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Washington Expansion Project
Update August 2012
Public Feedback Sought for New Expansion ProjectIn order to meet a request by Oregon LNG to transport an incremental 750million cubic feet per day of natural gas to an interconnect near Woodland,Wash., Williams Northwest Pipeline (Northwest) is planning to constructthe Washington Expansion project. The project will provide additionalpipeline and compression facilities to the existing Northwest system in thestate of Washington.
Northwest is providing this newsletter to parties who may be affected orhave an interest in the expansion proposal.
The project includes installing approximately 96,000 horsepower ofcompression at five existing compressor stations and the installation ofapproximately 140 miles of 36-inch diameter pipeline loop in ten segmentsalong Northwest’s existing pipeline system between Sumas, Washington andWoodland, Washington. Upon completion of the project, Northwest would becapable of delivering approximately 1.25 billion cubic feet per day ofnatural gas at the interconnect with the proposed Oregon Pipeline Lateral,which would connect to the proposed Oregon LNG terminal.
Northwest will formally introduce the project to interested parties during aseries of public workshops that are being conducted in the project area inAugust 2012. These workshops, or “open houses,” are open to the publicand are designed to provide all interested parties an opportunity to meetproject personnel, review maps, learn more about the regulatory processes,ask questions and provide feedback.
“Our goal is to work with communities to identify and minimize impacts tothe community and the environment, while balancing the needs of ourcustomer,” said project manager Al Michini. “Early involvement fromcommunities is very important and helps us identify and address issuesrelated to project design and location.”
The open houses are informal meetings, which allow for interaction betweenthe project team and all interested stakeholders. Attendees have theopportunity to learn more about the project and ask questions.Representatives from the Federal Energy Regulatory Commission (FERC),the federal agency that oversees pipeline projects, normally participate inthese meetings, as well. The FERC will also hold public scoping meetings inthe project area at a later date.
The project is designed to provide natural gas to the proposed Oregon LNGterminal and possibly other markets in the state of Washington. The project
toll free 888-892-8905 web www.washingtonexpansion.com Email [email protected]
would offer many benefits to Washington and its citizens,including increased infrastructure to the region to serveexisting and potential new natural gas markets; increasedtax revenue to the state and counties; and additional jobsduring construction. The project would be put into serviceby November 2018.
Before Northwest can construct any facilities, it must applyfor and receive a Certificate of Public Convenience andNecessity from the FERC for the project. Additionally,Northwest must obtain other federal, state and localpermits. Northwest anticipates filing a formal applicationwith the FERC for the project during the first quarter of2013. “We’re still relatively early in this process,” saidMichini. “The facility design, location and other detailswon’t be finalized until a formal certificate application isfiled with the FERC.”
To that end, Northwest has entered into the pre-filingprocess with the FERC, which allows for early coordinationbetween the FERC and stakeholders (including landowners,public officials and agencies) and starts the National
Environmental Policy Act (NEPA) analysis, which will requirethe development of an Environmental Impact Statement(FERC Docket No. PF12-20).
The project route is currently expected to followNorthwest’s existing right of way as much as is practicalto minimize environmental, residential and otherimpacts. Minor adjustments to the route can beanticipated as more information becomes availablethrough the pre-filing process.
Interested parties may provide feedback by calling thecompany toll free at 888-892-8905 or submittingcomments by email electronically [email protected].
More information can be found on the project website atwww.washingtonexpansion.com.
Preliminary Project SchedulePre-filing process begins . . . . . . . . . . . . . . . . . . . July 2012Open houses and informational meetings occur . . Aug. 2012Submit application to FERC . . . . . . . . . . . . . . . . Mar. 2013Initiate construction of project facilities . . . . . . . . Aug. 2016Place project in service . . . . . . . . . . . . . . . . . . . Nov. 2018
Preliminary Project ScopeThe project consists of 140 miles of 36-inch diameter pipe tobe constructed in ten different segments primarily withinNorthwest’s existing right of way along the I-5 corridorbetween Sumas and Woodland, Wash. These segments vary inlength from five miles to over 45 miles. Below is the mileagebreakout for each county:
The project also includes upgrades to Northwest’s existingSumas, Mt. Vernon, Snohomish, Sumner and Chehaliscompressor stations.
