Baltimore County Baltimore County Liquefied Natural Gas ...

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Baltimore County Baltimore County Liquefied Natural Gas Liquefied Natural Gas Task Force Task Force AES Sparrows Point LNG AES Sparrows Point LNG Mid Mid- Atlantic Express Atlantic Express Project Presentation Project Presentation September 5, 2006 September 5, 2006

Transcript of Baltimore County Baltimore County Liquefied Natural Gas ...

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Baltimore County Baltimore County Liquefied Natural Gas Liquefied Natural Gas

Task ForceTask Force

AES Sparrows Point LNGAES Sparrows Point LNG

MidMid--Atlantic ExpressAtlantic Express

Project PresentationProject PresentationSeptember 5, 2006September 5, 2006

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AES Provides Power World WideAES Provides Power World Wide

ØØWindWind

ØØ HydroHydro

ØØ SolarSolar

ØØ Natural GasNatural Gas

ØØOilOil

ØØ Coal Coal –– AES operates MarylandAES operates Maryland’’s cleanest s cleanest coalcoal--fired power plant in Cumberland, fired power plant in Cumberland, called Warrior Run; the plant has been called Warrior Run; the plant has been operating for five years.operating for five years.

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Legislation PreambleLegislation Preamble

ØØ Demand in U.S. for natural gas for residential and industrial Demand in U.S. for natural gas for residential and industrial use and for power generation is increasing rapidly.use and for power generation is increasing rapidly.

ØØ U.S. now relies on natural gas for nearly one quarter of its U.S. now relies on natural gas for nearly one quarter of its energy use.energy use.

ØØ Projections indicate that consumption will soon outpace Projections indicate that consumption will soon outpace domestic production.domestic production.

ØØ Technology makes importation of natural gas in liquefied form Technology makes importation of natural gas in liquefied form feasible + cost effective, and imports of LNG are expected to feasible + cost effective, and imports of LNG are expected to sharply increase in the next decade.sharply increase in the next decade.

ØØ Public has compelling interest in obtaining Public has compelling interest in obtaining COMPREHENSIVE, FACTUAL, AND OBJECTIVE COMPREHENSIVE, FACTUAL, AND OBJECTIVE INFORMATIONINFORMATION about LNG facility proposed at Sparrows about LNG facility proposed at Sparrows Point.Point.

ØØ Task Force shall be formed to obtain Task Force shall be formed to obtain OBJECTIVE AND OBJECTIVE AND ACCURATE INFORMATIONACCURATE INFORMATION about proposed LNG project, about proposed LNG project, including safety and other important aspects surrounding including safety and other important aspects surrounding sitingsiting decisions.decisions.

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Task Force MissionTask Force Mission

ØØ To study and report on the following:To study and report on the following:ll Risks and hazards of LNG facilityRisks and hazards of LNG facility

ll Kind and use of facilityKind and use of facility

ll Population and demographic characteristics of the communityPopulation and demographic characteristics of the community

ll Land useLand use

ll Natural and physical aspects of proposed locationNatural and physical aspects of proposed location

ll Emergency response capabilitiesEmergency response capabilities

ll Need and distance for remote Need and distance for remote sitingsiting

ll Effect of facility on recreational and commercial boating, Effect of facility on recreational and commercial boating, fishing, crabbingfishing, crabbing

ll Impact on environment / water quality due to dredgingImpact on environment / water quality due to dredging

ll Waterway access for residential property ownersWaterway access for residential property owners

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2005 Energy Policy Act2005 Energy Policy Act

ØØ Section 311(d) of the Energy Policy Act added a Section 311(d) of the Energy Policy Act added a new Section 3A(b) to the Natural Gas Act that new Section 3A(b) to the Natural Gas Act that requires FERC to review: requires FERC to review: ll Kind and use of the facilityKind and use of the facility

ll Existing and projected population and demographic Existing and projected population and demographic characteristics of the locationcharacteristics of the location

ll Existing and proposed land use near the locationExisting and proposed land use near the location

ll Natural and physical aspects of the locationNatural and physical aspects of the location

ll Emergency response capabilities near the facility Emergency response capabilities near the facility locationlocation

ll Need to encourage remote Need to encourage remote sitingsiting

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Project TimingProject Timing

Ø Voluntary Community Outreachl Elected Officialsl Community Leadersl Public Presentation – January 17, 2006l Public / Community presentations – January through May 2006

