Southern LNG Inc.; Notice of Intent To Prepare an Environmental Assessment for the Proposed Elba Island Terminal Recommissioning Project and Request for Comments on Environmental Issues

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. CP99-579-000 and CP99-580-000]

Southern LNG Inc.; Notice of Intent To Prepare an Environmental

Assessment for the Proposed Elba Island Terminal Recommissioning

Project and Request for Comments on Environmental Issues

August 9, 1999.

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 Elba Island Terminal

Recommissioning Project involving construction and operation of

facilities by Southern LNG Inc. (Southern LNG) on Elba Island in

Chatham County, Georgia.\1\ The project involves returning Southern

LNG's existing, certificated liquefied natural gas (LNG) marine import

terminal (Elba Island Terminal) to active service. This EA will be used

by the Commission in its decision-making process to determine whether

the project is in the public convenience and necessity.

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\1\ Southern LNG's application was filed with the Commission

under section 7 of the Natural Gas Act and part 157 of the

Commission's regulations.

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Background

In 1972, in Docket No. CP71-264, the Federal Power Commission

(FERC's predecessor) authorized Southern Energy Company (Southern LNG's

predecessor), to construct and operate the Elba Island Terminal.

Southern LNG initiated construction in 1973. The terminal encompasses

about 140 acres on the 840-acre Elba Island in an estuary of the

Savannah River. Elba Island lies approximately 8 miles upstream of the

river's discharge into the Atlantic Ocean and approximately 5 miles

downstream from Savannah, Georgia. The existing authorized facilities

at the Elba Island Terminal include the following:

LNG unloading facilities, including marine berth, pier,

and arms for unloading LNG from vessels;

LNG storage facilities, including three double-wall

storage tanks, each with the capacity of 400,000 barrels (four billion

cubic feet vaporized equivalent);

LNG sendout facilities, including pumps and vaporizers

with a maximum capacity of 540 million cubic feet per day;

Boil-off compressors;

Pressure relief, vent, and disposal systems;

Spill containment facilities, including a 400,000-barrel

capacity main spill containment for each LNG storage tank; and

Fire water system sourced from a fresh-water pond and

river water.

Southern LNG commenced operation in July, 1978. Between 1978 to

1980, the Elba Island Terminal was used to import LNG purchased from El

Paso Algeria Corporation. El Paso Algeria Corporation transported LNG

by cryogenic tankers to the point of unloading at the Elba Island

Terminal. Southern LNG resold all of the vaporized LNG to Southern

Natural Gas Company (Southern Natural).

In April, 1980, Southern LNG was unable to continue importation of

LNG due to economic considerations. After LNG shipments were

discontinued, Southern LNG retained an inventory of LNG through April,

1982. During this time, Southern LNG rendered peaking service to

Southern Natural until depleting the remaining LNG.

Since 1982, the Elba Island Terminal has been maintained in a

limited state of readiness to ensure that the plant could be safely and

reliably reactivated. An ongoing preventative maintenance program has

been in place since that time and needed repairs, replacements,

enhancements and additions have been identified for implementing during

the recommissioning process.

Summary of the Proposed Project

Southern LNG requests Commission authorization, in Docket No. CP99-

580-000, to recommission the Elba Island Terminal for the purpose of

providing open-access service to shippers desiring to contract for

receipt, storage, and vaporization of LNG and delivery of vaporized LNG

at the existing point of interconnect with the interstate pipeline of

Southern Natural.

The storage and vaporization facilities would not be significantly

altered, replaced or relocated. The storage and throughput capacity of

the facilities would remain the same as originally placed in service in

1978. The recommissioning work will include the following:

Install suction drum level control and minimum flow

piping;

Replace two LNG pumps;

Install LNG recirculation piping;

Install an additional boil-off compressor (1,000-

horsepower);

Install LNG tank level, density and temperature gauges;

Upgrade fire protection system;

Upgrade hazard detection system;

Install intrusion detection system;

Renew dredging of berthing area and turning basin;

Increase dredged material basin capacity;

Modify power distribution switchgear to allow parallel

operation with utility (under consideration); and

Install distributed control and data acquisition system.

