Algonquin LNG, Inc.; Notice of Intent To Prepare an Environmental Assessment for the Proposed Algonquin LNG Modifications Project and Request for Comments on Environmental Issues

DEPARTMENT OF ENERGY

[Docket No. CP96-517-000]

Algonquin LNG, Inc.; Notice of Intent To Prepare an Environmental

Assessment for the Proposed Algonquin LNG Modifications Project and

Request for Comments on Environmental Issues

June 24, 1996.

The staff of the Federal Energy Regulatory Commission (FERC or

Commission) will prepare an environmental assessment (EA) that will

discuss the environmental impacts of the construction and operation of

the facilities proposed in the Algonquin LNG Modifications Project.

This EA will be used by the Commission in its decision-making process

to determine whether an environmental impact statement (EIS) is

necessary and whether to approve the project.\1\

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\1\ Algonquin LNG, Inc.'s application was filed with the

Commission under Section 7 of the Natural Gas Act and Parts 157 and

284 of the Commission's regulations.

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Summary of the Proposed Project

Algonquin LNG, Inc. (ALNG) seeks Commission authorization to expand

its existing liquefied natural gas (LNG) facility in Providence, Rhode

Island and construction of pipeline facilities in East Providence,

Rhode Island. The purpose of the proposed facilities are to provide

natural gas liquefaction, LNG storage, LNG trucking, and LNG

vaporization services on a firm and interruptible, open access, blanket

basis.

Existing Facilities

ALNG owns and operates a 600,000-barrel LNG storage facility on the

west side of the Providence River. The facility has been in operation

for over 20 years, and is exclusively supplied with LNG delivered by

truck. Upon demand, LNG is either redelivered in liquid form into

trucks supplied by its customers, or vaporized into Providence Gas

Company's (PGC) distribution system. ALNG states that the usefulness of

the facility is limited by its lack of liquefaction capabilities and

direct access to the interstate pipeline grid.

PGC currently receives gas from Algonquin Gas Transmission

Company's (AGT) East Providence Meter Station (among other points)

which is located on the east side of the Providence River about 1.7

miles southeast of the site. After delivery at the meter station, PGC

transports the gas in a northerly direction in a 12-inch-diameter

pipeline to a manifold of three 10-inch-diameter pipelines that cross

the Providence River. These three pipelines converge into a 12-inch-

diameter pipeline on the west side of the Providence River that

ultimately feeds PGC's Allens Avenue Plant located adjacent to the ALNG

site.

Proposed Facilities

ALNG's proposes to construct the following facilities on or near

its existing LNG storage facility:

A liquefaction facility with a capacity of 40,000 million

British thermal units per day (MMbtu/d);

LNG pumps and vaporizers with a capacity of 375,000 MMbtu/

d;

Boil-off gas compressors;

1.05 miles of 20-inch-diameter pipeline;

0.25 mile of 10.75-inch-diameter pipeline;

Metering facilities;

Inspect the existing 600,000-barrel LNG storage tank, and

install new instrumentation; and

Miscellaneous construction including water/glycol system,

feed gas compressors, odorant injection, control systems, and fire

protection system additions.

ALNG also requests authorization:

To acquire two existing 0.45-mile-long, 10.75-inch-

diameter pipeline crossings of the Providence River;

To abandon three existing vaporizers and related

facilities;

To abandon its present LNG services;

To provide an enhanced, open access LNG handling service;

and

For a blanket certificate to construct eligible

facilities.

AGT proposes to reconstruct the East Providence Meter Station to

accommodate lower natural gas deliveries as a result of PGC

transferring volumes to the ALNG Interconnect. Construction would occur

under AGT's subpart F Blanket Certificate and associated environmental

requirements.

PGC would construct limited non-jurisdictional facilities on its

property in association with the proposed project. These include:

Construction of a regulator station to accept gas from

ALNG; and

Retirement of PGC boil-off compressors and certain

structures.

The proposed Algonquin LNG Modifications Project is shown in

appendix 1.\2\

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\2\ The appendices referenced in this notice are not being

printed in the Federal Register. Copies are available from the

Commission's Public Reference and Files Maintenance Branch, 888

First Street, NE, Washington, DC 20426, or call (202) 208-1371.

Copies of the appendices were sent to all those receiving this

notice in the mail.

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Land Requirements for Construction

The proposed facilities have been sited within existing industrial

areas, and within or along roadway and utility rights-of-way. In

general, the construction of the proposed LNG facilities would be

confined to the existing 16.5 acre ALNG plant area leased from PGC, and

an additional adjacent 4.2 acres to be leased from PGC. A proposed

valve site and interconnections to the PGC system would require work

immediately adjacent to the ALNG site on PGC properties that are

currently used for gas distribution activities. These areas are

currently graded and covered with gravel.

