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HomeMy WebLinkAbout6.p. Northern Natural Gas Request for Essential Services Permit for a Natural Gas Line to Serve Flint Hills, 13-34-ESP 4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: February 3, 2014 AGENDA ITEM: Case 13-34-ESP Northern Natural Gas AGENDA SECTION: Request for an Essential Services Permit Consent for a Natural Gas Line to Serve Flint Hills PREPARED BY: Eric Zweber, Senior Planner AGENDA NO. i j 2. ATTACHMENTS: Resolution; Pipeline Project Maps; Project Description Narrative; NNG Email Update dated January 9; Draft Excerpt of APPROVED BY: January 14 Planning Commission Minutes. vri> RECOMMENDED ACTION: Motion to Adopt the Resolution Approving an Essential Services Permit to Northern Natural Gas to Install a Natural Gas Line to Serve the Flint Hills Resources Refinery. 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 1/2 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. JANUARY 14 PLANNING COMMISSION MEETING Staff updated the Planning Commission on discussions between NNG and the Rechtzigel family, including a realignment through the middle of their property that would avoid any impact to Carey Rechtzigel's parents' property on the west side of US Highway 52. While the Public Hearing was closed on November 26, Chair Powell asked if either NNG or the Rechtzigels had any additional information or comments. Leslie Rechtzigel stated that she appreciated that the Planning Commission continued the request on November 26 so that they and NNG gas could negotiate the new alignment. No one else spoke. The Planning Commission recommended approval of the IUP without any changes to the conditions on a 4 to 0 vote. Commissioner Kurle was absent from the meeting. 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 stating 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 from further evaluation due to the environmental impacts that would result from the alignment. On January 10, NNG provided 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 IA 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 140th 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 provided additional information (see attached email update) that this location is as close as possible to the MinnCan easement when 2 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 properly 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 established 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 140th Street) and the rail line on the south side of the refinery. The City has jurisdiction over only one of those streets, 140th 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. 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. 3 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 140th 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 The Planning Commission has recommended approval of the essential services permit. Staff recommends a motion to approve the resolution approving the essential services permit. 4 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2014- A RESOLUTION APPROVING THE ESSENTIAL SERVICES PERMIT FOR NORTHERN NATURAL GAS COMPANY TO INSTALL A NATURAL GAS LINE TO SERVE THE FLINT HILLS RESOURCES REFINERY WHEREAS, the Community Development Department of the City of Rosemount received an application from Northern Natural Gas Company (NNG) requesting an Essential Services Permit to construct a 12 inch natural gas pipeline and related facilities, through the City of Rosemount from County Road 46 to the Flint Hills Resources refinery. WHEREAS, on November 26,2013, the Planning Commission of the City of Rosemount reviewed the Essential Services Permit application for NNG and continued the application to the January 14, 2014 Planning Commission meeting; and WHEREAS, on January 14, 2014, the Planning Commission adopted a motion to recommend that the City Council approve Essential Services Permit for NNG to construct the natural gas pipeline and related facilities through the City of Rosemount, subject to conditions;and WHEREAS, on February 3,2014,the City Council of the City of Rosemount reviewed the Planning Commission recommendations for the Essential Services Permit. NOW,THEREFORE, BE IT RESOLVED,the City Council of the City of Rosemount hereby approves the Essential Services Permit for Northern Natural Gas to Install a Natural gas Line to Serve the Flint Hills Resources Refinery, subject to the following conditions: 1. Locate the crossing of County Road 42 as close as feasibly possible 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. ADOPTED this 3rd day of February,2014 by the City Council of the City of Rosemount. William H. Droste,Mayor ATTEST: Amy Domeier, City Clerk —.44,FW.TW'q•7-' ;`—�-. 'Zx,__ "'•' elm,r 1,.ry.-r.�f, /�, l/+�. cv' • — I }_.,r.•.4. [".:.IN 1 4,�I• "47 i,... M ?P _ _Iii�• .• r s F `it,°.1 j III r / It �► ( ,t r{tp r, r uI y •!F-S. . y k 1 --g-, i■ . �Mn ` 1 • IY/I ' 4 7 11,r l Or: iii t # % �JiY • 1./ ' �f� i ►'`1.1� 'It!!!� y� . ;�•}!;� , i i; 'r, • !{ 1l ? 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( ,uOwar<n•ume uh.rurfrwum,8001606.ma unor,2Hwew."o.nIaawn21.eu 09...r6I.W1 LLNA1A4•411,..X1 From: Dickson, Tom [mailto:Tom.Dickson @nngco.com] Sent: Thursday, November 07, 2013 8:53 AM To: Zweber, Eric Cc: hbouvette @earthlink.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 I 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.#4001 Mendota Heights, MN 55120 Office 651.456.1777 1 cell 763.234.2970 Fax 651.456.1740 2 EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING JANUARY 14, 2014 a. Northern Natural Gas Request for Essential Services Permit (13-34-ESP).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 '/a 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.This is a continuation of the public hearing from the November 26,2013,meeting, Senior Planner Zweber reviewed the staff report. Chairperson Powell asked representatives from Northern Natural Gas and the Rechtzigels if they approve the conditions and allowed them to speak even though the public hearing was closed. Leslie Rechtzigel, 3330 145th St East, approached the Commission and thanked them for tabling the item from the last meeting to allow them to work with NNG on an alternative alignment. Chairperson Powell expressed his struggle with essential services permits since the Commission really doesn't have much control over what they can approve. He stated this ordinance should be reviewed in the future. MOTION by Powell 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. Second by Miller. Ayes: 4. Nays: None. Motion approved. EXCERPT OF DRAFT MINUTES PLANNING COMMISSION REGULAR MEETING NOVEMBER 26, 2013 c. Northern Natural Gas Request for Essential Services Permit(13-34-ESP). 