BXEForum

h i liWhenapipelinecomestoyourtownRecommendationsfromagrassroots

perspective

ThursdayMay28th

Description:OpencommunicationtolearnfromeachotherFirstisanoverviewofPipelineinfrastructure,FERCanditsprocess,andPHMSAsafety. Then a short presentation on recommendations. Lastly will be an opensafety. Thenashortpresentationonrecommendations.Lastlywillbeanopenforumforalltoparticipate.

Reason Unprecedentedindustrygrowth Regulatoryprocessesareverycomplicated Theissuesareverycomplicated

Agenda: Infrastructure 20minutes

O i Overview CompressorStations Storage Other Other

FERCoverview 20minutes PHSMAoverview 5minutes Recommendations 15 minutesRecommendations 15minutes Opendiscussion 60minutes

http://www.naturalgaswatch.org/wp-content/uploads/2012/12/WV-natgas-explosion.jpg

UnprecedentedGrowthDevelopmentofNorthAmericanunconventionalnaturalgasandcrudeoil

l l l l f h lsupplies,particularlysuppliesfromshaleformations,hascontinuedatanunprecedentedpace.Withtheeverchanging supply picture midstreamchangingsupplypicture,midstreaminfrastructuredevelopmentiscrucialforefficientdeliveryofgrowingsuppliestomarkets Sufficient infrastructure goesmarkets.Sufficientinfrastructuregoeshandinhandwithwellfunctioningmarkets.Insufficientinfrastructurecanconstrainmarketgrowthandstrandgsupplies,potentiallyleadingtoincreasedpricevolatilityandreducedeconomicactivity.

http://www.ingaa.org/Foundation/FoundationReports/2035Report.aspx

Interstate pipeline companies have applied for and received FERC approval to construct over 16,000 miles of interstate pipelines as an

estimated cost of $46 billion. From Jan 2000 to Feb 2011, about 14,600 miles of expansion pipeline were constructed and placed in service.

http://www.ingaa.org/file.aspx?id=14911

http://www.ingaa.org/file.aspx?id=14911

FERC CleanPowerPlan

FederalEnergyRegulatoryCommission(Commission)willholdaseriesoftechnicalconferencestodiscussimplicationsofcomplianceapproachestotheCleanPowerPlanproposedrule,issuedbytheEnvironmentalProtectionAgency(EPA)onJune2,2014. TheCommissionwillholdaNationalOverviewtechnicalconferenceonFebruary19,2015

1:45pm 3:30pmIdentifyingandaddressinginfrastructureneedsCompliancewiththeCleanPowerPlanmaydrivetheneedforinfrastructureregulatedbytheCommission.f g y

Panelistswillbeaskedtodiscussmechanismstoidentifypotentialinfrastructure needs and how relevant planning entities, industry, andinfrastructureneedsandhowrelevantplanningentities,industry,andstatescoordinatereliabilityandinfrastructureplanningandsiting processeswithstateand/orregionalenvironmentalcomplianceeffortstoensuretheadequate and timely development of new infrastructureadequateandtimelydevelopmentofnewinfrastructurehttp://www.ferc.gov/CalendarFiles/20150106170115AD154000TC1.pdf

InfrastructureOverview

http://www.pipeline101.com/wherearepipelineslocated/naturalgaspipelinesmaphttp://www.pipeline101.com/where are pipelines located/natural gas pipelines maphttp://www.eia.gov/state/maps.cfm

Distribution&ExportExtraction Processing Transport Compression

Infrastructure SchematicOverview

1. Deepundergrounddepositsofnaturalgasarebroughttothesurfacesurface

2. bywellheadpumps.Afterthegasisprocessedandpurified,

3. it travels along interstate pipelines3. ittravelsalonginterstatepipelines4. Compressorstationsarelocated

every50to60milestomaintaingaspressure.

5. Naturalgasoftenisstoredinlargeundergroundreservoirstohelpmeetspikesindemand.

6. Gaseventuallyreachesacitygatestationwhereitismeteredanddeliveredtocustomersthrougha

7 di t ib ti t k f l l7. distributionnetworkoflocalgasmains,smalldiameterservicelinesand,ultimately,customermeters

http://pse.com/aboutpse/EnergySupply/Pages/Natural-Gas-Supply.aspx

Infrastructure TheBasics ProductionLines transportnaturalgasandproducedfl id t

State Levelfluidsatornearthewellhead

GatheringLines transport naturaltransportnaturalgasfromproductionfacilitytoprocessingplant

Federal Level

TransmissionLines transportnaturalgasfromprocessing plant toprocessingplanttoadistributionline

DistributionLines distributenaturalgasitendusers

A i GAmericanGasAssociation

PromotionalmaterialtomakeNaturalGasagreenenergy

Source:AmericanGasAssociation

g gyversusthereality

CompressorStations

https://sincedutch.files.wordpress.com/2013/03/whatisacompressorstation-792304.png

DTIsPL1PipelineCompressorStations

DTICompressorStation Chambersburg,PA

DTICompressorStation Myersville,MD

DTICompressorStation Leesburg,VA

Naturalgasishighlypressurizedasittravelsthroughaninterstatepipeline.Toensureflowthroughthepipelinerequiresperiodicallycompressionalongthepipeusually placed at 40 to 100 mile intervals along the pipelineusuallyplacedat40to100mileintervalsalongthepipeline. Powered:NaturalGas,Diesel,orElectric CommonTypes:ReciprocatingandTurbine

http://www.networkintl.com/lotdetail.aspx?slxlot=QFPIRA00OQCE

U.S.NaturalGasPipelineCompressorStationsIllustration,2008

Over1,400stationsintheUS

http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/index.htmlhttp://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/compressorMap.html

SomeCompoundsReleasedbyConstruction:Risk CompressorStationEmissions

CompressorStationsinclude: Formaldehyde Benzene

ConstructionDust TruckTraffic PipelineTesting Benzene

Toluene Ethylbenzene

p g

PermanentOperation: Compressor Stations Xylene

HydrogenDisulfide CarbonMonoxide(CO)

CompressorStations Dehydrators CondensationTanks ( )

CarbonDioxide(CO2) SulfurDioxide(SO2) Methane (CH4)

Venting FugitiveEmissions

Methane(CH4) othercompoundsorelementsthat

aretoxic,carcinogenicorneurotoxin

OtherAirEmissions: Accidents/Violations

http://www.environmentalhealthproject.org/wpcontent/uploads/2012/03/Compressorstationemissionsandhealthimpacts02.24.2015.pdf

Risks AccidentsandExplosionsPeryearavg. 95incidents,2fatalities,10injuriesand$80mm

Y N b F li i I j iPropertyDamageAs

Year Number Fatalities Injuriesp y gReported

1994 74 0 22 43,878,8061995 54 2 7 9,719,2501996 76 1 5 13,078,474

May30,2013 inBranchburg,NJ:Thirteenworkerswereinjuredatacompressorstationexplosion.

