Pipeline

Natural Gas Pipeline

Natural Gas Pipeline. Newspaper reports (North Shore Sunday on October 23, 1999), reported that the Iroquois Pipeline announced plans to run a 24 inch diameter pipeline from Canada to the Salem/Boston area, to carry natural gas to serve the local and regional markets. This has been followed up with additional published information, particularly during the week of November 1, 1999 in the SEN (Salem Evening News). While details are not clear, published maps show the pipeline skirting Salem and heading towards Boston. We will follow the issue and publish additional information when it becomes available.

Meetings Schedule

Number

Issue

Sponsor

Description

Where

When

Time

Notes

Subnotes

6

Natural Gas Pipeline

City Council

Discussion with representatives of the owners

City Council

Wednesday, November 17, 1999

7:30 pm

The Pipeline is now designed to run a 30" diameter steel pipe buried about a minimum if 3 feet below grade from Methuen to Salem, using the existing New England Power route, This will come across North River, traverse the neck near the Salem/Beverly bridge, and enter the harbor near the existing Boston Gas facility. The pipe then runs through the harbor and Bay to the Boston area.

Number	Issue	Sponsor	Description	Where	When	Time	Notes	Subnotes
6	Natural Gas Pipeline	City Council	Discussion with representatives of the owners	City Council	Wednesday, November 17, 1999	7:30 pm		The Pipeline is now designed to run a 30" diameter steel pipe buried about a minimum if 3 feet below grade from Methuen to Salem, using the existing New England Power route, This will come across North River, traverse the neck near the Salem/Beverly bridge, and enter the harbor near the existing Boston Gas facility. The pipe then runs through the harbor and Bay to the Boston area.

Overall view of Pipeline as presented 11/17/99

Detail view of Pipeline as presented 11/17/99

Factoids as presented at the Wednesday, November 17, 1999 meeting

Pipeline Developers:

Maritimes Northeast and Northeast Pipelines (There are multiple owners of Maritimes Northeast, including Duke Energy, West Coast, Mobil, Nova Scotia Power, and others)

Developer's personnel:

John Sheridan - Manager Government Relations

Frank Gestner - Right of Way Coordinator

John Bownsall - Attorney

Technical personnel

Size of Pipe and characteristics

24 inch or 30 inch diameter coated steel pipe, buried at least three feet below grade.

Gas pressure

1440 pounds per square inch (PSI)

Shut off valves

One every approximately 8 miles

Pumping facilities, buildings, either above grade or below grade

None within Salem (with the exception of distribution equipment if gas is tapped off the main line to be diverted to customers or sideline facilities). It was presented as a "through pipeline"

General Discussion

It was presented that this endeavor is the result of a gas field development stemming from the 1970's off Sable Island in Nova Scotia, Canada. The technology and distribution resources now make it possible to transmit gas to markets in New England. A gas transmission line has already bee constructed from the Canadian and Maine maritimes to Dracut, MA. Plans are now to run a spur line from Methuen to Boston, through Salem.

The exact location of the pipe is now being evaluated. A 200 foot wide corridor is identified within the New England Power right of way from Methuen to Salem. The company is now trying to contact property owners within the corridor to obtain permission to enter and evaluate the potential for locating the pipe on the property. If it is possible to locate the pipe on an owner's property, the company would then enter into negotiations to obtain an easement or right of way across individual properties. If the company considers to possible to install the pipe from Methuen to Salem (and presumably to Boston), it would then apply to FERC (Federal Energy Regulatory Commission) for a Certificate of Public Convenience, which would effectively give them permission to proceed.

If no agreement is possible, the developer would have the right to obtain the right to take the easement or right of way by "eminent domain" (as permitted under their FERC license).

SEN c-11/1/99

Below is some additional information that has been gleaned from various web sources:

"Back in July, Algonquin Gas Transmission a subsidiary of Duke Energy-the

largest supplier of natural gas in New England made the following

announcement about a gas pipeline to Salem: Why have we heard nothing yet

here in Salem? <A HREF="http://www.duke-energy.com/units/etrans.htm">Duke

Energy Corporation</A>

July 21, 1999

ALGONQUIN ANNOUNCES OPEN SEASON

FOR HUBLINE PROJECT

Boston -- Algonquin Gas Transmission ("Algonquin"), a subsidiary of Duke

Energy, has scheduled an open season for the transportation services

associated with HubLine, the proposed natural gas pipeline that will

interconnect Maritimes & Northeast Pipeline ("Maritimes") facilities with

Algonquin's natural gas pipeline.

