Welcome to the California Public Utilities Commission (CPUC) website for the California Environmental Quality Act (CEQA) review of the proposed construction of Lodi Gas Storage LLC's Kirby Hills Natural Gas Storage Facility and proposed additional facilities. An application for construction of the original project was submitted to the CPUC on July 25, 2005 (Application A.05-07-018). The CPUC published a final Mitigated Negative Declaration (MND) in February 2006 and the project was approved on March 2, 2006. A subsequent application for the construction and operation of additional facilities was submitted to the CPUC on May 8, 2007 (Application A.07-05-009). This site provides access to public documents and information relevant to the CEQA environmental reviews conducted for each project. Information regarding the original application is provided below (identified as Phase I) followed by information regarding the subsequent application (identified as Phase II).

Phase I

Project Documents Available

• Project Fact Sheet
  
  
• Exhibit Materials from December 7, 2005, Public Information Meeting in Rio Vista, CA
  
  
• Proponent’s Environmental Assessment (prepared by LGS)
  
  
• Final Mitigated Negative Declaration (prepared by CPUC)

Background

Lodi Gas Storage LLC (LGS) is proposing to use a depleted natural gas reservoir in the Kirby Hills gas field as a storage facility for natural gas transported to the site by its customers. The total storage capacity of the reservoir is approximately 7 billion cubic feet (BCF) and the project will have a maximum injection and withdrawal capability of 100 million cubic feet per day (MMcf/day) of natural gas. Project operations would involve tapping into the PG&E 400 pipeline near mile 286.65, constructing facilities to convey natural gas from the PG&E 400 pipeline approximately seven miles to the Kirby Hills gas field, storing the gas in the existing natural reservoir, withdrawing the stored gas on demand from LGS customers, and conveying the withdrawn gas to the PG&E 400 pipeline for delivery to those customers.

The proposed project is comprised the following six primary components (see Project Facilities Map):

• Metering station
• Gas pipeline
• Compressor station
• Flow line
• Injection/withdrawal wells
• Temporary gas injection system

In accordance with Public Utilities Code Section 1001, LGS received a Certificate of Public Convenience and Necessity (CPCN) from the CPUC to construct and operate the project on March 2, 2006.

Project Location

The project site is located in a rural agricultural area in the Montezuma Hills of southeastern Solano County, California, immediately north of the Sacramento–San Joaquin River Delta. The site is approximately six miles west of Rio Vista and eight miles southeast of Fairfield (see Regional Location Map).

The proposed project contains two major component locations, connected by an approximately six-mile east-west pipeline corridor (see Project Location Map). The eastern project component is a natural gas receiving/metering station site, located west of Bird's Landing Road, one mile south of its intersection with State Route 12. The western project component is the natural gas storage/withdrawal site located in the Kirby Hills between Montezuma/Nurse Slough on the west and Shiloh road on the east. The western portion of the project area is also located within the Suisun Marsh Secondary Management Area.

CPUC's Application Review

The CPUC is responsible for the review and approval of any natural gas storage facility in California. In proposals such as this, the CPUC has a two-part review process to evaluate economic and environmental impacts. The CPUC conducts a legal proceeding before an administrative law judge to examine the economic and public utility issues, including impacts to utility ratepayers. At the same time, the CPUC conducts an environmental review consistent with CEQA. The ultimate result of the two reviews is a decision by the Commission whether to grant a CPCN for the project.

Mitigated Negative Declaration

The CPUC published a final Mitigated Negative Declaration (MND) in February 2006. The Draft MND underwent a 30-day public comment period between January 17 and February 16, 2006.

CPUC Actions After Final MND Publication

The CPUC adopted the Mitigated Negative Declaration in accordance with CEQA and granted a Certification of Public Convenience and Necessity (CPCN) on March 2, 2006.

Project construction started on May 22, 2006, and was monitored by a CPUC Environmental Monitor. The CPUC implemented the Mitigation Monitoring Plan as presented in Section C of the MND. This plan ensured that the approved project was constructed as defined, and that all adopted mitigation measures and Applicant Proposed Measures were implemented in order that effects on the environment would not exceed those described in the MND. Weekly reports were prepared that documented construction and compliance activities. Construction of Phase I was completed in March 2007.

Further information about this document is available from CPUC Project Manager Junaid Rahman at (415) 355-5492.

Phase II

Project Documents Available

• Project Fact Sheet
  
  
• Proponent's Environmental Assessment (prepared by LGS)
  
  
• Draft Subsequent Mitigated Negative Declaration (prepared by CPUC)
  

Background

LGS is proposing to construct and operate Kirby Hills II in the northern portion of the existing property. The underground storage reservoir and proposed additional associated surface infrastructure would be located primarily on the Kirby Property. The total storage capacity of the reservoir is approximately 12 bcf and the project would have a maximum injection and withdrawal capability of 350 MMcf per day of natural gas.

The surface infrastructure associated with Kirby Hills II would consist of the following five components (see Project Facilities map):

• Three new well pad sites containing 15 injection and withdrawal wells



• Conversion of four abandoned wells to observation wells



• A 12-inch-diameter, approximately 3,700-foot pipeline (flow line) connecting the wells to the existing compressor station



• A new compressor enclosure and additional dehydration equipment at the existing compressor station site



• An expanded PG&E interconnection at the existing meter station.

Project Location

The project site is located in a rural agricultural area in the Montezuma Hills of southeastern Solano County, California, immediately north of the Sacramento–San Joaquin River Delta. The site is approximately six miles west of Rio Vista and 16 miles southeast of Fairfield (see Regional Location Map).

The proposed project contains two major component locations, connected by an existing approximately six-mile east-west pipeline corridor (see Project Location Map). The eastern project component is an expanded pipeline interconnection at the existing natural gas receiving/metering station site, located west of Bird's Landing Road, one mile south of its intersection with State Route 12. The western project component is the natural gas storage/withdrawal site located in the Kirby Hills between Montezuma/Nurse Slough on the west and Shiloh Road on the east. The western portion of the project area is also located within the Suisun Marsh Secondary Management Area.

CPUC's Application Review

The CPUC is responsible for the review and approval of any natural gas storage facility in California. In proposals such as this, the CPUC has a two-part review process to evaluate economic and environmental impacts. The CPUC conducts a legal proceeding before an administrative law judge to examine the economic and public utility issues, including impacts to utility ratepayers. At the same time, the CPUC conducts an environmental review consistent with CEQA. The ultimate result of the two reviews is a decision by the Commission whether to grant a CPCN for the project.

Mitigated Negative Declaration

The CPUC published a Draft Subsequent Mitigated Negative Declaration (MND) in August 2007. The Draft MND is undergoing a 30-day public comment period (beginning August 24, 2007 and ending September 24, 2007).

Public Comment

You may leave a message on the project voicemail line at (707) 402-6528, email us at kirbyhills@aspeneg.com, or send written comments by U.S. mail to: