Project Overview - Northampton County, Pennsylvania · UGI Energy Services NJR Pipeline NJR Pipeline Company PSEG Power Spectra Energy • UGI Energy Services is a subsidiary of UGI

Project Overview

November 2014

12/3/2014 1

• Alisa Harris, UGI Energy Services

VP, Government and Public Affairs

E-mail: [email protected]

• Lawrence Godlasky, UGI Energy Services

Director, Government Affairs

E-mail: [email protected]

12/3/2014 2

Team Introduction

3

• PennEast Pipeline Company, LLC is composed of six partners

• AGL, NJR, SJI and UGI each have a 20 percent share of the project; PSEG and Spectra each have a 10 percent share

Project Overview

12/3/2014

Safely and reliably delivering energy to

Pennsylvania and New Jersey customers

AGL

Resources South Jersey

Industries

UGI Energy

Services NJR Pipeline

Company

NJR Pipeline

Company PSEG Power Spectra

Energy

• UGI Energy Services is a subsidiary of UGI Corporation, headquartered in Valley Forge, Pennsylvania

• The UGI name has been known in the region for more than 130 years. Local gas service is provided by UGI Utilities.

• Our midstream services division builds, owns and operates natural gas storage facilities and high-pressure transmission and gathering lines.

• UGIES owns and operates LNG and propane peaking facilities and terminals in Pennsylvania.

• UGIES also owns coal, natural gas and renewable-fueled generating assets (solar and landfill gas to energy).

• UGIES’ retail energy marketing division sells natural gas, electricity and liquid fuels to approximately 30,000 business, commercial, industrial, institutional and government customers in nine states and Washington, DC.

• UGIES is the Project Manager and Operator of PennEast Pipeline.

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Who is UGI Energy Services?

12/3/2014 5

The Need For New Infrastructure

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$/M

MB

TU

TETCO-M3

TGP-Z4 Marcellus

Leidy-Transco

Transco-Z6 (non-NY)

TETCO - M3 Key Dates

Date Price

23-Jan-13 $10.42

2-Jan-14 $21.91

6-Jan-14 $55.40

21-Jan-14 $90.35

22-Jan-14 $93.54

23-Jan-14 $34.32

27-Jan-14 $84.05

28-Jan-14 $26.64

Transco - non-NY Key Dates

Date Price

2-Jan-14 $20.66

6-Jan-14 $90.40

7-Jan-14 $32.40

21-Jan-14 $135.35

22-Jan-14 $115.03

23-Jan-14 $46.82

24-Jan-14 $54.75

27-Jan-14 $90.05

28-Jan-14 $24.64

10-Feb-14 $19.80

3-Mar-14 $17.00

• 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

homes and businesses

12/3/2014 6

Need for New Infrastructure

General Description

• Open Season ended August 29, 2014

• Plans call for a 36”-diameter*, 108-mile pipeline

• Approximately 1bcf/day delivered

• Compression: 32,745 total HP (26,733

available)*

• Hellertown Lateral

12/3/2014 7

Project Overview

*Subject to change based on execution of precedent agreements

12/3/2014 8

Proposed Route

Project Overview

Revised Route

Avoid population

centers and recent

development

Avoid growth areas

Target co-location

areas

Account for sensitive

environmental,

wildlife, archeological

and historical areas

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Hellertown Lateral w/parcels

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Receipt Points

Project Overview

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Delivery Points

Project Overview

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

completed,

affordable local

natural gas now

benefiting local

customers

2014 2015 2016 2017

Project Overview

Timeline

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Pipeline and Compressor Facilities

• 108 miles of 36” X-70 pipeline

• 1,480 psig - maximum allowable operating

pressure

• Initial survey corridor: 400’ (permanent ROW will

be 50’; temporary ROW about 100’)

• Major water crossings: Susquehanna, Lehigh

and Delaware Rivers; Beltzville Lake

• Major road crossings: Pennsylvania Turnpike, I-

81, I-80, PA-22, I-78, NJ-202

12/3/2014 13

Project Overview

• NWI Wetlands – 131crossings

• NHD Waterbodies – 165 crossings

• Threatened and Endangered Species – Indiana Bat, Bog Turtle,

Dwarf Wedge Mussel and proposed for listing Northern Long-eared

Bat

• State Park/Forest/Game Lands – 278 acres

• Important permits/sensitive areas (Appalachian Trail, Beltzville State

Park, Frances Slocum State Park, Hickory Run State Park,

Delaware River Crossing)

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Environmental Impact

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Environmental Impact

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Environmental Impact

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Permanent Right of Way

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Permanent Right of Way

Agency Consultations - many initiated to date:

• Delaware River Basin Commission

• New Jersey Department of Agriculture

• Pennsylvania and New Jersey Departments of Environmental Protection

• Pennsylvania Department of Conservation and Natural Resources

• Pennsylvania Fish and Boat Commission

• Pennsylvania Game Commission

• U.S. Army Corps of Engineers

• U.S. Fish & Wildlife Service

• National Marine Fisheries Service

• Susquehanna River Basin Commission

12/3/2014 19

Stakeholder Contact

• Other Identified Stakeholders:

• Landowners and abutters

• Elected and public officials

• Emergency responders

• Environmental organizations

• Community and business groups

• Homeowners Associations

• Media

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Stakeholder Contact

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Federal Energy Regulatory Commission

• Interstate natural gas pipelines are regulated and authorized by the

Federal Energy Regulatory Commission (FERC)

• 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, ask questions and voice support or concern

• Public Scoping Meetings – Hosted by FERC to provide community

additional opportunity for input

• Certificate Application Filing – The formal project application with FERC

• Permit applications for other federal, state and local agencies

• Environmental Impact Statement (EIS) – PennEast will be engaging a

third-party contractor for this in-depth environmental analysis

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Open Houses