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FERC Issues Favorable Environmental Decision on Dominion's Hub I

Dominion Transmission received a favorable environmental assessment last Monday for its Hub I project, a compressor addition in Pennsylvania and a pipeline connection with Texas Eastern Transmission (Tetco) designed to collect gas from the Rockies Express Pipeline (REX) delivered to Clarington, OH for transportation to major natural gas markets in the Northeastern and Mid-Atlantic states.

The Federal Energy Regulatory Commission (FERC) said the 4,700-horsepower Rock Springs compressor station along with about two miles of 20-inch diameter pipeline, and a new meter and regulator station (Crooked Run) in Westmoreland County, PA with appropriate mitigating measures would not constitute a major federal action significantly affecting the quality of the human environment. Public comments are invited on the environmental statement to be submitted to FERC on or before May 28.

Hub I will deliver up to 200 MMDth/d in the summer months and up to 150 MMDth/d in the winter for BP Energy, which has signed a 10-year firm contract for the capacity (see NGI, Aug. 13, 2007). REX has proposed as part of its REX East Project three delivery points into Dominion's system: (1) at the REX East terminus in Clarington; (2) approximately 22 miles upstream from there, at Noble, OH; and (3) nearly 200 miles upstream of the end of REX East, at Lebanon, OH.

The proposed Rock Springs compressor site is near Dominion's existing Oakford Compressor Station. The gas will be delivered from the Dominion Transmission system to a new interconnection with Tetco's Line 25 near Delmont, PA at the proposed Crooked Run meter. Dominion has proposed to have the project in service in November 2009.

Dominion also is working on a Hub III project to facilitate the transport of REX gas into the East (see NGI, Nov. 19, 2007). Shippers making deliveries into its system could transfer receipt point entitlements up to a total of 300 MMDth/d to the new interconnection with REX at Clarington. A successful open season has been conducted and contracts are being negotiated for the switch in service (see NGI, Jan. 14). "This is a virtual project," said Dominion spokesman Dan Donovan. Dominion executives believe the REX gas "can be absorbed through a series of small projects like these without the need for a large new pipeline," he added.

Hub II, which is still in the planning stages, involves a connection in New York state with the planned Millennium Pipeline, which is due to start construction soon.

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