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Responding to the Need for Additional Natural Gas Supplies

Millions of residents in the eastern United States have received the highest home heating bills of their lives because of high and volatile natural gas prices. Natural gas continues to be a fuel of choice for residential, industrial and electric power generator consumers because it is efficient, clean, and reliable. The Energy Information Administration (EIA) expects the growth of natural gas use in the United States to continue. However, natural gas production has not kept pace with demand, and rising natural gas prices reflect the imbalance between natural gas supply and demand. According to the EIA, natural gas wholesale prices have more than doubled since 1999.

Project Description

Dominion Keystone is a pipeline project that would transport new natural gas supplies from the Appalachian Basin to markets throughout the eastern United States. The pipeline project is a response to the many Appalachian producers who are seeking reliable natural gas pipeline transmission for increased production from conventional drilling, coalbed methane and Lower Huron Shale, as well as Marcellus Shale.

As part of a drilling rights agreement, Antero Resources will join Dominion Exploration & Production as anchor tenants on Dominion Keystone. Collectively, the two customers are expected to provide about 500 million cubic feet per day (MMcfd) to the pipeline, which would allow for transport of up to 1 billion cubic feet of natural gas per day by year-end 2012.

The proposed pipeline would take natural gas from southwestern Pennsylvania, the heart of Marcellus Shale drilling in the Appalachian Basin, to Chester County, Pa., with connections to pipelines operated by Spectra, Williams and NiSource.

Working with Dominion

Dominion is committed to working with landowners and other stakeholders to understand and address interests and concerns about the project. The company embraces the Interstate Natural Gas Association of America’s efforts for member companies to maintain strong, positive relationships with landowners. Dominion's goal is to develop a project that provides benefits to natural gas customers and the community. We will work with all governing bodies and the local community to ensure they are aware of our project and updated as it progresses. It is our policy to work via the agencies responsible to ensure that our facility is developed and operated to meet or exceed all safety, environmental, regulatory and legal requirements. Land agents representing Dominion will personally contact all property owners along the preferred pipeline route. Landowners along any alternate route will also be contacted as needed.

The land agents will gather important property information from the owners and will request permission for Dominion to enter the property to conduct the necessary surveys and studies required for the new pipeline projects. Learn about the survey process.

Every representative of Dominion will carry picture identification, including a toll-free number by which you can verify that person's authority.

Dominion takes pride in our long-standing commitment of working with landowners and seeking input from them. Throughout the process and following completion, we remain dedicated to working with communities on their needs and interests. We are confident that you will see this commitment to property owners reflected in every contact you have with all company and contract personnel.

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Landowners' Rights

Landowners affected by a proposed natural gas pipeline regulated by the Federal Energy Regulatory Commission have certain rights and Dominion works whenever possible to facilitate this process. These rights range from being able to look at project correspondence to becoming an intervener and being able to appeal any FERC decisions in federal court.

These rights include:

  • Accessing and inspecting all public documents associated with the proposed project;
  • Making your concerns known in writing to the Commission and its staff;
  • Participating in informational meetings held in the vicinity of the proposed project area;
  • Participating in site visits in the vicinity of the proposed project area;
  • Filing comments on draft Environmental Assessments and Environmental Impact Statements;
  • Becoming an "intervener" or "party" on a specific proposed project; and
  • Having the Commission's decision reviewed in federal court (you must be an intervener to do this).

To learn more, see "Citizens' Guides" on FERC's web site at www.ferc.gov or call 1-866-208-3372.

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Source of Supplies

High consumer bills and continued price volatility demonstrate the need for new supplies of natural gas and more flexible, efficient transportation systems in the Mid-Atlantic and Northeast regions.

Dominion pipelines will play an increasingly critical role in meeting the energy needs of the United States' economy in coming years. Natural gas is the energy of choice for many Americans, and demand is expected to grow by at least 20 percent over the next decade. The Keystone Pipeline will help provide greater reliability as it augments current energy supply sources.

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Project Schedule
Public Open House Meetings (except Lancaster and Chester counties) September 2008
Public Open House Meetings – Lancaster and Chester counties To be determined
Individually Contact Affected Landowners September 2008 – March 2009
Engineering Surveys and Studies October 2008 – May 2009
Federal Energy Regulatory Commission Application August 2009
Easement Acquisition January 2010 – April 2012
Construct Pipeline Facilities June 2011 – November 2012
Ready for Service November 2012

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Pipeline Construction

At steel rolling mills where the pipe is fabricated, pipeline representatives carefully inspect new pipe to assure that it meets industry and federal government safety standards. For corrosion control, the outside surface is treated with a protective coating.