1997 68 1 5 11,658,1171998 88 1 11 41,624,3241999 48 2 8 15,656,8342000 76 15 16 16,966,2612001 75 2 5 13 731 3472001 75 2 5 13,731,3472002 73 1 4 25,369,3312003 93 1 8 48,815,1012004 103 0 2 35,759,9072005 160 0 5 298,074,982

April4,2013 inLoganCo.OK:Anexplosionatanaturalgascompressorstationforcedtheevacuationofhomeswithinonesquaremile

2006 130 3 3 41,118,2732007 111 2 7 62,029,1662008 122 0 5 256,011,4402009 105 0 11 55,911,8912010 107 10 61 411 031 0232010 107 10 61 411,031,0232011 119 0 1 100,928,1702012 103 0 7 55,031,8172013 106 0 2 49,236,631

GrandTotal 1,891 41 195 1,605,631,145

April11,2013 inTylerCo.WV:TwoworkersdiedinanexplosionatacompressionstationinWestVirginia

https://hip.phmsa.dot.gov/analyticsSOAP/saw.dll?Portalpages&NQUser=PDM_WEB_USER&NQPassword=Public_Web_User1&PortalPath=%2Fshared%2FPDM%20Public%20Website%2F_portal%2FSC%20Incident%20Trend&Page=Significant%20Incidents%20ConsequencesSignificant Incident Consequences Summary StatisticsData Source: US DOT Pipeline and Hazardous Materials Safety Administration Portal Data as of: 1/19/2015 10:21:03 PM

, , , ,

Risks FarmLand

Longtermyieldreductionsforg yfarmersduetotopsoildisturbance,increasedheatfrom the pipeline and waterfromthepipeline,andwaterevaporation

Risks RiversandStreams

Company will use aCompanywilluseacombinationofOpencutsandhorizontaldirectionald illi d ddrillingacrossandunderstreamsandtributaries

Erosionandsedimentationaffectingfishandstreamlife

Risks Forests

PermanentrightofwaychangesanimalpathwaysandmovementforhuntersPipelines create forestPipelinescreateforestfragmentation

http://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/pennsylvania/ngpipelines.pdf

Risks EmissionsWhatyoucantseecanhurtyou

Minisink,NYCompressor, pwithFLIRGasFindIR

(FrankFinan)

Risks EmissionsWhatyoucanseeandhearcanhurtyou

Blowdown isareleaseofgasdirectlyintotheatmosphereduetoexcessivepressureinthepipeline scheduledoraccidentalO i l bl d ill l i l 15 Onaverage,asingleblowdown willreleaseapproximately15thousandstandardcubicfeet(Mcf)ofgastotheatmospherehttp://www.epa.gov/gasstar/documents/ll_compressorsoffline.pdf

h l l b d b l Thenoiselevelnearacompressorstationcanbeupto100decibelswhereastheusualnighttimenoiselevelinmanyruralareasisaround35decibelsh // d / / l/ /d il/ /h /? id d330242http://www.nrcs.usda.gov/wps/portal/nrcs/detail/pa/home/?cid=nrcseprd330242

https://www.youtube.com/watch?v=WtSH5V1YQvQhttps://www.youtube.com/watch?v=u3alNVVOSyc&list=PLBF06C75E515BAD58

Risks EmissionMonitoringDTI poster meeting in Myersville on Sept 17 reflects data from all of Frederick

Pollutant Proposed Station

Myersville 1 Sq mile

Current emissions in

Frederick Co 660 sq miles

Impact to Myersville in Comparison to Fred. Co

County captured from the MDE data monitor near the airport (15 miles away) rather than reflecting the existing ambient air in the Myersville area.

increased emissions *

qPop density 1,600 Frederick Co

qPopulation 239,000 ** Pop density 353

pemission concentration (Myersville has 400% greater population density)

Carbon Monoxide (CO) 5.3 5.3 per sq mile 43,908 6.65 per sq mile 80% increase in Myersville

Nitrogen Oxides (NOX) 23 5 23 5 per sq mile 10 345 15 67 per sq mile 150% increase in MyersvilleNitrogen Oxides (NOX) 23.5 23.5 per sq mile 10,345 15.67 per sq mile 150% increase in Myersville

Volatile Organic Compounds (VOCs)

1.14 1.14 per sq mile 12,321 18.67 per sq mile 7% increase in Myersville

Particulate Matter (

Risks EmissionMonitoringFlawedMethaneMonitorUnderestimatesLeaks

Researchersfindtheremaybehttp://www.insideclimatenews.org/news/05052015/flawed-methane-monitor-underestimates-leaks-oil-and-gas-sites

atOilandGasSites

ydrasticallymoremethaneintheairthanisbeingreportedtoindustry and governmentindustryandgovernment

Theresearchpaperraisesseriousb h l d fquestionsaboutthevalidityof

existingmethanedata"Itcouldbeabigdeal,"especiallyifitturnsoutg p y ftheEPAisunderestimatingmethaneleaks,saidstudycoauthor Amy TownsendSmall aauthorAmyTownsendSmall,ageologyprofessorattheUniversityofCincinnati.