Ø Pre-Application Processl April 3, 2006 – FERC issued notice of commencement of pre-

filing review processl Minimum 180 day period to initiate and complete studies and

prepare reports that present site-specific resultsl Scoping meetings and continued outreach

Ø Formal Applicationl Submitted after completion of studies and reportsl Expected to be filed December 2006

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FERC ProcessFERC ProcessØØ FERC has exclusive authority to approve or FERC has exclusive authority to approve or

deny applicationdeny applicationØØ Encourages cooperation with state and local Encourages cooperation with state and local

officials and early public involvementofficials and early public involvementØØ Anticipated scheduleAnticipated schedule

ll Submit first drafts of resource reports: August / Submit first drafts of resource reports: August / September 2006September 2006

ll Respond to data requests and revise resource Respond to data requests and revise resource reports: September / October / November 2006reports: September / October / November 2006

ll Formal application: December 2006Formal application: December 2006ll Draft EIS: 2Q 2007Draft EIS: 2Q 2007ll Final EIS: 3Q 2007Final EIS: 3Q 2007ll Authorization and certificate: 4Q 2007Authorization and certificate: 4Q 2007

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FERC ProcessFERC Process

ØØ Resource reports Resource reports (1) water use and quality (1) water use and quality (2) fish, wildlife, and vegetation (2) fish, wildlife, and vegetation (3) cultural resources (3) cultural resources (4) socio(4) socio--economics economics (5) geological resources (5) geological resources (6) soils (6) soils (7) land use, recreation, and aesthetics (7) land use, recreation, and aesthetics (8) air quality & noise (8) air quality & noise (9) alternatives (9) alternatives (10) safety, security, and reliability (10) safety, security, and reliability (11) potential contamination issues (11) potential contamination issues (12) PCB contamination(12) PCB contamination(13) engineering design(13) engineering design

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Public Input

Opportunities

Public Input

Opportunities

Sparrows Point Project

Federal Energy Regulatory Commission Environmental Review P rocess

FERC receives AES Sparrows Point’s request to conduct its review of the project within the FERC’s Pre -

filing Process.

AES Sparrows Point Actions

Federal Energy Regulatory Commission (FERC) Actions

FERC formally approves Pre -filing Process, issues PF Docket No. to AES Sparrows Point, and begins

project review.

Issue Notice of Intent for Preparation of an Environmental Impact Statement (EIS). Open

NEPA scoping period to seek public comments on the project.

Hold NEPA sco ping meetings in the project area. Consult with interested agencies.

FERC receives formal application from AES Sparrows Point.

Issue Preliminary Draft Environmental Impact Statement (EIS) to cooperating agencies for review.

AES Sparrows Point sp onsors public workshops.

AES Sparrows Point assesses market need and considers project feasibility.

AES Sparrow Point studies potential site locations.

AES Sparrows Point identifies stakeholders.

AES Sparrows Point requests use of the FERC’s Pre -fil ing process

AES Sparrows Point files formal application with the FERC.

Issue Draft EIS and open comment period.

Hold meetings in the project area to hear public comments on the Draft EIS.

Respond to comments and revise the Draft EIS.

Issue Fina l EIS.

FERC determines whether or not to approve the project.

FERC participates in AES Sparrows Point public meetings.

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USCG ProcessUSCG ProcessØØ Preliminary Waterway Suitability AnalysisPreliminary Waterway Suitability Analysis

ll Port characterizationPort characterizationll Risk assessment (safety and security)Risk assessment (safety and security)ll Risk management strategies, including safety and security zones Risk management strategies, including safety and security zones

(current restrictions in Chesapeake Bay apply to cruise ships an(current restrictions in Chesapeake Bay apply to cruise ships and all d all ships transporting cargos defined as hazardous), notice to marinships transporting cargos defined as hazardous), notice to mariners, ers, and/or information hotlineand/or information hotline

ll Required resources and payment responsibilityRequired resources and payment responsibility

ØØ FollowFollow--on Waterway Suitability Analysison Waterway Suitability AnalysisØØ Letter of IntentLetter of IntentØØ Letter of RecommendationLetter of RecommendationØØ Cooperating agency under FERC processCooperating agency under FERC processØØ ESTIMATED TIME OF DISLOCATION AS LNG SHIP PASSES ESTIMATED TIME OF DISLOCATION AS LNG SHIP PASSES

ENROUTE TO SPARROWS POINT ENROUTE TO SPARROWS POINT 5 MINUTES5 MINUTESØØ ESTIMATED TIME IN APPROACH CHANNEL AND TURNING ESTIMATED TIME IN APPROACH CHANNEL AND TURNING

