HomeMy WebLinkAbout20061763.tiff agilinifinalcIc
June 14, 2006
Re: Landowner Notification
Dear Landowner:
Rockies Express Pipeline LIE ("REX"), an interstate gas transmission pipeline
company, filed with the Federal Energy Regulatory Commission ("FERC") on May 31,
2006 at Docket No. CP06-354-000 an application for authorization to construct and
operate certain facilities comprising its proposed "REX-West Project." Such Project,
upon approval by the FERC, will authorize the first planned segment extension of the
REX Pipeline extending from the Cheyenne Hub located in Weld County, Colorado to an
interconnection with Panhandle Eastern Pipe Line ("PEPL") located in Audrain County,
Missouri. The REX-West Project will comprise approximately 713 miles of 42-inch
pipeline and is proposed to transport 1,500,000 Dth/day of natural gas across the
following five states: Wyoming, Colorado, Nebraska Kansas and Missouri. The Project
also will include certain improvements to existing REX facilities located to the west of
the Cheyenne Hub. The purpose of this notification is to make those landowners whose
properties will be utilized or are located adjacent to the construction site of the REX-
West Project aware of REX's proposed activities in order that they may have sufficient
opportunity to participate in the FERC's regulatory process.
Who is REX?
REX is a Delaware limited liability company whose members are Kinder Morgan
Energy Partners, L.P. and Sempra Energy. REX is a "natural-gas company" subject to
the jurisdiction of the FERC with existing operations that consist of providing interstate
natural gas transportation services within the States of Colorado and Wyoming.
What is the purpose of the project, what facilities are proposed and what is the
planned schedule for construction?
The facilities proposed by REX are primarily intended to transport natural gas
from the constrained Cheyenne Hub to various markets in the Mid Continent by
interconnection with multiple interstate pipelines that directly connect with such markets,
increasing netbacks to the Rocky Mountain natural gas producers while increasing the
availability and reliability of supply to the Mid Continent markets.
A map depicting the location of the proposed facilities is enclosed. The facilities
proposed to be constructed and operated are described below:
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�(c.,x$-()fin 370 Van Gordon Street P.O. Box 281304 Lakewood, CO 80228-8304 303-989.1740
Mainline Pipeline:
Approximately 713 miles of 42" O.D. X-80 and X-70 steel pipe ranging from
.486 w.t. to .888 w.t., commencing from the Cheyenne Hub in Section 5,
Township 11 North, Range 66 West, Weld County, Colorado, proceeding
eastward through portions of southeastern Wyoming, northeastern Colorado,
southern Nebraska, northeastern Kansas, and northern Missouri, terminating at a
proposed point of interconnection with PEPL in Section 2, Township 51 North,
Range 8 West,Audrain County, Missouri.
Lateral Pipeline:
Approximately 5 miles of 24" O.D. x .375 w.t. X-70 steel pipe commencing from
the existing Williams Energy Services Echo Springs Processing Plant in Section
1, Township 19 North, Range 93 West, Carbon County, Wyoming, to a point of
interconnection with the REX mainline in Section 8, Township 20 North, Range
92 West, Sweetwater County, Wyoming.
Mainline Pipeline Compression:
1. Wamsutter Compressor Station Addition — Install at the authorized Wamsutter
Compressor Station site, one 10,310 ISO-rated horsepower compressor unit (site
rated at 6,285 horsepower), with related appurtenances, located in Section 32,
Township 20 North,Range 94 West, Sweetwater County, Wyoming.
2. Cheyenne Compressor Station — Install at the proposed Cheyenne Compressor
Station site, two 17,500 ISO-rated horsepower compressor units (site rated at
17,500 horsepower each), with related appurtenances, located in Section 5,
Township 11 North,Range 66 West, Weld County, Colorado.
3. Julesburg Compressor Station — Install at the proposed Julesburg Compressor
Station site, two 17,500 ISO-rated compressor units (site rated at 17,500
horsepower each),with related appurtenances, located in Section 28, Township 11
North,Range 43 West, Sedgwick County, Colorado.
4. Steele City Compressor Station — Install at the proposed Steele City Compressor
Station site, two 20,500 ISO-rated compressor units (site rated at 15,506
horsepower each), with related appurtenances, located in Section 30, Township 1
North,Range 5 East, Gage County,Nebraska.
5. Turney Compressor Station — Install at the proposed Turney Compressor Station
site, two 17,500 ISO-rated compressor units (site rated at 17,500 horsepower
each), with related appurtenances, located in Section 1, Township 55 North,
Range 31 West, Clinton County, Missouri.
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Lateral Pipeline Compression:
Echo Springs Compressor Station - Install at the proposed Echo Springs
Compressor Station site, two 3,550 ISO-rated compressor units(site rated at 2,859
horsepower each), with related appurtenances, located in Section 1, Township 19
North, Range 92 West, Sweetwater County, Wyoming.
Incremental Priced Hub Compression:
1. Meeker Hub Facilities—Install at the authorized Meeker Compressor Station site,
two 4,735 ISO-rated horsepower compressor units (site rated at 4,056 horsepower
each) and one 3,550 ISO-rated horsepower compressor unit (site rated at 2,986
horsepower), with related appurtenances, located in Section 4, Township 2 South,
Range 97 West, Rio Blanco County, Colorado.
