Resource Report 10 – Alternatives Pre-Filing Draft FERC ...RESOURCE REPORT TEN ALTERNATIVES Millennium Pipeline Company, L.L.C. 10-1 Hancock Compressor Project Resource Report 10

Resource Report 10 – Alternatives

Pre-Filing Draft FERC Docket No. PF12-10

Date: May 2012

Millennium Pipeline Company, L.L.C.

Hancock Compressor Project

FERC Environmental Checklist


Part 380-Appendix A Minimum Filing Requirements for Environmental Reports

Company Compliance or Inapplicability of Requirement

Address the "No-Action" alternative. (§380.12(l)(1)) Section 10.2

For large Projects, address the effect of energy conservation or energy alternatives to the Project. (§380.12(l)(1))

Section 10.2.1 and Section 10.2.2, Figure 10.2-1 and Figure 10.2-2

Identify system alternatives considered during the identification of the Project and provide the rationale for rejecting each alternative. (§380.12(l)(1))

Section 10.3

Identify major and minor route alternatives considered to avoid impact on sensitive environmental areas (e.g., wetlands, parks, or residences) and provide sufficient comparative data to justify the selection of the preferred proposed route. (§380.12(l)(3))

Section 10.4

Identify alternative sites considered for the location of major new aboveground facilities and provide sufficient comparative data to justify the selection of the proposed site. (§380.12(l)(3))

Section 10.5, Table 10.5-1

RESOURCE REPORT TEN ALTERNATIVES

Millennium Pipeline Company, L.L.C. 10-i Hancock Compressor Project

Table of Contents

Section Page

Resource Report 10 – Alternatives ............................................................................................................... 1

10.1 Location and Description of Facilities ............................................................................................. 1

10.1.1 Pipeline Facilities ............................................................................................................ 1

10.1.2 Aboveground Facilities ................................................................................................... 2

10.2 No-Action Alternative ..................................................................................................................... 2

10.2.1 Energy Conservation ....................................................................................................... 4

10.2.2 Alternative Energy Sources ............................................................................................. 6

10.3 System Alternatives ......................................................................................................................... 8

10.3.1 Millennium-Based Systems ............................................................................................. 9

10.3.1.1 Looping or Replacement................................................................................ 9

10.3.1.2 Additional Compression at Existing or Proposed Compressor Station ....... 10

10.3.1.3 Combined Additional Compression and Looping or Replacement ............. 10

10.3.1.4 Electric Driven Compressors ....................... Error! Bookmark not defined.

10.4 Routing Alternatives ...................................................................................................................... 10

10.5 Compressor Station Site Alternatives ............................................................................................ 11

10.5.1 Compressor Station Site Selection Criteria ................................................................... 11

10.5.2 Compressor Station Site Evaluations ............................................................................ 12

10.5.2.1 Proposed Compressor Station Site ............................................................... 13

10.5.2.2 Alternative Compressor Station Sites .......................................................... 14

10.5.2.3 Meter Station/Interconnect Sites .................................................................. 16

10.5.2.4 Other Aboveground Facilities ...................................................................... 16

10.6 References ...................................................................................................................................... 16


Millennium Pipeline Company, L.L.C. 10-ii Hancock Compressor Project

List of Tables

Table 10.5-1 Alternative Site Analysis, Hancock Compressor Project .................................................. 12

List of Figures

Figure 10.2-1 U.S. Primary Energy Consumption by Source ................................................................... 5

Figure 10.2-1 U.S. Primary Energy Production by Source ....................................................................... 6

List of Appendices

Appendix 10-A Alternative Compressor Station Sites –USGS Quad Maps


Millennium Pipeline Company, L.L.C. 10-1 Hancock Compressor Project


Millennium Pipeline Company, L.L.C. (Millennium) is proposing to construct the Hancock Compressor Project (Project) in Delaware County, New York which will enable Millennium to provide an additional 107,500 dekatherms per day (Dth/d) of incremental firm transportation service to an existing interconnect with Algonquin Gas Transmission, L.L.C. (Algonquin) located in Ramapo, New York and meet the anticipated need for the additional delivery of 115,000 Dth/d from a new interconnect with Laser Northeast Gathering Company, L.L.C. (Laser) to an existing interconnect with Columbia Gas Transmission, L.L.C. (Columbia) at Wagoner. The Project involves the construction of a new compressor station to be located at 1579 Hungry Hill Road in the Town of Hancock, New York (Hancock Compressor Station).

Resource Report 10 is one of several resource reports that collectively constitute the Project’s overall Environmental Report (ER). This resource report describes the alternatives that have been considered in designing the Project. Section 10.1 describes the Project location and facilities. Section 10.2 describes the No-Action alternative. System alternatives are evaluated in Section 10.3. Section 10.4 states that routing alternatives are not applicable as there are no proposed pipeline facilities other than limited suction and discharge piping that will connect the new compressor station to the existing mainline. Section 10.5 evaluates the proposed and alternative compressor station sites for the Project.

Millennium considered alternatives in accordance with the objectives of the Commission’s siting guidelines set forth in 18 CFR § 380.15. The primary objective in evaluating alternatives was to avoid, minimize and, if necessary, mitigate adverse environmental effects while at the same time meeting both the economic and engineering criteria of Millennium and its customers.

Millennium analyzed a range of alternatives for the proposed facility/capacity increase, including taking no action, using energy alternatives to natural gas, practicing energy conservation, and relying on other sources of natural gas to meet the increasing demand for energy supplies in the region. Millennium has also evaluated alternative locations for the proposed compressor facilities. Based on these analyses, Millennium determined that the proposed Project and site location are the most advantageous to meet the specific demands of its customers. The proposed location will optimize constructability, minimize environmental impacts, minimize impacts to residential and commercial facilities, and minimize costs of construction. The alternatives analyses are discussed in detail in the following sections.

10.1 Location and Description of Facilities

10.1.1 Pipeline Facilities

The only pipeline associated with this Project connects the compressor station to the existing mainline, and is described in detail in Section 10.1.2.