County Miles PercentageCowlitz 34.89 25%Lewis 26.01 19%Thurston 8.23 6%Pierce 13.62 10%King 18.21 13%Snohomish 14.87 11%Skagit 13.24 9%Whatcom 11.39 8%Total 136 100%
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!O
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6.0 Mile Section
8.3 Mile Section
4.9 Mile Section
5.5 Mile Section
14.9 Mile Section
11.1 Mile Section
7.1 Mile Section
13.6 Mile Section
24.0 Mile Section
45.1 Mile Section
!.
Warrenton, OR
!.Woodland, WA
WASHINGTON
OREGON
KING
LEWIS
SKAGIT
PIERCE
WHATCOM
SNOHOMISH
COWLITZ
THURSTON
Sumas C/S
Sumner C/S
Chehalis C/S
Snohomish C/S
Mt. Vernon C/S
Sumas C/S
Sumner C/S
Chehalis C/S
Snohomish C/S
Legend36" Washington Expansion
Existing 30" Northwest Pipeline (Mainline)
Existing 36" Northwest Pipeline (Loopline)
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A Company Committed to SafetyIf the proposed project is approved, the WashingtonExpansion would become part of a vast pipelinetransmission system sometimes referred to as the“interstate highway” for natural gas. It consists of morethan 300,000 miles of high-strength steel pipe movinglarge amounts of natural gas thousands of miles fromproducing regions to market. According to statistics fromthe National Transportation Safety Board, pipelines arethe most cost-efficient and safest mode of energytransportation today – surpassing highway, railroad,airborne or waterborne transport.
High StandardsInterstate pipelines are regulated by the U.S.Department of Transportation’s Office of Pipeline Safety,which imposes a broad range of design, construction,maintenance, and operations standards. These standardsfor designing and constructing pipelines include:
• At steel rolling mills, where pipe is fabricated,pipeline representatives thoroughly analyze the pipeto ensure that quality meets or exceeds both federaland industry-wide standards.
• The pipeline and related facilities are designed forsite-specific conditions to ensure a safe and reliableoperational life.
• During construction, pipeline representatives carefullyinspect the fabrication and construction of thepipeline. Welds linking the joints of the pipeline arechecked to test their integrity.
• Once the pipeline is in the ground and before it isplaced into service, it is pressure-tested with water orinert gas in excess of its operating pressure to verifythat it can withstand the pressure the pipe wasdesigned for.
• In accordance with federal law, aboveground pipelinemarkers are used to alert the public of the presence ofone or more pipelines within an easement. Thesemarkers, which contain the name of the pipelineoperator and emergency contact information, are usuallylocated near road, rail, fence, water crossings, curbs,and at line of sight along the pipeline right-of-way.
• Protective coatings are applied to the exterior of thepipe to help prevent corrosion.
• Once the pipeline is placed in the ground, theoperator installs a cathodic protection system, which,along with the pipe’s protective coating, is designedto prevent corrosion.
Northwest implements procedures and standards tocomply with all of the requirements under the DOTOffice of Pipeline Safety regulations in regard topipeline design, material specifications, construction,maintenance and testing. These standards include:
• To help protect against third-party damage, regularinspections by motor vehicles and low-flying patrolaircraft keep a watchful eye on the pipeline routesand adjacent areas.
• Northwest participates in underground utilitycoordinating councils and local one-call programs.This pipeline is part of the nationwide 811 “CallBefore You Dig” program. One-call centers provide afree service to anyone who calls 811 to ask for alocation of underground facilities prior to performingany construction, deep plowing, blasting, or otherexcavation activity. When activity is performed on oraround a Northwest pipeline, personnel mark wherethe pipeline is located and will be onsite when theactivity is performed to provide additional safety.
• The project pipeline will be equipped with remotecorrosion control rectifier monitoring and control 24hours a day.
• Pipeline maintenance crews perform facilityinspections, check for construction activity in thevicinity of the pipeline and maintain the pipelinesA photo of a “smart pig.”
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and their rights of way. Populated areas are inspectedand patrolled more frequently.
• Pipelines undergo periodic maintenance inspections,including leak surveys and valve and safety deviceinspections. An internal computerized inspectiondevice known as a “smart pig” is also used toperiodically examine the pipe’s condition.
• Northwest employs a comprehensive pipeline IntegrityManagement Program (IMP). The integritymanagement process includes risk assessment, riskcontrol, pipeline integrity inspection and repair, andperformance monitoring. Implementation of the IMPprovides the basis for addressing risks that mightaffect the operation of Northwest pipeline systems.The IMP provides an effective means to identify andmitigate risk to the public and environment.
• Local pipeline representatives meet with localemergency response officials, excavation contractors,landowners and local community leaders to educatethem about pipeline operation and emergencyresponse procedures.