2. Cheyenne Hub Facilities — Install at the proposed Cheyenne Compressor Station
site, one 500 ISO-rated horsepower compressor unit (site rated at 500
horsepower), with related appurtenances, located in Section 5, Township 11
North, Range 66 West, Weld County, Colorado.
Receipt Meter Stations:
1. Questar Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, located at the Meeker Hub in Section 4 Township 2
South, Range 97 West, Rio Blanco County, Colorado.
2. Echo Springs Interconnect Meter Station — Install an interconnect and
measurement facility, with appurtenances, located in Section 1, Township 19
North,Range 93 West, Carbon County, Wyoming.
3. WIC Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, located at the Cheyenne Hub in Section 5, Township
11 North,Range 66 West, Weld County, Colorado.
Delivery Meter Stations:
1. ICMIGT Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, at approximately Milepost 332 located on the
proposed REX-West Project in Section 13, Township 4 North, Range 13 West,
Franklin County,Nebraska.
2. NGPL Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, at approximately Milepost 423.1 located on the
proposed REX-West Project in Section 23, Township 1 South, Range 3 West,
Jefferson County,Nebraska.
3
3. NNG Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, at approximately Milepost 430.6 located on the
proposed REX-West Project in Section 30, Township 1 North, Range 5 Fast,
Gage County,Nebraska.
4. ANR Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, at approximately Milepost 497.8 located on the
proposed REX-West Project in Section 12, Township 3 South, Range 15 East,
Brown County, Kansas.
5. PEPL Interconnect Meter Station — Install an interconnect and measurement
facility, with appurtenances, at approximately Milepost 712.7 located on the
proposed REX-West Project in Section 2, Township 51 North, Range 8 West,
Audrain County, Missouri.
Regulatory Timetable
REX has requested the issuance of a final order from the FERC granting the
authorization for the above described facilities by March 2007. This approval schedule
will enable REX to commence service through the expansion facilities by January 1,
2008.
What will REX require from me?
A representative of REX will personally contact all landowners that are directly
impacted to discuss the purchase of easements and other rights necessary with the
proposed construction of the expansion facilities. Representatives will also discuss, with
all landowners directly impacted by the proposed project, payment for damages,
construction and restoration methods that will be utilized on affected property, as well as
specific concerns you may have.
If at any time you have questions or concerns about the project you may contact
Mr. Kerry Malone, Right of Way Project Manager, by telephone at 1-800-831-2425 or in
writing at Rockies Express Pipeline LLC, Right of Way Office, P.O. Box 8, St. Joseph,
Missouri 64502.
What are my rights?
A pamphlet prepared by the FERC entitled: "An Interstate Natural Gas Facility on
My Land? What Do I Need to Know?" is enclosed. This pamphlet contains information
about the FERC's regulatory process and includes information on how you can
participate in the regulatory review process. In addition, a copy of the FERC's notice of
the proposed project as published in the Federal Register is also enclosed. This notice
specifically states the docket number and date by which timely motions to intervene are
due. The notice, together with the FERC's pamphlet mentioned above, also contains
information on how to intervene or comment in the FERC's proceedings. Please refer to
4
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the docket number when seeking information from the FERC about this project. The
docket number is also required to access the project on the FERC's website at
http://www.ferc.gov under the"eLibrary"link.
As stated above, your property is either on the pipeline right-of-way for this
project or adjacent to this right-of-way. We desire to obtain any necessary land rights
from you through mutual agreement. In the vast majority of cases, REX has been able to
work cooperatively in the acquisition of necessary land rights through mutual
negotiations.
The FERC's landowner notification rules require REX to inform landowners of
certain rights the pipeline would have if the project were to be approved by the FERC,
including a discussion of pertinent eminent domain procedures. In the event REX was
unable to reach agreement with you for the property rights necessary for the project,REX
would be authorized, upon receipt of a certificate order from the FERC, to initiate
proceedings under state or federal eminent domain procedures to secure the property
rights to construct the expansion facilities as approved by the FERC. The rights of
property owners in eminent domain proceedings may include, but not be limited to, the
right to challenge the nature and extent of the proposed taking and the right to have your
property value determined by a judicial body following a hearing in which you may
participate. A brief summary of the eminent domain laws for your state is enclosed.
Where is a copy of REX's application available?
A copy of REX's application filed with the FERC at Docket No. CP06-354-000 is
available at the FERC's website and an electronic copy is available for review at the
public libraries identified on the list attached hereto.
REX is committed to working with you on this project. You can expect
information from us as the project progresses. Again, if you have any questions or
concerns about the project, please do not hesitate to call Mr. Kerry Malone at 1-800-831-
2425.
Very truly yours,
Skip George
Manager of Certificates
Enclosures
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An Interstate
Natural Gas Facility
On My Land?
WhatDoINeedToKnow?
