Williams’ Buccaneer Gas Pipeline was the first to file anunderwater Florida-bound project with the FERC on Sept. 30 (see DailyGPI, Oct. 1), but Coastal Corp.’scompeting Gulfstream Natural Gas System moved to the lead today,filing its project three days after Buccaneer’s filing was rejected ontechnical grounds. The FERC told Buccaneer to come back with acomplete filing.

Both companies have been wooing Florida residents andlandowners, hoping to allay environmental and safety concerns.

Houston-based Coastal hired Florida-born football star andsportscaster Pat Summerall to pitch its 1.1 Bcf/d Gulfstream inFlorida radio spots. Both companies have hosted numerous meetingswith area residents and landowners

“We have held over 20 open houses and town meetings,” said JohnShafer, Gulfstream executive director of environmental affairs. “Wedid 18 open houses and town meetings here in Florida. What I triedto do was reach out to the grassroots environmental community…the smaller chapters and the smaller environmental groups.”

Tampa Tribune reporter Tom Jackson attended a Buccaneer openhouse in June. “Williams brought every manner of expert at thecompany’s disposal, including engineers, environmentalists, realestate and financial advisers and a publicist, and all were ontheir best behavior,” Jackson wrote.

Although both projects are to be filed as of today, the publicrelations push isn’t likely to abate. “The people whose propertiesthis thing is going to be going through and people with propertiesthat they might want to develop later on are not happy at all aboutthe proposed route, particularly of Buccaneer, and I think thatthere’s a big battle ahead” reporter Jackson told NGI.

Gulfstream’s Shafer said the company’s filing includes aproposal for Florida landfall at Port Manatee, an area where atleast one environmentalist has raised concerns for the effect theproject would have on sea grasses. “Our techniques, includinghorizontal drilling, completely avoid sea grass,” Shafer said.Nevertheless, the Gulfstream filing includes two alternate landfallpoints, he said.

The 744-mile Gulfstream would originate near Mobile, AL, andcross the Gulf of Mexico with more than 400 miles of 36-inchdiameter pipeline to Manatee County, FL. In Florida, 292 miles ofmainline and laterals, ranging in diameter from 16 inches to 36inches, are planned to deliver gas to fuel new electric generationcapacity throughout the state. The mainline terminates in PalmBeach County along Florida’s East Coast.

“Through interconnections with others, Gulfstream shippers willhave reliable access to more than 2 billion cubic feet per day ofgas supplies sourced from supply basins in the U.S. and Canada,”said Coastal CEO David A. Arledge. Coastal said 10 non-affiliatedutility and power production customers have made long-term, bindingcommitments for Gulfstream capacity and additional commitments areexpected soon.

Florida will require more than 9,600 megawatts of new powergenerating capacity by 2007, according to the Florida PublicService Commission’s “Review of Electric Utility 1998 Ten-Year SitePlans.” When completed, the Gulfstream system will have thecapacity to deliver sufficient gas to produce electricity for morethan 50% of the state’s additional megawatt requirements.

“Coastal has a clearly defined growth strategy with specificprojects and plans that are being coordinated with the Gulfstreamproject,” Arledge said. “Our power production division will haveopportunities to develop projects in Florida, and the explorationand production division has the opportunity to expand existing gassupplies in the Gulf of Mexico for delivery to the project.”

Gulfstream said it has met with more than 150 agencies andenvironmental groups and spent more than $7 million onenvironmental surveys and related work. Gulfstream has narrowed thepipeline study corridor from an initial three miles wide to thecurrent 300-foot-wide corridor. Construction on the $1.6 billionproject is scheduled to begin in June 2001. Gulfstream has atargeted in-service date of June 2002.

Another competitor targeting Florida is Duke Energy’s land-basedSawgrass pipeline, which plans to have an open season early nextyear and file with the FERC shortly thereafter. Also pending aretwo expansions of Florida Gas Transmission (FGT), which has amonopoly on interstate gas transportation into Florida. FGT PhaseIV is expected to begin construction this spring. A FERC filing forPhase V is expected at the beginning of December.

The FERC rejected Buccaneer’s filing for a number of reasons.The Commission said Buccaneer must file its project with theMinerals Management Service and the U.S. Army Corps of Engineers ina more timely manner if FERC staff is to work quickly with theagencies on the application. Buccaneer also must providecertification that its project complies with the Coastal ZoneManagement Act. Buccaneer failed to include endangered species andhabitat surveys, as well as reference to required consultationswith the U.S. Fish and Wildlife Service and the National MarineFisheries Service. Buccaneer also failed to identify or describenon-jurisdictional facilities to be built by others for theproject.

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