HealthRisksfromExposuretoParticulate Matter

HealthRisksfromExposuretoVolatile Organic CompoundsParticulateMatter

Acuteasthmaattacks Wheezing

VolatileOrganicCompounds

Eye,nose,andthroatirritation Dizziness and Headaches Wheezing

Coughing Respiratoryirritation Increased emergency room visits

DizzinessandHeadaches Nauseaand/orvomiting Asthmaexacerbation Allergic skin reactionsIncreasedemergencyroomvisits

hospitalizationsandmortalityfromrespiratorydisease

Increasedriskofsuddeninfantdeath

Allergicskinreactions Memoryimpairment Visualdisorders Damagetotheliver,kidneys,andcentral

syndrome Fetalinjury Pretermlabor

l h f h f

g , y ,nervoussystem

Cancer Childrenandtheelderlyfaceincreased

Altertheimmunesystemofthefetus Triggerheartattacks Cardiacarrhythmia Premat re death

risk.Exposureduringpregnancymaycauseneurobehavioraldisordersincludingattentiondeficit,reducedIQ,learningandmemory deficiencies Prematuredeath

Children'sEnvironmentalHealthCenter,IcahnSchoolofMedicineatMt.Sinai

memorydeficiencies

http://www.epa.gov/air/particlepollution/health.html

HealthRisksfromNoiseandVibrations

AccordingtotheWorldHealthOrganization,noisecancausepermanentmedicalconditions,suchashypertensionandheartdisease,hearingimpairment,communication problems, sleep disturbance, cognitive effects such as memorycommunicationproblems,sleepdisturbance,cognitiveeffectssuchasmemoryproblems,reducedperformance,behavioralsymptoms,andmore.Lowfrequencynoise(LFN),alsocreatedbycompressorstations,canalsocauseVibroacousticdisease,leadingtocardiovascularsymptomsanddecreasedcognitiveskills.Inotherg y p gwords,itisnotjustanuisance.Itisserious.TheseissuesaresoimportantthatthereisactuallyascientificJournalofLowFrequencyNoise,VibrationandActiveControl,andaJournalofSoundandVibration.Thesearenotgroundlessworries.Individualsreporthealthsymptomstheyhavelinkedtonaturalgascompressorstationnoise,includingrupturedeardrums.Naturalgascompressorstationsarelocatedalloverthecountry,evenwheretherearenowells,becausetheyhelpmovenaturalgasl th i li Th ft 24/7 E h t t l lit h italongthepipeline.Theyoftenrun24/7.Eachstateorlocalityhasitsownregulations.Somearenotstrongenoughtoprotecttheircitizens

http://switchboard.nrdc.org/blogs/amall/live_on_tape_the_dangerous_noi.html

AccordingtoINGAA,thebestavailabletechnologyisanelectricgascompressor

PartnerReportedOpportunities(PROs)forReducingMethaneEmissionsFact

SheetNo.103Electricmotorsaremorereliableandmoreefficientasstandalonepiecesofequipmentthaneitherreciprocatingenginesorgas

turbines. They are able to ramp up quicker than

Installinganelectricmotorinplaceofagasdrivenenginewillincreaseoperational

efficiency reduce maintenance costs and yieldturbines.Theyareabletorampupquickerthanreciprocatingenginesorgasturbines.TheyalsohaveanadvantagewhereairqualityregulationsareanissuebecausetheydonotemitNOx and

CO2 t th i t f

efficiency,reducemaintenancecosts,andyieldsignificantmethanesavings.

CO2atthepointofuse.

http://www.epa.gov/gasstar/documents/reducethefrequencyofenginestarts.pdfhttp://www.ingaa.org/11885/Reports/10927.aspx

D l t d i th t f f d d t i t f

StorageDepletedreservoirsarethemostcommonformofundergroundstorageconsistsofdepletedgasreservoirs alreadytappedofalltheirrecoverablenaturalgas.Thisleavesanundergroundformation,geologicallycapableofholdingnaturalgas

Aquifersareundergroundporous,permeablerockformationsthatarereconditioned.Theyaremoreexpensivetodevelop

Undergroundsaltformationsofferanotheroptionfornaturalgasstorage.

http://www.eia.gov/cfapps/ngqs/images/storage_2010.png

OtherInfrastructureMeteringStations Valves GateStation

Meteringstations are Valves worklikegateways Atthelocalgasutility,normallyplacedperiodicallyalonginterstatenaturalgaspipelines.Thesestationsallow pipeline companies

usuallyopenandallownaturalgastoflowfreely,ortheycanbeusedtostopgasflow along a certain section

naturalgaspassesthrougha"gatestation" thatservesthreepurposes. First,theyreducethe pressure in the line fromallowpipelinecompanies

tomonitorandmeasuretheflowofgasalongthepipelinetotracknatural

flowalongacertainsectionofpipe.Largevalvescanbeplacedevery5to20milesalongthepipelineandare

thepressureinthelinefromtransmissionlevelstodistributionlevels.Thenanodorantisadded.Finally,the

gasasitflowsalongthepipeline.

subjectsafetyregulation.

http://www.superstock.com/stockphotosimages/199018060

gatestationmeasurestheflowratedeliveredtotheutility

LNGExportFacilities

http://www.ferc.gov/industries/gas/indusact/lng.asp

Proposed

18projectsintheUS3projectsinCanada

htt // f /i d t i / /i d t/lhttp://www.ferc.gov/industries/gas/indus-act/lng.asp

Potential

12projectsintheUS16projectsinCanada

HydraulicFracturingUnconventionalsupplies(mostlyshaleplays)willaccountforapproximatelytwothirdsofthetotalgassupplymixin2035.Shalegasproductionisexpectedtoexceedhalfofthetotalproductionoverthenextfewyears.TheMarcellusshaleplayis

j d di l h h i l l h d bli iprojectedtodisplaythegreatestgrowthinnaturalgassupply,morethandoublingitscurrentproductionlevelofaround13Bcfdby2035.

http://www.ingaa.org/Foundation/FoundationReports/2035Report.aspx

Source: Energy Information Administration, Lower 48 States Shale Plays, May 2011. Available at: http://www.eia.gov/oil_gas/rpd/shale_gas.pdf

HAZARDSHAZARDS

1. Pitscollectfracking waste2. Wellsheathfailure3. Chemicalsinair,soilandwater

aroundfracking pads

Emissions1. Drillingmudtanks2. Drillrigandwell3. Generators3. Generators4. Trucks5. Frac pumps6. Openpits7. Well head7. Wellhead8. Tanks

Emissions1. Dehydrator2. Heater3. Separator3. Separator4. CompressorUnitandStations5. GatheringLines6. TransmissionLines