• Safety information regarding our operations isdistributed annually to landowners, residents andbusinesses located near our facilities.
• Northwest’s pipeline system, including the projectfacilities, is continuously monitored 24 hours a day,365 days a year through our Gas Control center inSalt Lake City, Utah.
Connecting Supply & DemandHistorically low natural gas prices and the public’s desirefor cleaner energy have fueled the growing popularity ofnatural gas. Clean-burning natural gas currently producesone-quarter of all electric generation and heats about halfof all U.S. homes – and those numbers continue to climb.
Recent discoveries of abundant natural gas suppliesthroughout regions of the U.S. have dramatically shiftedthe natural gas marketplace, presenting both opportunitiesand challenges.
The availability of abundant domestic natural gas providesan opportunity to connect supplies to internationalmarkets, especially in the Pacific Rim. The WashingtonExpansion project would provide U.S. and Canadianproducers with access to these international markets.
Construction and operation of the project will create jobsand produce revenues that benefit the state of Washington.In turn, this benefits the overall U.S. economy.
Pipeline Would Deliver Significant BenefitsThe Washington Expansion project has the potential todeliver a number of benefits to the region.
Reliability — The installation of 140 miles of 36-inchdiameter pipeline looped in non-contiguous segmentsbetween Sumas and Woodland that would traverse throughWhatcom, Skagit, Snohomish, King, Pierce, Thurston,Lewis and Cowlitz counties would provide enhancedreliability to the region.
Economic — State and local communities alongNorthwest’s right of way would benefit economically fromthe proposed pipeline construction. Restaurants,hotels/motels, RV parks and retailers will experienceincreased activity from construction crews. Communitieswould benefit economically through state and local sales.They would also benefit from taxes paid for the materialsand equipment purchased to be installed at job sites.
Most notably, local communities would benefit fromproperty taxes that Northwest would pay during theongoing operation of the project. These taxes, known as advalorem taxes, are conservatively estimated to be in excessof $10 million per year.
Projected Annual Property Tax Benefit (Preliminary):Cowlitz County.............................................$1.8 millionLewis County ...............................................$1.7 millionThurston County ............................................$.6 millionPierce County ..............................................$1.3 millionKing County ................................................$1.3 millionSnohomish County .......................................$1.4 millionSkagit County ..............................................$1.1 millionWhatcom County..........................................$1.4 million
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Closer Look:The Federal Regulatory ProcessFERC is responsible for determining whether proposedinterstate pipeline projects are in the public interest. Theinformation below explains FERC’s review process for theproject and how you can get involved in the process.
FERC Pre-Filing ProcessBefore a pipeline company obtains authorization toconstruct an interstate transmission pipeline, thecompany must first file a detailed project plan with theFERC. This plan is formally called an application for aCertificate of Public Convenience and Necessity(Certificate Application).
The Certificate Application is a comprehensive documentthat describes the project, its purpose and need andpotential environmental impacts.
When a pipeline company like Northwest is ready to beginpreparing its Certificate Application, it initiates what isknown as the FERC pre-filing process. The pre-filingprocess is designed to encourage involvement by citizens,government entities and other interested parties duringthe design stage of a proposed project.
Once the pre-filing process begins, all documents andcorrespondence submitted to or issued by the FERCregarding the project can be accessed by referencingthe pre-filing Docket Number on FERC’s website: http://elibrary.ferc.gov/. A docket number is assigned tothe project during pre-filing and a separate docketnumber is assigned when the certificate application isfiled. For this project, information is aggregated by theFERC under docket number PF12-20. The subsequentcertificate proceeding docket number will be assignedwhen Northwest makes its Certificate Application forthe project.
FERC FilingNorthwest anticipates filing its Certificate Application forthe pipeline project in the first quarter of 2013. Amongother things, the Certificate Application contains adescription of the new facilities, purpose and need for theproject, detailed maps, schedules, and a comprehensiveenvironmental analysis. This information details thevarious studies and analyses that have been conducted todetermine what effect construction and operation couldpotentially have on the environment and community.
The environmental reports include an analysis of routealternatives, as well as an analysis of potential impactsto things such as water resources, vegetation andwildlife, cultural resources, socioeconomics, soils,geology and land use.
When the Certificate Application is filed and a CertificateProceeding (CP) docket number is assigned, a copy of theapplication will be made available for viewing at localpublic libraries, as well as via FERC’s website byreferencing the project’s docket number.