10.1.2 Aboveground Facilities

Millennium is proposing to construct the new Hancock Compressor Station on a 10.8-acre parcel located at 1579 Hungry Hill Road in the Town of Hancock, Delaware County, New York. The property is owned by Millennium and crossed by the existing Millennium mainline.

The compressor station will include a 15,900 ISO Rated horsepower (hp) gas-fired compressor unit that will be housed within a new building. Appurtenant facilities will include an access driveway, parking areas, a station control/auxiliary building, intake and exhaust silencers, gas coolers, turbine lube oil coolers, unit blowdown silencers, station blowdown silencers, filter-separators with a liquids tank and microturbines for electrical power generation and backup.

Pipeline facilities required for this Project will be limited to approximately [TBD] feet of new [TBD]-inch diameter suction piping and [TBD] feet of new [TBD]-inch diameter discharge piping which will connect the compressor station to the existing mainline. A new mainline valve assembly will also be required on the existing pipeline between the new suction and discharge lines. All of the facilities described above will be located on the property owned by Millennium.

10.2 No-Action Alternative

Under the No-Action alternative the proposed facilities would not be constructed and the environmental impacts associated with the Project would not occur. However, the No-Action alternative would not allow the accomplishment of the Project’s stated purpose and need, which is to meet the demonstrated demand of shippers that have signed precedent agreements for the 107,500 Dth/d of Project capacity to be delivered from gas production areas near Millennium’s system to Algonquin’s system at Ramapo and to meet the anticipated need for the additional delivery of 115,000 Dth/d from a recently added interconnect with Laser to an existing interconnect with the interstate pipeline facilities owned by Columbia at Wagoner. It would also eliminate the Project’s numerous benefits, which include:

Economical access for new sources of natural gas supply from market area production and other sources to reach high-growth Northeast markets.

Enhanced supply diversity, security and reliability, which would enable Millennium to bring additional natural gas supplies to the Northeast market.

Access for new and existing electricity generation facilities to greater sources of natural gas supply which in turn will improve air quality and the reliability of the electric system.

The No-Action alternative would also constrain the economic and environmental benefits associated with greater inter-fuel and gas-on-gas competition in the Northeast energy markets. The facilities and services proposed herein will increase gas transportation capacity to these markets, allowing consumers greater choice among the abundant supplies attached to the North American pipeline grid and thus encourage greater competition in fuel markets.



Additionally, the No-Action alternative would deprive the region of needed additional natural gas infrastructure, which is being advocated in several northeast states. The Governors of New York and New Jersey, and the Mayor of New York City all support expansion of natural gas infrastructure to produce cleaner, more cost-effective, efficient, and reliable energy for residential, commercial, and industrial consumers.

For example, the 2009 New York State Energy Plan (NY Energy Plan) provides the framework for New York to reliably meet its future energy needs in a cost-effective and sustainable manner, establishes policy objectives to guide agencies and authorities as they address energy-related issues, and sets forth five strategies and recommendations to achieve these objectives. Strategy 2 of the NY Energy Plan recognizes that the production and use of in-state energy resources (including the use of natural gas) can increase the reliability and security of the state’s energy systems; reduce energy costs; and contribute to meeting climate change, public health, and environmental objectives. Strategy 3 of the NY Energy Plan recognizes that infrastructure investments are necessary to support the state’s transition to a clean energy economy. With regard to natural gas, the NY Energy Plan states that enhanced pipeline delivery capacity is needed in the downstate area to maintain reliability while allowing for conversions or repowering of power plants from oil to natural gas and accommodating growing core demand. These objectives were reiterated in the Governor’s State of the State address in January 2012. Specifically, the Governor referred to a need to strengthen New York’s energy infrastructure with an Energy Highway System to power the state’s economic growth. The development of the envisioned energy highway would bring excess fossil-fuel energy from the western part of the state and tap into potential renewable energies like wind power (Cuomo, 2012). Another objective mentioned in the address is to repower old and dirty plants to use cleaner fuels.

Similarly, one of the existing clean energy goals for New Jersey is ensuring that any new electric transmission lines in New Jersey deliver clean electricity, rather than facilitating the transmission of polluting coal-fired power (Madsen et al., 2010). A generation performance standard that requires all new power sources to meet or exceed the emissions performance of a combined cycle natural gas plant would achieve this goal (Madsen et al., 2010).

Natural gas currently supplies more than 25 percent of all energy used in New York City buildings. Natural Gas also fuels up to 80 percent of New York City’s power plants, although nearly three quarters of these plants are dual fuel oil/gas plants that can burn either natural gas or oil (New York Independent System Operator (NYISO), 2011). This percentage is expected to rise in the future as efforts are undertaken to repower older oil and distillate fuel plants to improve air quality and reduce adverse health effects (The City of New York, 2010). Mayor Bloomberg’s PlaNYC 2030 also recognizes that the city’s future heating and electricity needs will increasingly rely on natural gas, which is the cleanest burning fossil fuel. However, the existing natural gas delivery capacity to the city is limited, which has resulted in some of the highest natural gas prices in the nation (The City of New York, 2010). Accordingly, PlaNYC 2030 recognizes the need to expand the city’s clean power supply by supporting the expansion of natural gas infrastructure to bring additional supplies of natural gas to fuel power plants, commercial/residential heating and cooking, and school boilers.



The No-Action alternative would not help address these New York, New York City and New Jersey goals and would likely delay programs to convert more commercial/residential buildings, schools, and power plants to burning natural gas, inhibit producer growth, and force customers to find alternate fuel sources that (as discussed in Section 10.2.2) would likely have greater environmental impacts.

In summary, the No-Action alternative would avoid the environmental impacts of the proposed Project, but it would not satisfy the demand for natural gas infrastructure or supply, or the energy policy objectives of New York and New Jersey, and potentially other northeast states. Nor would it have the potential relative air quality benefits of the proposed Project. Thus, the No-Action alternative would have both adverse economic and environmental consequences.

10.2.1 Energy Conservation

Energy conservation measures have and will continue to play an important role in reducing energy demand in the United States. The Energy Policy Act of 2005 (EPAct) includes guidelines to diversify America’s energy supply and reduce dependence on foreign sources of energy, increase residential and businesses’ energy efficiency and conservation (e.g., Environmental Protection Agency Energy Star Program), improve vehicular energy efficiency, and modernize domestic energy infrastructure (U.S. Congress, 2005).

