FERCstaff gave a passing grade to the 256-mile NEXUS gas transmission project and arelated project in an environmental review but said a little work remains to bedone on sections of the proposed route.

FERCOffice of Energy Projects staff released a July 8 draft environmental impactstatement for the NEXUS gas transmission project and the Texas EasternAppalachian Lease project, or TEAL, proposed by NEXUS Gas Transmission LLC andTexas Eastern Transmission LP.NEXUS is a joint ventureof Spectra Energy Corpand DTE Energy Co.Texas Eastern is a subsidiary of SpectraEnergy Partners LP.

FERCstaff concluded that construction and operation of the two projects would havesome impacts but not cause significant damage to the environment, even whenconsidering potential climate effects and cumulative impacts to peatlands inOhio. Staff recommended that the commission attach 47project-specific mitigation measures to any approval order to minimize or avoidimpacts to the environment and other resources.

FERCstaff noted that some route alternatives put together during the review processcould affect landowners who had not previously been part of the FERC process.Staff asked the landowners to provide comments on three alternatives.Staff said in May that it would finishthe draft environmental review by July and complete the review by Nov. 30.

Theprojects would transport 1.5 MMDth/d from the Appalachian Basin to markets innorthern Ohio and southeastern Michigan and to the Dawn Hub in Ontario. Gaswould also reach the Chicago Hub and other Midwest markets through connectionswith other pipelines. The NEXUS developers said the project is needed to serveincreased demand from electric generation, industrial activities and homeheating and to offset a decrease in gas supply from the Gulf Coast and westernCanada.

TheNEXUS project would include 208.9 miles of new 36-inch gas pipeline in Ohio, 47miles of new 36-inch pipeline in Michigan, and other equipment and facilities.

TheTEAL project would include two main components in Ohio, 4.4 miles of 36-inchloop pipeline and 0.3 mile of 30-inch interconnecting pipeline, plus otherequipment and facilities.

Theprojects also include five new compressor stations in Ohio and other compressionimprovements.

Inaddition to the new facilities, the projects would use leased firm capacity onthe systems of DTE Gas Co.and Enbridge Inc.'sVector Pipeline LP,along with the Texas Eastern pipeline.

NEXUSand Texas Eastern appliedfor their projects in November 2015. (CP16-22, CP16-23, CP16-24,CP16-102)