HomeMy WebLinkAbout6.a. Northern Natural Gas Request for an Essential Services Permit 4ROSEMOUNT' EXECUTIVE SUMMARY
PLANNING COMMISSION
Planning Commission Meeting Date: November 26, 2013 and January 14, 2014
Tentative City Council Meeting Date: February 3, 2014
AGENDA ITEM: Case 13-34-ESP Northern Natural Gas AGENDA SECTION:
Request for an Essential Services Permit for Old Business
a Natural Gas Line to Serve Flint Hills
PREPARED BY: Eric Zweber, Senior Planner AGENDA NO.
6.• a•
ATTACHMENTS: Pipeline Project Maps; Project Description
Narrative; NNG Email Update dated APPROVED B \,,
January 9.
RECOMMENDED ACTION: Motion to recommend that the City Council approve the
Essential Services Permit for Northern Natural Gas, subject to the following conditions:
1. Locate the crossing of County Road 42 as close to the MinnCan easement as
possible for the construction of the NNG gas line and the future maintenance of
the NNG gas line, the MinnCan line and the Metropolitan Council sewer line.
2. Submittal and approval of a City Utility Permit from the City Engineer.
3. All construction and restoration activities shall conform to the City of Rosemount
General Specifications and Standard Detail Plates for Street and Utility
Construction.
ISSUE
Northern Natural Gas Company (NNG) is proposing to install a 12 inch natural gas pipeline to
provide service to the Flint Hills Resources refinery. The pipeline will connect the existing 30 inch
pipeline located about a 1/z mile south of County Road 46 in Coates to the refinery. Under the zoning
ordinance, this type of transmission utility requires an essential services permit.
NOVEMBER 26 PUBLIC HEARING
At the Public Hearing on November 26, the Attorney representing Carey and Leslie Rechtzigel stated
that NNG has not been evaluating alternative alignments through the Rechtzigel property. Attached
to this Executive Summary is an email from NNG stated that since the November meeting, NNG has
evaluated an alignment adjacent to the former rail line and existing MinnCan crude oil line. NNG has
eliminated this alignment due to the environmental impacts that would result from the alignment. On
January 10, NNG will provide the Rechtzigels a third alignment proposal that would run straight
south from the County Road 42 crossing. In a phone conversation with Leslie Rechtzigel, she told
City staff that this alignment is favored over the initial alignment because it does not impact the
parents' (Marlin and Joann) property.
Al Bester inquired at the Public Hearing if it was possible for the pipeline to run through the UMore
property. NNG staff stated that the trunk gas line runs west to Farmington and an alignment through
UMore would result in a longer service line. Evaluation of the trunk line crossing at Blaine Avenue in
Empire Township would result in about an additional 1,000 feet of service line and a crossing of at
least one branch of the Vermillion River. Since the Public Hearing,NNG has executed an easement
with Al Bester.
SUMMARY
NNG currently provides natural gas to the Flint Hills Resources refinery through a pipeline running
parallel to US Highway 52 about 1/4 mile east of the roadway. The pipeline connects an existing
pipeline running about 1/2 mile south of County Road 42 to the refinery. In 2012, service from this
line was disrupted and stopped natural gas delivery to the refinery and forced some refinery
production to shut down. To provide redundancy which would limit the potential for natural gas
disruptions to the refinery,NNG is proposing to install a second 12 inch pipeline to the refinery.
To provide the most redundancy, the new pipeline will start at a different 30 inch trunk pipeline than
the existing service line and will follow a separate easement to limit any disruption that could occur
during construction or repairs of the existing pipelines. The new pipeline will begin in the City of
Coates about 1/2 mile south of County Road 46, run along the western boundary of Coates crossing
County Road 46 and then running along the northern boundary of Coates to US Highway 52. From
this point,it will run parallel to US Highway 52 on the east side of the highway about 1,000 feet,then
cross US Highway 52, and then run parallel to the roadway, on the west side, to the point where the
City has adopted an official map for the new US Highway 52 and County Road 42 interchange. At
this location,NNG proposes to run the pipeline directly west about 400 feet and then directly north
about 1,500 feet including a crossing of County Road 42. The final segment will run roughly
northwest along the former railroad line until it is west of the CHS trucking facility and finally run
directly north into the refinery including a crossing of 140th Street.
Essential Services Permit
Zoning Ordinance Section 11-2-17D. states that a Essential Services Permit must include five findings:
1. The proposed siting complies with the city's comprehensive guide plan.
Finding:The proposed natural gas line is to provide a redundant and more reliable service to
the Flint Hills Resources (FHR) refinery. FHR is located in HI—Heavy Industrial land use
designation which is consistent with the Comprehensive Plan.
2. To the extent possible, the proposed siting is within or adjacent to existing public rights of way,private utility
easements or other designated corridors for transportation or transmission facilities.
Finding:The City Attorney has advised that the City's authority is limited to crossing of city
right-of-way and public property,but the City has no authority over routing of the pipeline on
private property. Federal regulations cover pipeline routing on private property and preempt
local authority. For this request, the City's authority is limited to the crossing of 140th Street,
the crossing of County Road 42 where the City has an adopted Official Map, and the
operation standards of construction such as hours of operations, dust control, noise, etc.