"HubLine is a project that supports the market demand for additional natural

gas in the northeastern United States," said Tom O'Connor, vice president of

marketing for Duke Energy's Northeast Pipelines. "This demand is being driven

both by the needs of local distribution companies and by the growth in

gas-fired electric generation. HubLine meets these demands by delivering high

pressure service from new supply options entering New England from the north

and integrating these new resources with the existing domestic natural gas

infrastructure.

"The recent electric power peak demand throughout the Northeast demonstrates

the need for additional clean and efficient gas-fired generation in the

northeast. HubLine offers a unique opportunity to bring new high pressure gas

supplies deep into the market increasing operating efficiencies and

flexibility," added O'Connor.

During the open season, Algonquin will accept requests for service from local

distribution companies, power generators, industrial customers and natural

gas marketers. This very important initial step is part of the process to

demonstrate to the Federal Energy Regulatory Commission that a need for the

natural gas transportation services exists.

The open season to accept capacity requests begins on July 20 and concludes

on August 12. The firm transportation services to be offered will be provided

on a non-discriminatory open access basis. Service is expected to commence in

2002 and nominations for services starting at different periods will be

accepted and evaluated.

Algonquin's proposed HubLine project involves the construction of

approximately 24 miles of 24-inch diameter pipeline from the Maritimes

mainline extension near Salem, Mass., extending offshore across Massachusetts

Bay to connect with existing Algonquin facilities south of Boston. The

project will also provide access to multiple natural gas basins including

sources located offshore Nova Scotia, western Canada and the U.S. Gulf Coast.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than

$26 billion in assets. Headquartered in Charlotte, N.C., the company reaches

into more than 50 countries, producing energy, transporting energy, marketing

energy and providing energy services. In the United States, Duke Energy

companies provide electric service to approximately two million customers in

North Carolina and South Carolina; operate interstate pipelines that deliver

natural gas to various regions of the country; and are leading marketers of

electricity, natural gas and natural gas liquids. Additional information

about the company is available on the Internet at: www.duke-energy.com.

###

CONTACT:

John Sheridan

Phone: 617/560-1444

Here is the big picture and where the new gas supplies are coming from that

may very soon feed PG&E/U.S. Generating Salem power plant. <A

HREF="http://www.duke-energy.com/units/etrans.htm">Duke Energy Corporation</A>"

Overall view of Pipeline as presented 11/17/99
Detail view of Pipeline as presented 11/17/99

Factoids as presented at the Wednesday, November 17, 1999 meeting	Pipeline Developers:	Maritimes Northeast and Northeast Pipelines (There are multiple owners of Maritimes Northeast, including Duke Energy, West Coast, Mobil, Nova Scotia Power, and others)
	Developer's personnel:	John Sheridan - Manager Government Relations Frank Gestner - Right of Way Coordinator John Bownsall - Attorney Technical personnel
	Size of Pipe and characteristics	24 inch or 30 inch diameter coated steel pipe, buried at least three feet below grade.
	Gas pressure	1440 pounds per square inch (PSI)
	Shut off valves	One every approximately 8 miles
	Pumping facilities, buildings, either above grade or below grade	None within Salem (with the exception of distribution equipment if gas is tapped off the main line to be diverted to customers or sideline facilities). It was presented as a "through pipeline"
	General Discussion	It was presented that this endeavor is the result of a gas field development stemming from the 1970's off Sable Island in Nova Scotia, Canada. The technology and distribution resources now make it possible to transmit gas to markets in New England. A gas transmission line has already bee constructed from the Canadian and Maine maritimes to Dracut, MA. Plans are now to run a spur line from Methuen to Boston, through Salem. The exact location of the pipe is now being evaluated. A 200 foot wide corridor is identified within the New England Power right of way from Methuen to Salem. The company is now trying to contact property owners within the corridor to obtain permission to enter and evaluate the potential for locating the pipe on the property. If it is possible to locate the pipe on an owner's property, the company would then enter into negotiations to obtain an easement or right of way across individual properties. If the company considers to possible to install the pipe from Methuen to Salem (and presumably to Boston), it would then apply to FERC (Federal Energy Regulatory Commission) for a Certificate of Public Convenience, which would effectively give them permission to proceed. If no agreement is possible, the developer would have the right to obtain the right to take the easement or right of way by "eminent domain" (as permitted under their FERC license).