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HomeMy WebLinkAbout15.F.1. Xcel Energy Pipeline Routing IS', F.l, CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Gas Pipeline Routing DATE: May 11, 2004 INTRODUCTION: The Council is asked to endorse a proposed route for a pipeline that will supply natural gas to the proposed expansion at the Blue Lake Electrical Peaking Plant. BACKGROUND: Council has previously been informed that Xcel Energy is planning to install two natural gas-fired electric generating turbines at the Blue Lake Peaking Plant in eastern Shakopee. Xeel has committed to these being on line by June 2005. Xcel has a need to locate a 16" steel natural gas pipeline to supply the new turbines. It has tentatively sited the line to run from the Northern Natural Gas mainline south of Prior .. Lake, and north through Louisville and Jackson Townships along Zumbro Avenue. At the intersection with County Road 78, it had been intended to go east on 78 (on the south side of the road), and then north on County Road 77. Originally, it was proposed to go on the west side of County Road 77; after meeting with local residents, Xcel had agreed that it could be routed on the east side of 77. An alternative would be to go north through Zumbro Avenue extended, north ofCR 78. Under either alignment, it would then go east on the south side of U.S. 169 until a point just west of County Road 83, when it would then be ')acked" under U.S. 169, and continue on the north side of 169 in the right-of-way, to the peaking plant location. DISCUSSION: 1. The plan to use County Road 78 and 79 rights-of-way has meet with opposition from neighborhood residents. Their concerned that this pipeline (which will normally carry a pressure of 600 pounds per square inch, but will be rated to over 1,000 psi) will be too close to their homes. 2. The Zumbro A venue extended location offers the advantage of not disrupting exi~ting neighbors. However, it will need to be accommodated into future planning for development. While it is currently in the Township, it is quite likely that at some point in the future, that location will be the subject of a petition for annexation into the City of Shakopee. Prom a staffs standpoint, if the routing is changed to Zumbro Avenue extended, it should be with the understanding the Xcel Energy will pick up the cost of any further relocation costs. On May 10t\ the Environmental Quality Board held two public information meetings at Shakopee City Hall, and reviewed the project. The EQB stated that there could be either a partial exemption of the route permitting process, or a regular full routing review. As I understand it, that would be the equivalent between a choice of performing an EA W or an EIS - the formal route permitting process is very complex, and time consuming. That would create a problem meeting Xcel's June 2005. The first public information meeting was lightly attended, and included questions from City staff, and the owner of the new furniture showroom on lih Avenue. The second public information meeting was attended by approximately 25 township residents. They were not supportive of staying within the 77 and 78 rights-of-way, and instead, advocated the Zumbro Avenue location. It is my understanding that that is the position of the Jackson Township Board. It should be noted that there should be concern about the future of recreational trails. If the County Road right-of-way option is chosen, it will need to be with the understanding that Xcel will permit recreation uses over the pipeline. If the City wishes to take a formal position on this, public comments are being accepted by the EQB until May 21 st. RECOMMENDATION: Ifthe Council wants to take a position on the gas pipeline routing, it should chose between either the 77/78 option, or the Zumbro A venue extended corridor. ACTION REQUIRED: The Council should give direction to staff as to what action it wants to take - establish a formal position or not, and, if does, endorse either the County Road right-of-way or the Zumbro A venue extended routes. (LLa~ Mark McNeill City Administrator 5.0 Pipeline Routing The Minnesota Legislature has established a state policy that recognizes that pipeline location and restoration of the affected area after construction is important to the citizens and their welfare and that the presence or location of a pipeline may have a significant impact on humans and the environment. The Environmental Quality Board (EQB) is the permitting authority for the construction of certain pipelines. 5.1 Statutes and Rules The EQB has the responsibility for routing pipelines with a diameter of six inches or more that are designed to transport hazardous liquids like crude petroleum and those that are designed to calTY natural gas and be operated at a pressure of more than 275 pounds per square inch (Minnesota Statutes 1161.015 and Minn. Rules Chapter 4415). However, the EQB's authority does not apply to interstate natural gas pipelines regulated under the federal Natural Gas Act and to pipeline owners qr operators who are defined as a natural gas public utility under Minn. Stat.g 216B.02. The procedure to be followed in considering a permit for a pipeline depends on the size and type of the pipeline. An applicant may apply for a partial exemption from the complete procedural requirements if the project is not expected to have significant environmental impacts. In such a case, the process of public review normally takes from 60 to 120 days from submission of the application. For more controversial projects with expected significant environmental impacts, a more complex process is required. It can take up to nine months to complete. The procedures are explained in detail in the pipeline routing rules adopted by the EQB (Minnesota Rules Chapter 4415). 