Staff finds that the crossing at 140th Street does not impact the current 140t Street alignment
and does not create any undue hardship for the construction of the realigned 140th through the
underpass on US Highway 52. The crossing of County Road 42 is directly east of the
MinnCan crude oil pipeline to FHR and in the general location of the Metropolitan Council's
sanitary sewer line. City and County staff is supportive of this location and NNG has
2
provided additional information (see attached email update) that this location is as close as
possible to the MinnCan easement when considering future maintenance and environmental
factors at the directional boring pits necessary for the County Road 42 crossing.
While this standard would seem to indicate that major utilities should be located within or
adjacent to public rights-of-way, that could be inconsistent with finding#5. Locating major
utilities within public rights-of-way or directly parallel with rights-of-way of transportation
corridors that are expected to be reconstructed or expanded would significantly increase the
cost of construction. The City is currently experiencing this situation, higher construction
costs due to private utilities,with the future construction of Bacardi Avenue. The increased
cost is an impact on the City's (the property owners) general welfare.
3. The proposed siting is necessary based upon a need and locational analysis.
Finding:FHR uses natural gas in amounts equal to many cities served by NNG. NNG has
stated that it is common practice for users of this magnitude to have a second,redundant
service to provide reliability and opportunities for maintenance. To provide reliability, the two
service lines need to be separated sufficiently so that an impact on one line does not impact
the second line. Staff finds that the proposed alignment has completed the need and
locational analysis.
4. Impacts, including but not limited to, noise and views, are identified and mitigated.
Finding:The City Utility Permit and the existing City Code regulations will address any issues
or impacts including noise and construction appearance.
5. The proposed siting will not create hazards to the health, safety and general welfare of surrounding property
owners or natural environment.
Finding:Carey and Leslie Rechtzigel had requested that NNG consider aligning the gas line
along the former railroad line in which the MinnCan line currently runs. The attached email
update from NNG states that they evaluated locating the gas line adjacent to the MinnCan
easement. Surveying that alignment establihed that significant trees would be removed (which
would affect endangered Loggerhead Shrike habitat) and impact two wetlands and therefore
NNG eliminated that alignment from consideration. NNG and the Rechtzigels are discussing
a third alignment running directly south from the County Road 42 crossing that would not
damage the natural environment and eliminate any impact to the Marlin and Joann Rechtzigel
property. Staff finds that NNG has considered the natural environment in their alignment and
is evaluating alternatives that would have less impact on the general welfare of the surrounding
property owners.
Pipeline Construction Methods and Roadway Crossings
NNG will be constructing the pipeline by digging a trench along most of the route with exception of
the road crossings. NNG will directional bore the pipeline at the four road crossings (County Road
46,US Highway 52, County Road 42 and 140`" Street) and the rail line on the south side of the
refinery. The City has jurisdiction over only one of those streets, 140`h Street, and staff has a
recommended condition that NNG will need to apply for and receive a City Utility Permit that will
regulate the crossing of 140th Street. The other three street crossings will need either State or County
approval.
3
NNG has been discussing the crossings at County Road 42 and County Road 46 with staff at Dakota
County. There is particular concern about any crossing of County Road 42 because of the plans to
reconstruct the interchange into a cloverleaf. Dakota County staff is supportive of the pipeline
crossing in the location initially proposed because it is in close proximity to the MinnCan oil pipeline
and the Metropolitan Council sanitary sewer line. Dakota County staff prefers to have all major utility
crossings in the same general area instead of being widely distributed along the road right of way.
NNG proposes three staging areas for the project where pipes will be delivered and the construction
equipment will be maintained. Those three locations are at the crossing of County Road 46,about a
half a mile north of County Road 46, and at the crossing of 140`h Street. The City has regulations
regarding hours of operations, dust and erosion control, noise and maintenance of construction
activity. Staff has recommended a condition of approval that clarifies that NNG and their contractors
will need to meet these regulations.
Southeast Corner of CSAH 42 and US Hwy 52(Rechtzigel properties)
Since the Public Hearing,NNG has evaluated aligning the gas line adjacent to the MinnCan crude oil
line but has eliminated that alignment due to environmental impacts. On January 10, NNG has
provided the Rechtzigel a third alignment running straight south from the County Road 42 crossing
more central through the Carey and Leslie Rechtzigel's property and removing any impact to the
Marlin and Joann Rechtzigel property.
RECOMMENDATION
Staff recommends that the Planning Commission recommend approval of the Essential Services
Permit subject to conditions provided.
4
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From: Dickson,Tom [mailto:Tom.Dickson@ inngco.com]
Sent: Thursday, November 07, 2013 8:53 AM
To: Zweber, Eric
Cc: hbouvette(aearthlink.net
Subject: RE: Narrative for the NNG Project
Mr.Zweber—Below is the narrative of the project you requested. Let me know if you have any
questions.