The Federal Energy Regulatory Commission is
charged by Congress with evaluating whether,
interstate natural gas pipeline projects proposed by.
private companies'should be approved. The Federal'
government does not propose, construct, operate,
or own such projects. The Commission's deter-
mination whether to approve such a project may
affect you if your land is where a natural gas pipe-
line, other facilities, or underground storage fields
might be located. We want you to know:
• How the Commission's procedures work;
• What rights you have;
• How the location of'a pipeline or other
facilities is decided and
•What safety and environmental issues might
be involved.
Background
The Commission approves the location, construc-
tion, and operation of interstate pipelines, facilities
and storage fields involved in moving natural gas
across state boundaries. These pipelines crisscross
the United States, moving nearly a quarter of
the nation's energy long distances to markets in
48 states. They are vital to the economy. The
Commission also approves the abandonment of
such facilities.
Associated with the pipelines, other above-ground
facilities such as taps, valves, metering stations, or
compressor stations may be involved. In the case of
a natural gas storage field, there may be storage field
pipelines and wells, or the company may only need
subsurface storage rights to your property.
If a proposed pipeline route is on, or abuts, your land,
you will probably first learn of this from the company
concerned as it plans and studies the route. Once a
company files an application for approval (a certifi-
cate) to build a pipeline project, it will mail you a
copy of this brochure and other information (within
three days of the Commission issuing a Notice of
Application). The Commission staff prepares an envi-
ronmental study of the proposal. For major construc-
tion projects, local media may be notified and public
meetings may be held. You will have an opportunity
to express your views and to have them considered.
You will also have the opportunity to learn the views
of other interested parties. The Commission may
approve the project, with or without modifications, or
reject it. If it is approved and you fail to reach an ease-
ment agreement with the company, access to and com-
pensation for use of your land will be set by a court.
Understandably, the location of pipelines and other
facilities may be of concern to landowners. The
Commission's process for assessing pipeline applica-
• tions is open and public, and designed to keep all
parties informed.
This brochure generally explains the Commission's
certificate process and addresses some of the
basic concerns of landowners. The Commission's
Office of External Affairs at 1-866-208-3372 will
be happy to answer any further questions about
the procedures involved. You may also check the
Commission's Internet website at www.ferc.gov.
Most Asked Questions
How the Process Begins
Q: How will I first hear about proposed
facility construction?
A: If you are located in the vicinity of the proj-
ect you may first learn of it through newspaper
notices. If you are an owner of property which may
be affected by the project, you will probably first
hear of it from the pipeline company as it prepares
environmental studies required for the Commission
application. It is also possible that the company
may seek to obtain an easement from you prior to
filing the application. In the case of a compressor
station or liquefied natural gas (LNG) terminal, the
pipeline company will often seek to purchase, or
obtain an option to purchase, the property it wishes
to use for the station or terminal. This usually
occurs prior to the filing of the application.
For a storage field, rights on certain parcels of land
may only involve subsurface storage rights.
The company will also notify you of the filing of
the application with the Commission.
Q: How can I obtain more details about the
company's application?
A: A copy of the company's application can be
obtained from the company if you are an inter-
venor (see next two questions and answers),
although the company is not obligated to provide
voluminous material or material that is difficult to
reproduce. You may also obtain a copy for a nomi-
nal copying charge from the Commission's Public
Reference Room. Call 202/502-8371 for details.
The application may also be obtained through the
Commission's website, www.ferc.gov, using the
"eLibrary" link and the project's docket number.
User assistance is available at 1-866-208-3676.
Within three days of assignment of a docket
number, the application will also be available
in at least one location in each county in which
the facility is located.
Note that in most cases you will not be able to view or
print copies of maps or similar locational information
from the Commission's website. However, the website
will provide instructions for obtaining the material.
Q:, This done, how do I make my views known?
A: You may contact the company through the contact
person listed in the notification you receive from it.
There are two ways to make your views known to
the Commission: first, if you want the Commission
to consider your views on the various environ-
mental issues involved in the location of the facil-
ity, you can do so by simply writing a letter. The
Commission undertakes several levels of environ-
mental analysis. The Commission affords you the
opportunity to comment at various stages in this
process. Details are available from the Commission's
Office of External Affairs at 1-866-208-3372. Check
the Commission's website for details on filing elec-
tronically. By filing comments, your views will be
considered and addressed in the environmental
• documents or a final order. Additionally, you will
be placed on a mailing list to receive environmen-
tal documents in the case.
Q: And the second way?
A: You may file to become what is known as an
intervenor. You may obtain instructions on how
to do this from the Office of External Affairs.
Becoming an intervenor is not complicated and
gives you official rights. As an intervenor, you
will receive the applicant's filings and other
Commission documents related to the case and
materials filed by other interested parties. You will
also be able to file briefs, appear at hearings and
be heard by the courts if you choose to appeal the
Commission's final ruling. However, along with
these rights come responsibilities. As an interve-
nor, you will be obligated to mail copies of what
you file to all the other parties at the time of filing.
In major cases, there may be hundreds of parties.
You must normally file for intervenor status within
21 days of our notice of the application in the
Federal Register, although the Commission may
accept late intervention if good reasons are given.
You may also file for intervenor status for the pur-
poses of environmental issues during the comment
period for a draft environmental impact statement.