Towardanunderstandingoftheenvironmentalandpublichealthimpactsofshalegasdevelopment:ananalysisof

the peerreviewed scientific literature 20092014thepeerreviewedscientificliterature,20092014http://psehealthyenergy.org/data/Database_Analysis_FINAL1.pdf

FEDERALENERGYREGULATORYCOMMISSION

Power tends to corrupt and absolute power corrupts absolutely Lord ActonPowertendstocorrupt,andabsolutepowercorruptsabsolutelyLordActonKnowledgeisPower...FrancisBacon

KnowyourEnemyGreenDay

ItisimportanttounderstandtheFERCprocessandhowitworks

FERC Overview

IndependentregulatoryagencywithintheUnitedStatesDepartmentofEnergy DecisionsarereviewablebytheFederalCourtsbutnotthePresidentorCongress Industryfunded commissionIndustry fundedcommission FERCworkstoPromotethedevelopmentofsafe,reliableandefficientenergyinfrastructurethatservesthepublicinterest

The Pipeline Safety Trust has been unable to find a single instance of FERC ThePipelineSafetyTrusthasbeenunabletofindasingleinstanceofFERCdenyingapprovalforaninterstategastransmissionline

http://pstrust.org/docs/PST_Briefing_Paper_09_1.pdf

FERCCommissionerCherylA.LaFleurs March19,2013testimonybeforetheHouseSubcommitteeonEnergyandPowerofthe

CommitteeonEnergyandCommerce

Thissystemhasworkedwelloverall overthelastdecade,FERChasissuedpermitsforconstructionof

l 0 000 il f i li nearly10,000milesofnewpipeline.

FERC ABriefHistoryhttp://www.ferc.gov/students/ferc/history.asp

Congressestablishedthe Federal Power

NaturalGasActgavejurisdictionoverthenaturaltheFederalPower

Commission(FPC)1920

jgaspipelineindustry

1938

1935FederalPowerAct

1969TheNationalEnvironmental

regulatedthesaleandtransportationof

electricityandnaturalgas

PolicyAct(NEPA)ensuresfederalagenciesconsiderenvironmentalimpacts

FERC ABriefHistoryhttp://www.ferc.gov/students/ferc/history.asp

NaturalGasWellheadDecontrolAct(NGWDA)repealedallremaining

FPCreorganizedasFERC1977

regulatedpricesonwellheadsales1989

1978NationalEnergyAct,which

2005EnergyPolicyActof

includesthePublicUtilityRegulatoryPoliciesAct(PURPA),

passed

2005(EPAct)

FERC Responsibilities

Regulatinginterstatetransmissionofnaturalgas,oil,andelectricity Regulatingwholesalesaleofelectricity(individualstatesregulate

retailsales) Licensingandinspectinghydropowerprojects

A i t ti f i t t t t l i li t Approvingconstructionofinterstatenaturalgaspipelines,storagefacilities,andLiquefiedNaturalGas(LNG)terminals

MonitoringandInvestigatingEnergyMarketsMonitoring and Investigating nergy Markets Reviewthesitingapplicationforelectrictransmissionprojects Ensuringreliabilityoftheelectricgrid Grantingpermissiontoabandonfacilities

http://www.ferc.gov/forcitizens/aboutferc.asp

FERC TypesofAuthorizationsTypesofAuthorization CertificateofNecessity underNGASection7.fornewpipelinesandcompressionstations,givescompaniesthepowerofeminentdomain.

Blanket Certificate under NGA section 7 gives blanket authority to make BlanketCertificate underNGAsection7givesblanketauthoritytomakeadditionsorupgradestoexistingpipeline.

LNGcertificates underNGASection3nopowerofeminentdomain.Ifacompany needs a pipeline and LNG terminal it will do two applications in ordercompanyneedsapipelineandLNGterminalitwilldotwoapplications,inordertohaveeminentdomainpowerforpipeline.

StandardsthatFERCappliesinissuingacertificatepp g EnvironmentalissuesaresubjecttoNationalEnvironmentPolicyAct.FERCmustissueafindingofnosignificantenvironmentalimpact(FONSI),eitheranenvironmentimpactstatementorenvironmentalassessmentdependingonprojectsize.

Meetspublicnecessityandconvenience:1. Isthereaneed?2 Will i i b f d b idi i ?2. Willexistingratepayersbeforcedtosubsidizeit?3. Adverseenvironmentalimpact?4. Howmucheminentdomain?

Nat. Gas CertificateFERC Process

EIS Pre-filing process

EA Pre-filing process

http://www.ferc.gov/forcitizens/getinvolved/howgetinv.asp

FERC ProcessTimeLines

Openseason PreFilingnotificationislimitedtothosewithinahalfmileofthesite FERC Open House FERCOpenHouse ApplicationfiledwithFERCcommentperiodisabout60days FERCScopingZ i li ti fil d ith T C t ZoningapplicationfiledwithTownorCounty

DraftEAorEISpublished FinalEApublished30daycommentperiod FERCissuescertificate/order FERCrequestforrehearingmustbedonewithin30daysby5:00pmeastern. StateandCountypermitapplicationsAir/Water/Soil StateandCountypermittingapproval Constructionbegins FERCrulingonrequestforrehearing Filecourtappeal60daystofile

FERC ResourceReportingFERC wants you to comment during the Scoping and EA processFERCwantsyoutocommentduringtheScopingandEAprocess

onverycomplexissuesover556pages1. GeneralProjectDescription2. WaterUseandQuality3. Fisheries,Vegetation,andWildlife4 Cultural Resources4. CulturalResources5. Socioeconomic6. Geologic7. Soils8. LandUse,RecreationandAesthetics9 Ai d N i Q lit9. AirandNoiseQuality10. Alternatives11. ReliabilityandSafetyy y12. PCBContamination13. Confidential

