest & NiSource
Appalachian Expansion (NiSource) Line 300 Exp (Tennessee)
Appalachian & Natrium (Dominion) Line N & N, R & I Projects (NFG) Tioga County Extension (Empire)
Northeast Upgrade (Tennessee)
Low Pressure East-West (Equitrans)
NJ-NY Project (TETCO & Algonquin)
Sunrise Project (Equitrans) TEAM 2012 Project (TETCO)
Marc I (Central NY)
Northeast Supply Link (Transco) NSD (Tennessee) & (Dominion)
Northeast Expansion (Dominion)
Northern Access (NFG & Tennessee) Blacksville Comp (Equitrans)
Ohio Pipeline Energy Network & Appalachia to Midwest (TETCO)
The Constitution Pipeline
West & East Expansions (NiSource)
Commonwealth Pipeline (UGI Service, Inergy, WGL)
TEAM 2014 (TETCO)
Nexus Gas Transmission (Spectra)
Northeast Expansion (Tennessee)
Rose Lake (Tennessee)
7 Source: FERC
Summary of Natural Gas Facilities in the Marcellus & Utica Shale Basins
Transmission Pipeline Summary • 28 projects recently completed or under
construction, 692 miles of pipeline with a capacity of 8,478 Mmcf/day.
• Potential for 14 additional projects, 1,078 miles of pipeline and a capacity of 10,723 Mmcf/day.
• Does not include natural gas liquids pipeline projects like the Mariner East, Mariner West, Bluegrass and ATEX.
Constitution Pipeline
• Williams, Cabot
Piedmont, WGL
• April 2012 – Pre-filing
• July & Sept 2012 – Open houses
• Fall 2012 – FERC scoping hearings
• June 2013 – Submit 7(c) application to FERC
• Docket number: CP13-499
• June 2014 – Proposed construction start
• March 2015 – Target in-service
Commonwealth Pipeline
• Project currently suspended.
• 120 mile, 30” interstate pipeline. (Inergy Midstream, UGI Energy Services, WGL Holdings)
• Starts at southern terminus of Marc 1 line in Lycoming county, extending into Baltimore/DC metro.
• Capacity: 800,000 dekatherms/day (0.8 bcf)
Appalachian Gateway Project
• Dominion
• 110 miles of 20, 24 and 30” pipe with a capacity of 484 Mmcf/day.
• Pre-Filing Oct 2009
• FERC Approval June 2011
• In-service Oct 2012.
Tennessee Gas Pipeline • Kinder Morgan
• Northeast Supply Diversification
– 7 miles of new pipe, 250 Mmcf/day
– In-Service Sept-Oct 2012
• 300 Line Upgrade
– 127 miles of 30” pipeline in PA and NJ, 350 Mmcf/d
– In-Service Oct 2011
• Northeast Upgrade Project
– 40 miles of 30” pipeline in PA and NJ, 636 Mmcf/day
TEAM 2014 Project
• Spectra Energy
• 34 miles of 36” pipeline, 600 Mmcf/day.
• Filed with FERC in Feb 2013
• Comments on EA until Oct 16, 2013
• Expected In-Service: Nov 2014
• FERC Docket Number: CP13-84-000
Pipeline Safety Act (Act 127 of 2011)
• Aka: “The Gas and Hazardous Liquids Pipelines Act”
• Passed Dec 2011. Took effect Feb 20, 2012.
• Expanded PUC’s authority to enforce federal pipeline safety laws for non-utility natural gas pipelines within the Commonwealth (Class 2, 3 and 4).
• Pipeline operators required to report the location, class, county, and aggregate miles of all pipelines transporting natural gas in PA. This is required for all pipelines, regardless of class location.
Class Locations • Determined by number of buildings within 220
yards on each side of pipeline per sliding mile.
• Class 1 location - 10 or fewer buildings.
• Class 2 location - more than 10 less than 46.
• Class 3 & 4 locations – more than 46 buildings and buildings with high occupancy (churches, schools, etc).
• Added layers of regulation in higher consequence areas.
Pipeline Safety Act (Act 127 of 2011) • Act 127 adopts all federal pipeline safety
regulations in 49 CFR except gathering pipelines in Class 1 areas (10 or fewer buildings within 220 yards in a sliding mile).
• On these lines, PUC will conduct leak-detection surveys, corrosion surveys, MAOP requirements and recordkeeping requirements as it has historically conducted with public utility pipelines.
Pipeline Placement Report • Report to the General Assembly in Dec 2012
by Patrick Henderson, Governor Corbett’s Energy Executive.
• Required by Act 13
• Review of regulations that
impact the placement of
natural gas gathering lines.