Key Issues Involving Location
of the Project
Q: How is the pipeline route, compressor station or
storage field location selected?
A: The pipeline company proposes the route
or location, which is then examined by the
Commission. The applicant must study alternative
routes or locations to avoid or minimize damage to
the environment, and the Commission, intervenors,
or any commenter, may also suggest alternatives and
modifications to reduce the effects on buildings,
fences, crops, water supplies, soil, vegetation, wildlife,
air quality, noise, safety, landowner interests, and
more. The Commission also considers whether the
pipeline can be placed near or within an existing
pipeline, power line, highway or railroad right-of-
way. Storage fields are usually located in depleted oil
or natural gas production fields or in salt deposits.
Therefore, their location is fixed by geologic condi-
tions. However, the facilities needed to develop and
use a storage field can be moved to some extent.
Q: How do pipelines obtain a right-of-way?
A: The pipeline company negotiates with land-
owners who are compensated for signing an ease-
ment document. Landowners may be paid for loss of
certain uses of the land during and after construc-
tion, loss of any other resources, and any damage to
property. If the Commission approves the project
and no agreement with the landowner is reached,
the pipeline may acquire the easement under emi-
nent domain (a right given to the pipeline company
by statute to take private land for Commission-
authorized use) with a court determining compen-
sation under state law.
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Pipeline installation . . .
Q: Who pays taxes on the right-of-way?
A: The landowner pays taxes on the right-of-way
unless a local taxing authority grants relief. The
pipeline simply has an easement across a portion of
the land.
Q: How large is the right-of-way and how is it
maintained?
A: It is generally 75 to 100 feet wide during construc-
tion, although extra space is usually required at road or
stream crossings or because of soil conditions.
The permanent right-of-way is usually about 50 feet
wide. Routine mowing or cutting of vegetation is done
no more than once every three years. A ten-foot-wide
corridor, centered on the pipeline, may be mowed or
cut annually. In cropland and residential areas the
right-of-way is maintained by the landowner consistent
with the presence of a pipeline.
Q: How large is a compressor station or storage field?
A: Usually the pipeline purchases ten to forty acres
for a compressor station, of which about five acres are
actually used for construction. A storage field could
encompass many hundreds or even thousands of acres,
depending on the geologic structure. Storage fields
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. . . and after restoration.
• • also frequently include a buffer zone or protection area
forming a halo of some hundreds of acres surrounding
the storage field itself.
Q: Must the company obey local, county and state
laws and zoning ordinances?
A: Generally, yes. If there is a conflict, however,
between these ordinances and what the Commission
requires, the Commission requirement prevails.
Q: How close can I build to the facilities?
A: For a pipeline, usually up to the edge of the
right-of-way.
For a compressor station, the site is usually owned
by the company. If you own property adjacent to
the site, you may build on it.
For storage fields, unless there are surface facilities,
you may build anywhere on the surface. If you or
someone else wishes to drill wells which would pen-
etrate the storage formation, you must coordinate
that activity with the company, and usually the
state authority regulating well drilling.
Q: What about bushes, trees, fences,driveways
and so forth?
A: Trees with roots that may damage the pipeline
or its coating and other obstructions that prevent
observation from aircraft during maintenance are
usually not allowed. Driveways and other improve-
ments without foundations are normally allowed.
All improvements are subject to the terms of the
easement and are subject to negotiation as long
as the pipeline maintenance and safety are not
affected.
• • Q: How long will the right-of-way be there?
A: Part of it is temporary and will be restored
immediately after construction. The permanent
right-of-way will remain until the Commission
determines it may be abandoned by the pipeline
company. This can be 20 to 50 years or more.
Q: In general, will I still be able to use the
right-of-way?
A: The easement agreement will specify restricted
uses on or across the right-of-way and any types of
uses for which the company's permission must be
sought. The continuation of past agricultural uses
and practices on or across the right-of-way would be
permitted. Buildings and large trees are usually not
allowed. Special uses or activities that might have
an impact on pipeline design (such as planned log-
ging roads or drain tiles) should be negotiated with
the pipeline company to minimize future conflicts.
Other Property Issues
Abandonment
Q: If the pipeline is being abandoned will it be
removed from my property?
A: The Commission may decide there are environ-
mental or other conditions that should determine
the disposition of the pipeline. If not, the easement
agreement which you or previous owners of the
land signed may stipulate whether the pipeline is
to be removed. You may also come to some agree-
ment with the company on what they will do with
the pipeline. Usually, above-ground facilities are
removed.
Qi If a company abandons a pipeline, can it keep
an easement on my property?
A: It depends on the terms of the easement and
may be subject to negotiation between the land-
owner and the pipeline company.
If there is more than one pipeline, the pipeline
company will keep the easement.
Q: Will I be notified if abandonment is proposed?
A: You will probably be notified by the company if
it proposes to relinquish the easement as part of the
abandonment and the easement is not being trans-
ferred to another company. Otherwise, you may be
notified by the Commission as part of the environ-
mental analysis of the project.
Storage Fields
Q: What will happen to my property if a storage
field is located beneath it?
A: Possibly nothing, since the storage field itself
is usually thousands of feet beneath the ground
surface. If the company proposes to construct field
pipelines or a compressor station on your property
the earlier discussion applies.
Wells are needed to inject and withdraw the stored
natural gas or to monitor field conditions (obser-
vation wells). The wells require a surface site of
roughly an acre for drilling and less than one tenth
of an acre for the surface wellhead piping and other
facilities.
If there are no facilities to be constructed on your
property, the company will only need the storage
rights to the geologic formation in which the natu-
ral gas would be stored. This is also the case for
any property within any designated "buffer zone" or
"protective area" around the actual storage field.
The Responsibilities of Gas
Companies
Q: Must companies post bonds to guarantee
performance?
A: No, but the Commission inspects the right-of-
way during and after construction to ensure that
the terms of its certificate have been met.
Q: Can the pipeline company come on my land
without my permission?
A: State or local trespass laws prevail until a cer-
tificate is issued by the Commission. Some states
have laws that allow a company to get access to
property for survey purposes. Procedures vary by
state. Once a certificate is issued or an easement/
survey agreement or court order is obtained, the
company may come onto your land. Usually the
company will notify you in advance.
Q: When can they,start to build?
A: Construction cannot commence until the
Commission issues a certificate and the applicant
accepts it. For most large pipelines, the time from
filing an application to approval ranges from one
year to two years. Once a certificate is issued, con-
struction usually starts within a few weeks of the
company having completed any outstanding stud-
ies or having met other preconditions set by the
Commission.
Q: Why would the company approach me before
the project is approved?
A: Because of planning and lead time the com-
pany may try to obtain easement agreements in
advance. Also, a company must conduct envi-
ronmental studies before it files an application
with the Commission. For these studies to be
as complete as possible, the company will try to
obtain access to all of the proposed right-of-way.
If Commission approval is ultimately denied, or
the route changes, the initial easement agreement
with the landowner is usually void (depending on
the wording of the right-of-way or access contract).
Further, disputes over the wording of an easement
agreement are subject to state law.
Q: Can the company place more than one pipeline
on my property? Can the pipeline and the easement be
used for anything other than natural gas?
A: The Commission grants a certificate and states
that eminent domain may only be used for the
proposed pipeline and related facilities in the exact
location described and only for the transportation
of natural gas. If the company wishes to install
another natural gas pipeline under Commission
jurisdiction, it must obtain additional approval
from the Commission. Other utilities may wish to
use an adjacent or overlapping easement, but they
would have to obtain approval from you or from
another permitting authority which can grant emi-
nent domain (usually the state). Of course, you may
agree to other uses.
Q: Can the company construct above-round
facilities on the right'-of-way?
A: Yes, the company may construct any above-
ground facilities approved by the Commission and
may construct certain auxiliary facilities for the
purpose of more efficient or economical operation
of the pipeline.
Q: How close can the pipeline be to other pipelines or
utility facilities?
A: Pipelines must be at least a foot from any
underground structure and two to three feet below
ground. Companies usually want their pipelines to
be 25 feet from another pipeline. If space permits,
pipelines can be placed in another utility's right-
of-way.
Q: Can I receive service from the pipeline?
A: No, not in most cases. Generally speaking,
interstate pipelines are operating at pressures
incompatible with direct residential use, which is
provided by local distribution companies.
Q: Can a pipeline be placed in a river or the ocean?
A: A pipeline can usually be placed in the ocean
or across a river; however, it is usually not accept-
able to place one longitudinally down a river or
other stream. There are different environmental,
cost, design and safety issues associated with con-
struction in a water body.
Important Safety Issues
Q': Who is responsible for safety?
A: The U.S. Department of Transportation (DOT)
is responsible for setting the federal safety standards
for natural gas (and other) pipelines and related
facilities. The Office of Pipeline Safety at DOT
can be contacted at 202/366-4595 or at
http://ops.dot.gov/.
Q Are pipelines safe?
A: Accidents are rare and usually result from out-
side forces or unauthorized action by someone other
than the pipeline company. The DOT enforces strict
safety standards and requires safety checks.
Q: How soon after construction will the company
restore the land?
A: As soon as the trench is backfilled and weather
permits.
Q Does natural gas smell?
A: Natural gas is odorless. An odorant, which
smells like rotten eggs, is generally added for quick
leak detection in more populated areas on inter-
state transmission pipelines and in local distribu-
tion pipelines in accordance with DOT safety
regulations.
Further Environmental Issues
Q: What if nay property contains endangered species,
wetlands, or archeological sites?
A: Endangered species must be protected from the
effects of construction and this could affect the
location of the pipeline or other facilities. In the
case of wetlands, if proper crossing procedures are
used and no alternatives are available, they may
be used for a pipeline right-of-way. If an archeo-
logical or historic site is eligible for listing in the
National Register of Historic Places, impact to it
must be minimized. It will either be excavated and
studied or the pipeline will be rerouted to avoid it.
Landowners who want them usually are permitted
to keep any artifacts after they are properly studied,
subject to state law.
Q: Environmental studies were mentioned earlier.
How do they work?
A: A Notice of Intent (NOI) to prepare an envi-
ronmental assessment (EA) or an environmental
impact statement (EIS) is issued for most major
proposals. It is sent to federal, state and local
agencies, local media and libraries, environmen-
tal groups, and, where the Commission is able to
identify them, the owners of any land that would
be crossed. For some major projects the NOI may
announce a schedule of public meetings along the
proposed route. The NOI seeks comments from
interested parties on the scope of the environmen-
tal document, and the comments must be submit-
ted to the Commission, normally within 30 days.
After the comment period, the Commission staff
will prepare an EA or a Draft EIS outlining its
findings and recommendations. For major propos-
als, further comments are sought during 45 days
allotted for review of a Draft EIS or 30 days in the
case of an EA. These comments are addressed in
the Final EIS or the final order granting or denying
the pipeline a certificate.
For additional information, contact:
Federal Energy Regulatory Commission
Office of External Affairs
888 First Street, NE
Washington, DC 20426
Toll Free: 1-866-208-3372
www.ferc.gov
Enforcement Hotline: 202/502-8390
Toll Free: 1-888-889-8030
Other related FERC documents:
Guidance Manual for Environmental Report
Preparation
Guidelines for Reporting On Cultural Resources
Investigations
Handbook for Using Third-party Contractors
to Prepare Environmental Assessments &
Environmental Impact Statements
Interim Guidelines for Applicant-prepared Draft
Environmental Assessments
Upland Erosion Control, Revegetation and
Maintenance Plan
Wetland and Waterbody Construction and
Mitigation Procedures
The above documents are available at:
http://www.ferc.gov/industriesigas/envito/
guidelines.asp
January 2004
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•
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Rockies Express Pipeline LLC Docket No. CP06-354-000
NOTICE OF APPLICATION
(June 12, 2006)
Take notice that on May 31, 2006, Rockies Express Pipeline LLC (Rockies
Express), formerly Entrega Gas Pipeline LLC, 370 Van Gordon Street, Lakewood,
Colorado 80228, filed an application in Docket No. CP06-354-000, pursuant to
section 7(c) of the Natural Gas Act (NGA) and Part 157 of the Commission's regulations
requesting a certificate of public convenience and necessity to construct certain pipeline
facilities to provide up to 1,500,000 Dth per day of transportation capacity, referred to as
the REX-West project, as well as authorization to lease capacity from Questar Overthrust
Pipeline Company (Overthrust), all as more fully set forth in the application which is on
file with the Commission and open for public inspection. These filings are available for
review at the Commission in the Public Reference Room or may be viewed on the
Commission's website at http://www.ferc.gov using the "eLibrary" link. Enter the docket
number excluding the last three digits in the docket number field to access the document.
For assistance,please contact FERC Online Support at FERCOnlineSupportcWferc.gov or
toll free at (866)208-3676, or for TTY, contact(202) 502-8659.
Specifically, Rockies Express requests authorization to construct: (1) 713 miles of
42-inch pipeline in Weld, Logan and Sedgwick Counties, Colorado, Laramie County,
Wyoming, Kimball, Perkins, Lincoln, Dawson, Frontier, Gosper Phelps, Kearney,
Franklin, Webster,Nuckolls, Thayer, Jefferson and Gage Counties, Nebraska, Marshall,
Nemaha, Brown and Doniphan Counties, Kansas, and Buchannan, Clinton, Caldwell
Carroll, Chariton, Randolph and Audrain Counties, Missouri; (2) a 5-mile, 24-inch gas
supply lateral (Echo Springs Lateral) in Carbon and Sweetwater Counties, Wyoming; (3)
five new compressor stations in Weld and Sedgwick Counties, Colorado, Gage County,
Nebraska, Clinton County, Missouri, and Sweetwater County, Wyoming; and(4)
additional compressor units at currently authorized compressor stations in Sweetwater
County, Wyoming (Wamsmutter CS - one unit), and Rio Blanco County, Colorado
(Meeker Hub—three units), and at the proposed new compressor station in Weld County,
Colorado (Cheyenne CS Hub—one unit).
On November 18, 2005, the Commission staff granted Rockies Express' request to
utilize the National Environmental Policy Act(NEPA) Pre-Filing Process and assigned
Docket No. PF06-3-000 to staff activities involving the Rockies Express project. Now, as
of the filing of Rockies Express' application on May 31, 2006, the NEPA Pre-Filing
•
Docket No. CP06-354-000 - 2 —
Process for this project has ended. From this time forward, Rockies Express' proceeding
will be conducted in Docket No. CP06-354-000, as noted in the caption of this Notice.
Rockies Express also seeks authorization to lease capacity of 625,000 Dth per day
on the facilities of Overthrust. In order to fulfill its lease commitment, Overthrust intends
to construct 77 miles of 36-inch pipeline, for which Overthrust has commenced
environmental consultation under the NEPA Pre-Filing Process in Docket No. PF06-19-
000, and will add compression at two locations on the facilities for which it is currently
seeking authority in Docket No. CP06-167-000. Additionally, Rockies Express states that
TransColorado Gas Transmission Company(TransColorado) will seek authority to
construct facilities, with a capacity of 250,000 Dth per day, from the Blanco Hub in New
Mexico to the Meeker Hub in Colorado where TransColorado will interconnect with
Rockies Express. TransColorado has commenced environmental consultation under the
NEPA Pre-Filing Process in Docket No. PF06-20-000.
The estimated cost of the REX-West project is approximately $1.6 Billion.
Rockies Express proposes two rate zones. Rockies Express proposes to charge its
approved, existing recourse rates for Zone 1 (points west of and including the Cheyenne
Hub), and proposes to establish new, initial recourse rates for Zone 2 (points east of the
Cheyenne Hub to and including the proposed interconnect with Panhandle Eastern Pipe
Line Company in Audrain County, Missouri). Rockies Express also proposes to charge
incremental rates related to the costs of the proposed Overthrust lease, the Meeker Hub
facilities, and the Cheyenne Hub facilities.
Any questions regarding this application should be directed to Bentley W. Breland,
Vice President of Certificates and Rates, Rockies Express Pipeline LLC, P.O. Box
281304, Lakewood, Colorado 80228-8304,phone (303)763-3581.
There are two ways to become involved in the Commission's review of this
project. First, any person wishing to obtain legal status by becoming a party to the
proceedings for this project should, on or before the below listed comment date, file with
the Federal Energy Regulatory Commission, 888 First Street, NE, Washington, D.C.
20426, a motion to intervene in accordance with the requirements of the Commission's
Rules of Practice and Procedure (18 CFR 385.214 or 385.211) and the Regulations under
the NGA (18 CFR 157.10). A person obtaining party status will be placed on the service
list maintained by the Secretary of the Commission and will receive copies of all
documents filed by the applicant and by all other parties. A party must submit 14 copies
of filings made with the Commission and must mail a copy to the applicant and to every
other party in the proceeding. Only parties to the proceeding can ask for court review of
Commission orders in the proceeding.
Docket No. CP06-354000 - 3 —
However, a person does not have to intervene in order to have comments
considered. The second way to participate is by filing with the Secretary of the
Commission, as soon as possible, an original and two copies of comments in support of or
in opposition to this project. The Commission will consider these comments in
determining the appropriate action to be taken, but the filing of a comment alone will not
serve to make the filer a party to the proceeding. The Commission's rules require that
persons filing comments in opposition to the project provide copies of their protests only
to the party or parties directly involved in the protest.
Persons who wish to comment only on the environmental review of this project
should submit an original and two copies of their comments to the Secretary of the
Commission. Environmental commenters will be placed on the Commission's
environmental mailing list, will receive copies of the environmental documents, and will
be notified of meetings associated with the Commission's environmental review process.
Environmental commenters will not be required to serve copies of filed documents on all
other parties. However, the non-party commenters will not receive copies of all
documents filed by other parties or issued by the Commission (except for the mailing of
environmental documents issued by the Commission) and will not have the right to seek
court review of the Commission's final order.
Motions to intervene, protests and comments may be filed electronically via the
intemet in lieu of paper; see, 18 CFR 385.2001(a)(1)(iii) and the instructions on the
Commission's web site under the "e-Filing" link. The Commission strongly encourages
electronic filings.
Comment Date: July 5, 2006
Magalie R. Salas
Secretary
Eminent Domain Law in Missouri
A pipeline company is authorized to bring an eminent domain action in either state or federal
court pursuant to Missouri Annotated Statutes Section 523-010, et seq. and the United States
Code 15 USC Section 717(h) once the company is issued a certificate of public convenience and
necessity by the Federal Energy Regulatory Commission (FERC). Generally, whether the action
is brought in federal or state court the legal proceedings are similar. Prior to condemning real
property, the pipeline company is required to make an attempt to reach agreement with the
landowner concerning various matters, such as the property interest to be acquired and
appropriate compensation to be paid to the landowner. Where the landowner does not respond to
a written offer within a reasonable time, or responds with a counter-offer that the pipeline
company reasonably deems unacceptable, inability to agree will be deemed to have been
established. Upon the parties inability to agree to compensation, the pipeline company may file
a petition in condemnation in the circuit court of the State in which the property to be
condemned, or any part of it, is situated or in federal district court. Depending on the venue, the
court will either appoint three disinterested landowners of the county to assess the compensation
to which the landowner is entitled as a result of the condemnation or a commission. Each party
has the opportunity to present witnesses or other evidence as to market value. The fundamental
question to be decided is the compensation to be awarded for the taking of the property to be
condemned and any reduction in value of the remaining property. Fair market value is the
criterion of compensation to be awarded to the landowner.
Eminent Domain Law in Nebraska
A pipeline company is authorized to bring an eminent domain action in either state or federal
court pursuant to Nebraska Statute Section 57-1101, et seq. and the United States Code 15 USC
Section 717(h) once the company is issued a certificate of public convenience and necessity by
the Federal Energy Regulatory Commission (FERC). Generally, whether the action is brought in
federal or state court the legal proceedings are similar. Before the condemnation process may be
initiated, the pipeline company is required to provide notice to affected landowners of its need
for property rights along with other specified information, and to hold a public hearing to explain
the nature and necessity of its proposed project and property acquisition to the landowners.
