Montgomery Township Green Acres Final Hearing October 13, 2014
> Introductions Transcontinental Gas Pipe Line Company, LLC John B. Todd, P.E., Project Manager, Williams Carol Peabody, Senior Land Representative, Williams Brent Simmons, Senior Environmental Scientist, Williams 2
Purpose of this Final Hearing > This final Green Acres hearing is being held in connection with Transco s proposed Leidy Southeast Project, Skillman Loop. > Montgomery Township is considering the proposed diversion of a portion of parkland identified as Block 27001, Lot 6; Block 15001, Lot 26; Block 33001, Lots 18, 21, 26.01, 26.02 and 28.02; Block 26001, Lot 1.02; Block 16002, Lot 9.01 and Block 4001, Lot 10.03. > New Jersey Administrative Code (N.J.A.C.) 7:36-26.11 Major disposals or diversions of parkland; final application requirements (e) Once the New Jersey Department of Environmental Protection (NJDEP) has determined that the final application is complete for public hearing purposes, the applicant shall hold a public hearing to obtain public comment on the application and shall offer the public the opportunity to submit written comments. 3
The Green Acres Diversion Process: Actions to Date > A scoping hearing was held on March 11, 2014 to solicit comments on the proposed diversion. > Transco, Montgomery Township representatives, and NJDEP Green Acres staff met on July 9, 2014 to conduct a site inspection of each Green Acres parcel impacted by Transco s Project. > Transco had various discussions with Montgomery Township throughout the diversion process in order to address the Township s concerns. > The Pre-Application was submitted to NJDEP on August 8, 2014. > The first part of the Final Application was submitted to NJDEP on September 12, 2014. 4
Who is Williams Who is Transco > Williams owns & operates the Transco interstate natural gas pipeline. > Transco s pipeline system consists of 10,200 miles of pipeline and 52 compressor stations and storage facilities. > System design capacity of 9.8 bcf/day. Enough energy to heat approximately 42 million homes every day. > Transports 8% of the natural gas consumed in the U.S. 5
Leidy Southeast: Project Overview > Project Components Four pipeline loops Dorrance Loop: 5.27 miles in Luzerne County (Dorrance and Slocum Townships), Pennsylvania Franklin Loop: 11.47 miles in Monroe and Luzerne Counties (Tobyhanna and Buck Townships), Pennsylvania Pleasant Run: 6.92 miles in Somerset and Hunterdon Counties (Branchburg, Clinton and Readington Townships), New Jersey Skillman Loop: 6.31 miles in Mercer and Somerset Counties (Princeton and Montgomery Townships), New Jersey > What is a pipeline loop? A segment of pipeline installed adjacent to an existing pipeline and connected to it at both ends A loop allows more gas to be moved through the system 6
Leidy Southeast: Project Overview 7
The FERC Regulatory Process > The Federal Energy Regulatory Commission ( FERC ) is the governing body that determines whether the project is needed and in the public s best interest. > Transco seeks approval for pipeline expansion projects by filing an application for a Certificate of Public Convenience and Necessity. > Transco filed the FERC Application for the Leidy Southeast project, which includes the proposed Pleasant Run and Skillman Loops, in October, 2013 and is now working under docket number CP13-551. > FERC issued an Environmental Assessment on August 11, 2014. > FERC Order is anticipated in November 2014. > Should the Project be approved, the construction start date is anticipated to be early 2015 with an in-service date of November 1, 2015. 8
Montgomery Township: What lands are proposed to be diverted? > The proposed Skillman Loop will affect ten (10) parcels within the Green Acres inventory for Montgomery Township: Properties owned by Montgomery Township Block 27001, Lot 6 Block 15001, Lot 26 Privately owned properties Block 33001, Lot 26.01 (owned by WBT Mountainview, LLC) Block 33001, Lot 26.02 (owned by PRL Cherry Valley, LLC) Block 33001, Lots 18 and 21 (owned by Robert and Caroline Phinney) Block 33001, Lot 28.02 (owned by Waldorf School Association of Princeton) Block 26001, Lot 1.02 (owned by Princeton Show Jumping, LLC) Block 16002, Lot 9.01 (owned by East Country Estates Home Owners Association) Block 4001, Lot 10.03 (owned by Theodore Pedersen) Transco proposes to acquire permanent easements totaling 4.629 acres Transco proposes to acquire temporary workspace totaling 15.732 acres Transco proposes to acquire temporary access road easements totaling 0.437 acres 9
Leidy Southeast Project Public Need > The public need is determined by the Federal Energy Regulatory Commission when a Certificate of Public Convenience and Necessity is issued. > Transport natural gas to meet increasing demand for energy in Northeastern U.S. > Provide an additional 525,000 dt/day of firm transportation capacity to delivery points that would be accessible by customers in the mid- Atlantic and Southeast states > Provide access to new sources of domestic natural gas supply and support the overall reliability of the energy infrastructure > The Project s incremental volumes of gas are fully contracted. > Cleaner source of fuel than coal or petroleum 10
PRL Cherry Valley, LLC Property > Block 33001, Lot 26.02 Permanent Easement 1.444 Acres Temporary Workspace 4.083 Acres 11
WBT Mountainview, LLC Property > Block 33001, Lot 26.01 Permanent Easement 0.507 Acres Temporary Workspace 0.837 Acres 12
Waldorf School Association of Princeton Property > Block 33001, Lot 28.02 Permanent Easement 0.093 Acres 13
Phinney Properties > Block 33001, Lot 21 Permanent Easement 0.294 Acres Total Temporary Workspace 1.638 Acres Temporary Road Access Easement 0.216 Acres 14
Phinney Properties > Block 33001, Lot 18 Permanent Easement 0.118 Acres 15
Montgomery Township Property > Block 27001, Lot 6 Permanent Easement 1.479 Acres Temporary Workspace - 4.774 Acres 16
Princeton Show Jumping, LLC Property > Block 26001, Lot 1.02 Permanent Easement within Green Acres Restricted Areas 0.013 Acres Temporary Workspace within Green Acres Restricted Areas 0.032 Acres 17
Montgomery Township Property > Block 15001, Lot 26 Permanent Easement 0.698 Acres Temporary Workspace 3.558 Acres Temporary Road Access Easement 0.221 Acres 18
East Country Estates Homeowners Association, Inc. Property > Block 16002, Lot 9.01 Permanent Easement within Green Acres Restricted Areas 0.014 Acres Temporary Workspace within Green Acres Restricted Areas 0.055 Acres 19
Pedersen Property > Block 4001, Lot 10.03 Temporary Workspace 0.755 Acres 20
Leidy Southeast Project Alternatives - Montgomery Township > Alternatives, including a no-action alternative, system alternatives, construction alternatives, and route alternatives, were addressed at the scoping hearing held on March 11, 2014. > FERC also performed its own alternatives analysis which can be found in the Environmental Assessment on the FERC s website (www.ferc.gov) in docket number CP13-551. > A complete alternatives analysis was submitted to NJDEP in both the Pre- Application and the first part of the Final Application. Copies of the Final Application are available for review at the Montgomery Township Municipal Building, the Mary Jacobs Memorial Library, and the Green Acres Program offices. > There is no feasible or reasonable alternative to the proposed route. > The route has been finalized and the portions of the Green Acres encumbered parcels crossed by the Project are being diverted. 21
Compensation > The total appraised value of the permanent easements is $87,300 and the total appraised value of temporary workspace is $64,200. > Because the sponsor (Transco) is a private entity and monetary compensation is proposed, Green Acres regulations require that permanent easements be compensated at a minimum of a ten-to-one ratio. See N.J.A.C. 7:36-26.10(g). Green Acres regulations do not require a minimum compensation for temporary workspace. > Transco has agreed to compensate the Township by a fifteen-to-one ratio for the permanent easements and a five-to-one ratio for temporary workspace and temporary access roads. Transco has also agreed to compensate the Township in the amount of $25,000 for estimated technical costs associated with acquiring replacement land. > The total compensation that Transco has agreed to pay the Township for the permanent and temporary easements and technical costs associated with acquiring replacement land is $1,655,500. > The compensation paid by Transco must be used by the Township to acquire replacement land within two years of the date of the approval of the application for diversion of parkland by the State House Commission. See N.J.A.C. 7:36-26.10(k)(2). In addition, the replacement land must also be comparably wooded to the parcels being diverted so as to compensate for the removal of trees in connection with Transco s Project, or if the replacement land is not sufficiently wooded, the Township would be required to plant trees.. See N.J.A.C. 7:36-26.10(c)4iii. 22
Partial Release of Conservation Restriction > Since the rights held by the Township are Green Acres restricted and in the form of a conservation restriction, Transco is seeking a partial release of the conservation restrictions on privately-owned properties identified as Block 33001, Lots 18, 21, 26.01, 26.02 and 28.02; Block 26001, Lot 1.02; and Block 16002, Lot 9.01 in accordance with the New Jersey Conservation Restriction and Historic Preservation Restriction Act and is seeking approval from the Commissioner of the NJDEP. N.J.S.A. 13:8B-6. > Since there are no permanent impacts to Block 4001, Lot 10.03, a release of the conservation restriction across this parcel is unnecessary. > Compensation for the partial release of the conservation restriction will be satisfied by the compensation for the diversion as discussed previously. 23
Post-Hearing Process > The first part of the Final Application was submitted to NJDEP on September 12, 2014. > The public may submit comments on the Final Application by October 27, 2014. > The second part of the Final Application will be submitted, along with the request for a partial release of the conservation restrictions, to NJDEP in November 2014 for the Commissioner s approval. > If the Final Application is approved by NJDEP, it will then be considered for final approval by the State House Commission at the December meeting. 24
Comment Period You may submit written comments by October 27, 2014 to Donna Kukla, Municipal Clerk, Township of Montgomery, 2261 Van Horne Road, Belle Mead, New Jersey 08502 A copy of any written comments must also be provided by you to Kevin Appelget, New Jersey Department of Environmental Protection, Green Acres Program, Bureau of Legal Services and Stewardship, Mail Code 501-01, P.O. Box 420, Trenton, New Jersey 08625-0420. Information on the Project is available at www.ferc.gov (Docket # CP13-551) 25