• List of 16 recommendations.
Pipeline Placement Recommendations
1,2,8. Sharing of rights-of-way and/or gathering line capacity.
6. Expand PA One Call Law to include mandatory participation of gathering line operators and location registration of pipelines.
7. Creation of a state map of unconventional natural gas pipelines.
9. Prioritized review of permits seeking to use trenchless technology for sensitive areas.
Directional Drilling/Trenchless Technology
Photo: Mears Group, Inc.
Pipeline Placement Recommendations
• 11,13,14. Expanded and enhanced public education and outreach efforts by Penn State Extension, PUC, DEP and Governor’s Center for Local Government Services with their respective stakeholder groups.
• 12, others: Increased cooperation and planning between pipeline operators and local governments, planning officials and others.
Proposed PA Pipeline Legislation • A review of pipeline related legislation that
has been introduced in the 2013-2014 legislative session.
• Approximately 15 bills could impact pipeline development but I’ll be discussing 8-9 that have a significant pipeline component.
• All the proposed legislation that I’ll be discussing has been introduced and referred to committee.
Prohibit Gathering Line Operators from Obtaining Public Utility Status
• Introduced by Rep. Phyllis Mundy as H.B. 696
• Previously H.B. 1796 in the 2011-2012 session.
• Would further define ‘gathering line’ and ‘public utility’ in the PUC Code.
• Would prohibit gathering line operators from obtaining public utility status.
• The decision to allow natural gas gathering lines would remain with the landowner.
Amendments to PA One Call Law • Introduced by Senator Tomlinson as S.B 1084
• Co-introduced by Rep. Matthew Baker as H.B. 1607
• Would transfer PA One Call enforcement authority from Dept. of Labor & Industry to PUC.
• Also would remove several One Call exemptions and create a Damage Prevention Committee.
Mandatory Participation in PA One Call System • Introduced by Senator Donald White as S.B.
1076.
• Would require participation in PA One Call to all natural gas gathering line operators.
• Would include specific location registration of all gathering lines.
Potential Impact Radius Disclosure • Introduced by Rep. Mike Reese as H.B. 904.
• Would require pipeline operators to include potential impact radius (PIR) information in easement agreements.
• PIR is defined as the area that could be impacted in the event of a pipeline failure.
• Determined by the diameter of the pipeline and pressure of the gas being transported.
DEP Public Notification & Access to Information Act
• Introduced by Senator Dinniman as S.B 504
• Would require operators to notify property owners affected by the proposed project.
• Would require DEP to post permit applications and supporting documents online.
• Includes air quality, water allocation, water obstruction and water quality permits.
Pipeline Acre-for-Acre • Introduced by Senator Dinniman as S.B 506.
• Would require pipeline operators to replace impacted agriculture and conservation easements funded by taxpayers (acre-for-acre) within the same county.
• Would include additional stormwater runoff requirements on pipeline projects.
• Would apply to 1st, 2nd and 3rd class counties.
Condemnation Approval • Introduced by Senator Dinniman as S.B 507
• Would require the Agricultural Lands Condemnation Approval Board to approve condemnation of Act 43 farmland for FERC and PA PUC approved projects.
• Would only affect projects in 1st, 2nd and 3rd class counties.
Surface Owners’ Protection Act • Introduced by Senator Kusunic as S.B. 780.
• Introduced in 2011-2012 session as S.B. 1250.
• Would provide certain rights and compensation to surface owners where the mineral rights are severed.
• May not significantly change how pipelines are negotiated with the surface landowner.
Company to Company Integration • Introduced by Senator Yaw as S.B. 355.
• Previously introduced as S.B. 447 in the last legislative session.
• Would allow for compulsory integration of leased lands by a company holding the majority of the leased acreage.
• May help avoid overlapping or multiple gas gathering lines from competing companies in an area.
PA Natural Gas Expansion and Development Initiative • Introduced by Senators Yaw and Pileggi as S.B.
738.
• Multifasceted bill to expand the utilization of natural gas in the Commonwealth.
• Would allow for the expansion of natural gas service to un-served areas, ease regulatory hurdles to becoming a public utility, and rate incentives for utilities expanding service in rural areas.
• Project Updates.
• Review of Pipeline Safety Act.
• Review of Pipeline Placement Report.
• Proposed Pipeline Legislation
• Questions?
Pipeline Roundup Summary
Dave Messersmith Penn State Cooperative Extension 648 Park Street Honesdale, PA 18431 570-253-5970 x 4110 [email protected]
On Twitter: @PSUmarcellus
http://extension.psu.edu/naturalgas