1. Jul.2007 Openseason2. Jan.2008 DTIannouncedAlleghenyStorageProjecttobuildastationinMiddletown,MD3. Apr.2008 DTIdecidedtobuildonlanditalreadyownedinJefferson,MD4. Nov.2008 Theprojectwassuspendedinduetopublicoutcry5 Sep 2011 DTI announced plans to build a gas compressor station within the town limits of Myersville MD5. Sep.2011 DTIannouncedplanstobuildagascompressorstationwithinthetownlimitsofMyersville,MD6. Nov. 2011 FERC scoping meeting held in Myersville7. Feb. 2012 DTI submitted its application to FERC8. Apr. 2012 DTI submitted its application to the Town9. Jun. 2012 FERC publishes the EA MCRC Inc requests extension to Aug 1 that is granted by FERC10. Aug. 2012 Town Council and Mayor denied DTIs Amendment Application for local zoning/permitting11. Oct. 2012 MCRC Inc. submitted to FERC a motion to dismiss12. Dec. 2012 FERC approved DTIs application issued Certificate13. Jan. 2013 MCRC Inc submitted a request for rehearing to FERC14. Jan. 2013 DTI filed suit against the Town with the US District Court14. Jan. 2013 DTI filed suit against the Town with the US District Court15. Feb. 2013 DTI filed suit against MDE with the US Circuit Court of Appeals claiming NGA preemption16. Mar. 2013 MCRC Inc. submitted MDE intervenor status in the US Circuit Court of Appeals17. May 2013 DTI v MDE oral arguments (MCRC Inc as an intervenor)18. May 2013 FERC denies Town and MCRC Inc request for rehearing19 J l 2013 US Ci it C t f A l d i i i f f l i tiff DTI MDEr

e

e

Y

e

a

r

s

19. Jul. 2013 US Circuit Court of Appeals decision in favor of plaintiff DTI v MDE20. Sep. 2013 MCRC Inc filed appeal with the US Circuit Court of Appeals (MCRC Inc. v FERC)21. Oct. 2013 US District Court decision in favor of plaintiff DTI v Town of Myersville22. Nov. 2013 MCRC Inc brief filed with the US Circuit Court of Appeals (MCRC Inc. v FERC)23. Jan 2014 MDE public hearing in Myersville

T

h

r

24. Mar. 2014 MCRC Inc comment to MDE to deny DTI air permit25. Leidy South: Apr. 2014 DTI open season26. Jun. 2014 MDE air permit approval to DTI27. Jun. 2014 FERC approved DTI construction 24/7 seven days a week for target operational date of Nov 1428 Jul 2014 MCRC Inc filed appeal of the MDE air permit28. Jul. 2014 MCRC Inc. filed appeal of the MDE air permit29. Oct. 2014 MCRC Inc. v FERC hearing in US Circuit Court30. Nov. 2014 DTI requests FERC notice to proceed31. Feb 2015 MCRC Inc. v MDE brief is filed32. Leidy South: Mar. 2015 DTI open house

FERC DOESNT WORK!

A P t f th N t l G I d tA Puppet for the Natural Gas IndustrySacrificing our Health and Safety for

Corporate Profits

FERC FailedProcessFERC DOESNT WORK!

FERCplacestheburdenofproofoncitizenstoprovidescientificandexpertanalysisthatanimpactthatcannotbeproperlymitigated.

FERCandtheindustryperformstheminimumamountofanalysistoachieveitsjustificationjustification

FERCprocessisverycomplicatedanddoesnotprovidedetailedinformation

FERCcaninstructtheindustrytocreatethedraftEnvironmentalAssessmenty

IndustrystrategytodelaythelocalzoningapplicationinordertogettheFERCCertificatewhichcanbeleveragedasfederalpreemptionoverlocalandstatelaws

IndustrystrategytopurposelydefinescontroversialsitingandthenmakesmodificationstoappeartheyarelisteningandcompromisingasperNEPAconsideralternatives

TheFERCscopingmeetingallowstheindustryinsighttotheoppositionandpreliminaryconcerns

FERCConference:TheRoadtoSuccessFERC DOESNT WORK!

EnvironmentalReviewandComplianceforNaturalGasFacilitiesSeminars

Miami Feb 14

FERC DOESNT WORK!

Miami Feb 14

Seattle Apr14

Savannah Aug14LongBeach Dec14

http://www.ferc.gov/industries/gas/enviro/seminars.asp

SkillstoResolveConflictsFERC DOESNT WORK!

FERC DOESNT WORK!

FEDERALENERGYREGULATORYCOMMISSIONOfficeofEnergyProjects

GUIDANCE:FERC STAFF NEPA PRE FILING PROCESSFERCSTAFFNEPAPREFILINGPROCESS

FORNATURALGASPROJECTS

Iftherequestforstaffassistanceisapproved,awrittenill b i d b d d k bacceptancewillbeissuedbyOEP,andaPFdocketnumber

willbeassigned.(Notethatstaffwillnotbeaprojectadvocate but a process advocate and will stress theadvocate,butaprocessadvocateandwillstressthe

benefitsofworkingtogether.)

http://www.fws.gov/habitatconservation/gas_prefiling_FERC_staff_NEPA_guidance_2004.pdf

FERC150pagemanualto the industry

FERC83pagehandbookto the industry

FERC DOESNT WORK!

totheindustrytotheindustry

FERC Citizensgeta17pageFERC DOESNT WORK!

http://www.ferc.gov/for-citizens/citizen-guides/citz-guide-gas.pdf

FERC DOESNT WORK!

FERCleadagencythroughtheMOU

http://www.ferc.gov/legal/mou.asp

FERC FUNDINGTheCommissionrecoversthefullcostofitsoperationsthro gh ann al charges and filing fees assessed on the

FERC DOESNT WORK!

Federal Statute 382 202 Annual charges under the Natural Gas

throughannualchargesandfilingfeesassessedontheindustriesitregulates

FederalStatute382.202 AnnualchargesundertheNaturalGasActandNaturalGasPolicyActof1978andrelatedstatutes.

Theadjustedcostsofadministrationofthenaturalgasregulatoryprogramwillbeassessedagainsteachnaturalgaspipelinecompanybased on the proportion of the total gas subject to CommissionbasedontheproportionofthetotalgassubjecttoCommissionregulationwhichwassoldandtransportedbyeachcompanyintheimmediatelyprecedingcalendaryear[Order 472 B 52 FR 36022 Sept 25 1987][Order472B,52FR36022,Sept.25,1987]

http://www.ecfr.gov/cgibin/textidx?c=ecfr&sid=19f984d2296d31a9001cb30f7c1fd589&rgn=div5&view=text&node=18:1.0.1.20.84&idno=18

FERC DOESNT WORK!

http://www.ferc.gov/industries/gas/annualcharges.asphttp://www.ferc.gov/industries/gas/annualcharges/2013/fy2013gasannualchargesassessmenttable.pdf

FERCFundingofFrackingResearchFERC DOESNT WORK!

