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Kalama Lateral Pipeline Project Update First Quarter 2012 Letter from the project manager I appreciate the efforts of so many landowners to take the time to attend our open house on January 11, 2012, at the Red Lion Hotel in Kelso. Approximately, 75 landowners attended the meeting to learn about the project from Williams’ staff. In my presentation I discussed a number of potential routes we’ve reviewed, highlighting why some are more feasible than others for construction. Route selection is based on a number of factors, including minimizing impacts to landowners; the ability to build and operate a safe and reliable pipeline; and reducing environmental impacts. At the open house, our director of operations, Barry Orgill, presented on safety and our commitment to build and operate a safe pipeline. The purpose of this letter is to share with you the latest developments on the Kalama Lateral Pipeline Project, which is contingent on the development of the Kalama Energy Center facility. To this point, we’ve mailed periodic communications to landowners and offered to meet about the project. As we’ve discussed, the proposed project would require construction of approximately three miles of pipeline beginning at the Williams mainline, continuing through part of the Mt. Pleasant community, and ending near the North Port Marine Terminal at the site of the proposed Kalama Energy Center. As most of you are aware, we’re currently in the National Environmental Policy Act (NEPA) pre-filing process with the Federal Energy Regulatory Commission (FERC). As part of that process, we’re required to file draft resource reports which address the impacts of the project. We had plans to begin filing these reports in March. Our primary focus is to identify a safe, constructible route for the pipeline. We’ve sought permission from local landowners to access their property and conduct surveys for this purpose. The access we’ve received has allowed us to collect civil and geo-technical data to compare and identify preferred routing alternatives. Where we haven’t been granted access, we’ve relied on aerial observation and laser mapping (LiDAR) to determine routing data. Using the information available to us, we’ve identified a preferred project route which we’ll submit to FERC as part of our pre-filing environmental documentation. This preferred route is a modified version of the Timber-Rock Route originally introduced to project stakeholders at the January 11, 2012 open house in Kelso. In this newsletter is a map of the Timber-Rock Route as we anticipate filing it. The route is highlighted in blue. To illustrate the most recent refinements to this route, sections of the previous version of the route, which we are no longer considering, are highlighted in red. toll free 888-892-8904 web www.energy.williams.com/kalamalateral Email [email protected]

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Page 1: Kalama Lateral Pipeline Project Update - · PDF fileKalama Lateral Pipeline Project Update First Quarter 2012 Letter from the project manager I appreciate the efforts of so many landowners

Kalama Lateral Pipeline

Project Update First Quarter 2012

Letter from the project manager

I appreciate the efforts of so many landowners to take the time to attend ouropen house on January 11, 2012, at the Red Lion Hotel in Kelso.Approximately, 75 landowners attended the meeting to learn about theproject from Williams’ staff. In my presentation I discussed a number ofpotential routes we’ve reviewed, highlighting why some are more feasiblethan others for construction. Route selection is based on a number offactors, including minimizing impacts to landowners; the ability to build andoperate a safe and reliable pipeline; and reducing environmental impacts.At the open house, our director of operations, Barry Orgill, presented onsafety and our commitment to build and operate a safe pipeline.

The purpose of this letter is to share with you the latest developments onthe Kalama Lateral Pipeline Project, which is contingent on thedevelopment of the Kalama Energy Center facility. To this point, we’vemailed periodic communications to landowners and offered to meet aboutthe project. As we’ve discussed, the proposed project would requireconstruction of approximately three miles of pipeline beginning at theWilliams mainline, continuing through part of the Mt. Pleasant community,and ending near the North Port Marine Terminal at the site of the proposedKalama Energy Center.