One energy conservation measure associated with compressor stations is the recovery of waste heat from compressor exhaust stacks to generate electricity. Based on a report published by the Interstate Natural Gas Association of America (Hedman, 2008), waste heat recovery is economically feasible for stations with a total combined hp of at least 15,000 and a minimum total run time of 5,250 hours or 60 percent utilization. The Hancock Compressor Station will meet the hp criterion but utilization will vary and it would not be economically justified to utilize waste heat recovery.

Several state-led initiatives have contributed to energy conservation. New York, for example, has strongly promoted energy conservation and has a number of programs in place to minimize energy use. One result of these programs is that New York is now the second most energy efficient state in the nation on a per capita basis, with about one-third lower energy usage than the national average. One of New York’s energy goals is to reduce electricity use to 15 percent below 2015 projected levels, which would provide additional impetus for the state’s electricity efficiency initiatives. Data from the NYISO demonstrate that although statewide energy use dropped a total of 5.1 percent in 2008 and 2009 (primarily due to the downturn in the economy), energy use grew by 3 percent in 2010. Energy use in the New York City area in 2010 also exceeded 2008 levels (NYISO, 2011). Moreover, projected electrical demand in New York is forecast to increase by about 650 gigawatt hours per year between 2011 and 2021 (NYISO, 2011). This projected growth in electrical demand takes into account New York’s 15 percent energy efficiency target described above.

While EPAct and these other state and municipal programs promote increased energy efficiency and conservation by supporting new energy efficient technologies and increasing funds for energy efficiency



research, and would no doubt minimize energy use, they are not expected to eliminate the increasing demand for energy or natural gas. Additionally, the implementation and success of energy conservation in curtailing energy use is a long-term goal that would involve large-scale public education efforts, significant incentives, and government intervention extending well beyond the timeframe of the proposed Project. Projections by the Energy Information Administration (EIA) recognize that natural gas will continue to account for a significant portion of U.S. energy consumption in the future. As shown in Figure 10.2-1, natural gas accounted for 25 percent of the U.S. energy consumption in 2010 (EIA, 2011b) and 26 percent of the energy consumption in the Northeast markets in 2009 (EIA, 2011c). The EIA’s Annual Energy Outlook 2012 forecasts that nationally annual natural gas consumption will increase from 24.71 quadrillion British thermal units (Btus) in 2010 to 27.11 quadrillion Btus by 2035 (EIA, 2012).

The projections for the Northeast follow a similar trend. According to the EIA’s Annual Energy Outlook 2011 with Projections to 2035 reference case, despite increased efficiency, natural gas consumption in the Mid-Atlantic states, which include New Jersey, New York, and Pennsylvania, is expected to grow from 2.67 quadrillion Btus per year in 2010 to 3.30 quadrillion Btus per year in 2035 (EIA, 2011a). Therefore, while energy conservation and energy efficiency would undoubtedly reduce the demand for fossil fuels to some degree, it would not eliminate the need for additional natural gas supply in the market area served by the Project.

Figure 10.2-1



10.2.2 Alternative Energy Sources

If the Project is not approved, customers may turn to or increase the use of other fuel sources. As shown in Figure 10.2-2 several alternative energy sources are available throughout the U.S. One alternative would be to use other fossil fuels such as coal or oil. However, these fuels have higher and/or different emissions of air pollutants such as sulfur dioxide compared to natural gas. For example, if one compares the air emissions that would result from the combustion of 107,500 Dth/d of natural gas with the combustion of distillate oil of an equivalent energy value, assuming the use is divided equally between residential heating units and industrial boilers, the use of natural gas versus distillate oil could reduce emissions by about 1.7 tons per day of nitrogen oxides, a precursor for both ozone and particulate mater less than 2.5 microns in aerodynamic diameter (PM2.5), and 0.5 ton per day of PM2.5. The same analysis indicates a potential reduction of approximately 10.7 tons per day of sulfur dioxide, a major contributor to acid rain and also a precursor for PM2.5, and approximately 2,398 tons per day of carbon dioxide, a greenhouse gas. The use of oil or coal would also be contrary to state and federal air pollution control regulations and energy policies that either directly or indirectly promote the use of clean fuels to minimize adverse air quality impacts and to attain ambient air quality standards. For these reasons the use of other fossil fuels is not a practicable alternative to the proposed Project.

Figure 10.2-2

Another alternative would be to use some non-emitting form of energy option such as nuclear power, or a renewable energy such as hydroelectric, solar, biomass, or wind.



Nuclear power is important regionally and currently accounts for approximately 14 to 15 percent of annual energy consumption in the Mid-Atlantic States (EIA, 2011a). Nationally, the consumption of nuclear power is projected to increase between 2009 and 2035 from 8.4 quadrillion Btus per year to 9.1 quadrillion Btus per year (EIA, 2011a). The EPAct incorporated a wide range of measures to support current nuclear plants and provided important incentives for building new nuclear plants, and several companies are expected to submit applications for licenses to construct and operate new nuclear power plants over the next several years (Nuclear Energy Institute, 2008). Plans for new nuclear power plants were announced by Public Service Electric and Gas Company (PSE&G) in New Jersey and UniStar Nuclear in New York. UniStar Nuclear applied for a Combined License in September 2008 for a new nuclear plant at the Nine Mile Point nuclear plant site on Lake Ontario in the town of Scriba, which is approximately 6 miles northeast of Oswego, New York. The proposed plant would generate about 1,710 megawatts of electricity (MWe). However, the future of the project is unclear. According to the EIA, UniStar requested that the U.S. Nuclear Regulatory Commission (NRC) suspend its review of the application for the project on May 31, 2010. PSE&G filed an Early Site Permit application with the NRC in May 2010 for a potential new nuclear power plant adjacent to the existing Salem and Hope Creek nuclear facilities on the Delaware River in Lower Alloways Township, New Jersey. PSE&G has not identified the proposed design or specific generation capacity of the plant but it is expected to be around 1,200 MWe. The project is still in the very earliest stages and is not expected to be on-line until 2021.