The purpose of this project is for Northern Natural Gas Company"Northern"to install a new 12-inch-
diameter natural gas pipeline to provide increased operational reliability to the Flint Hills Resources Pine
Bend Refinery. The 12-inch-diameter pipeline will be served from Northern's existing mainlines. The
pipeline will terminate at a new delivery station located within Flint Hills Resources' property. A 100-by-
100-foot property will be required at the beginning of the pipeline to encompass the takeoff facilities.
The project will require the acquisition of a new 50-foot-wide pipeline easements, and 50 feet of
temporary work space will be required along the entire route. Additional temporary work space will be
required for road and railroad crossings and points of inflection. Further,temporary work space will be
required for equipment and material staging.
Northern representatives will coordinate permitting activities with all jurisdictional authorities, including
but not limited to Dakota County,City of Coates, City of Rosemount, Minnesota Department of
Transportation,and Union Pacific Railroad. Northern will also coordinate permitting activities with all
applicable environmental agencies.
Construction is currently scheduled to begin in May 2014 and last approximately four months.
Thanks,
Tom Dickson I Right-of-Way Department
Northern Natural Gas Company 11120 Centre Pointe Dr.#4001 Mendota Heights, MN 55120
Office 651.456.1777 1 Cell 763.234.2970 Fax 651.456.1740
From: Dickson, Tom [mailto:Tom.Dickson @nngco.com]
Sent: Thursday, January 09, 2014 2:49 PM
To: Zweber, Eric
Cc: Baumert, Beau
Subject: Rosemount Loop Update
Mr.Zweber,
We appreciate the opportunity to discuss the Rosemount branch line loop Essential Service Permit
request with you on January 8, 2014.
As discussed, Northern conducted civil and environmental surveys on the route initially preferred by the
Rechtzigels and determined it to be prohibitive from a constructability and environmental permitting
standpoint. Northern notified the attorney for the Rechtzigels, David Kendall, of this in a meeting on
December 10, 2013, and provided the supporting documents in a follow-up email on December 11,
2013. Northern received a written response from Mr. Kendall on January 3, 2014,suggesting that the
Rechtzigels are willing to consider an alternate route that considers both parties concerns. Northern has
identified a route alternative that should accommodate the Rechtzigels' identified concerns and is
preparing a drawing for consideration.The drawing will be provided to the Rechtzigels' legal
representative January 10, 2014.The route alternative eliminates the need for an easement agreement
with Marlin and Joann Rechtzigel, Carey Rechtzigel's parents.
Northern is continuing to make every effort to continue good faith negotiations with the Rechtzigels to
execute an easement agreement. However, it is extremely unlikely that an agreement will be in place
prior to the January 14, 2014, Commission meeting. Northern has obtained permits for all road crossings
associated with the city, county and state. It is our understanding that the Essential Service Permit is
necessary for the new pipeline to enforce city ordinances related to construction, but is in no way
intended to govern pipeline routing on private property. In fact, we respectfully point out that any
restrictions on routing imposed in the Essential Service Permit would render the permit invalid and
unenforceable.Such state or local attempts to regulate the routing of interstate pipelines is preempted
by the Natural Gas Act and regulations promulgated by the Federal Energy Regulatory Commission.
We understand that the City of Rosemount would like to include language in the essential use permit to
ensure the proposed pipeline is installed as close to the existing Koch easement as feasible. Northern
would like to ensure the City understands its desire to minimize the pipeline's impact to identified
environmentally sensitive area—namely,the identified wetlands and the trees identified as a potential
habitat for a threatened species. Northern intends to avoid any impact to either.
Northern holds that the crossing of County Road 42 is designed as close as feasible when taking these
environmental impacts into consideration. Further,the County Road 42 crossing is designed such as to
allow for the planned expansion of the County Road 42/highway 52 interchange.The entry and exit
points are located outside of the planned interchange right of way.The crossing is designed
perpendicular to County Road 42 to minimize the length of inaccessible pipeline.The crossing will be
completed via the horizontal directional drill method,which requires sufficient workspace aligned with
the drill path to stage the pipe to be pulled through the crossing.The extended crossing length required
to accommodate the expanded road right of way requires a longer pull section that dictates how far
west the entry point can be located on the property.The current entry/exit points are about as far west
as they can go.
1
Northern has executed written or verbal easement agreements with five of eight private landowners on
the proposed route.An easement has been executed with Mr. Bester,who stated a preference for
routing the pipeline on public property at the November public hearing. Of the three outstanding
easement agreements,one is with Flint Hills Resources, LLC, one is located at the pipeline takeoff and
one is with the Rechtzigels. Northern owns an existing easement on the Rechtzigel's property with
multiple line rights that allows for the installation of additional pipelines at a specified reimbursement.
Northern will exercise this privilege if good faith negotiations fail.
Thanks,
Tom Dickson 1 Right-of-Way Department
Northern Natural Gas Company 11120 Centre Pointe Dr. #400 Mendota Heights, MN 55120
Office 651.456.1777 1 Cell 763.234.2970 Fax 651.456.1740
2