5.2 Fun Review Controversial projects and those with unusually high impact on people or the environment require the a full review process. This process may take up to nine months (Figure 3). The organization that wants to build the pipeline (a power company, petroleum refiner or petroleum shipper) submits an application to the EQB. The board shall accept, conditionally accept, or reject the application at its first regularly scheduled meeting after the application is filed, provided the application is filed at least 21 days before that meeting. The acceptance of the application begins a nine-month review process. Within 20 days of board acceptance of an application for a pipeline routing under Minn. Rules, parts 4415.0105, subpaIt 4, the board shall provide published notice of acceptance of the application in a newspaper in each county in which a route is proposed by the applicant. The board may establish a citizen advisory committee to aid and advise the board in evaluating routes for the proposed pipeline. After acceptance of an application for pipeline route selection, the board shall hold at least one public information meeting in each county crossed by the applicant's preferred pipeline route to explain the route designation process and to respond to questions raised by the public. Notice of the public information meetings shall be made in accordance with Minn. Rules, parts 4415.0070. For 30 days after the legal notice is published, public agencies, the advisory committee and others can propose changes to the pipeline route. Upon completion of the public comment period, the EQB shall determine which routes will be accepted for considered at public hearings. The board publishes this information in local newspapers and notifies all the people who have been involved in the process. The EQB staff then conducts a comparative environmental analysis of all the pipeline routes accepted for consideration at the public hearing. A second set of public information meetings are held to explain the route designation process, present major issues, and respond to questions raised by the public. Public hearings are organized by the EQB and presided over by an administrative law judge. The purpose of the public hearings is the collection and verification of data and establishing a complete record upon which to base a decision for a designation of a route and issurance of a pipeline routing permit. The administrative law judge prepares a report on the outcome of the public meetings for the EQB. The EQB reviews the hearing records, decides on the route and issues a pipeline routing permit. Within 10 days of receiving a permit, the applicant distributes copies of the permit to land owners and local governments. 5.3 Streamlined Review This review covers most proposals for new pipelines - those that are not controversial or do not have an unusually high impact on people or the environment. The streamlined review may take 90 to 120 days (Figure 4). The organization that wants to build the pipeline (a power company, petroleum refiner or petroleum shipper) applies for a partial exemption from the full pipeline review. The board shall accept, conditionally accept, or reject the application at its first regularly scheduled meeting after the application is filed, provided the application is filed at least 21 days before that meeting. The acceptance of the application begins a 90 day review process. Within 15 days of board acceptance of an application for a pipeline routing under Minn. Rules, parts 4415.0035, subpart 2, the board shall provide published notice of acceptance of the application for partial exemption in each county in which a route is proposed by the applicant. With 30 days of receipt of the EQB notice persons may file comments with the board stating reasons why the board should grant or deny the partial exemption. The board shall hold a public information meeting in each county in which the pipeline and associated facilities are proposed to be located. The purpose of the public information meeting is to assist the board in determining whether to grant or deny the partial exemption. . ~ Upon completion of the public comment period, the EQB shall consider any comments that are filed, the record of the public information meetings, and the information contained in the application relevant to the criteria for partial exemption. If the board grants the partial exemption, a permit is issued for the pipeline route. If the.board denies the partial exemption, the applicant must reapply for a full pipeline routing review. Within 10 days of receiving a permit, the applicant must distribute copies of the permit to landowners and local governments. Pipeline Route Permitting Process -Partial Exemption Minn. Rules 4415.0035 Partial Exemption Application Submitted Days After Board Acceptance Acceptance of Application Notice of 15 Application Acceptflnce - Applicant Notice of 20 Application Acceptance - EQB 30 Public Information Meeting ,,' n 60 End of Public Comment Board Decision 90 Grant Exemption = Issue Permit G:\EQB\Power P.lant Siting\Rules\44 I 5 Amendments\Diagram Pipeline Route Permitting Process.doc