Dominion (NYSE: D) plans to
file an application for a Certificate of Public Convenience and Necessity ("Certificate")
with the Federal Energy Regulatory Commission ("Commission") for its
Cove Point Expansion Project. As part of the Commission's regulations, Dominion
is required to provide some helpful information to each landowner who may be
affected by the construction of natural gas facilities. Dominion will give each
affected landowner an individual packet of information that describes:
Cove Point Expansion Project;
The Certificate process at the Commission,
How someone can get involved and their rights; and
How someone can get additional information from either
Dominion or the Commission.
Project Name and Docket Number
The project name and docket number, once assigned, are important
to know if you want to contact either Dominion or the Commission with questions
concerning this project. The name of this project is the Cove Point Expansion
Project. The Commission will assign it a docket number when the project application
is filed.
Dominion plans to nearly double capacity at its Dominion
Cove Point liquefied natural gas facility in order to move more natural gas into
high-demand Mid-Atlantic and Northeast markets. The terminal expansion project
includes associated pipeline projects.
Dominion will ask the Federal Energy Regulatory Commission
to approve an increase in the facility's daily output capacity from 1 billion
cubic feet (Bcf) per day to 1.8 Bcf per day. Storage capacity at the terminal
would increase to approximately 14.6 Bcf. Dominion Cove Point now has 5 Bcf
of LNG tank storage, with another 2.8 Bcf under construction and scheduled to
be completed in 2005.
Two pipeline projects are also proposed. Dominion Cove Point
plans to expand its pipeline in Maryland to deliver more natural gas to interstate
pipeline connections in Virginia. Dominion's interstate pipeline company, Dominion
Transmission, also plans to build a pipeline and two compressor stations in
central Pennsylvania to move natural gas from its Perulack station in Juniata
County to the Dominion South Point market hub, other interstate pipelines and
the major natural gas storage fields at Leidy in Clinton County, Pennsylvania.
Leidy is a major storage center for natural gas used by markets throughout the
Northeast.
Dominion is one of the nation's largest producers of energy,
with 24,000 megawatts of generation, 6.1 trillion cubic feet equivalent of natural
gas reserves, 7,900 miles of natural gas transmission pipeline and more than
960 billion cubic feet of storage capacity. It also serves 5 million natural
gas and electric customers in nine states.
Dominion Needs Landowner Cooperation
Dominion's representatives will contact affected landowners
to discuss this project and its timing, and to secure the rights to conduct
the surveys and environmental studies necessary for Dominion's application to
the Commission. Dominion also will negotiate for the acquisition of the easements
for the pipeline right-of-way, access roads, gate settings, measuring and regulating
stations, as well as the deeds for compressor station sites.
Additional Information
A complete copy of Dominion’s certificate application will
be available to be viewed in each county that the Cove Point Pipeline crosses.
The Commission requires Dominion to briefly explain to landowners
the eminent domain process. Please be assured that Dominion will make every
reasonable effort to avoid the use of eminent domain for this project, and will
attempt to secure all the property rights that it needs through binding, mutual
agreements with landowners. Generally, Dominion seeks a type of property ownership
called an "easement."
The landowner still owns the property when Dominion secures,
by negotiated payment, an easement upon that property, but the landowner cannot
undertake any activity within the easement that would conflict with Dominion's
rights to utilize its easement rights. Activities that do not impact Dominion
are allowed. The easement is a written document similar to a deed or lease.
It is typically recorded at the county courthouse.
When Dominion builds a permanent structure such as a compressor
station, it seeks to secure the necessary property rights by deed, rather than
by easement, so that Dominion has full and complete ownership.
On those rare occasions where Dominion cannot secure the property
rights it needs by reaching an agreement with the affected landowner, a federal
law called "The Natural Gas Act" allows Dominion to secure the property
by eminent domain. Efforts to obtain property through eminent domain begin with
Dominion filing a "complaint" or "petition" with the appropriate
court, which can be either a state court or a federal district court. Usually
a bond or other type of financial security is deposited with the court, to ensure
that the landowner will be paid for any property rights that are taken when
the matter is finally decided.
After various preliminary matters, a hearing is held before
a judge, jury, "board of viewers" or "commission." The purpose
of the hearing is to award the landowner "just compensation" for any
property that is utilized for the project. Both the United States Constitution
and state constitutions require the payment of just compensation to property
owners who must give up some of their property for a public use, such as natural
gas pipelines or other similar facilities.
After the award of just compensation, either Dominion or the
affected landowner (or both) may ask an appellate court to review the award,
to make sure the award complied with the appropriate body of law. Eventually
the landowner receives the payment awarded by the court. In some states under
some circumstances, landowners may also receive interest. Some states also allow
reimbursement of certain costs incurred by the landowner, such as appraisal
fees.
The eminent domain system has worked well for hundreds of
years, allowing the construction of projects that fulfill a public need, including
gas, electric and water service, highways and airports. Dominion will make every
reasonable effort to reach a voluntary agreement with each affected landowner,
rather than use eminent domain. Your attorney can advise you about easements
and other property interests, can assist you in negotiations with GPC, and can
represent you if eminent domain becomes necessary.
