HomeMy WebLinkAbout6.i. Northern Natural Gas Request for Extension of Conditional Use Permit Resolution 2016-039
EXECUTIVE SUMMARY
City Council Meeting Date: February 5, 2018
AGENDA ITEM: Case 16-09-CUP Northern Natural Gas
Request for Extension of Conditional Use
Permit Resolution 2016-039.
AGENDA SECTION:
Consent
PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO.
6.i.
ATTACHMENTS: Request Letter, Resolution 2016-039,
Staff Memorandum 5-17-16, Pipeline
Easement Map
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve an extension of the Conditional Use
Permit issued to Northern Natural Gas to construct a natural gas transmission line
greater than ¼ mile in length to December 31, 2018.
SUMMARY
The City Council is being asked to consider a request from Northern Natural Gas Company (NNG)
to extend the time for completion of a new transmission facility greater than ¼ mile in length
approved under Resolution 2016-039. NNG submitted an application to the City in April of 2016 for
a Conditional Use Permit concerning the installation of a new 20-inch natural gas pipeline parallel to
an existing smaller pipeline in the north-central portion of Rosemount. This permit was approved by
the City with a condition stating that the permit was valid through the projected completion date of
October 2017. For several reasons as documented in the attached letter from NNG, they were not
able to start work on the project in 2017, and are therefore requesting an extension from the City to
allow work to commence this year. NNG expects all work to be completed by the end of 2018.
BACKGROUND
The proposed NNG work within Rosemount is part of a larger project to construct a 7.8 mile long, 20
inch diameter pipeline in Dakota County between NNG’s existing Rosemount Junction located near
the intersection of Bacardi Avenue and Bonaire Path and its Cedar Station Yard in Eagan. The
majority of the proposed pipeline will be installed next to an existing 16 inch pipeline except for a 2.3
mile segment located along State Highway 77 in Eagan. All but a small portion of the pipeline within
Rosemount will be located within existing utility easements. The project is needed to support the
growing demand for natural gas in the area, and will provide a loop for NNG’s existing branch line
that ultimately feeds Xcel Energy’s Cedar power plant.
For additional details concerning the original request, please see the attached staff report to the City
Council concerning the April 2016 application. This report includes additional information
concerning the specific pipeline route through Rosemount, details concerning the type of construction
to be used, and an analysis of potential issues. The City ultimately found that the project would meet
all applicable CUP requirements with the conditions included in Resolution 2016-039 (which is also
attached for review by the City Council). The included easement map depicts the pipeline corridor
through Rosemount.
NNG is not making any changes to its approved CUP, and is only asking to extend the original
October 2017 deadline for completion of the project as specified in Resolution 2016-039. There will
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be no changes to any of the plans and details from the original request, and all other conditions and
requirements would remain in place. Staff has reviewed the request with the City Attorney, who has
indicated City Council may take action to extend the previously established CUP deadline. This
decision is based partly on the fact that the original resolution includes a specific deadline for
completion of the project, and no other terms or conditions associated with the project would be
amended. Staff has reviewed the request and has not identified any specific issues that the extension
would create that have not already been addressed through the previous review. Please also note that
many of the reasons for the delay were outside the control of NNG, and were primarily related to
delays in permitting at the federal level.
RECOMMENDATION
Staff recommends approval of the request to extend the deadline for completion of the NNG
pipeline construction work authorized under City Council Resolution 2016-39 until December 31,
2018.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016-39
A RESOLUTION APPROVING A CONDITIONAL USE PERMIT (CUP) TO
CONSTRUCT A NATURAL GAS TRANSMISSION LINE OVER '/4 MILE IN LENGTH
WHEREAS, the City of Rosemount received an application for a Conditional Use Permit (CUP)
from Northern Natural Gas (NNG) to construct a 20" natural gas transmission line; and
WHEREAS, on Apri126, 2016, the Planning Commission of the City of Rosemount held a public
hearing to review the CUP application from Northern Natural Gas construct a 20" natural gas
transmission line; and
WHEREAS, the Planning Cominission adopted a motion recommending that the City Council
approve the CUP for Northern Natural Gas subject to the conditions listed below; and
WHEREAS, on Apri126, 2016, the Ciry Council of the City of Rosemount reviewed the Planning
Commission's recommendation and the CUP application to construct a 20" natural gas transmission
line.
NOW,THEREFORE, BE IT RESOLVED, the Council of the Ciry of Rosemount hereby
approves the CUP to construct a 20" natural gas transmission line beginning from the NNG
Rosemount Junction town border station located at 132nd St W and Bacardi Ave W in Rosemount
to Northern Natural Gas's Cedar Station town border station in Eagan, subject to the following
conditions:
1. Submittal and approval of a City Utility Permit from the City Engineer.
2. All construction and restoration activities shall conform to the City of Rosemount General
Specifications and Standard Detail Plates for Street and Utility Construction.