Because the subject of nuclear power remains controversial, these proposals and any subsequent plans that arise to construct new or expand existing plants in the region would likely involve prolonged review. Furthermore, there are environmental and regulatory challenges concerning safety and security, the disposal of toxic materials (spent fuel), and alterations to hydrological/biological systems that would need to be addressed before any new plants could be constructed. Even if these challenges could be overcome, a new plant would not likely be operational until 2021 or later. For these reasons, nuclear power is not currently a practicable alternative to the proposed Project.

The EIA (2011a) projects rapid growth in renewable fuel consumption due primarily to the implementation of the federal renewable fuels standard for transportation fuels and state renewable portfolio standard (RPS) programs for electric generation. Nationally, the consumption of renewable energy is projected to increase between 2009 and 2035 from 6.5 quadrillion Btus per year to 11.56 quadrillion Btus per year (EIA, 2011a). Growth in renewable energy electric generation is expected to account for 26 percent of total electric generation growth from 2009 to 2035. Several projects have been proposed in the region that would help to diversify the electric market and help Northeast states meet their RPS goals. However, these projects are not expected to meet consumers’ overall electricity needs. Moreover, renewable energy is not 100 percent interchangeable with natural gas. Most renewable energy sources are used to generate electricity. While natural gas is used for this purpose, it is also used for space heating and cooking. Although these uses could be served by electricity instead of natural gas, existing natural gas-based heating and cooking systems would have to be converted to electric-based systems, which may be prohibitively expensive for many consumers. Finally, moving electricity from the point of generation to consumers may require significant investment in transmission as well as other



additional infrastructure costs. Additionally, the development of the transmission lines associated with renewable projects would have potential adverse effects on air, water, ecological, and other resources. Therefore, renewable energy alternatives were not considered a practicable alternative to the proposed Project.

10.3 System Alternatives

System alternatives are alternatives to the proposed action that would make use of other existing, modified or Project systems to meet the stated objective of the proposed venture. System options involve the transportation of the equivalent amount of incremental natural gas by the expansion of existing pipeline systems or by other new pipeline systems. A system alternative would make it unnecessary to construct all or part of the Project, although some modifications or additions to another existing pipeline or another entirely new system could be required to allow for the transportation of the additional natural gas.

The evaluation criteria for selecting reasonable and potentially environmentally preferable system alternatives to the Project are:

technical and economic feasibility and practicality;

significant environmental advantage over the Project; and

the ability to meet the Project objectives as described in Section 10.2 including providing access to and increasing the new supplies of natural gas to the market area.

Millennium is the only existing interstate pipeline that currently traverses southern New York and connects the pipeline systems in the western part of the state with Algonquin’s pipeline system at Ramapo, New York. The only other interstate natural gas pipeline in the vicinity of the Millennium system is operated by Tennessee Gas Pipeline Company (Tennessee). Tennessee’s pipeline traverses the western end of New York State in a north/south direction and passes close to Corning, New York before crossing into Pennsylvania. Once in Pennsylvania, Tennessee’s pipeline proceeds east across the northern part of the state and then enters northern New Jersey, where it interconnects with Algonquin’s existing pipeline system at Mahwah. It is possible that Tennessee’s system could be used to transport natural gas from the producer pipelines in western Pennsylvania and New York, where Millennium’s anchor shippers are located, to Algonquin’s system. However, there is no customer or market support for such a project. Moreover, Millennium understands that Tennessee’s existing pipeline is operating at full capacity and that Tennessee’s recent expansions are fully subscribed. Therefore, Tennessee could not transport the proposed volumes without constructing new facilities, which would likely include compression and possibly new pipeline. As such, any system alternative based on Tennessee’s pipeline would have a similar if not greater impact than Millennium’s proposed Project even if it could garner market support.



10.3.1 Millennium-Based Systems

Millennium performed hydraulic modeling of its system to identify various configurations that might be capable of supplying the additional transportation services.

To increase the throughput capacity of a natural gas pipeline, a pipeline operator can either “loop” or replace the existing pipeline, or add compression, or use a combination of compression, looping, and/or replacement. As natural gas travels down the pipeline, pressure within the pipe declines with distance. The term looping refers to placing additional segments of pipeline, parallel and connected to the existing pipeline. These segments act to reduce the rate of pressure drop in the pipe due to friction, and thereby increase the throughput capacity of the pipeline. Increased throughput capacity can also be achieved by replacing sections of existing mainline pipeline with larger diameter pipeline, or by adding compression along the pipeline to counter pressure drop and restore the pressure within the pipeline.

It should be noted that the environmental impacts of replacement would be similar to looping since same ditch replacement is not possible. This is because Millennium’s contractual service obligations to its customers preclude taking the existing pipeline out of service for any significant period of time. Consequently, the replacement pipeline would need to be constructed adjacent to the existing pipeline (similar to a loop) and readied for service before the existing pipeline is taken out of service.

As described in more detail below, Millennium determined that all of these system alternatives either did not provide the required transportation services or would cause greater environmental impacts.

10.3.1.1 Looping or Replacement

The determination of how much loop or replacement pipeline to add, versus how much compressor hp to add is primarily based on engineering, environmental and economic factors such as, hydraulic requirements, pipeline reliability, constructability, environmental impact, and public impact. Millennium’s analysis indicates that the Project’s objective could be met by looping or replacing segments of the existing pipeline. However, as described further below, the amount of loop and/or mainline replacement required to provide the same incremental capacity would be far more expensive and result in more environmental impact than the proposed compressor station.

One alternative that would meet the objectives of the Project would be to loop segments of the existing pipeline. Millennium determined that this alternative would require construction of 61 miles of new pipeline loop in Delaware, Sullivan, and Orange Counties.

Another alternative that was considered to meet the Project’s objectives was the replacement of the existing 24-inch-diameter segment of Millennium’s existing pipeline, known as the Neversink Segment, with a new 30-inch-diameter, 7.5-mile-long pipeline that has the same 1,200 pounds per square inch gauge (psig) maximum allowable operating pressure (MAOP) as the rest of Millennium’s system. However, Millennium determined that this would not be adequate by itself to deliver the proposed



volumes; in addition to replacing the Neversink Segment, Millennium would also need to loop approximately 42 miles of the existing pipeline in Delaware County to meet the Project objectives.

