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FERC approves DTI's 112,000-Dth/d New Market project for National Grid

FERC approved DominionTransmission Inc.'s New Market natural gas transportation projectthat will help the pipeline company deliver 112,000 Dth/d of firm service totwo National Grid plcsubsidiaries in New York.

The April 28 FERC order granted authorization for theNew Market project, which will allow Dominion to construct and operatecompression and related facilities in six counties in New York.

Dominion will receive gas from the Leidy interconnectionswith Texas Eastern TransmissionLP, a Spectra EnergyCorp company, and deliver the gas to National Grid USA's Brooklyn Union Gas Co. and TheNational Grid subsidiaries contracted for all of the gas transportation capacityof the project.

The project is expected to cost approximately $159 million.The project will be financed with funds from Dominion's parent company,Dominion Gas Holdings LLC,which is owned by DominionResources Inc.

The New Market project will include the construction of twonew compressor stations and one meter and regulating station. A new11,010-horsepower compressor station, with one gas-fired turbine compressor and1,425 feet of 42-inch-diameter pipeline, will be built in Chemung County, N.Y.In Madison County, N.Y., the project will construct a new 10,880-hp compressorstation, consisting of one gas-fired turbine compressor and associatedequipment. The meter and regulating station and station cooler, which willinclude a 6,393-hp gas-fired compressor and two 2,370-hp reciprocatingcompressors, will be located at the existing Brookman Corners compressorstation in Montgomery County, N.Y. Dominion will also modify facilities at theWest Schenectady meter and regulating station in Schenectady County, N.Y., andmodify piping at the compressor station in Tompkins County, N.Y.

In the order, FERC noted various concerns about theproject raised by stakeholders, including concerns about direct and indirectenvironmental impacts. The commission responded with a detailed breakdown ofits reasons for approving the project. FERC said all substantive comments wereaddressed in the environmental assessment. In October2015, FERC staff issued an environmentalassessment that recommended FERC approval of the project withcertain mitigation measures.

The Allegheny Defense Project and other parties had arguedthat the New Market project was connected to other Dominion projects, and thecommission had therefore improperly segmented the project. FERC rejected theargument.

"The fact that certain projects may transport gas fromthe Utica and Marcellus shale formations does not make them connected,cumulative or similar actions for [National Environmental Policy Act] purposes,"the commissioners wrote. (CP14-497)