3. Construction hours outside of those specified in City Code Section 9-7-2 are permitted
provided the extended hours are necessary to complete horizontal directional drilling work
for long runs that cannot be completed during the permitted construction time period. The
applicant shall provide advance notice to the Ciry when activities will extend beyond the
working hours specified by the City Code.
4. Northern Natural Gas Company shall limit construction noises from horizontal clirectional
drill activities to 55 dBA at any residential dwellings or will work with the resident(s) of said
dwellings to temporarily relocate during construction activities.
5. Compliance with the Fire Marshal's recommendations in a memorandum dated 4/20/16.
6. All infrastructure and landscaping removed from Ciry property shall be restored and
replaced upon completion of the pipeline project,including a one year warranty period. A
letter of credit for 110% of the value of the infrastructure and landscaping shall be submitted
to the Ciry prior to work commencing.
RESOLUTION 2016-
7. NNG shall submit an updated map book to the City similar to the maps provided with its
Federal Energy Regulatory Commission filing showing the locarion of the e sting and
proposed pipeline prior to construction.
8. The Conditional Use Pernut shall be valid through the projected completion date of October
31, 2017.
ADOPTED this 17`h day of May, 2016 by the Ciry Council of the Ciry of Roselnount.
rL
William H. Droste, Mayor
ATTE :
Clarissa Hadler, City Clerk
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EXECUTIVE SUMMARY
City Council Regular Meeting: May 16, 2016
AGENDA ITEM: Case 16-09-CUP Northern Natural Gas
Request for a Conditional Use Permit for a
Transmission Facility Greater than ¼ Mile in
Length
AGENDA SECTION:
Consent
PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO.
6.n.
ATTACHMENTS: Resolution, Except of Draft 4/26/16
Minutes, CUP Application Summary;
Extended Work Hours Request; Project
Description; NNG Email Update (Trees);
Horizontal Directional Drilling Information;
Fire Marshall Review Comments;
Easement Location Map; Pipeline Plan;
Public Property Map; Tree Impact Map;
Excerpt Planning Commission Minutes
April 26, 2016
APPROVED BY:
ddj
RECOMMENDED ACTION: Motion to approve a resolution granting a conditional
use permit for Northern Natural Gas to construct a natural gas transmission line greater
than ¼ mile in length, subject to conditions.
SUMMARY
The City Council is being asked to consider a Conditional Use Permit (CUP) request from Northern
Natural Gas Company (NNG) for a new transmission facility greater than ¼ mile in length. NNG is
seeking approval to install a new 20 inch natural gas pipeline parallel to an existing smaller pipeline in
the north-central portion of Rosemount. Construction of the pipeline will begin in March of 2017 and
be completed by October 2017.
PLANNING COMMISSION ACTION
The Planning Commission held a public hearing to review the conditional use permit request on April
26, 2016. Commissioners asked several questions about the planned directional drilling method and
potential impacts to neighboring home owners from the project. Bryan Kruger of NNG noted that
directional drilling will take place at depths in excess of 20 feet and that there should be no tremors or
other surface impacts over the pipeline. He indicated that noise will be focused around the entrance
and exit points of the pipeline where drilling occurs, and that they will add sound mitigation around
each site if any work exceeds the maximum sound level of 55dB. In cases where sounds around this
level cannot be mitigated, NND will pay to temporarily relocate adjacent residents during construction
activity. Staff noted that 55dB is generally considered the ambient noise level as supported by recent
sound studies reviewed by the City.
The Commission expressed an interest in the amount of time that each segment will take to complete,
especially in light of the applicant’s request for extended working hours. Mr. Kruger noted that most
directional drilling runs should be completed within a 24-48 hour time period. He indicated that
because the pipeline will be constructed in a rural area, there will be a few homes impacted around
each drilling site, and that there will be a fair amount of separation from most homes. In response to
a Commission question, Mr. Kruger noted that the proposed pipeline will be located 25 feet from the
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existing line unless this amount of separation cannot be achieved due to the width of the existing
easement.
The Commission received testimony from one neighboring property owner who asked for
clarification on where the line would run across his property. The Commission suggested that the
homeowner meet with City Staff and the applicant to review more detailed pipeline plans. Staff
explained that the City will not be involved in any new easement acquisition, and that the applicant
will need to secure any new or temporary easements before starting the project. NNG, like local
governments, can use eminent domain to secure necessary right-of-way for its pipeline.
The Planning Commission voted unanimously to recommend approval of the conditional use permit
with the conditions as drafted by Staff.