Each of these alternatives would have far more environmental impact than the proposed Project.

10.3.1.2 Additional Compression at Existing or Proposed Compressor Station

Another system alternative Millennium considered was the potential to add compression at either its existing Corning Compressor Station in Steuben County, New York or its proposed Minisink Compressor Station in Orange County, New York.

Millennium evaluated the potential to achieve the Project objectives by adding compression at either its existing Corning Compressor Station in western New York or its proposed Minisink Compressor Station in eastern New York. Millennium’s Corning Compressor Station has approximately 15,200 hp available. However, the hp available at the Corning Compressor Station is more than sufficient to discharge the outflows at MAOP. Accordingly, adding more compression at Corning would not result in additional forward-haul delivery capacity.

Millennium also evaluated the potential for adding compression at the proposed Minisink Compressor Station, which is immediately downstream of the Neversink Segment, but determined that no matter how much the hp of that station was increased it could not meet the Project’s objectives.

10.3.1.3 Combined Additional Compression and Looping or Replacement

One combined compression and replacement alternative that Millennium evaluated was combining additional compression at the proposed Minisink Compressor Station with the replacement of the Neversink Segment. Millennium determined that this alternative would not meet the Project objectives no matter how much hp was added at the Minisink site.

Millennium, then considered whether placing an additional 15,000 hp at Minisink, combined with replacement of the Neversink Segment and some looping could meet the Project objectives. That analysis showed that such a combination could work, but that it would require construction of over 23 miles of looping in Delaware County in addition to the replacement of the 7.5-mile-long Neversink Segment.

Because of the significant impacts that would be incurred under any scenario involving just replacement or looping or a combination of replacement and looping with additional compression at an existing or proposed facility, Millennium determined that the Project was environmentally advantageous over all such system alternatives.

10.4 Routing Alternatives

Since there are no pipeline facilities proposed as part of this Project, other than the limited amount of suction and discharge piping to connect the proposed compressor station to the existing Millennium mainline, route alternatives are not applicable.



10.5 Compressor Station Site Alternatives

10.5.1 Compressor Station Site Selection Criteria

As discussed in Section 10.3.1, Millennium conducted hydraulic modeling to determine where the new compressor station should be located to meet the Project’s objectives. This modeling was based on Millennium’s existing facilities and the assumption that the proposed Minisink Compressor Station, which was recently evaluated by the FERC and is currently awaiting a decision by the Commission, would be operational by the time the proposed facilities are constructed. Initial modeling determined that the proposed compressor station should be located somewhere between approximately milepost (MP) 93 in Delaware County and MP 122 in Sullivan County, New York. Millennium then narrowed the range of possible site locations by applying site selection criteria with the goal of identifying a compressor station site that would meet the Project’s technical and commercial requirements while minimizing environmental impacts.

To accomplish these goals, Millennium did an initial screening of sites by evaluating tax records, real estate postings, and where appropriate contacting landowners to identify properties that are:

Located between MPs 93 and 122, which initial modeling indicated would be the acceptable range for the station to meet the Project’s objectives.

Crossed by the existing pipeline. Sites crossed by the existing pipeline require less suction and discharge piping to connect the station to the pipeline, which has environmental and cost advantages.

Large enough to construct and operate the station. Millennium determined that the minimum sized site should be at least 10 acres to reduce potential visual and aesthetic impacts, increase the distance of the station from noise sensitive receptors, and provide a buffer against outside development and future encroachment.

After several potential sites were identified, Millennium narrowed the list by conducting desktop reviews, and where appropriate contacting landowners and conducting field evaluations by engineers, surveyors, and environmental personnel. The desktop analyses included a review of aerial photography, U.S. Geological Survey topographic maps, property maps, National Wetlands Inventory maps, and New York State Department of Environmental Conservation maps. An important siting criterion for Millennium was the availability of the land. Millennium wanted to locate the facility on property that is currently owned by Millennium or that could be acquired from a willing seller at a commercially reasonable price.

Other criteria used in selecting the compressor station site included:

Potential to affect endangered or threatened species, or other sensitive wildlife or fisheries.

Potential for wetland and waterbody impacts.



Potential for conflicts with surrounding recreational and other land uses.

Amount of forest clearing required.

Soil characteristics including erosion potential and depth to bedrock.

Distance to residences and other noise sensitive areas.

Potential visual/aesthetic impacts.

Engineering/construction issues including site topography and geotechnical factors.

Access to public roads and distance to electrical power.

The amount of earthwork and grading required.

Overall cost-effectiveness.

10.5.2 Compressor Station Site Evaluations

Millennium identified seven (7) sites (Site A through Site G) within Delaware and Sullivan Counties, New York that were contiguous with or transected by the existing mainline right-of-way that had the potential to be a site for the proposed compressor station. Figures illustrating the location of these sites are included in Appendices 10-A. Table 10.5-1 demonstrates the criteria used to analyze and compare the environmental characteristics of the seven (7) alternative sites considered for the proposed Hancock Compressor Station. Each site is discussed in more detail below.

Table 10.5-1 Alternative Site Analysis

Hancock Compressor Project a

Criteria Proposed

Site (Site A)

Site B Site C Site D Site E Site F Site G

Town, County Hancock, Delaware Deposit, Delaware

Hancock, Delaware

Hancock, Delaware

Hancock, Delaware

Fremont, Sullivan

Cochecton, Sullivan

Property size (acres) 10.8 127.5 102.4 95.5 167.5 54.1 81.4

Facility footprint (acres) 3.1 3.7 3.7 3.7 2.6 3.7 3.7

Closest public road Hungry Hill Rd. Bush Hill

Rd. Bouchoux Brook Rd.

Hungry Hill Rd.

Hungry Hill Rd.

Ray Graby Rd.

Country Ln.