BASIN BASIN 45 MINUTES45 MINUTESØØ NO WATERWAY CLOSURESNO WATERWAY CLOSURES

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Project OverviewProject Overview

ØØ IMPORT TERMINAL.IMPORT TERMINAL.ll Owner: AES Sparrows Point LNG, LLCOwner: AES Sparrows Point LNG, LLCll Three 160,000 cubic meter storage tanks; expandable Three 160,000 cubic meter storage tanks; expandable

to four tanks depending on market demandto four tanks depending on market demandll Unloading pier capable of receiving two LNG shipsUnloading pier capable of receiving two LNG shipsll SendSend--out capacity of 1.5 billion cubic feet of natural gas out capacity of 1.5 billion cubic feet of natural gas

per day (BCFD), expandable to 2.25 BCFD per day (BCFD), expandable to 2.25 BCFD ll $400 million investment$400 million investment

ØØ PIPELINEPIPELINEll Owner: MidOwner: Mid--Atlantic Express, LLC.Atlantic Express, LLC.ll 8787--mile route, mostly along existing utility corridorsmile route, mostly along existing utility corridorsll Connection to regional natural gas infrastructure with Connection to regional natural gas infrastructure with

potential for connections to BGEpotential for connections to BGEll $250 million investment$250 million investment

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PROJECT BENEFITSPROJECT BENEFITS

ØØ Regional BenefitsRegional Benefitsll Natural gas is environmentally preferred Natural gas is environmentally preferred

energy source energy source –– A CLEAN INDUSTRYA CLEAN INDUSTRY

ll Provides for diversity and stability of gas Provides for diversity and stability of gas supply to the regionsupply to the region

ll Provides additional supply to local area and Provides additional supply to local area and region to help stabilize or reduce price of region to help stabilize or reduce price of natural gas and electric powernatural gas and electric power

ll Reduces costs by 15 to 30% over piped gas, Reduces costs by 15 to 30% over piped gas, according to June 12, 2006 WSJ articleaccording to June 12, 2006 WSJ article

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PROJECT BENEFITSPROJECT BENEFITS

ØØ Local BenefitsLocal Benefitsll State and local government tax revenue: State and local government tax revenue: $5+ million $5+ million

per year averageper year average

ll 500++ union construction jobs500++ union construction jobs

ll Direct and indirect / induced construction Direct and indirect / induced construction expenditures over 3 years: expenditures over 3 years: $130+ million$130+ million

ll 50 to 60 permanent jobs50 to 60 permanent jobs

ll Direct operating expenditures and indirect / induced Direct operating expenditures and indirect / induced business supports local vendors: business supports local vendors: $20+ million per $20+ million per yearyear

ll SpinSpin--off or compatible industry opportunitiesoff or compatible industry opportunities

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Natural GasNatural Gas

ØØ New sources of natural gas needed to meet New sources of natural gas needed to meet rising regional and national consumption; North rising regional and national consumption; North American production cannot keep pace with American production cannot keep pace with increased demand for clean electric power, increased demand for clean electric power, home heating and cooking, and industrial growthhome heating and cooking, and industrial growthll Diversity of energy supply; exporting countries Diversity of energy supply; exporting countries

primarily nonprimarily non--OPEC.OPEC.

ØØ Natural gas sets price for electric powerNatural gas sets price for electric powerll In 2003, natural gas set the price for wholesale In 2003, natural gas set the price for wholesale

electricity in Midelectricity in Mid--Atlantic Region 48 % of all hours. Atlantic Region 48 % of all hours. (Office of Market Oversight & Investigations)(Office of Market Oversight & Investigations)

ll Natural gas plants are expected to set margin during Natural gas plants are expected to set margin during most onmost on--peak periods. peak periods. ((PlattsPlatts Power Markets Week Power Markets Week –– April April 2005)2005)

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Natural Gas UseNatural Gas Use

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Natural Gas PricingNatural Gas Pricing

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Natural GasNatural Gas

ØØ Introducing new supplies at point of demand avoids Introducing new supplies at point of demand avoids significant pipeline transportation charges and significant pipeline transportation charges and environmental impacts associated with multiple pipeline environmental impacts associated with multiple pipeline expansionsexpansionsll Interstate pipeline systems at or near capacityInterstate pipeline systems at or near capacityll Baltimore nearly as far away from sources as possibleBaltimore nearly as far away from sources as possiblell Maryland receives most natural gas from the Gulf Coast and Maryland receives most natural gas from the Gulf Coast and