BACKGROUND
The proposed NNG work within Rosemount is part of a larger project to construct a 7.8 mile long, 20
inch diameter pipeline in Dakota County between NNG’s existing Rosemount Junction located near
the intersection of Bacardi Avenue and Bonaire Path and its Cedar Station Yard in Eagan. The
majority of the proposed pipeline will be installed next to an existing 16 inch pipeline except for a 2.3
mile segment located along State Highway 77 in Eagan. All but a small portion of the pipeline within
Rosemount will be located within existing utility easements. The project is needed to support the
growing demand for natural gas in the area, and will provide a loop for NNG’s existing branch line
that ultimately feeds Xcel Energy’s Cedar power plant.
The section of the pipeline proposed within Rosemount will start at the Rosemount Junction yard as
noted above and follow an existing easement in a northwesterly trajectory across the Progressive Rail
line, 130th Street West, South Robert Trail, McAndrews Road/Dodd Boulevard intersection, and
finally across 120th Street and into the City of Eagan through Lebanon Hills Park. The attached map
labeled Exhibit “A” highlights the path of the proposed pipeline and also shows the existing and
proposed easements that will support construction of the line. Of particular note are the areas shaded
in blue representing temporary easements, needed primarily for staging of construction activity, and
the green-shaded areas depicting new easements. New easement acquisition is limited to small runs of
pipe between McAndrews Road and 120th Street.
Unlike other recent pipeline projects in Rosemount, the majority of the proposed pipeline will be
installed using a horizontal directional drilling process (versus open trenching) that should reduce the
overall impact of the construction project on the landscape. In general, directional drilling uses a
specialized machine to bore a hole underground and then a pipe is pulled back through this hole to
occupy the space (as opposed to digging a trench, laying the pipe, and covering the trench). The
advantage of this construction method is that land disturbance and activity is typically limited to the
entry and exit points for the pipeline. The map labeled Exhibit “B” attached to this memorandum
identifies those portions of the pipeline that will be built using traditional open trenching methods and
those that will be installed using a directional drilling process. For the most part, open trenching will
occur in areas of open fields, while directional drilling will be used in areas of wetlands, heavy tree
cover, or areas with larger numbers of buildings and private improvements. NNG has provided the
City with a separate attachment describing the directional drilling process.
In addition to identifying the type of pipeline construction, Map “B” also delineates the drill locations
for the pipe. These locations signify where the staging will occur for the equipment necessary to
perform the drilling work, and therefore areas where some impacts are expected for surrounding
property owners. In order to support these activities, NNG has identified temporary easement areas
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needed for access and drilling equipment placement. These easements are being negotiated between
the applicant and property owners; no direct staging activity is anticipated on public property or within
any public rights-of-way. Access to the drilling and trenching sites will occur from public roads, either
through private drives or via existing field access points.
As part of its application, NNG is requesting an exception to the City’s standards regulating
construction activity operating hours. The applicant is concerned that the directional drilling process
will take a long time to complete for the longer runs being proposed and has noted that interrupting
the drilling process before reaching the end point is not feasible because the pipe can become stuck if
work is halted partway through the run. Staff has found that the request for flexibility from normal
working hours is justified in this case because it should help shorten the overall duration of the project
in Rosemount. The directional drilling also ensures that the minimal amount of time possible is spent
working in each staging area. Finally, from an impact perspective directional drilling is preferred over
open trenching. The applicant has proposed mitigation measures to help off-set impacts to adjacent
properties when the drilling is taking place, and staff is suggesting that these proposed measures be
included as a condition of approval. Staff is therefore recommending approval of the request for
extended working hours.
During the review of previous pipeline projects, the City Attorney has advised that the City’s authority
is limited to crossing of city right-of-way and public property, and 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 therefore limited to the
public road crossings at 130th Street West, Blanca Avenue, Bolivia Avenue, South Robert Trail
MnDOT responsibility), McAndrews Road, Dodd Boulevard, and 120th Street West, and the
operational standards of construction such as hours of operations, dust control, noise, etc.
Because there is an extensive environmental and federal regulatory review associated with the pipeline,
NNG is seeking its local permits well in advance of construction. The advanced review is beneficial
for the City because it provides ample time to address any anticipated impacts, but does create a
problem because the Zoning Ordinance requires all conditional uses to be established within one year
of approval. Given the unusual factors associated with a new pipeline project, staff is recommending
that the CUP remain valid through the project completion date of October 2017.