InitialshalefracturingresearchanddemonstrationprojectswereinitiatedbythefederalMorgantownEnergyResearchCenter,andthebulkofprivatesectorR&DtookplacewithintheGasResearchInstitute(GRI).GRIwasfundedindustryR&DthroughthethroughaFERCsanctionedsurchargeplacedoninterstatepipeline

l d h h f h l d fgasvolumes.GRIservedastheresearcharmoftheU.S.naturalgasindustryforovertwodecadesanditssurchargegeneratedresearchfundingbecameappreciable,exceeding$200million/yearforanextendedperiodoftime.TotalR&D funding for GRI over the life of the surcharge was over $3 billionR&DfundingforGRIoverthelifeofthesurchargewasover$3billion.

Inaregulatedenvironmentuntil1992,thissurchargewaseasilypassedonbythepipelinecompaniestoratepayers.thesurchargewasphasedoutoverseveralyearsanddiscontinuedin2004.https://mitei.mit.edu/system/files/NaturalGas_Appendix8A.pdf

If someone is upset with fracking, they should probably talk to the states.Norman Bay, Chairman of the Federal Energy Regulatory Commission

May 14, 2015

FERC DOESNT WORK!

2009FERCauditdemonstrateshowitmeasuresitsuccess timeliness Targetmet 94%ofunprotestedpipelinecertificatescompletedwithin159days

Targetmet 100%ofprotestedpipelinecertificateswithnoproceduralissuescompletedwith304days

Targetmet 97%ofpipelinecertificatecaseswithlargepolicyimplicationscompletedwithin365d

http://www.ferc.gov/about/strat-docs/2013-audit.pdf

days

Employeesnegotiateforindustryjobsunderagency'seyeGreenwire:April7,2015

FERC DOESNT WORK!

Employees at the Federal Energy Regulatory Commission have deep ties to the

p

EmployeesattheFederalEnergyRegulatoryCommissionhavedeeptiestotheindustrytheyregulate,accordingtoagencydocumentsdetailingtheirjobnegotiationsandstockholdings.

ThedisclosuresreflecthowFERC,whichoverseestheinterstatetransmissionofelectricityandpermittingofgasinfrastructure,isregulatinganindustrythatmanyofitsstaffersarewellsuitedforandoftencourtedtoworkin.

Thedocumentsshowmorethan40instanceslastyearwhenFERCemployeesenteredintonegotiationsforjobsoutsidetheagency.Thoseinterestedinhiring

t ff i l d d V N F ld LLP D i i R I X l EagencystaffincludedVanNessFeldmanLLP,DominionResourcesInc.,XcelEnergyInc.,Crowell&Moring,GeneralElectricCo.,TransCanadaCorp.,FloridaPower&LightCo.,Steptoe&JohnsonLLP,FirstEnergyCorp.,andAmericanElectricPowerCompany IncCompanyInc..

http://www.eenews.net/stories/1060016380

PipelineSafety

ThePipelineandHazardousMaterialsSafetyAdministration (PHMSA) is a United States DepartmentAdministration(PHMSA)isaUnitedStatesDepartmentofTransportationagencycreatedin2004,responsiblefordevelopingandenforcingregulationsforthesafe,reliable,andenvironmentallysoundoperationoftheUS2.6millionmilepipelinetransportation

http://en.wikipedia.org/wiki/Pipeline_and_Hazardous_Materials_Safety_Administration

DOTismandatedtoprovidepipelinesafetyd titl 49 U S C d h t 601undertitle49,U.S.Code,chapter601.

TheDOTsPipelineandHazardousMaterialsSafetyAdministration(PHMSA) d i i h i l l h(PHMSA)administersthenationalregulatoryprogramtoensurethesafetransportationofnaturalgasandotherhazardousmaterialsbypipeline.

Manyoftheregulationsarewrittenasperformancestandardswhichsetthelevelofsafetytobeattainedandallowthepipelineoperatortousevarioustechnologiestoachievesafety.

PHMSAensuresthatpeopleandtheenvironmentareprotectedfromtheriskofpipelineincidents.

Under aMemorand m of Understanding on Nat ral GasUnderaMemorandumofUnderstandingonNaturalGasTransportationFacilities datedJanuary15,1993,betweentheDOTandtheFERC,theDOThastheexclusiveauthoritytopromulgatefederalsafetystandardsusedinthetransportationofnaturalgas.

PipelineSafetyChiefSaysHisRegulatoryProcessIs'KindofDying

PHMSA has "very few tools to work with" "Do I think IPHMSAhas veryfewtoolstoworkwith DoIthinkIcanhurtamajorinternationalcorporationwitha$2millioncivilpenalty?No,"hesaid.

135federalinspectorsoversee2.6millionmilesofl h hpipeline,whichmeansEACHINSPECTORISRESPONSIBLE

FORALMOSTENOUGHPIPETOCIRCLETHEEARTH.PHMSA says it has the help of about 300 state inspectorsPHMSAsaysithasthehelpofabout300stateinspectors,butnotallstateshaveinspectionprograms.

(http://insideclimatenews.org/news/20130911/exclusivepipelinesafetychiefsayshisregulatoryprocesskinddying)

OfficeoftheInspectorGeneralReportPHMSASSTATEPIPELINESAFETYPROGRAMLACKS

EFFECTIVEMANAGEMENTANDOVERSIGHT:May7,2014

PHMSAsguidelines,policies,andproceduresforStatepipelinesafetyprogramssuchi t t ffi t i i h d li d i ti f l k l t tasinspectorstaffing,training,scheduling,andinspectionformslackelementsto

ensureStateinspectionscoverallFederalrequirementsandpipelineoperatorsmaintainsafetystandards.

TheguidelinesalsodonotsufficientlydetailhowStatesshoulduseriskfactorsforschedulinginspectionsorspecifyappropriatetimeintervalsbetweeninspectionstoensureStatesinspectionsdetectandmitigatesafetyrisksinatimelymanner.