As most of you are aware, we’re currently in the National EnvironmentalPolicy Act (NEPA) pre-filing process with the Federal Energy RegulatoryCommission (FERC). As part of that process, we’re required to file draftresource reports which address the impacts of the project. We had plans tobegin filing these reports in March. Our primary focus is to identify a safe,constructible route for the pipeline. We’ve sought permission from locallandowners to access their property and conduct surveys for this purpose.The access we’ve received has allowed us to collect civil and geo-technicaldata to compare and identify preferred routing alternatives. Where wehaven’t been granted access, we’ve relied on aerial observation and lasermapping (LiDAR) to determine routing data. Using the informationavailable to us, we’ve identified a preferred project route which we’llsubmit to FERC as part of our pre-filing environmental documentation. Thispreferred route is a modified version of the Timber-Rock Route originallyintroduced to project stakeholders at the January 11, 2012 open house inKelso. In this newsletter is a map of the Timber-Rock Route as we anticipatefiling it. The route is highlighted in blue. To illustrate the most recentrefinements to this route, sections of the previous version of the route, whichwe are no longer considering, are highlighted in red.

toll free 888-892-8904 web www.energy.williams.com/kalamalateral Email [email protected]

Page 2: Kalama Lateral Pipeline Project Update - · PDF fileKalama Lateral Pipeline Project Update First Quarter 2012 Letter from the project manager I appreciate the efforts of so many landowners

Some stakeholders have asked why we haven’t provided aproject update since our last letter to all project stake-holders, dated January 30, 2012. The reason we haven’tcommunicated is that we haven’t had new information toreport. Since February, much of our time has been spentexamining potential routing alternatives, improvements orsafety factors. A key input to our analysis was laser mappingdata (LiDAR), which we received several weeks later thananticipated. Without that data, we weren’t able to look atcritical features of terrain around potential route deviations oralternatives. We now have this information and have beenable to make the routing improvements indicated on theattached map. With the preferred project route identified,we’re preparing the required resource reports and plan to filethem in late May. These reports are part of the public recordand you’ll be able to review them on the FERC website usingthe docket number PF 12-2.

We’ve sought and continue to seek opportunities to meetwith affected landowners, other residents and othercommunity stakeholders to provide information andaddress concerns. Please let me know if you have anyquestions. Our land representatives have been and willcontinue to be available to meet with you to discussquestions you may have. They are Clay Gustaves at

425-301-1068 and Jan Camp at 360-607-4378. Inaddition, the Kalama Lateral project website:http://www.energy.williams.com/kalamalateral is a usefulrepository of project information and updates.

Sincerely,

Greg Sudman, project managerKalama Lateral Pipeline project

About the project Veresen U.S. Power Inc. and Energy Northwest areproposing to develop the Kalama Energy Center, a naturalgas power plant at the Port of Kalama that would enhanceand complement Washington’s energy resources, whilereducing congestion on the power grid and providingpermanent local jobs.

These two companies have approached Williams aboutinstalling a pipeline that would deliver natural gas fromWilliams’ mainline to the Kalama Energy Center. Theproposed pipeline, known as the Kalama Lateral Pipelineproject, would involve installing approximately 3 miles of16-inch diameter steel pipe.

Sections of the previous version of the route, which are no longer being considered.Map of revised route

Please note the map is not an accurate depiction of the actual proposed route or right of way. The lines on the map have beenenlarged for purposes of clarity.

Page 3: Kalama Lateral Pipeline Project Update - · PDF fileKalama Lateral Pipeline Project Update First Quarter 2012 Letter from the project manager I appreciate the efforts of so many landowners

Regulatory update The proposed pipeline is under the jurisdiction of theFederal Energy Regulatory Commission (FERC). TheCommission will review the project to determine if it servesthe public’s interest. As part of the review, Commissionstaff will prepare an environmental study of the proposedpipeline project. During this process, stakeholders will havean opportunity to express their views and have themconsidered in the review process.

Williams plans to file an application for the project with theFERC in late summer 2012. For questions about theproject or the process, please contact the FERC at:

Federal Energy Regulatory Commission888 First St. NE, Room 1AWashington, D.C. 20426

Stakeholders may also call the Commission’s Office ofExternal Affairs at 202-208-1088, or visit the FERCwebsite at http://www.ferc.gov/.