CanadaCanada

ØØ PeakPeak--shavingshavingll Extra energy during cold snapsExtra energy during cold snapsll Three peakThree peak--shaving tanks in Baltimore since 1970sshaving tanks in Baltimore since 1970s

•• Parts of Inner Harbor, Ravens and Camden Yards Stadiums, and Parts of Inner Harbor, Ravens and Camden Yards Stadiums, and much of Baltimoremuch of Baltimore’’s business community within 1 mile of LNG tankss business community within 1 mile of LNG tanks

•• MDE is 1.2 miles from the LNG tanksMDE is 1.2 miles from the LNG tanks

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Sources of GasSources of GasRegion-to-Region Pipeline Capacities

(Volumes in million cubic feet per day)

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Project LocationProject Location

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Shipping RouteShipping Route

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Shipping RouteShipping Route

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Existing SiteExisting Site

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Terminal RenderingTerminal Rendering

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Terminal RenderingTerminal Rendering

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Preliminary Site PlanPreliminary Site Plan3

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What is LNG?What is LNG?

ØØ Liquefied natural gas is simply natural gas (primarily methane) Liquefied natural gas is simply natural gas (primarily methane) cooled into a liquid by reducing temperature to 260cooled into a liquid by reducing temperature to 260ooF below zeroF below zeroll ColorlessColorless

ll OdorlessOdorless

ll NonNon--toxictoxic

ll Very safe and inert at subVery safe and inert at sub--freezing temperaturefreezing temperature

ØØ 600 cubic meters gas = 1 cubic meter LNG600 cubic meters gas = 1 cubic meter LNGll Allows for economical longAllows for economical long--distance transportdistance transport

ll Allows for economical storageAllows for economical storage

ØØ About oneAbout one--half weight of waterhalf weight of water

ØØ Lighter than air at 160Lighter than air at 160ooF below zeroF below zero

ØØ Existing stateside LNG import projects in Massachusetts, Existing stateside LNG import projects in Massachusetts, Louisiana, Georgia, and Cove Point, MarylandLouisiana, Georgia, and Cove Point, Maryland

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LNG SafetyLNG Safety

ØØ LNG in its liquid state is NOT explosive or flammable; LNG in its liquid state is NOT explosive or flammable; natural gas burns only in fuelnatural gas burns only in fuel--toto--air ratio of 5 to 15%air ratio of 5 to 15%

ØØ LNG is transported and stored in unLNG is transported and stored in un--pressurized vesselspressurized vesselsØØ Strict standards for materials, design, construction & Strict standards for materials, design, construction &

operationsoperationsll Cryogenic materialsCryogenic materialsll Double containment (triple containment for Sparrows Point)Double containment (triple containment for Sparrows Point)ll SetSet--back distancesback distances

ØØ Project is reviewed by local, state, and federal agencies Project is reviewed by local, state, and federal agencies and experts such as local safety and fire officials, and experts such as local safety and fire officials, Federal Energy Regulatory ComFederal Energy Regulatory Com--mission, U.S. Coast mission, U.S. Coast Guard, Maryland Department of Natural Resources, and Guard, Maryland Department of Natural Resources, and many othersmany others

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LNG SafetyLNG Safety

ØØ According to National Firefighters According to National Firefighters Association web siteAssociation web site

ll (For comparison), since 1940s more than 60 (For comparison), since 1940s more than 60 firefighter deaths from LPG fires, commonly firefighter deaths from LPG fires, commonly seen on our highways in trucksseen on our highways in trucks

ll NO firefighter deaths from LNG firesNO firefighter deaths from LNG fires

ØØ LNG industry has an exceptional safety LNG industry has an exceptional safety record record

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LNG Storage TankLNG Storage Tank

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LNG Ship ConstructionLNG Ship Construction

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Ship ConstructionShip Construction

Typical membrane ship construction with detailed cut-away of cargo containment system

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Water Spray SystemWater Spray System

Required on all LNG ships per IMO IGC Code and Classification Rules

Seawater is discharged to tank domes, manifolds, control valves, deckhouses, control rooms, and superstructure

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El Paso Paul El Paso Paul KayserKayser

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SetSet--Back ZonesBack Zones

ØØ PeerPeer--reviewed studies have been performed to determine the lateral reviewed studies have been performed to determine the lateral extent of thermal hazards of largeextent of thermal hazards of large--scale releases of LNG on waterscale releases of LNG on water