Length of suction and discharge piping (feet) TBD TBD TBD TBD TBD TBD TBD

Access driveway length (feet) 750 2730 900 1350 800 1360 600

3-phase power available at closest public road (Y/N)

N Y N N N N N

Current land use Forest Land Forest Land

Forest Land

Forest Land b

Forest Land Pasture

Forest Land



Table 10.5-1 (cont’d) Alternative Site Analysis

Hancock Compressor Project Distance to nearest NSA (feet)

North 442 1,689 1,423 1,969 2,595 1,458 1,916 South 3,550 4,464 5,058 2,385 1,078 1,508 3,681 East 715 8,054 5,508 2,280 3,878 1,258 4,895 West 1,562 2,199 1,417 1,519 2,017 1,778 2,412

Visual/noise screening present (Y/N) c Y Y Y Y Y N Y

Topography d MS GS / S MS GS / S GS GS GS Tree clearing required (acres) 4.1 4.6 6.8 8.6 5.0 0.0 6.5

Wetland impacts (acres) 0.4 0.3 0.0 0.0 0.0 0.02 0.0

Number of waterbodies crossed 2 0 0 1 1 1 0

Cultural resources concerns (Y/N) e TBD TBD TBD TBD TBD TBD TBD

Mapped significant habitat (Y/N) f N N N N N N N

Highly erodible soils (acres) g 3.1 2.9 3.7 3.7 0.4 0.0 1.1

Shallow bedrock (acres) h 3.1 2.9 3.7 3.7 0.0 0.0 0.0 a Information is based on baseline field surveys and available mapping and is subject to change following

further evaluation. b Portions of this site have been cleared by the current landowner. c Includes existing vegetation or topography that will reduce visual and noise impacts on surrounding areas. d Categories include: Gently Sloping (GS; 0 to 8 percent slopes); Moderately Steep (MS; 8 to 20 percent

slopes); Steep (S; 20 to 45 percent slopes); and Very Steep (VS; greater than 45 percent slopes). e Based on background research to identify previously recorded sites and properties listed on the National

Register of Historic Places. f Includes general areas where rare animals, rare plants, and rare and significant natural communities (such

as forests, wetlands, and other habitat types) have been documented by the New York Natural Heritage Program.

g Based on analysis of the Natural Resources Conservation Service’s Soil Survey Geographic (SSURGO) database. Includes soils designated as highly erodible land.

h Based on analysis of the SSURGO database. Includes soils identified as containing bedrock within 5 feet of the surface. All bedrock identified is considered hard and would require blasting or some other special construction technique to excavate.

Note: Y = Yes; N = No; NSA = noise sensitive area; TBD = to be determined.

10.5.2.1 Proposed Compressor Station Site

The proposed compressor station site (Site A) is located at 1579 Hungry Hill Road in the Town of Hancock, New York. This site will be located on a 10.8-acre parcel owned by Millennium and will



require a new 750-foot-long access driveway off of Hungry Hill Road. This site was chosen as the proposed site for the following reasons:

The site is crossed by Millennium’s existing pipeline, thereby reducing the length of the suction and discharge piping required.

The site is currently owned by Millennium and will not require impacts on new landowners.

Construction at this site will not result in impacts on any wetlands or waterbodies. However, the proposed access driveway will require the crossing of two intermittent streams and the impact 0.4 acre of emergent wetland.

10.5.2.2 Alternative Compressor Station Sites

Information is provided below for alternative compressor station sites which were considered, but are not proposed.

Alternative Site B

Site B is located in the Town of Deposit on a 127.5-acre parcel owned by Millennium. Access to the site would be along an existing 2,730 foot access driveway off of Bush Hill Road. This site is not being proposed for the following reasons:

Areas available to construct on the property are limited due to the presence of wetlands, steep topography, and an electric transmission line that crosses the property.

Significant grading and potential blasting would be required due to the steep topography on the majority of the site.

Construction would require the filing of approximately 0.3 acre of forested wetlands.

The facility would be located directly adjacent to a waterbody.

Alternative Site C

Site C is located in the Town of Hancock on a 102.4-acre privately owned parcel. Access to the site would require a new 900-foot-long access driveway off of Bouchoux Brook Road. This site is not being proposed for the following reasons:

Construction of the access driveway would require significant grading and potential blasting.

No existing electric lines service the immediate area.



The public roads that would be used for access would require improvements to support construction equipment including the reconstruction of an existing bridge.

Construction equipment would need to drive past a performing arts summer camp.

Unable to come to an agreement with the owners of the property.

Alternative Site D

Site D is located in the Town of Hancock on a 95.5-acre privately owned parcel. Access to the site would require a new 1,350-foot-long access driveway off of Hungry Hill Road. This site is not being proposed for the following reasons:

This site is located approximately 1,100 feet from the existing Millennium line and would require significantly longer suction and discharge piping than the proposed site.

The access driveway would be significantly longer than the proposed site and would require significant grading and potential blasting to construct.

The access driveway could also impact areas of wetlands.


Alternative Site E

Site E is located in the Town of Hancock on a 167.5-acre privately owned parcel. Access to the site would require a new 800-foot-long access driveway off of Hungry Hill Road. This site is not being proposed for the following reasons:


Alternative Site F

Site F is located in the Town of Fremont, Sullivan County, New York on a 54.1-acre privately owned parcel. Access to the site would require a new 1,360-foot-long access driveway off of Ray Graby Road. This site is not being proposed for the following reasons:

The site is located on land used as pasture for a dairy farm. The landowner has requested to continue the existing dairy farm operations and live on the property as a condition to granting Millennium the right to build the station.

There is no existing visual or noise screening on the site (i.e., vegetation or topography) from adjacent properties.



Alternative Site G

Site G is located in the Town of Cochecton, Sullivan County, New York on an 81.4-acre privately owned parcel. Access to the site would require a new 600-foot-long access driveway off of Country Lane. This site is not being proposed for the following reasons:

The site would be located within an 800-acre planned residential development.

Indiana bat is known to occur in Sullivan County, therefore, development of this site could impact the Indiana bat or alternatively be subject to restrictions on tree clearing, which would impact Millennium’s construction schedule.


10.5.2.3 Meter Station/Interconnect Sites

No new meter station/interconnect sites are proposed as a part of this Project.