The proposed new pipeline in East Providence would typically

require a 50-foot-wide permanent right-of-way and a 25-foot-wide

temporary construction workspace. A reduced right-of-way and

construction workspace would be utilized along the Veterans Memorial

Parkway to avoid and/or minimize impacts. The proposed permanent right-

of-way would encompass an area of about 3.59 acres. The construction

workspace would require an additional 4.53 acres. With exception to the

Veterans Memorial Parkway, these areas are all industrial land that has

been previously disturbed.

Access to the proposed facilities would be from existing public and

private roadways. No new access roads would be required.

The EA Process/Environmental Issues

The National Environmental Policy Act (NEPA) requires the

Commission to take into account the environmental impacts that could

result from an action whenever it considers the issuance of a

Certificate of Public Convenience and Necessity. NEPA also requires us

to discover and address concerns the public may have about proposals.

We call this ``scoping''. The main goal of the scoping process is to

focus the analysis in the EA on the important environmental issues. By

this Notice of Intent, the Commission requests public comments on the

scope of the issues it will address in the EA and whether an EIS is

necessary. All comments received are considered during the preparation

of the EA. State and local government representatives are encouraged to

notify their constituents of this proposed action and encourage them to

comment on their areas of concern.

[[Page 33730]]

The EA will discuss impacts that could occur as a result of the

construction and operation of the proposed project under these general

headings:

Geology and Soils

--Erosion control.

--Facility site and right-of-way restoration.

--Soil contamination.

Water Resources

--Potential to affect water quality and riparian resources.

--Cooling water discharge into the Providence River.

Biological Resources

--Effect of facility construction and operation on wildlife and

fisheries habitat, including wintering waterfowl.

--Effect on wetland habitats.

Cultural Resources

--Effect on historic and prehistoric sites.

--Native American and tribal concerns.

Socioeconomics

--Impact of a peak workforce of about 225 workers on the

surrounding area.

Land Use

--Impact on state areas of critical environmental concern.

--Impact on residences and recreation areas.

Air Quality and Noise

--Air quality and noise impacts associated with construction.

--Impact on regional air quality and noise-sensitive areas

associated with operation of the proposed LNG facility.

Public Safety

--Compliance with 49 CFR 193.

We will also evaluate possible pipeline and technology alternatives

to the proposed project or portions of the project, and make

recommendations on how to lessen or avoid impacts on the various

resource areas.

Our independent analysis of the issues will be in the EA. Depending

on the comments received during the scoping process, the EA may be

published and mailed to Federal, state, and local agencies, public

interest groups, interested individuals, affected landowners,

newspapers, libraries, and the Commission's official service list for

this proceeding. A comment period will be allotted for review if the EA

is published. We will consider all comments on the EA before we

recommend that the Commission approve or not approve the project.

Public Participation/Scoping Meeting

You can make a difference by sending a letter addressing your

specific comments or concerns about the project. You should focus on

the potential environmental effects of the proposal, alternatives to

the proposal (including alternative pipeline routes), and measures to

avoid or lessen environmental impact. The more specific your comments,

the more useful they will be. Please follow the instructions below to

ensure that your comments are received and properly recorded:

Address your letter to: Lois Cashell, Secretary, Federal

Energy Regulatory Commission, 888 First St., NE, Washington, D.C.

20426;

Reference Docket No. CP96-517-000;

Send a copy of your letter to: Mr. Chris Zerby, EA Project

Manager, Federal Energy Regulatory Commission, 888 First St., NE, Room

72-55, Washington, D.C. 20426; and

Mail your comments so that they will be received in

Washington, D.C. on or before July 26, 1996.

Beyond asking for written comments, we will hold a public scoping

meeting during the week of July 15, 1996 (time, date and location will

be noticed at a late date). This public meeting will be designed to

provide you with more detailed information and another opportunity to

offer your comments on the proposed project.

At a later date (time, date and location will be noticed at a later

date) the FERC staff will meet with representatives of ALNG to conduct

a cryogenic design and engineering review of the proposed LNG

facilities.

Becoming an Intervenor

In addition to involvement in the EA scoping process, you may want

to become an official party to the proceeding or become an

``intervenor''. Among other things, intervenors have the right to

receive copies of case-related Commission documents and filings by

other intervenors. Likewise, each intervenor must provide copies of its

filings to all other parties. If you want to become an intervenor you

must file a motion to intervene according to Rule 214 of the

Commission's Rules of Practice and Procedure (18 CFR 385.214) (see

appendix 2).

The date for fling timely motions to intervene in this proceeding

has passed. Therefore, parties now seeking to file late interventions

must show good cause, as required by section 385.214(b)(3), why this

time limitation should be waived. Environmental issues have been viewed

as good cause for late intervention. You do not need intervenor status

to have your scoping comments considered.

Additional information about the proposed project is available from

Mr. Chris Zerby, EA Project Manager, at (202) 208-0111.

Lois D. Cashell,

Secretary.

[FR Doc. 96-16532 Filed 6-27-96; 8:45 am]

BILLING CODE 6717-01-M