ØØ Calculated distances to the point where unobstructed exposure foCalculated distances to the point where unobstructed exposure for 30 r 30 seconds may result in second degree burns (heat flux value = 5 kseconds may result in second degree burns (heat flux value = 5 kW/mW/m22) ) ll Quest Quest –– 1,617 feet 1,617 feet ll Lehr Lehr –– 1,650 feet1,650 feetll Fay Fay –– 3,630 feet per March 26, 2003 report3,630 feet per March 26, 2003 reportll Vallejo (Vallejo (KoopmanKoopman) ) –– 4,257 feet4,257 feet

ØØ Sandia National Laboratories evaluated these studies and concludSandia National Laboratories evaluated these studies and concluded ed that none of them provided a characterization of how to manage rthat none of them provided a characterization of how to manage risks to isks to people and property of a largepeople and property of a large--scale spill over waterscale spill over waterll None identified the probability of the postulated eventsNone identified the probability of the postulated eventsll None discussed the mechanisms or strategies that could be None discussed the mechanisms or strategies that could be

implemented to reduce the potential risk of such a spillimplemented to reduce the potential risk of such a spillØØ LNG Opposition Team LNG Opposition Team –– 5,000 feet for site and 1,500 feet for vessel 5,000 feet for site and 1,500 feet for vessel

transit (Environmental Impact Assay for Sparrows Point: Volume Itransit (Environmental Impact Assay for Sparrows Point: Volume III, II, Section 1, Document 2)Section 1, Document 2)

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Site Aerial ViewSite Aerial View

1.3 miles

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Floating BarrierFloating Barrier

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Environmental Environmental ConsiderationsConsiderations

ØØ DredgingDredgingll Extensive testing prior to decision on proper removal techniqueExtensive testing prior to decision on proper removal techniquell Estimated quantity Estimated quantity –– 3 to 4 million cubic yards3 to 4 million cubic yardsll Mitigation programs during and after constructionMitigation programs during and after constructionll Disposal management options being explored, including Disposal management options being explored, including

innovative reinnovative re--use (recycling) opportunitiesuse (recycling) opportunities

ØØ Air EmissionsAir Emissionsll Use of lowUse of low--NOxNOx burners and selective catalytic reduction (SCR) burners and selective catalytic reduction (SCR)

in vaporization system that consists of boiler and glycol loop in vaporization system that consists of boiler and glycol loop ––no use of seawater or discharge of cold waterno use of seawater or discharge of cold water

ll Potential to reduce burner use by using heat from adjacent Potential to reduce burner use by using heat from adjacent industries industries –– winwin--win situationwin situation

ll Air emissions from the facility will be below the requirements fAir emissions from the facility will be below the requirements for or new source reviewnew source review

ØØ Rehabilitation of existing Brownfield siteRehabilitation of existing Brownfield site

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DredgingDredging

ØØ Dredging is a necessary part of the LNG Dredging is a necessary part of the LNG Terminal as determined by:Terminal as determined by:

ll LNG tanker vessel design capacities and sizeLNG tanker vessel design capacities and size

ll Channel design guidance referencesChannel design guidance references

•• Current speed and direction, seabed type, wind Current speed and direction, seabed type, wind speed and direction and other outside factorsspeed and direction and other outside factors

•• Vessel design draft, ship squat and keel clearance, Vessel design draft, ship squat and keel clearance, water density effects on ship, and other factorswater density effects on ship, and other factors

ll Final shipping simulations (MITAGS)Final shipping simulations (MITAGS)

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Dredge SedimentDredge SedimentBoring LocationsBoring Locations

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Sediment Testing SummarySediment Testing Summary

ØØ Analyses performed for VOCs, Analyses performed for VOCs, SVOCsSVOCs, , metals, PCBs, pesticides, metals, PCBs, pesticides, tributyltributyl tin tin (TBT), hex(TBT), hex--Cr, dioxinCr, dioxin

ØØ ResultsResultsll NonNon--detect: pesticides, PCBs; trace: VOCsdetect: pesticides, PCBs; trace: VOCs

ll 3 TBT detections, all low PPB range3 TBT detections, all low PPB range

ll Dioxins in low PPT range, consistent with Dioxins in low PPT range, consistent with atmospheric sourcesatmospheric sources

ll Principal detections were Principal detections were polycyclic aromatic polycyclic aromatic hydrocarbons (hydrocarbons (PAHsPAHs) and metals, PPB to ) and metals, PPB to PPM range, consistent with historic local dataPPM range, consistent with historic local data