Similarly,PHMSAspoliciesandproceduresforconductingStateinspectionsdonotrequireitsevaluatorstoreviewtheadequacyofStatesinspectionprocedures,andtheAgency does not have procedures to inform States of updated inspection forms As aAgencydoesnothaveprocedurestoinformStatesofupdatedinspectionforms.Asaresult,Statesmaynotproperlyexecuteandcoverallinspectionrequirements.

Finally,whilePHMSAstriennialfinancialreviewsofStateprogramexpendituresarey, p g peffective,theAgencylacksformalwrittenprocedurestoguidetheconductofthesereviews.Thislackofprocedurescouldunderminethereliabilityoffuturereviews.https://www.oig.dot.gov/sites/default/files/PHMSA%20State%20Pipline%20Safety%20Program%20Audit%5E5-7-14.pdf

GAOreporttoCongressRecommendationAugust2014g

http://www.gao.gov/assets/670/665403.pdf

DOTshouldmoveforwardwithaproposedrulemakingtoaddresssafetyrisksincludingemergencyresponseplanningfromnewer

gathering pipelinesgatheringpipelines

In2011,DOTbeganaregulatoryproceedingtoaddressthesafetyrisks of gathering pipelines but it has not proposed new regulationsrisksofgatheringpipelines,butithasnotproposednewregulations.Althoughstatesmayregulategatheringpipelines,anassociationofstatepipelineregulatorsreportonstatepipelineoversightshowsth t t t t d t tl l t th i i li i lthatmoststatesdonotcurrentlyregulategatheringpipelinesinruralareas.

Rep.DeFazioRequestsAuditofPipelineandHazardousSafetyProgramsg

Feb3,2015http://defazio.house.gov/mediacenter/pressreleases/defaziorequestsauditofpipelineandhazardoussafetyprograms

Blasts agency in rail hearing for failing to address serious safetyBlastsagencyinrailhearingforfailingtoaddressserioussafetyconcerns

Ranking Member of the Committee on Transportation andRankingMemberoftheCommitteeonTransportationandInfrastructurePeterDeFazio(DOR)

I l i l i li id i i i h l 15Inmultiplepipelineaccidentinvestigationsoverthelast15years,theNTSBhasidentifiedthesamepersistentissues,mostofwhichPHMSAhasfailedtoaddressonitsownaccord.Eachandeverytime,CongresshasbeenforcedtorequirePHMSAtotakeaction,mostrecentlyinthePipelineSafety,RegulatoryCertainty,andJobCreationAct of 2011 Three years later almost none of the important safetyActof2011.Threeyearslater,almostnoneoftheimportantsafetymeasuresintheActhavebeenfinalized.

CongresswomanSpeierstatesPHMSAisaToothlessTigerg

April14,2015http://speier.house.gov/index.php?option=com_content&view=article&id=1652:congresswomanspeiercallsforimprovedpipeline

safetyphmsaisatoothlesstiger&catid=20:pressreleases&Itemid=14

CongresswomanJackieSpeier(DSanFrancisco/SanMateocounties)demandedaccountabilityfromthePipelineandHazardous Materials Safety Administration (PHMSA) in the face ofHazardousMaterialsSafetyAdministration(PHMSA)inthefaceofseriousrevelationsabouttheirlaxoversightofnaturalgaspipelinecompaniesandregulators.

ItiscleartomethatPHMSAdoesnothavetheteethorthewilltoenforcepipelinesafetyinthiscountry.Asweveseeninp p y yCalifornia,itisoftenpowerlessoverstateregulators.Evenwhenithascrystalclearauthority,itstillrefusestoact.PHMSAisnotonlya toothless tiger but one that has overdosed on Quaaludes and isatoothlesstiger,butonethathasoverdosedonQuaaludesandispassedoutonthejob.

A good person will resist an evil systemA good person will resist an evil system with his whole soul. Disobedience of the laws of an evil state is therefore a duty laws of an evil state is therefore a duty.

An error does not become truth by reasonAn error does not become truth by reason of multiplied propagation, nor does truth

become error because nobody sees it Truthbecome error because nobody sees it. Truth stands, even if there be no public support. It

is self sustained is self sustained.

Mahatma GandhiMahatmaGandhi

GrassrootsRecommendations

Recommendations1 Leverage expertise passion and willingness to do what is comfortable for1. Leverageexpertise,passion,andwillingnesstodowhatiscomfortablefor

themforwhateverreasonpeoplejoin(health,propertyrights,wildlife,safety,environment,globalwarming,etc)

2. Communication2. Communication Facebook,Twitter,Website Pressreleases,Radiointerview,LettertotheEditor,Advertising Yardsigns,Flyers,Communitymeetings

3. Educate(yourselfandyourcommunity) KnowtheFERCprocessandparticipate Learnfromeachother

4. Document,Document,DocumentandthenDocumentsomemore5. BuildRelationshipsoutreachandnetworking

Political,NationalandRegionalenvironmentalgroupsY k h h t i ht k i ifi t diff Youneverknowwhoorwhatmightmakeasignificantdifference

6. Fundraising Expertsfordetailedanalysis Biology,Pipeline,Historic,RealEstate,etc Legal support Legalsupport

7. IncorporationandNonprofit8. BaselineAirMonitoring toprovehealthimpacts

LeverageFederalandStatestatutestothef ll iblfullestextentpossible

CleanAirActCleanWaterActRiversandHarborsActEndangered Species ActEndangeredSpeciesActWildandScenicRiversActCoastalZoneManagementActNational Historic Preservation ActNationalHistoricPreservationActFishandWildlifeCoordinationActNationalEnvironmentalPolicyAct(NEPA)

http://cfr.regstoday.com/18cfr380.aspx https://ceq.doe.gov/ceq_regulations/regulations.html http://energy.gov/nepa/guidance-requirements/requirements

State and Local PermittingState and Local Permitting

LeverageNEPAinyourcommentstoFERC CEQNEPARegulation40C.F.R. 1508.7Cumulativeimpact CEQ NEPA Regulation 40 C F R 1508 8 Direct and Indirect effects CEQNEPARegulation40C.F.R. 1508.8DirectandIndirecteffects CEQNEPARegulation40C.F.R. 1508.18Majorfederalactionincludesactionswitheffectsthatmaybemajorandwhicharepotentiallysubjecttofederalcontrolandresponsibility

CEQNEPARegulation40C.F.R. 1508.25Scopeconsistsoftherangeofactions,alternatives,andimpactstobeconsideredinanenvironmentalimpactstatement.Thescopeofanindividualstatementmaydependonitsrelationshipstootherstatements(Secs.1502.20and1508.28).Todeterminethescopeofenvironmentalimpactstatements,agenciesshallconsider 3 types of actions 3 types of alternatives and 3 types of impactsconsider3typesofactions,3typesofalternatives,and3typesofimpacts.

