Dominion To Washington Gas Light:
Stop Mischaracterizing Natural Gas Study Results
RICHMOND, Va. – Dominion (NYSE: D) Thursday demanded
that Washington Gas Light (WGL) officials immediately cease and desist from
mischaracterizing the contents of a study on the cause of natural gas leaks
on their system.
Dominion said problems with natural gas leaks on WGL’s
Maryland system were caused by old, deteriorated gas couplings — an apparent
failure on WGL’s part to maintain its system adequately — not by
the introduction of natural gas from Dominion’s Cove Point liquefied natural
gas terminal in Maryland.
"We strenuously object to your characterization of the
report in both your SEC filing and in your press release and we believe your
statements to be an inaccurate description of the contents of the report and
the likely causes of your system failures," Dominion said in a letter to
WGL.
Dominion said its analysis and the findings of a report commissioned
by WGL clearly indicate that the primary cause of the failures were seals and
couplings that have been in service for 30 years to 50 years and may have been
improperly installed in the first place.
"Given the deterioration of the seals over the years
and the improper installation method, even conditions that would not normally
impact a distribution system, such as temperature changes, can lead to failures,"
Dominion said.
Dominion also strongly emphasized that the quality and chemical
composition of natural gas coming from Cove Point met all the requirements of
its contracts with WGL.
"Gas delivered by Cove Point to the WGL system is in
strict compliance with the gas quality requirements of our (Federal Energy Regulatory
Commission) Gas Tariff," the company said. "These requirements were
driven in large part by WGL and are among the most restrictive in the industry."
Cove Point’s review showed "that gas delivered
to WGL in Prince George’s County and other parts of the WGL system is
interchangeable with gas flowing throughout the Northeast and Mid-Atlantic regions."
The company noted that while it certifies the quality and
content of the natural gas from Cove Point, it does not actually own the gas.
Shippers that have agreements with WGL and other companies that receive it own
the natural gas.
Dominion
Cove Point is the nation's largest liquefied natural gas import facility.
It is strategically located on the Chesapeake Bay south of Baltimore and has
a storage capacity of more than 7.8 billion cubic feet.
Dominion is one of the nation’s largest producers of
energy, with an energy portfolio of about 28,700 megawatts of generation, about
6 trillion cubic feet equivalent of proved natural gas reserves and 7,900 miles
of natural gas transmission pipeline. Dominion also operates the nation’s
largest underground natural gas storage system with more than 965 billion cubic
feet of storage capacity and serves retail energy customers in nine states.
For more information about Dominion, visit the company’s Web site at www.dom.com.