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Sediment QualitySediment QualityØØ Trends of sediment dataTrends of sediment data

ll Concentrations decrease Concentrations decrease -- shallow (highest) to shallow (highest) to intermediate and deep (lowest) samplesintermediate and deep (lowest) samples

ll Also apparent correlation between flow direction (SE), Also apparent correlation between flow direction (SE), organic carbon content, and grain sizeorganic carbon content, and grain size

ØØ Potential influence on dredge approachPotential influence on dredge approach

ll Shallowest 15% (approximate) of material contains Shallowest 15% (approximate) of material contains highest concentrations and will be removed highest concentrations and will be removed

ll Deeper sediments sandier, lower to nonDeeper sediments sandier, lower to non--detect detect concentrationsconcentrations

ll Segregation approaches being considered for Segregation approaches being considered for managementmanagement

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Dredge TechniquesDredge Techniques

ØØ Mechanical dredging (clamshell) and limited Mechanical dredging (clamshell) and limited backhoe dredging in inshore areasbackhoe dredging in inshore areas

ØØ In preparation of processing, dredged material will In preparation of processing, dredged material will be placed into sealed hopper scows (barges)be placed into sealed hopper scows (barges)

ØØ No barge overflow of water or solidsNo barge overflow of water or solidsØØ Initial sediment quality indicates similar to Initial sediment quality indicates similar to

characteristics of other projects in Baltimore Harborcharacteristics of other projects in Baltimore HarborØØ Dredges are readily adaptable to environmental Dredges are readily adaptable to environmental

dredging techniques with use of an environmental dredging techniques with use of an environmental bucket and expanded positioning controls if bucket and expanded positioning controls if necessary due to further sediment characterization necessary due to further sediment characterization or as required by permit conditions or as required by permit conditions

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Environmental DredgeEnvironmental DredgeClamshell BucketClamshell Bucket

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Innovative ReInnovative Re--UseUse

ØØ Abandoned mine land and quarry reclamationAbandoned mine land and quarry reclamation

ØØ BrownfieldsBrownfields redevelopmentredevelopment

ØØ Landfill capping and closureLandfill capping and closurell Alternate grading materialsAlternate grading materials

ll Low permeability cap layer in lieu of geoLow permeability cap layer in lieu of geo--membrane systemsmembrane systems

ØØ Manufactured top soilManufactured top soil

ØØ General structural and nonGeneral structural and non--structural fill for commercial / structural fill for commercial / industrial developmentindustrial development

ØØ Bulk construction fill Bulk construction fill ll Site grading materialSite grading material

ll Highway embankmentsHighway embankments

ØØ All uses are commercially feasibleAll uses are commercially feasible

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Processing FacilityProcessing Facility

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Sparrows Point RecapSparrows Point Recap

ØØ LNG imports can save consumers up to 15 to 30% in direct cost LNG imports can save consumers up to 15 to 30% in direct cost over piped natural gas (WSJ) and more when added supply offsets over piped natural gas (WSJ) and more when added supply offsets increasing demandincreasing demand

ØØ LNG safety record is outstandingLNG safety record is outstandingØØ Natural gas cleanestNatural gas cleanest--burning fossil fuels; energy production using burning fossil fuels; energy production using

natural gas is consistent with Marylandnatural gas is consistent with Maryland’’s Healthy Air Acts Healthy Air ActØØ Recycle dredge materials in safe, clean wayRecycle dredge materials in safe, clean wayØØ Sparrows Point considered remote siteSparrows Point considered remote siteØØ AESAES’’s history of community involvements history of community involvementØØ Significant local and state taxesSignificant local and state taxesØØ Union jobs and indirect benefits during constructionUnion jobs and indirect benefits during constructionØØ High paying permanent jobs and indirect opportunities during High paying permanent jobs and indirect opportunities during

operationsoperationsØØ NO government subsidies of any kind needed, entirely selfNO government subsidies of any kind needed, entirely self--

sustainingsustaining

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Thank YouThank YouØØ On behalf of entire AES teamOn behalf of entire AES team

ØØ Thanks for opportunity to show details of Thanks for opportunity to show details of proposed LNG siteproposed LNG site’’s safety and benefitss safety and benefits

ØØ Visit Visit AESsparrowspointLNG.comAESsparrowspointLNG.com for more for more detailsdetails

ØØ Visit the FERC websiteVisit the FERC website