ANALYSIS/REVIEW
Focusing on those areas that the City can review and regulate as it pertains to a public utility pipeline,
the main issues that are expected to arise from the project can be summarized as follows:
Direct impacts from the construction operations, including noise and dust from drilling
equipment, trucks, and other machinery used to install the pipeline. In addition to the CUP
request, the applicant will need to secure a utility permit from the City for all work within and
under public property. This permit will address some of these issues, especially as they relate
to noise and construction appearance. The applicant will be expected to follow general city
regulations concerning nuisances both during and after construction of the pipeline. The Fire
Marshal has also provided general review comments and has asked for certain information or
actions to help address public safety concerns with the project.
Loss of vegetation and trees along the planned route. The applicant was asked to prepare a
separate map detailing any trees that would be impacted by the project. This map indicates
that there are 118 trees within the proposed alignment, and that of these trees, approximately
20 will need to be removed. The number of trees expected to be removed is fairly small
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because no tree removal is anticipated in areas where the pipe is installed via the directional
drilling process. Some tree removal will be necessary to get access to the drilling sites and to
be able to properly set up the needed equipment. Most of the tree removal will occur in the
staging area between South Robert Trail and Dodd Boulevard south of McAndrews Road.
Staff is recommending a condition of approval that requires the applicant to post a letter of
credit to guarantee the replacement of any infrastructure or landscaping removed from public
property.
City right-of-way crossings and work under City streets. Because the project is occurring
within an existing easement, the City does not have the ability to suggest alternative crossing
locations for the pipeline. The City Engineer has reviewed the proposed project alignment,
and does not anticipate any specific construction issues that cannot be managed through the
utility permit review. A larger staging area and several drilling points are planned around the
McAndrews Road and Dodd Boulevard intersection.
Access and private property impacts. Because nearly 75% of the pipeline through Rosemount
will be installed using directional drilling methods, the direct impacts to adjacent properties are
much less than if the pipe was installed via an open trenching method. This means that direct
property impacts will be focused around individual staging areas rather than over long lineal
runs across private property. The applicant has committed to maintaining a sound limit of
55dBA at the nearest residence or temporarily relocating these residences when this standard
cannot be achieved. The construction access points will need to be approved by the City
Engineer as part of the utility permit.
Essential Services Permit
Zoning Ordinance Section 11-2-17D. states that an Essential Services Permit for transmission facilities
over ¼ mile in length 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 expanded capacity to meet increasing
demands for natural gas and to provide a loop for an existing branch line. The pipeline will be
located within an existing easement, and will cross properties that are guided for transitional or
rural residential land uses. The current zoning for the affected properties are either RR –
Rural Residential or AG – Agricultural, both of which allow for the proposed transmission line
as a CUP.
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: For this request, the City’s authority is limited to the public road crossings described
above and the operational standards of construction such as hours of operations, dust control,
noise, etc. The applicant is proposing to directional drill under all roadways, and will be
securing temporary easements adjacent to public roads to provide adequate room for staging
of equipment, vehicles, and workers. The City’s ability to restrict crossings is limited because
the pipeline will be located within an existing easement. The City Engineer noted that any
expected issues over or adjacent to public roadways may be addressed though the utility
permitting process.
3. The proposed siting is necessary based upon a need and locational analysis.
Finding: In addition to a general increase in demand for natural gas services, the applicant has
noted that the pipeline is needed to fulfill a contractual obligation with Xcel Energy to provide
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a minimum amount of pressure at the Cedar Station facility. This facility supplies natural gas
for Xcel’s Black Dog power plant. 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. Staff is also recommending a
condition requiring NNG to limit construction noise impacting near-by residences or to
temporarily relocate these residents when the specified sound levels cannot be met.
5. The proposed siting will not create hazards to the health, safety and general welfare of surrounding property
owners or natural environment.
Finding:
Staff finds that NNG has considered the natural environment in their alignment and is
proposing construction alternatives that will have less impact on the general welfare of the
surrounding property owners.
RECOMMENDATION
The Planning Commission and Staff recommend approval of the Conditional Use Permit subject to
the conditions provided. This recommendation is based on the plans submitted by the applicant
and the findings made in this report.
µCedar Station Upgrade Pipeline Project RouteDakota County, MinnesotaEasement Location MapDimensions are Approximate49,439 S.F.1.13 Acres143,018 S.F.3.28 Acres39,422 S.F.0.90 Acres17,188 S.F.0.39 Acres5,256 S.F.0.12 Acres3,343 S.F.0.07 Acres63,077 S.F.1.44 Acres125,886 S.F.2.88 Acres59,310 S.F.1.36 Acres80,035 S.F.1.83 Acres1,136 S.F.0.02 AcresLEGENDProposed PipelineParcel LinesProposed New EasementsExisting EasementsTemporary EasementsDrill Location11,600 FEET Total Length (ROSEMOUNT)76,362 S.F. / 1.73 Acres904,839 S.F. / 20.72 Acres510,748 S.F. / 11.69 Acres