10.5.2.4 Other Aboveground Facilities

The other proposed aboveground facility site (e.g., mainline valve assembly) is ancillary to the construction of the proposed compressor station and as such there are no applicable alternatives.

10.6 References

Cuomo, A.M., Governor of New York. 2012. State of the State Address: Building a New NY. Available online at: http://www.nyenergyhighway.com/Content/pdf/Building-a-New-New-York-Book.pdf.

Hedman, B.A., Energy and Environmental Analysis, Inc. 2008. Waste Energy Recovery Opportunities for Interstate Natural Gas Pipelines. Prepared for the Interstate Natural Gas Association of America, February 2008. Available online at: http://www.ingaa.org/cms/6208.aspx.

Madsen, T., Frontier Group and M. Elliott and D. Mottola Jaborska, Environment New Jersey Research & Policy Center. 2010. Toward a Clean Energy Future: The Vision, the Track Record, and the Challenge Ahead for New Jersey’s Leaders. Available online at: http://www.frontiergroup.org/reports/fg/toward-clean-energy-future.

New York Independent System Operator. 2011. Power Trends 2011. Available online at: http://www.nyiso.com/public/webdocs/newsroom/power_trends/Power_Trends_2011_Presentation.pdf.

Nuclear Energy Institute. 2008. Nuclear Energy Insight 2008. Available online at: http://nei.org/resourcesandstats/publicationsandmedia/insight/insightpdfarchive2008/.



The City of New York, Mayor Michael R Bloomberg. 2010. PlaNYC 2030. A Greener, Greater New York. Available online at: http://www.nyc.gov/html/planyc2030/html/home/home.shtml.

U.S. Congress. 2005. Energy Policy Act of 2005. Available online at: http://www.gpo.gov/fdsys/pkg/PLAW-109publ58/pdf/PLAW-109publ58.pdf.

U.S. Energy Information Administration. 2011a. Annual Energy Outlook 2011 with Projections to 2035. April 2011. Available online at: http://www.eia.gov/forecasts/archive/aeo11/.

U.S. Energy Information Administration. 2011b. Annual Energy Review 2010, October 2011. Available online at: http://www.eia.gov/totalenergy/data/annual/pdf/aer.pdf.

U.S. Energy Information Administration. 2011c. State Energy Consumption Estimates, 1960 through 2009, June 2011. Available online at: http://www.eia.gov/state/seds/seds-data-complete.cfm#full.

U.S. Energy Information Administration. 2012. Annual Energy Outlook 2012 Early Release Overview, January 2012. Available online at: http://www.eia.gov/forecasts/aeo/er/.

Proposed Site A (19)10.77 AcresLAT: 41°53'01.0320"NLONG: 75°08'35.2680"WProposed Site F (14)54.13 Acres

Proposed Site G (5)833.91 Acres

Proposed Site B (53)127.46 Acres

Proposed Site D (25)95.47 Acres

Proposed Site E (24)167.5 Acres

Proposed Site C (58)102.4 Acres

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DESC: ISSUE FOR REVIEWREVISION: 3

1 IN = 2 miles0 2 4 6

Miles

MILLENNIUM PIPELINE COMPANY, L.L.C.HANCOCK COMPRESSOR PROJECTSULLIVAN AND DELAWARE COUNTIES, NEW YORKALTERNATIVE COMPRESSOR STATION SITESUSGS QUAD MAP 27 Bleeker StreetMillburn, NJ 07041

Source:ArcGIS WMS Service:http://services.arcgisonline.com/ArcGIS/services;http://goto.arcgisonline.com/maps/USA_Topo_Maps

Pipeline Milepost :

Legend

Date S

aved: 5

/31/20

12 2:5

0:31 P

M

CHECKED BY: HMMAPPROVED BY: HMMREV. DATE: 5/31/2012

DRAWN BY: HMM

REFERENCE SCALE

ABSOLUTE SCALE1:126,485

Path: D

:\GIS P

rojects\

Milleniu

m\GIS\P

HASE_

2\Maps

\Poten

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.mxd

Existing 30" Millennium Pipeline94

Alternate Sites

APPENDIX 10-A

ABU DHABI

AUSTIN

BEIJING

DALLAS

DUBAI

HONG KONG

HOUSTON

LONDON

MOSCOW

NEW YORK

PALO ALTO

RIYADH

WASHINGTON

THE WARNER

1299 PENNSYLVANIA AVE., NW

WASHINGTON, D.C.

20004-2400

TEL +1 202.639.7700

FAX +1 202.639.7890

www.bakerbotts.com

DC01:655173.2

Jerrod L. Harrison

TEL +1 202.639.1116

FAX +1 202.508.9302

[email protected]

CONTAINS PRIVILEGED INFORMATION – DO NOT RELEASE

May 31, 2012

Kimberly D. Bose, SecretaryFederal energy Regulatory Commission888 First Street, N.E.Washington, D.C. 20426

Re: Millennium Pipeline Company, L.L.C. Hancock Compressor ProjectDocket No. PF12-10-000

Dear Ms. Bose:

On May 1, 2012 in the captioned proceeding, the Director of the Office of Energy Projects of the Federal Energy Regulatory Commission (“Commission”) granted the request of Millennium Pipeline Company, L.L.C. (“Millennium”) to commence the Commission’s pre-filing review process for Millennium’s Hancock Compressor Project (“Project”), which is proposed to be located in the Town of Hancock, New York.

Consistent with Section 157.21(f)(5) of the Commission’s regulations,1

Millennium hereby submits for filing a draft of Resource Report 1, prepared in accordance with Section 380.12(c) of the Commission’s regulations,2 and a draft of Resource Report 10, which contains a summary of the alternatives considered or under consideration in connection with the Project.

As required by Sections 388.112 and 388.113 of the Commission’s regulations,3

Millennium has segregated the filing into separate volumes marked “Public” and “Privileged.” Volume I contains the Public version of this filing. Volume II consists of Appendix 1-H, Affected Landowners List. Due to the privacy concerns of individual landowners, Millennium requests privileged treatment of Volume II. In accordance with Section 388.112, Volume II has been labeled “Contains Privileged Information - Do Not Release.”

