Rockies Express Pipeline LLC REX Zone 3 Capacity Enhancement
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Rockies Express Pipeline LLC REX Zone 3 Capacity Enhancement Project Volume 1 Public Information March 30, 2015 Federal Energy Regulatory Commission Docket Branch, Room 1A 888 First Street, N.E. Washington, D.C. 20426 Attention: Ms. Kimberly D. Bose, Secretary Re: Rockies Express Pipeline LLC; REX Zone 3 Capacity Enhancement Project Abbreviated Application for a Certificate of Public Convenience and Necessity Ladies and Gentlemen: Enclosed herewith for filing with the Federal Energy Regulatory Commission (“Commission”) is Rockies Express Pipeline LLC’s (“Rockies Express”) abbreviated application pursuant to Section 7(c) of the Natural Gas Act and Part 157 of the Commission's Regulations, for a certificate of public convenience and necessity authorizing the construction and operation of certain mainline compression and ancillary facilities that will enable Rockies Express to offer an additional 800,000 Dth/d of east-to- west firm transportation service within Zone 3 of its system. The project is referred to as the “REX Zone 3 Capacity Enhancement Project.” Description of Items Being Filed Rockies Express has organized the items being filed herein into the following volumes described below pursuant to the Commission’s Critical Energy Infrastructure Information (“CEII”) filing guidelines. Public Information Volume 1 is comprised of the following: • This letter of transmittal • Application text • Federal Register Notice • Exhibits required pursuant to Section 157.14 of the Commission’s Regulations (excluding Exhibits F-I, G/G-I , G-II, and I) Volume 2 contains Exhibit F-I (Environmental Resource Reports), Reports 1 through 13 370 Van Gordon Street Lakewood, CO 80228-1519 303.763.2950 CEII Volume 3 contains diagrams and drawings from the Environmental Resource Reports Volume 4 contains Exhibit G/G-I and Exhibit G-II Privileged Information Volume 5 contains Exhibit I Volume 6 contains the landowner list and cultural resource information from the Environmental Resource Reports Filing Information Rockies Express respectfully requests: (i) that Volumes 3 and 4 be treated as CEII; and (ii) that Volumes 5 and 6 be accorded privileged and confidential treatment pursuant to 18 C.F.R. § 388.112. Accordingly, Rockies Express has marked Volumes 3 and 4 with “Contains CEII – Do Not Release,” and Volumes 5 and 6 have been marked “Contains Privileged Information – Do Not Release.” The person to be contacted regarding this request for privileged treatment is: David Haag Vice President, Regulatory Rockies Express Pipeline LLC 370 Van Gordon Street Lakewood, Colorado 80228-1519 Telephone: (303) 763-3258 Rockies Express is filing this application in accordance with the Commission’s eFiling procedures. In addition, two complete sets of the application will be submitted to OEP Room 62-46 and one complete set is being submitted to OGC-EP Room 101-56. As certified in the verification statement to this filing, the paper copies of the application contain the same information as the electronic version. Very truly yours, Rockies Express Pipeline LLC By /s/ David Haag David Haag Vice President, Regulatory 2 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ) Rockies Express Pipeline LLC ) Docket No. CP15-___-000 ) ABBREVIATED APPLICATION OF ROCKIES EXPRESS PIPELINE LLC FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Pursuant to Section 7(c) of the Natural Gas Act (“NGA”), 15 U.S.C. § 717f(c) (2012), and Part 157 of the regulations of the Federal Energy Regulatory Commission (“Commission” or “FERC”), 18 C.F.R. Part 157 (2014), Rockies Express Pipeline LLC (“Rockies Express” or “REX”) hereby files this abbreviated application for a certificate of public convenience and necessity (“Application”) requesting authorization to construct and operate the new facilities to enable Rockies Express to offer an additional 800,000 dekatherms per day (“Dth/d”) of east-to-west firm transportation service within Zone 3 of its system. In particular, the proposed facilities will increase the Rockies Express Zone 3 east-to-west mainline capacity by 800,000 Dth/d from receipts at Clarington, Ohio to corresponding deliveries of 520,000 Dth/d and 280,000 Dth/d to Lebanon, Ohio and Moultrie County, Illinois, respectively. The proposed facilities will allow the pipeline to meet demand for east-to-west transportation of gas from the Appalachian Basin to Midwestern gas interconnects and markets, while continuing to meet all of its existing firm service obligations for both eastbound and westbound firm transportation (the “REX Zone 3 Capacity Enhancement Project” or “Project”). Rockies Express’s proposal includes: (i) the construction of three new mainline compressor stations located in Pickaway