The pipeline will require an easement for construction, as well as for maintenance after construction. The construction area is cleared and graded, and a trench is dug for the pipeline. Stringing of the lengths of pipe occurs along the trench. Pipe is bent as needed to follow the natural contour of the land. Pipe welding is a crucial task and is performed only by welders who have met specific industry standards and who have proven their qualifications through programs and hands-on testing. Each weld is examined visually and is tested with X-ray or ultrasonic equipment to assure its integrity.

All pipe that is not covered by a factory coating receives a protective coating at the construction site. All coatings are inspected before the pipe is buried. Once in the ground and before being placed in service, the pipeline is filled with water and tested to assure its ability to withstand high pressure. Take a closer look at the pipeline construction process.

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Pipeline Safety

Safeguarding efforts continue when the pipe is installed. Markers alert the public to the presence of a pipeline, identify pipeline rights-of-way and provide an emergency phone number.

The safety of our pipeline system is and always has received high priority, and we at Dominion can boast of a good safety record as a result. Of course, Dominion's goal is to either comply with or to exceed all the appropriate safety regulations and standards for the industry. Take a closer look at gas pipeline safety. (PDF document, requires Adobe Acrobat Reader)

The two hazards for a pipeline are puncture and corrosion. Dominion uses pipelines made of only high-strength materials that meet or exceed the standards of the natural gas industry and federal regulations. Our pipelines are made resistant to corrosion by cathodic protection. A small electrical current is run around buried pipe in our system to minimize corrosion of the pipe.

Even though pipelines operate underground and out of sight, they can be inspected from the inside using modern technology. Dominion uses "smart pigging" to measure and analyze conditions along the pipeline's inner and outer walls. The "pig" device travels through the pipelines and electronically reads and records the slightest change in pipe wall thickness. These changes can pinpoint potential problems before they become problems.

Throughout the pipeline system, the pressure of the gas in the pipes is monitored to make sure it remains well within the limits established by the U.S. Department of Transportation. Sophisticated computer and telecommunications equipment can detect fluctuations and control flows. Dominion's gas control centers operate 24 hours a day, seven days a week and know immediately if the pressure within a pipeline falls. In the event of such a pressure drop in one area, the control center acts to stop the gas flow to the problem area by selectively isolating sections of the pipeline. Inspections can then determine the cause of the problem and guide repairs.

This constant monitoring and rapid response to change ensures that the system operates safely and enhances the reliability of our service to customers.

Dominion also communicates at least annually with persons living along our pipeline rights-of-way as well as with law enforcement, fire and government officials in the areas in which we operate facilities.

In addition, we patrol our pipelines in order to detect any activity that may be taking place along the pipeline. If we spot any un-reported construction activity, we contact the contractor immediately to assure the safety of the surroundings of the line.

Right-of-way maintenance will include manual or mechanical grass mowing and trimming of trees.

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Environmental Considerations

Natural gas is a clean-burning fuel, preferred for use in homes, factories and commercial buildings. It has become a fuel of choice for electric power generation because it burns cleanly and efficiently.

Dominion works with federal, state and local agencies to design the pipeline route to assure that the impact on the natural and human environment is minimized.

Among the federal programs or regulations that will be reviewed for any project impact and any related compliance are: Endangered Species Act of 1973, National Historic Preservation Act of 1966, Coastal Zone Management Act of 1972, Clean Water Act (including the National Pollutant Discharge Elimination System program), Clean Air Act, Archaeological and Historic Act of 1974, Wild and Scenic Rivers Act, National Wilderness Act, National Parks and Recreation Act of 1978, and Magnuson-Stevens Fishery Conservation and Management Act.

The project also will be reviewed for potential impacts under state and local regulatory programs for environmental issues related to streams, wetlands, threatened and endangered species, air, etc., including programs that implement the federal programs listed above.

Although the pipeline will be visible during construction, it will be underground when completed and the area surrounding it will be restored. The pipe will be buried deeply enough (with at least three feet of cover) and the land will be appropriately restored for agricultural land to again be used for that purpose. As with all of our pipeline projects, Dominion will work with the appropriate regulatory agencies and landowners throughout the construction process.

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Maps

Select a map below for a detailed view of the pipeline route:

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