CEQNEPARegulation40C.F.R. 1508.27SignificantlyasusedinNEPArequiresconsiderationsofbothcontextandintensity:

InteractionwithFERC PracticalTips

KnowingandProtectingYourRightsWhenanInterstateGasPipelineComestoYourCommunityp y

ALegalandPracticalGuideforStates,LocalGovernment Units NonGovernmental Organizations andGovernmentUnits,NonGovernmentalOrganizationsand

LandownersOnHowtheFERCPipelineCertificationProcessWorksandHowYouCanParticipate

PreparedbyCarolynElefant,

InteractionwithFERCTaking on pipelines is a battle on four frontsTakingonpipelinesisabattleonfourfronts1. FERCPermitting(NEPA,NaturalGasAct)

MonitorinfothecompanyisfilingwithFERC MonitortheFERCprocessrelatingtoNEPA

2. CEIIandFOIAInformation(informationclassifiedasprivilegedorconfidential FileCEIIrequestonFERCwebsite.CEIIinformationmustbehandledwithcare.Itcantbesharewithothers,unlessallhaveclearance.

Freedom of Information Act request Company impact reports are often filed asFreedomofInformationActrequest.Companyimpactreportsareoftenfiledasprivileged.

3. EminentDomainConsequences OnceacompanyhasaFERCcertificate,ithasthepowerofeminentdomaintoacquirepropertywithfaircompensation

Companiesaskforaccesstodosurveybeforethepipelinecomesthrough.Ifthereisnocertificate,thecompanycantforceyoutoletthemaccessyourproperty

If a company comes on your property, try to get a signed Access Agreement:Ifacompanycomesonyourproperty,trytogetasignedAccessAgreement:whateverinfotheycollect,theyhavetogiveittoyou;trytogetthemtoevaluatetheimpactonaspectsofyourproperty(i.e.structural/foundations).FilethiswithFERCandyouwillhavestandingifcompanydoesntfollowtheagreement

4 St t P it d L l Z i4.StatePermitsandLocalZoning Needtotrackprocessatstatelevel.Seeifyoucangetthestatetointerveneonyour

behalftoopposethepipeline.Allstatelawsandprocessesaredifferent.

InteractionwithFERCPreemptionIssues Identifyastatelawbackedbytheforceofafederallaw/program noFERC

preemption.Focusyoureffortshere State,county,municipalpermittingprogramsgenerallyarepreemptedby

FERC.Gettowntofilecommentssuchasthelocationofpipeline.FERCmaylistenandmakechangesaconditionofthepermit

State/local oversight of the pipeline post certificate and enforcement of state State/localoversightofthepipelinepostcertificateandenforcementofstatelawsispreemptedbyFERCifthereisaconflict

Statesiting andzoninglawsarepreemptedbyFERC State/local pipeline safety codes or standards are preempted by FERCState/localpipelinesafetycodesorstandardsarepreemptedbyFERC Stateeminentdomainlaws noFERCpreemption.

InteractionwithFERCStrategiestoconsider Opportunitiesforinputnarrowasmovethroughtheprocess getinvolvedearly SqueakywheelgetsthegreaseIfdontsayanything,FERCwillgowiththe

application.Itwontgooutofitswaytolookatimpacts;youmustraisetheissues.V d il d d li d l d FERC ff iVerydetailedandpersonalizedlettersandcommentstoFERCaremosteffective

Knowtherulesandfollowthem.ArgumentsthatreflectthiswillgetthemostweightwithFERC.

Tell your own story in your own words Every group has issues they are uniquely Tellyourownstory,inyourownwords.Everygrouphasissuestheyareuniquelyqualifiedtomake ifpropertyowner,ifnearcompressorstation,ifmovedtoacommunityduetoaspecificcharacterthatwillnowbechanged.Presentyourevidence and your testimony to FERC. Take pictures of your property and whereevidenceandyourtestimonytoFERC.Takepicturesofyourpropertyandwherepipelinewillrun,sendtoFERC.Dontrelyonpipelinecompanyinfo.

Workwithtownandcommunity.Ifyouhaveuniqueintereststoprotect youshouldfocusonthem.

Chooseyourbattles.Ifresourcesarelimited,youcantattackoneveryfrontandraiseallthechallenges.Picktheonesthatwillgiveyouthemostbangforthebuck.

Findtheweakspot.Focusonthedealbreakers.Willdiffercasetocase

DOTisresponsibleforpipelinesafety.InteractionwithFERC

FERCexpectsapipelinewillbesafeasitwillfollowDOTguidelines Oncepipelineisapproved,pressureonDOTtofinditincompliance

States role in certificate process. (Pipelines often need other permits.)Statesroleincertificateprocess.(Pipelinesoftenneedotherpermits.) Stateentitiesissuesomepermitswhicharebackedbyfederalpower.i.e.ifastatedoes

notissuingarequiredwaterqualitypermittoapipeline,theprojectwontgothrough. Ifitcrossesawaterbodyitwillneedwaterqualitycertificate.

C t ti ill h i i ill d i lit it Compressorstationwillhaveemissions willneedairqualitypermits.

CountiesandMunicipalities FERCdoestrytotakeintoaccountthewishesofmunicipalitiesintheprocess i.e.they p p

lookandoperationofacompressionstation;impactsonmunicipalinfrastructure(mustmakethisknowntoFERC).

Landownersshouldtrytogetlocalofficialstointerveneintheirbehalf. Soil and Water permitting SoilandWaterpermitting

Landowners landissubjecttocondemnation(eminentdomain).Landvalues,homevalues,qualityandcharacterofyourcommunity i.e.compressorstations canbeimpacted.Needtocommentonthese.