1 18 C.F.R. § 157.21(f)(5).2 Id § 380.12(c).3 Id. §§ 388.112, 388.113.

Kimberly D. Bose, Secretary - 2 - May 31, 2012

DC01:655173.2

If you have any questions concerning this filing, please contact the undersigned at (202) 639-1116 or Jessica Fore at (202) 639-7727.

Very truly yours,

Jerrod L. HarrisonAttorney for Millennium Pipeline Company, L.L.C.

Attachments

cc: Joanne Wachholder, FERC

CONTAINS PRIVILEGED INFORMATION - DO NOT RELEASE

MILLENNIUM PIPELINE COMPANY, L.L.C.HANCOCK COMPRESSOR PROJECT

1/2 MILE RADIUS MAPPROPERTY OWNER LIST BLOCK - 458; LOT - 1-31

APPENDIX 1‐H

BLOCK‐LOT PROPERTY ADDRESS OWNER NAME & ADDRESS

458.‐1‐13 2202 HUNGRY HILL RD

Quinones, Jesus MQuinones, Marilyn92 Seward Ave, Ste 2 Middletown, NY 10940

464.‐1‐7.3 13362 STATE HWY 97

Penguin Lane, LLC

69 Third Street New City, NY 10956

457.‐1‐51 PEA BROOK

Nearing, Katherize B

3 Everett Rd Binghamton, NY 13901

457.‐1‐38 SILAS TOMPKINS RD

Mitchell, William JMitchell, AnnaPO Box 43 Fishs Eddy, NY 13774

464.‐1‐7.1 ROUTE 97

Mahogany Ridge LLCc/o Martin Kalwiss3 Andrea Ln West Sayville, NY 11796

458.‐1‐29.11 1778 HUNGRY HILL RD

Leidersdorff, Catherine

135 W 27th St Fl #6New York, NY 10001

458.‐1‐29.12 HUNGRY HILL RD


4500 Park Granada Calabaras, CA 91302

458.‐1‐29.2 1707 HUNGRY HILL RD

Rossetti, ThomasRossetti Patti Ann21 Burns Ave Hicksville, NY 11801

457.‐1‐37 JOHN DECK RD

Karastamatis, Angelo

333 North Monroe Ave Lindenhurst, NY 11757

458.‐1‐29.3 1742 HUNGRY HILL RD

Kenyon, AndrewKenyon, Jessica LynnPO Box 72 Long Eddy, NY 12760

Page 1




APPENDIX 1‐H



Millennium Pipeline Co. LLC

PO Box 1565 Pearl River, NY 10965

458.‐1‐29.4 HUNGRY HOL SPUR


151 West 28Th St New York, NY 10001


Martinez, DanielMartinez, Donna89 Mckinley Ave Brooklyn, NY 11208

464.‐1‐5 13026 STATE HWY 97

Mcgraw, Kirk DMcgraw, Nancy A13026 State Hwy 97 Long Eddy, NY 12760

464.‐1‐3 12979 STATE HWY 97

Conkling, Allen AlfredLori, Worden8177 State Hwy 97 Long Eddy, NY 12760

464.‐1‐8 PEA BROOK RD

Harrigan, VernonHarrigan, ShirleyGrand Concourse Sta PO Box 1661Bronx, NY 10451

464.‐1‐30 12196 STATE HWY 97

Mirch, MichaelMirch, Melissa12196 State Hwy 97 Long Eddy, NY 12760

457.‐1‐26.4 ROUTE 97

Schweiger, Werner J

23 Eisenhower Dr Franklin, MA 02038

457.‐1‐26.3 ROUTE 97

Schweiger, Werner J


458.‐1‐15 273 LAKE RD

Depalma, Anthony

88 Edgemont Rd Upper Montclair, NJ 07043

Page 2




APPENDIX 1‐H


458.‐1‐35.12 STATE HWY 97

Schweiger, Werner J


458.‐1‐28.2 HUNGRY HOL RDAmerican Towers IncAttn: Property Tax DepartmentPO Box 723597 Atlanta, GA 31139

458.‐1‐28.111 1755 HUNGRY HILL RD

Sanzoverino, RobertSanzoverino, Joseph EPO Box 181 Long Eddy, NY 12760

457.‐1‐33.1 13491 STATE HWY 97

Paja, FloraGardocki, Wielsaw7212 Forest Ave Ridgewood, NY 11385

464.‐1‐32 ROUTE 97

Tompkins Realty Dev Co LLCDevelopment Co LlcBx 776 Hancock, NY 13783

464.‐1‐1.2 29 SILAS TOMPKINS RD

Cotsifas, AnthonyHeal, Patricia226 East 12th St Apt 8ANew York, NY 10003


Mirch, Kenneth J

824 Hungry Hill Rd Long Eddy, NY 127601426


Quinn, William

35 West 82nd St New York, NY 10024

464.‐1‐7.2 ROUTE 97

Penguin Lane, LLC

69 Third Street New CIty, NY 10956

458.‐1‐42 HUNGRY HILL RD

Knab, Henry GKnab, Suzanne E443 Colbridge Rd Rockville Center, NY 11570

Page 3




APPENDIX 1‐H


458.‐1‐28.112 HUNGRY HILL RD


458.‐1‐32 DELAWARE LAKE RD

Corcoran, RobertCorcoran, Barbara790 Undercliff Ave Edgewater, NJ 07020


Corcoran, RobertCorcoran, Barbara790 Undercliff Ave Edgewater, NJ 07020





SOURCE: NY Real Property Tax Services, 2012.

Page 4

Volume I - PublicPUB Transmittal LetterDraft Resource Report 1Appendix 1-AAppendix 1-BAppendix 1-CAppendix 1-DAppendix 1-EAppendix 1-FAppendix 1-F - PlanAppendix 1-F - Procedures

Appendix 1-G

Draft Resource Report 10Appendix 10-A

Volume II - PrivilegedPRIV Transmittal LetterPRIV Appendix 1-H

Documents

Resource Report 10 – Alternatives Pre-Filing Draft FERC ...RESOURCE REPORT TEN ALTERNATIVES Millennium Pipeline Company, L.L.C. 10-1 Hancock Compressor Project Resource Report 10