Within a specified period thereafter, the pipeline company may begin attempts to reach
agreement with the landowner concerning compensation. Where the landowner does not respond
to a written offer within a reasonable time, or responds with a counter-offer that the pipeline
company reasonably deems unacceptable, inability to agree is deemed to have been established.
Condemnation proceedings filed in state court are filed by the pipeline company in the county
where the property is located. The county court then appoints a board of appraisers, consisting of
three disinterested persons, to appraise the damages caused by the condemnation. The board of
appraisers is required to view the property subject to the condemnation and to hold a hearing for
the purpose of obtaining the views of any interested person. If filed in federal court the court will
appoint a commission. The fundamental question to be decided is the compensation to be
awarded for the taking of the property to be condemned and any reduction in value of the
remaining property. Fair market value is the criterion of compensation to be awarded to the
landowner. The pipeline company may seek immediate possession of the property to be
condemned by making a deposit with the court registry in the amount determined appropriate by
the court.
Eminent Domain Law in Kansas
A pipeline company is authorized to bring an eminent domain action in either state or federal
court pursuant to Kansas Annotated Statutes Section 17-618, et seq. and the United States Code
15 USC Section 717(h) once the company is issued a certificate of public convenience and
necessity by the Federal Energy Regulatory Commission (FERC). Generally, whether the action
is brought in federal or state court the legal proceedings are similar. Pursuant to its legal
authority the pipeline company may utilize the right of eminent domain with respect to any
property that it requires for the construction, maintenance and operation of facilities or
appurtenances, which property has not been acquired by gift or purchase. The condemnation
petition may be filed in federal court or in the state district court of the county where the property
is located. The court may appoint three disinterested appraisers or a commission to determine
appropriate compensation for the condemned property interest, and set the date upon which the
appraiser's valuation report must be submitted. In state court, the pipeline company must make
payment of the amount awarded by the appraisers within thirty days from the date the appraisers'
report is filed. At that time the pipeline company is entitled to take possession of the condemned
interest. The fundamental question to be decided in either the federal or state proceeding is the
compensation to be awarded for the taking of the property to be condemned and any reduction in
value of the remaining property. Fair market value is the criterion of compensation to be
awarded to the landowner. Each party has the opportunity to present witnesses or other evidence
as to market value.
Eminent Domain Law in Wyoming
A pipeline company is authorized to bring an eminent domain action in either state or federal
court pursuant to Wyoming Statutes Annotated Sections 1-26-501, et seq. and the United States
Code 15 USC Section 717(h) once the company is issued a certificate of public convenience and
necessity by the Federal Energy Regulatory Commission (FERC). Generally, whether the action
is brought in federal or state court the legal proceedings are similar. Before a petition to
condemn property may be filed, the pipeline shall attempt to reach agreement with the landowner
concerning various matters, such as the property interest to be acquired, appropriate
compensation to the landowner, and damages. When the landowner does not respond to a
written offer within a reasonable time, or responds with a counter-offer that the pipeline
reasonably deems unacceptable, inability to agree will be deemed to have been established. In
state court, at the time that the pipeline initiates condemnation proceedings, it must deposit with
the court a deposit equal to the pipeline's most recent offer of settlement. When the value of the
interest to be condemned is under $20,000 or the difference between the compensation offered
by the condemning party and the compensation demanded by the landowner is less than $5,000
the pipeline company may seek a less formal procedure to resolve the dispute. Under this
informal state procedure the state district court judge determines the compensation to be awarded
to the landowner. Where the informal process is not followed, the district court will appoint
three disinterested appraisers to determine appropriate compensation for the condemned property
interest. Upon a determination of compensation through either the informal or formal process, a
dissatisfied party may file a request for a trial before the court or before a jury. Each party has
the opportunity to present witnesses or other evidence as to market value. The fundamental
question to be decided is the compensation to be awarded for the taking of the property to be
condemned and any reduction in value of the remaining property.
•
Eminent Domain Law in Colorado
A pipeline company is authorized to bring an eminent domain action in either state or federal
court pursuant to Colorado Revised Statutes 38-1-101 et seq. and the United States Code 15 USC
Section 717(h) once the company is issued a certificate of public convenience and necessity by
the Federal Energy Regulatory Commission (FERC). Generally, whether the action is brought in
federal or state court the legal proceedings are similar. Before a petition to condemn property
may be filed, the pipeline company must make an attempt to reach agreement concerning
compensation with the landowner. Where the landowner does not respond to a written offer
within a reasonable time, or responds with a counter-offer that the pipeline reasonably deems
unacceptable, inability to agree is deemed to have been established. Condemnation proceedings
are filed by the pipeline company in either the federal court or the state district court of the
county where the property is located. The pipeline company may seek immediate possession of
the property to be condemned by making a deposit with, and in an amount determined by, the
court. The landowner may request a jury trial, but if such a request is not made, the
compensation to which the landowner is entitled will be determined by a board of commissioners
appointed by the court. Each party has the opportunity to present witnesses or other evidence as
to market value. The fundamental question to be decided is the compensation to be awarded for
the taking of the property and any reduction in value of the remaining property. Fair market
value is the criterion of compensation to be awarded to the landowner.
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