Approval of Pre-Filing Request

25 Pages·2016·1.89 MB·English

20161017-5015 FERC PDF (Unofficial) 10/14/2016 5:04:50 PM

October 14, 2016

Secretary Kimberly D. Bose
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C. 20426

Re: Docket No. PF17-_____-000
DTE Midstream Appalachia, LLC
Birdsboro Pipeline Project
Request for Approval to Initiate the Pre-Filing Process

Dear Secretary Bose:

Pursuant to Section 157.21(b) of the regulations of the Federal Energy Regulatory Commission
(FERC or Commission),1 DTE Midstream Appalachia, LLC (DTE or Applicant) hereby requests the
Commission’s approval to initiate the pre-filing environmental review process for the proposed Birdsboro
Pipeline Project (Project). DTE is proposing to construct approximately 14 miles of natural gas pipeline
located in Berks County, Pennsylvania, in order to transport natural gas from an interconnection with the
Texas Eastern Transmission LP (Texas Eastern) interstate pipeline to a new gas-fired generating facility
under construction in Birdsboro, Pennsylvania (Birdsboro Facility). The Project is designed to meet the
needs of the Birdsboro Facility, and has a proposed in-service date of May 31, 2018.

DTE representatives met with Commission Staff on September 22, 2016 to discuss the Project
and DTE’s use of the FERC’s pre-filing environmental review process. DTE respectfully requests the
Commission approve this request to initiate the pre-filing process on or before October 25, 2016. To
support the request, DTE submits the following in compliance with Section 157.21(d) of the
Commission’s regulations and Commission Staff’s guidance for initiating pre-filing review.
Project Overview
The Project consists of the installation of an approximately 14-mile-long, up to 16-inch-diameter
pipeline from Texas Eastern’s mainline interstate pipeline in Berks County, Pennsylvania to the site of the
Birdsboro Facility, a new natural gas electric generating facility to be located in the Borough of
Birdsboro, Pennsylvania. When complete, the Birdsboro Facility is expected to be capable of generating
about 488 MW. The Birdsboro Facility is being developed by Birdsboro Power LLC (Birdsboro Power).
The Project will be designed to meet the maximum allowable operating pressure of Texas Eastern’s
mainline, which is 1,050 pounds per square inch gauge. The Project will provide for the transportation of
approximately 79,000 dekatherms per day (Dth/day) of natural gas from Texas Eastern’s mainline to the
Birdsboro Facility.

DTE has entered into a Precedent Agreement with its sole customer, Birdsboro Power, effective
August 19, 2016 (Precedent Agreement) for the full capacity of the Project. Because the capacity of the
Project is fully committed and DTE has not received any other expressions of interest from other potential
shippers, DTE does not plan to solicit additional shippers for the Project nor hold an open season.

1 18 C.F.R. § 157.21(b) (2016).
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1. A description of the schedule desired for the project including the expected application
filing date and the desired date for Commission approval.
The Precedent Agreement has a planned in-service for the Project of May 31, 2018. To complete
the proposed Project and place the facilities into service by this date, DTE anticipates filing a certificate
application for the Project under Section 7(c) of the Natural Gas Act (NGA) in late April or early May
2017 and requests that the Commission issue an order approving the Project in December 2017.

Adhering to this proposed timeline will allow for receipt of any remaining applicable permits and
authorizations necessary in order to allow for full commencement of construction in the first quarter of
2018. Timely commencement of construction is critical to meet the Project proposed in-service date of
May 31, 2018.
2. Explain why the project sponsor needs/wants to participate in the pre-filing process.
DTE is requesting authorization to use the pre-filing review process to provide the necessary
environmental information to Commission Staff for review at the earliest possible time in order to
expedite the processing of DTE’s certificate application. Use of the pre-filing process will benefit DTE,
interested federal, state and local agencies, and other stakeholders by:

• Assisting in the development of initial information about the Project and identifying
affected parties;
• Facilitating issue identification and resolution;
• Providing a process that accommodates site visits, meetings with federal, state and local
agencies and stakeholders, participation in public information meetings and the
examination of alternatives;
• Providing interested federal, state and local agencies and stakeholders with access to draft
Environmental Resource Reports and other Project-related information;
• Minimizing the number of Commission Staff environmental data requests and subsequent
filings;
• Maintaining a coordinated schedule for a thorough environmental impact review; and
• Facilitating preparation of Environmental Resource Reports and other related documents.
3. Provide a detailed description of the Project, including location maps and plot plans to scale
showing all major plant components.
The Project will consist of the following:
i. Project Route. The mainline route includes construction of approximately 14 miles of up
to 16-inch-diameter pipeline that originates in Oley Township, Berks County,
Pennsylvania, and terminates near the Borough of Birdsboro, Berks County,
Pennsylvania. Major water crossings include the Schuylkill River. The system is rated for
a maximum allowable operating pressure (MAOP) of 1,050 psig.

ii. Major Interconnects. The single receipt point for the Project is with Texas Eastern’s
pipeline. There are two proposed physical interconnections with Texas Eastern’s
pipelines, which are looped in the same right-of-way in Berks County, Pennsylvania. The
single delivery point is at the Birdsboro Facility in the Borough of Birdsboro,
Pennsylvania.

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iii. Additional mainline valves and appurtenant facilities will be described in detail in the
draft Resource Reports for the Project. Please see Exhibit A for a Project Overview map
depicting the Project location. Exhibit B contains maps identifying the current preferred
route, which incorporates information gathered during document reviews, field work, and
consultation and feedback already received from affected landowners, agencies, elected
and public officials, and other interested stakeholders. These outreach efforts are
discussed further in this letter and documented in Exhibit D.

In accordance with the Commission’s pre-filing process, DTE is committed to continuing to
review the route alignment with stakeholders. As DTE continues these ongoing efforts, any updates to
these maps and relevant descriptions of alternatives will be submitted to the Commission in connection
with submission of the relevant draft Resource Reports.

4. Provide a list of the relevant federal and state agencies in the project area with permitting
requirements. The filing shall include a statement indicating:
(i) that those agencies are aware of the prospective applicant’s intention to use the pre-
filing process;

(ii) whether the agencies have agreed to participate in the process;

(iii) how the applicant has accounted for agency schedules for issuance of federal
authorizations; and

(iv) when the applicant proposes to file with these agencies for their respective permits
or other authorizations.
Federal, state and local agencies have been contacted by DTE or its agents starting in March 2016
regarding the Project to provide information about the Commission’s pre-filing environmental review
procedures, to discuss the agencies’ respective permitting requirements, and to solicit the participation of
federal, state and local agencies in the pre-filing review process. The table included as Exhibit C identifies
and provides contact information for the relevant federal and state agencies with potential permitting
requirements for the Project. The table also summarizes the results of DTE’s consultations with the
affected agencies.

DTE has incorporated the agency-specific schedules for issuance of required authorizations into
its overall Project schedule and expects to receive these authorizations prior to the commencement of
construction. DTE plans to file applications for applicable other federal and federally-delegated permits
on or before the date it files the NGA Section 7(c) certificate application with the Commission.

Key agencies with which DTE is in the process of arranging meetings include the following: the
U.S. Army Corps of Engineers (USACE); the U.S. Fish and Wildlife Service (FWS); the Pennsylvania
Historical and Museum Commission (PHMC) representing the State Historic Preservation Office
(SHPO); and the Delaware River Basin Commission. During the meetings, we have confirmed, or will
confirm, their intention to participate in the DTE Pre-Filing Process. DTE expects to file for the required
federal and federally-delegated permits on or before the date it files the NGA Section 7(c) certificate
application.