The proposed improvements would bring the facilities into compliance

with applicable current code requirements and would update the safety,

security, operability and reliability of the terminal. The location of

the project facilities 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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In addition, in Docket No. CP99-579-000, Southern LNG requests

section 3 authorization under subpart B of Part 153 of the Commission's

regulations for siting of natural gas import facilities. This

application is directly related to Southern LNG's proposal described

above in Docket No. CP99-580-000.

Land Requirements for Construction

No additional land would be required by Southern LNG's proposal.

All work would occur within previously disturbed and currently

maintained areas. None of the proposed recommissioning tasks would

result in substantial changes to the appearance or previous function of

the existing facilities. Prior to restarting the facility, the ship

berthing and turning basin areas would need to be dredged and

maintained to -39 feet mean low water (MLW) with an over-dredge of two

feet to -41 feet MLW.

The EA Process

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. All comments received

are considered during the preparation of the EA. State and local

government representatives are encouraged to notify their constituents

[[Page 44210]]

of this proposed action and encourage them to comment on their areas of

concern.

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

Water resource, fisheries, and wetlands

Vegetation and wildlife

Endangered and threatened species

Public safety

Land use

Cultural resources

Air quality and noise

Hazardous waste

We will also evaluate possible 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 make

our recommendations to the Commission

To ensure your comments are considered, please carefully follow the

instructions in the public participation section below.

Public Participation

You can make a difference by providing us with your specific

comments or concerns about the project. By becoming a commentor, your

concerns will be addressed in the EA and considered by the Commission.

You should focus on the potential environmental effects of the

proposal, alternatives to the proposal, and measures to avoid or lessen

environmental impact. The more specific your comments, the more useful

they will be. Please carefully follow these instructions to ensure that

your comments are received in time and properly recorded:

Send two copies of your letter to: David P. Boergers,

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

1A, Washington, DC 20426;

Label one copy of the comments for the attention of the

Environmental Review and Compliance Branch, PR-11.1;

Reference Docket Nos. CP99-579-000 and CP99-580-000; and

Mail your comments so that they will be received in

Washington, DC on or before September 8, 1999.

Beyond asking for written comments, in October, 1999, we will be

conducting a site visit, holding a public scoping meeting, and

conducting a cryogenic design and engineering review. The public

meeting will be designed to provide you with more detailed information

and another opportunity to offer your comments on the proposed project.

Further details on the dates and locations of the above events will be

noticed at a later date.

Becoming an Intervenor

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

to become an official party to the proceeding known as an

``intervenor''. Intervenors play a more formal role in the process.

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 14 copies of its filings to the

Secretary of the Commission and must send a copy of its filings to all

other parties on the Commission's service list for this proceeding. 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). Only intervenors have the

right to seek rehearing of the Commission's decision.

The date for filing timely motions to intervene in this proceeding

ends on August 13, 1999. If this date cannot be met, parties 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 environmental comments considered.

Additional information about the proposed project is available from

Mr. Paul McKee of the Commission's Office of External Affairs at (202)

208-1088 or on the FERC website (www.ferc.fed.us) using the ``RIMS''

link to information in this docket number. Click on the ``RIMS'' link,

select ``Docket #'' from the RIMS Menu, and follow the instructions.

For assistance with access to RIMS, the RIMS helpline can be reached at

(202) 208-2222.

Similarly, the ``CIPS'' link on the FERC Internet website provides

access to the texts of formal documents issued by the Commission, such

as orders, notices, and rulemakings. From the FERC Internet website,

click on the ``CIPS'' link, select ``Docket #'' from the CIPS menu, and

follow the instructions. For assistance with access to CIPS, the CIPS

helpline can be reached at (202) 208-2474.

Linwood A. Watson, Jr.,

Acting Secretary.

[FR Doc 99-20928 Filed 8-12-99; 8:45 am]

BILLING CODE 6717-01-M