FERC staff has given AGL Resources’ Golden Triangle Storage Inc. (GTS) the green light to resume construction at its East Texas storage project, which was halted earlier this month when the company discovered and self-reported to the Federal Energy Regulatory Commission (FERC) incidents of potential noncompliance with the conditions in its certificate order (see Daily GPI, July 9). GTS reported it quickly implemented several corrective measures to prevent the recurrence of future noncompliance incidents.

“We have determined that proper implementation of these [GTS-imposed corrective] measures will restore our confidence that GTS can complete its project in compliance with the Commission’s Dec. 31, 2007 order” approving the storage project, said Lauren H. O’Donnell, director of FERC’s Division of Gas — Environment and Engineering, in a letter order Friday.

After uncovering the noncompliance activities and alerting the Federal Energy Regulatory Commission, Golden Triangle Storage said it took several corrective measures, including mobilizing an AGL Resources environmental engineer from its Atlanta headquarters to oversee the current job site environmental inspector (EI); contracting a new EI to replace the current EI at the project site; conducting refresher environmental training for all GTS and contractor staff on the project site; and improving the site markings and signs to clearly identify the approved work areas for the 2008 construction facilities and identifying areas that should be avoided.

Some of the potential noncompliance incidents involved the clearance of an area that was used for parking; the installation of a temporary water line from the LNVA Canal; use of an existing access road; and relocation of electrical poles owned by an oilfield production operator.

“I also grant GTS’ request to continue using the access roads extending away from the Highland Avenue Extension and the power poles that were upgraded and relocated from the west side to the east side of the Highland Avenue Extension,” O’Donnell said.

However, “I do not approve your request to use the cleared parking area adjacent to the GTS laydown area; the access path to remediation area #2; the temporary water line; or the expanded footprints of the cavern #1 well pad, brine well #1 well pad, and brine well #2 well pad,” she told the company. And, O’Donnell added, “no construction activities may occur at this time on the 2009 construction facilities.”

The project calls for Golden Triangle to initially offer up to 12 Bcf of working capacity in two caverns. By adding caverns, the project could continue growing to a maximum of 28 Bcf. Initial commercial operations are slated to begin in late 2010 to early 2011, with the second cavern expected to come on-line in 2012. Golden Triangle also plans to build a nearly nine-mile pipeline heading northeast from the storage site into Orange County, TX, to connect the facility with three interstate and three intrastate pipelines (see Daily GPI, July 3, 2007). FERC approved the storage project in late December (see Daily GPI, Jan. 3).

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