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5. Detail regarding other interested persons and organizations that have been contacted about
the Project.
DTE has identified stakeholders other than agencies and landowners, as listed in Exhibit D.
Outreach efforts with these interested stakeholders are described below.
6. Detail regarding what work has been done already, i.e. landowner contacts, agency
consultations, engineering, and route planning.
Landowner Contacts: The proposed Project will directly affect only approximately 29
landowners and 39 tracts. Initially, preliminary letters were sent to landowners in Oley Township
informing them about the Project. Subsequently, all affected landowners were contacted directly about
the Project and public meetings regarding the project were held in Oley Township and Berks County on
April 12, 2016 and March 24, 2016, respectively.

To date, DTE has been granted survey permission by landowners on 39 tracts, which constitutes
100 percent of the proposed Project right-of-way needing to be surveyed. DTE will continue to engage
landowners through individual discussions and site visits, as well as through the methods outlined in the
Public Participation Plan attached hereto as Exhibit E.

DTE will also hold a public open house to introduce the project to host communities. The format
will be structured around information stations, complete with maps, displays and photographs.
Community members and other interested stakeholders will be able to speak with, and ask questions of,
company representatives and DTE’s contractors to learn about the various aspects of the project such as
potential environmental impacts, safety, construction processes, project equipment, and other pertinent
facts. The meeting will be held in an accessible public location.

Stakeholder Engagement: Since March 2016, DTE or its agents have conducted a number of
stakeholder activities, including briefings with federal, state, and local elected and appointed officials.
Additionally, DTE will schedule public meetings with state and federal elected officials for the affected
municipalities. DTE will continue these efforts, which are outlined more fully in the Public Participation
Plan for the Project in Exhibit E.

Project Engineering and Route Planning: DTE has defined the facilities required to provide the
transportation services associated with the Project’s commitments. The facilities involve approximately
14 miles of new pipeline. Civil surveys are expected to commence in October of 2016 and are anticipated
to be completed in the spring of 2017. The right-of-way workspace configurations will be refined based
on input from landowners, agencies, officials, and other stakeholders, as well as information obtained
from field surveys, and these activities will continue throughout the pre-filing process.

Contractor Engagement: DTE has self-performed many of the activities, including public
outreach, community relations, mechanical engineering, cost estimated and hydraulic modeling.
Additionally, DTE has been working with the following contractors to perform various engineering and
project studies and legal services:

1. White & Case LLP: legal counsel
2. TEK: assistance with public outreach and community relations; survey permission and
landowner relations
3. Dawood & GAI Consultants, Inc.: environmental survey and other route selection evaluation
4. Western Land Services: title research

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Biological Field Surveys: DTE has initiated consultation with FWS, PA Game Commission, PA
Fish & Boat Commission, and the Department of Conservation and Natural Resources to identify federal
and state listed threatened and endangered species crossed by the Project. DTE also obtained initial
feedback from the applicable agencies about listed species that have been identified as potentially
occurring in the vicinity of the Project facilities. The most notable listed species identified include the
Indiana Bat, Bog Turtle and Eastern Redbelly Turtle. Surveys have been conducted for those species and
agency coordination is ongoing. No impact to any threatened or endangered species is anticipated at this
time.

DTE will coordinate with the appropriate agencies to discuss field surveys and protocols. DTE
began wetland/waterbody and general habitat field surveys in April 2016. Surveys for sensitive species
will be conducted in accordance with survey windows identified by the agencies. Based on the initial field
survey work completed as of July 2016, approximately 100 percent of the proposed route’s 650-foot
study corridor has been surveyed for wetland resources and general habitat.

A total of 29 wetland complexes and 26 waterbodies have been identified that may potentially be
affected. These resources consist of only fresh water influenced systems. The Schuylkill River is a major
waterbody crossing (i.e., greater than 100 feet).

Cultural Resources Surveys: A desktop analysis has been completed for the Project using the online
Pennsylvania’s Cultural Resources Geographical Information Systems (CRGIS) mapping system.
Currently there are no known archeological sites that are located within the Project limits. Three historical
resources have been identified in the Project area which includes Old Reading Railroad, the Oley
Township Historic District, and the Henry Fisher House. DTE will produce a research design and survey
strategy prior to field work that will be sent to interested Indian Tribes and the SHPO for review. DTE
will coordinate appropriate field surveys with PHMC. DTE anticipates receiving PHMC reviews of
survey reports for the Project in the spring of 2017.

