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STATE OF CALIFORNIA
PUBLIC UTILITIES COMMISSION


Central Valley Natural Gas Storage Project


(Application No. A.09-08-008)

Construction Progress and Mitigation Monitoring

Construction of the Central Valley Gas Storage Project began in March 2011 with the establishment of construction yards, 10-acre compressor station, 5-acre remote well pad site and three observation wells. Notices to Proceed (NTPs) have been issued by the CPUC for each of these activities. The majority of construction is expected to start in June 2011 once the CPUC issues NTPs for each project component. Issuance of NTPs will be contingent upon Central Valley compliance with pre-construction requirements as specified by the approved mitigation measures and responsible agency permitting requirements. NTPs that have been issued to Central Valley are noted in the table below.

Notice to Proceed Construction Activities NTP Request Submitted NTP Issued
1

Obtain site access and complete road and site preparation for existing observation wells

Central Valley Request Submitted 02/28/11 CPUC NTP #1 issued 03/21/11
2 Southam #3, #4, and Sara Louise #1; inspection and work-over activities Central Valley Request Submitted 04/29/11 CPUC NTP #2 issued 05/13/11
3 Remote well pad site preparation

Compressor site preparation
Included in NTP 1 Included in NTP 1
4 Construction of 16-inch dual gathering lines and 24-inch pipe segment between compressor station and remote well pad site Pending Pending
5A Drill up to 10 injection/withdrawal wells at remote well pad site Central Valley Request Submitted 05/17/11 CPUC NTP #5A issued 05/17/11
5B Gas injection at remote well pad site Pending Pending
6 Saltwater disposal pipeline from McAusland Road to remote well pad site
Included in NTP 12 Included in NTP 12
6A L-172 meter and interconnection Central Valley Request Submitted 05/13/11 CPUC NTP #6A issued 05/16/11
6B Remote well pad civil foundations, piping systems, temporary compressor, and equipment installation Central Valley Request Submitted 05/18/11 CPUC NTP #6B issued 05/31/11
6C Compressor station civil foundations, piping systems, temporary compressor, and equipment installation Central Valley Request Submitted 06/16/11 CPUC NTP #6C issued 07/07/11
6D Pacific Gas & Electric electrical pole relocation on Southam Road and new electrical pole installation on McAusland Road Central Valley Request Submitted 05/27/11 CPUC NTP #6D issued 05/31/11
7 Installation of emitting equipment (compressors, dehydration, generators) at the compressor site Pending Pending
8 Site preparation and drilling of Zumwalt #2 observation well Pending Pending
9A Test boring for at HDD locations for 24-inch pipeline Central Valley request submitted 05/11/11 CPUC NTP #9A issued 05/11/11
9B Horizontal directional drilling (HDD) for 24-inch pipeline Pending Pending
10A Installing berms to support preparation of 24-inch pipeline right-of0way Central Valley request submitted 04/12/11 CPUC NTP #10A issued 04/18/11
10B Preparation of 24-inch pipeline right-of-way Central Valley request submitted 06/30/11 Pending
11 Construction of 24-inch pipeline between remote well pad and L-401 meter station Pending Pending
12 Complete test well and install saltwater disposal pipeline to remote well pad site Central Valley request submitted 06/10/11 CPUC NTP #12 issued 06/15/11
13 Construct L-401 meter station and pipeline connection to L-401 Pending Pending
14 Construction of 24-inch pipeline between remote well pad and L-401 meter station Pending Pending

The CPUC, in conjunction with Central Valley Gas Storage LLC, drafted a Mitigation Monitoring Compliance and Reporting Program (MMCRP) to ensure compliance with mitigation measures approved in the Final MND. Although changes may be made to the document as construction progresses, a current final version of the MMCRP document and attachments, including a map of the approved route with segments, is found here.

A CPUC Environmental Monitor (EM) is monitoring construction activities to ensure that they are conducted in accordance with the approved mitigation measures and permit conditions. Weekly reports documenting construction status and compliance activities will be posted here.

As defined by the MMCRP, at various times throughout project construction, the need for extra workspace or additional access roads may be identified. Similarly, changes to the project requirements (mitigation measures, specifications, etc.) may be needed to facilitate construction or provide more effective protection of resources (e.g., installation of additional erosion control outside of approved disturbance areas). The CPUC Project Manager, along with the CPUC EMs, will implement the variance procedures defined in the MMCRP to evaluate each proposed project change for its potential for creating significant environmental effects to determine whether supplemental California Environmental Quality Act (CEQA) and/or National Environmental Policy Act (NEPA) review is required. Variance requests processed to date are provided in the table below.

Variance
Request
Date
Requested
Date
Issued
Segment Description
04/06/11 04/25/11 Natural Gas Connecting Pipeline (Segment A) Three sections of the gas pipeline alignment will be rerouted to reduce impacts to irrigation systems and farming operations.
07/01/11 Pending Natural Gas Connecting Pipeline (Segment A) Additional temporary work space for pipe staging adjacent an HDD site. Area within a fallow rice field.
3 07/12/11 Pending Compressor Station Install 4 new poles to connect power to the compressor station via PG&E Line along Southam Road.
4 07/08/11 Pending Natural Gas Connecting Pipeline (Segment A) Utilize HDD to cross the NRCS wetland to avoid surface impacts.
5 07/12/11 Pending Offsite Offsite area in the City of Colusa to be utilized by Pipeline contractor for office trailers, materials staging, and storage of equipment.

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