and Fayette Counties, Ohio and Decatur County, Indiana; (ii) the installation of additional compressor units at one existing compressor station located in Muskingum County, Ohio; and (iii) the construction of ancillary facilities. As demonstrated herein, the REX Zone 3 Capacity Enhancement Project is required by the present and future public convenience and necessity. Through these proposed enhancements to its existing infrastructure, the Rockies Express system will be able to meet market demands for economical pipeline transportation capacity between the Appalachian Basin gas producing markets and Midwestern consuming markets. As the Project involves only the construction of new compressor stations, the addition of new compressor units at an existing compressor station, and certain ancillary facilities, the Project will cause limited environmental disturbance. Further, the Project will not have any adverse rate or service consequences to existing shippers. Rockies Express proposes to provide service on the Project pursuant to its currently-approved tariff rates; however, the new service will be subject to a separately-stated fuel rate, ensuring that existing shippers do not subsidize the operations of the Project. Rockies Express respectfully requests that the Commission issue an order authorizing the REX Zone 3 Capacity Enhancement Project on or before December 31, 2015, in order to allow Rockies Express to meet its in-service dates for the firm service shippers that have subscribed to the Project. In support thereof, Rockies Express states as follows: I. EXECUTIVE SUMMARY The Rockies Express mainline is a large diameter, high pressure pipeline that spans over 1,700 miles between western Wyoming/Colorado and eastern Ohio. With connections or access to major Rocky Mountain and Appalachian supply basins, and 2 numerous interconnections with interstate pipelines, Rockies Express is a de facto header system. The Rockies Express system originally was conceived and built as an outlet for Rocky Mountain natural gas production. However, the pipeline recently has begun providing firm transportation from east-to-west in Zone 3 to enable Appalachian gas supplies to reach Midwest interconnects and markets. The facilities described herein will expand the Rockies Express system’s east-to- west firm capacity in Zone 3 in order to meet new transportation demands for gas originating in the Appalachian Basin. The additional gas supplies will be delivered by Rockies Express to Midwest pipeline interconnects and markets as far west as Illinois. Based on the geographical location of the mainline and the physical attributes of its system, the Project is particularly well situated to provide an economic and reliable transportation alternative for Appalachian gas supplies with limited associated environmental and landowner disturbance. By implementing the enhancements proposed herein, Rockies Express will have the ability to offer an additional 800,000 Dth/d of east-to-west forwardhaul capacity in Zone 3. Existing firm shippers’ eastbound and westbound service will not be adversely impacted by the Project; rather, the facility enhancements sought herein will allow Rockies Express to operate its system to continue meeting all current firm shippers’ contract obligations while also providing new shippers with firm east-to-west transportation service. As demonstrated herein, the Project satisfies all of the criteria of the Commission’s Policy Statement on the Certification of New Interstate Natural Gas 3 Pipeline Facilities (“Certificate Policy Statement”).1 As a threshold matter, Rockies Express’s existing shippers will not subsidize the Project. Rather, the Project will be supported by firm commitments from shippers who will utilize virtually all of the newly- created east-to-west forwardhaul capacity. Rockies Express conducted a non-binding open season for the Project and thereafter it received binding long-term commitments from new shippers for 700,000 Dth/d of the 800,000 Dth/d east-to-west forwardhaul capacity that will be created from the Project. After securing those commitments, Rockies Express conducted a binding open season; except for the pre-arranged shippers bids, no conforming bids were received in response to the binding open season.2 Rockies Express proposes to provide service on the Project pursuant to its currently-approved tariff rates, which, as demonstrated below, leaves Rockies Express the entity responsible for both marketing (on an open access basis) and the costs associated with the unsubscribed portion of the Project’s capacity.3 Further, in order to ensure that existing shippers do not subsidize the Project, Rockies Express proposes to establish a separately-stated rate for fuel. Second, the Project will have no adverse effects on the pipeline’s existing