The current pre-filing docket number for the project isPF12-2. To access documents about the Kalama projectissued and received by the FERC, please go to eLibraryat: http://www.ferc.gov/docs-filing/elibrary.asp. You’llneed to enter the pre-filing docket number (PF12-2) inthe search box.

About Williams Williams operates three natural gas pipelines in the UnitedStates, totaling more than 15,000 miles. NorthwestPipeline is approximately 4,000 miles long and extendsfrom the San Juan Basin in northwestern New Mexico andsouthwestern Colorado through the states of Colorado,Utah, Wyoming, Idaho, Oregon and Washington to a pointon the Canadian border near Sumas, Washington.

Northwest transports natural gas, specifically methane,which is delivered to a variety of customers, includinglocal distribution companies, large commercial andindustrial users and electric power plants. Williams hasbeen delivering natural gas to the Pacific Northwest andIntermountain West for more than 50 years.

District officeWilliams has a network of highly skilled pipelineoperations personnel. Regional district offices are locatedalong the entire pipeline system. While the flow of gas iscontrolled and monitored 24 hours a day from the gascontrol center in Salt Lake City, Utah, district offices areresponsible for day-to-day operations and maintenance ofthe pipeline. District offices are also the first to respond toabnormal conditions or in the event of an emergency.

The district office for this project is located at: Williams 8907 NE 219th Street Battle Ground, WA 98604

Agencies PermitsFederal PermitsFederal Energy Regulatory Commission Certificate of Public Convenience and NecessityU.S. Army Corps of Engineers Section 404 (Clean Water Act)U.S. Fish and Wildlife Service Fish and Wildlife Coordination Act; Migratory Bird Treaty ActNational Marine Fisheries Service Magnuson-Stevens Act

State PermitsWashington Dept. of Ecology Section 401 (Clean Water Act); Construction Storm

water NPDES (Nat. Pollutant Discharge Elimination System) Permit

Washington Dept. of Fish and Wildlife Hydraulic Project ApprovalWashington Dept. of Natural Resources Forest Practices ActDept. of Archaeology and Historic Preservation National Historic Preservation ActWashington Dept. of Transportation Road Crossing Permit ( Interstate-5)

County PermitsCowlitz County Critical Areas Ordinance; Pipeline Ordinance; Grading

Ordinance; County Road Crossing Permits

Permits needed for the project Williams is committed to being agood neighbor in Washington andconducting business in a mannerthat protects the naturalenvironment. We will work togetherwith any affected county and cityagencies to obtain all necessarypermits long before we beginconstruction on the project.

Here is an overview of the permitsrequired for the pipeline project:

toll free 888-892-8904 web www.energy.williams.com/kalamalateral

Email [email protected]

Page 4: Kalama Lateral Pipeline Project Update - · PDF fileKalama Lateral Pipeline Project Update First Quarter 2012 Letter from the project manager I appreciate the efforts of so many landowners

Kalama Lateral Pipeline Project Schedule8907 NE 219th Street

Battle Ground, WA 98604

toll free 888-892-8904 web www.energy.williams.com/kalamalateral Email [email protected]

• Landowner outreach, consultation and community meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ongoing• Surveys for the pipeline begin (where permission has been granted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nov. 2011 • Initiate pre-filing review process for the pipeline with the Federal Energy Regulatory Commission (FERC) . . . . . . . .Fall 2011• Application for the pipeline to be filed with the FERC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Late summer 2012• Land acquisition for the pipeline begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Winter 2013• Pending FERC approval, construction on the pipeline begins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Summer 2014 • Pipeline project completed and placed into service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Late fall 2014 • Restoration of landowner parcels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .May occur over a period of time in the fall of 2014

and the spring of 2015, where necessary.• Power plant completed and placed into service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Mid-2016

We will continue to meet and listenWe will continue to make ourselves available to meet with landowners, government and regulatory officials, and other stake-holders about the proposed project. We welcome your suggestions and feedback. Understanding and addressing the prioritiesof all our stakeholders is vital in making this a successful project.