7. Provide prospective third-party contractors from which the Commission staff may make a
selection to assist in the preparation of the requisite NEPA document, or a proposal for the
submission of an applicant-prepared draft Environmental Assessment as determined
during the initial consultation.
DTE prepared a Request For Proposals (RFP) that is consistent with Commission Staff guidance2
and was reviewed by FERC staff. The RFP was distributed widely to prospective contractors. Exhibit F
provides all of the proposals received in response to the RFP for the Commission’s consideration. DTE
requests confidential treatment of the contractor proposals in Exhibit F because they contain
commercially sensitive information.3 Exhibit F has been marked “CONTAINS PRIVILEGED
INFORMATION – DO NOT RELEASE.” Questions relating to this request for confidential treatment
may be submitted to Jane Rueger, whose contact information is provided below.

2 See Handbook for Using Third-Party Contractors to Prepare Environmental Documents for Natural Gas
Facilities and Hydropower Projects (Aug. 2016), available at
https://www.ferc.gov/industries/hydropower/enviro/tpc/tpc-handbook.pdf.
3 18 C.F.R. §§ 380.12, 388.112 (2016).

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8. Acknowledge that a complete Environmental Report and complete application are still
required at the time of filing.
DTE acknowledges that a complete Environmental Report and a complete application under
Section 7 of the NGA are still required for the Project and will be submitted to the Commission.
9. Detail a Public Participation Plan, which identifies specific tools and actions to facilitate
stakeholder communications and public information, including establishing a project
website and a single point of contact.
DTE has developed a comprehensive Public Participation Plan that outlines a commitment to
engage stakeholders throughout the lifecycle of the Project. The DTE Public Participation Plan is
provided as Exhibit E.

DTE appreciates the assistance of Commission staff in initiating the pre-filing process and
ensuring a thorough and timely review of the Project. DTE respectfully requests approval of this pre-
filing request no later than October 25, 2016.

Should you have any inquiries concerning this request, please contact the undersigned.

Respectfully submitted,

/s/ Jane E. Rueger
Jane E. Rueger
WHITE & CASE LLP
701 13th Street NW
Washington, DC 20005
Tel.: [phone]
Email: [email protected]

Counsel to DTE Midstream Appalachia, LLC

cc: John M. Wood

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Exhibits List:

Exhibit A - Project Overview Map

Exhibit B - Route Maps

Exhibit C - Chart of Anticipated Environmental Permits, Reviews, and
Consultations
Federal and State Environmental Agency Consultations

Exhibit D - Stakeholder List
State and Federal Officials, Local Officials, and Other Interested Parties

Exhibit E - Public Participation Plan

Exhibit F – Confidential Contractor Proposals

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PROJECT LOCATION
BIRDSBORO PIPELINE
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TETCO PIPELINE RECEIPT POINT
OVERVIEW MAP
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PROPOSED ROUTE DELIVERY POINT
DTE PIPELINE PROJECT
0 0.625 1.25 2.5
Miles
BERKS COUNTY
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PROPOSED TETCO
METER/TAP SITE
1
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LEGEND BIRDSBORO PIPELINE
PROJECT LOCATION
RELATIVE MILE POST # RECEIPT POINT PROJECT LOCATION MAP
PROPOSED ROUTE TETCO PIPELINE 1 OF 4
DTE PIPELINE PROJECT
0 1,000 2,000 4,000
Feet
BERKS COUNTY
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LEGEND BIRDSBORO PIPELINE
PROJECT LOCATION
PROJECT LOCATION MAP
RELATIVE MILE POST
PROPOSED ROUTE 2 OF 4
DTE PIPELINE PROJECT
0 1,000 2,000 4,000
Feet
BERKS COUNTY
PENNSYLVANIA Service Layer Credits: Copyright:© 2013 National Geographic Society, i-cubed DRAWN BY: WWB DATE: 10/12/2016