Environmental EvaluationFERC will prepare an Environmental Impact Statementusing information included in the Certificate Application,supplemental information that may be provided by theproject upon request, information assembled by FERCstaff, as well as information provided by federal and stateagencies and the public. This environmental analysis willdescribe the project and alternatives, as well as identifyexisting environmental conditions and potential impacts(including cumulative impacts) from the project. Theenvironmental document will also indicate whatmitigation measures, construction procedures, androuting will be included in the project to avoid orminimize impacts.
The environmental document will be mailed to federal,state, and local government agencies; elected officials;environmental and public interest groups; NativeAmerican tribes; affected landowners; and other interestedparties and newspapers. FERC will establish a publiccomment period in accordance with regulations pursuant
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to the National Environmental Policy Act to provide ampletime for the public to review the analysis. Once thecomment period ends, the FERC will address anycomments in the final environmental document orEnvironmental Impact Statement.
If the FERC determines the project is environmentallyacceptable – and is satisfied the project is in the publicinterest – it will issue an Order granting a Certificate ofPublic Convenience and Necessity. FERC issues thisdocument to signify that approval has been granted tobuild and operate the project.
Comments received on the environmental evaluation aretypically addressed by the FERC in the final environmentaldocument or within the Order. The certificate will detailthe conditions of the approval, including the final routethe FERC has authorized and construction and mitigationmeasures the project must follow.
Comments to the FERCWhen providing comments to the FERC, you shouldreference Docket Number PF12-20 or the CP docketnumber assigned when the certificate application is filed.
Comments may be filed via the Internet on the FERC’swebsite – www.ferc.gov. To do so, click on the QuickComment link. The FERC website also contains additionalinformation about getting involved in the regulatoryprocess under the Citizens tab.
You may send written comments to the FERC at:
Kimberly D. Bose, SecretaryFederal Energy Regulatory Commission888 First St., N.E., Room 1AWashington, DC 20426
About Northwest PipelineNorthwest Pipeline GP (Northwest), one of three interstatenatural gas pipelines operated by Williams, is approximately4,000 miles of natural gas pipeline extending from the SanJuan Basin in northwestern New Mexico and southwesternColorado through the states of Colorado, Utah, Wyoming,Idaho, Oregon and Washington to a point on the Canadianborder near Sumas, Washington.
About WilliamsWilliams is one of the largest providers of energyinfrastructure in North America. Our businesses areinterstate natural gas pipelines; midstream gathering andprocessing; natural gas and natural gas liquidstransportation and olefins production. Williams’headquarters are located in Tulsa, Okla. Other major officesare in Salt Lake City, Houston, the Four Corners Area andour growing presence in Pennsylvania.
Contact UsIf you have any questions, feel free to contact us anytime.
Toll-free hotline: 888-892-8905E-mail: [email protected] Website: www.washingtonexpansion.com
You may also call or write one of our land offices, located at:
Puyallup Office10210 123rd Street Court East, Suite DPuyallup, WA 98374253-864-4967Rex Johnson, land [email protected]
Mount Vernon Office 2210 Riverside Dr. Suite 220Mt. Vernon, WA 98273360-755-3137Bob Imhof, land [email protected]
Longview Office 1555 3rd Avenue, Suite ELongview, WA 98632360-577-9000Peggie Labrum, land [email protected]
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Washington Expansion Project Open Houses
295 Chipeta Way
Salt Lake City, UT 84108
toll free 888-892-8905 web www.washingtonexpansion.com Email [email protected]
Public Open HousesAll of the open houses will take place from 6-8 p.m., with a project presentation at approximately 6:30 p.m. and a panelquestion-and-answer session thereafter.
We will continue to meet and listen We will continue to make ourselves available to meet with landowners,government and regulatory officials, and other stakeholders about the proposed project. We welcome your suggestions andfeedback. Understanding and addressing the priorities of all our stakeholders is vital in making this a successful project.
Monday, August 13 Whatcom and Skagit County
Three Rivers Inn 210 Ball Street
Sedro Woolley, Wash. 98284
Tuesday, August 14 Snohomish County
Golf Club at Echo Falls 20414 121st Avenue SESnohomish, Wash. 98296
Wednesday, August 15King and Pierce County
Green River Community College 12401 SE 320th StreetAuburn, Wash. 98092
Thursday, August 16Cowlitz CountyRed Lion Hotel510 Kelso Drive
Kelso, Wash. 98626
Friday, August 17Thurston and Lewis CountyVeterans Memorial Museum
100 SW Veterans WayChehalis, Wash. 98532