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 '/a mile south of County Road 46 in Coates to the refinery. Under the zoning ordinance,this type of transmission utility activity requires an essential services permit. Senior Planner Zweber reviewed the staff report. Chairperson Powell asked about the process of approving essential service permits and what section of the code governs them. Mr. Zweber responded that the City last issued an essential service permit to NNG in 2007 where they installed a parallel line to their existing line out of Farmington from Bacardi Avenue to Bonaire Path. He stated that the findings in this case meet the code,but are very general in the process because there are state and federal regulations that trump the local installation requirements. He further stated that NNG supplies utilities to a number of small cities where having redundancies are common and they consider Flint Hills to be a small city. The public hearing was opened at 8:12p.m. David Kendall,attorney for Carey and Leslie Rechtzigel who live at 3330 145th Street East approached the Commission. Mr. Kendall stated that the Rechtzigels actually preferred the route to stay on the east side of Highway 52 but both MnDot and the City have objections to that route. He further stated the Rechtzigels are requesting the line follow the easements already existing on their property along the MinnCan line. NNG has indicated they would be willing to work with them and they will have to discussion the matter with Flint Hills. Mr. Kendall stated the Rechtzigels are requesting that their property not be subdivide any further. Chairperson Powell asked Mr. Kendall if NNG could condemn the property to obtain the easement if an agreement is not reached and Mr. Kendall confirmed that they could use eminent domain to obtain the property if necessary. Kenny Schindeldecker,4485 160t Street East,has lived on Donnelly Avenue since 1976 and has never known whether it was a private or a public road so he thanked Mr. Zweber for saying it was a private road earlier in his presentation. Mr. Schindeldecker requested that NNG repair Donnelly Avenue after all of the installation of the pipeline is completed. He stated he does all of the plowing and grading and would NNG to leave the road as they found it. Mr. Schindeldecker also requested a hook up to the line since it will be only 25 feet from where he lives. He also stated his concern with the installation taking place in the summer when the irrigation systems are in the fields where the staging area will be located. Al Bester, 1659 145th Street East, owns the property south of Rechtzigel place but lives in Hampton. He asked why the easements couldn't be obtained from the University of Minnesota on their property when they do not have to pay for property taxes. Tom Dickson,NNG, 1120 Centre Point Drive in Mendota Heights,responded to the resident request to tap into the pipeline saying several things need to occur for that to happen including approval from the local utility but the original easement needs to have an allowance clause in it. He stated NNG is basically the wholesaler and a retailer or local utility company is needed to hook up the residents. Mr. Zweber responded to Mr. Bester's question showing on the map where the UMore property line is located in relation to where the pipeline was coming from. It was further discussed between the Commission and Mr. Dickson and it was determined that it would not be feasible to go onto the University's property due to the origination of the pipeline location. Mr. Zweber further stated the expected schedule for installation of the pipeline is beginning in May 2014 and lasting for about two months. There were no further public comments. MOTION by Miller to Close the Public Hearing. Second by Powell. Ayes: 4. Nays: None. Motion approved. Public hearing was closed at 8:31pm. Commissioner Weber asked if the Commission was approving the placement of the pipeline. Mr. Zweber stated the City is approving the staging areas and the road crossings;the alignment of the pipeline is between NNG and the homeowners. Chairperson Powell stated that the code allows the city to issue a permit but can only control the staging areas and road crossings. Chairperson Powell allowed public comment after the hearing was closed. Sue Otten, 1655 Bones Point Road,Wayzata,is the daughter of Leslie and Carey Rechtzigel and has power of attorney. She asked how the city can approve the location of the staging areas before the alignment of the pipeline has been determined. Mr. Zweber responded that two of the three staging areas area adjacent to the crossings that the City is approving and are pretty close together regardless of how the alignment goes through the Rechtzigel property. He stated if the alignment follows the MinnCan line,the staging area or crossing should not change. Commissioner Miller stated his desire to table the item to a future meeting if negotiations on the alignment are still pending. Mr. Zweber responded that the Commission could extend the 60 day rule to another 60 days but would need to either approve or deny at that point or NNG would have to give the City a waiver. He further stated the next Planning Commission meeting is expected to be 6-7 weeks out in January. Chairperson Powell agreed that he would like to see if the negotiations between NNG and the property owners affect the Commission's decision. MOTION by Powell to table the request by Northern Natural Gas for an Essential Services Permit to the January 14,2014,Planning Commission meeting. Second by Miller. Commissioner Miller stated he would be in favor of holding a special meeting if NNG and the property owners reach an agreement before the January 14th Planning Commission meeting so as not to delay the process for the applicant. Ayes: 4. Nays: None. Motion approved. II