Barron, Robert B SAJ - Congressman Luis Gutierrez · PDF fileBarron, Robert B SAJ From: ......

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1 Barron, Robert B SAJ From: Chris Zerby [[email protected]] Sent: Thursday, September 01, 2011 12:01 PM To: Barron, Robert B SAJ Cc: Phillip Suter Subject: RE: EcoEléctrica L.P.'s terminal and Via Verde (UNCLASSIFIED) Bob Barron, To answer the questions you sent to Phil, the 2009 Order would not need modifications for supplying PREPA up to the authorized 93 MMscf/d. If PREPA were to request an increase above 93 MMscf/d, EcoEléctrica would need to file an application with FERC for the additional send-out facilities. An environmental analysis, including the issues you noted, would be part of the FERC review process. Thanks, Chris Zerby LNG Compliance Branch Chief 202-502-6111 From: Barron, Robert B SAJ [mailto:[email protected]] Sent: Wednesday, August 31, 2011 10:59 AM To: Phillip Suter Subject: EcoEléctrica L.P.'s terminal and Via Verde (UNCLASSIFIED) Classification: UNCLASSIFIED Caveats: NONE Mr. Suter, <<20110307-PREPA-to-Corps-Addtl-info-re-nat-gas-availability.pdf>> <<Project.pdf>> <<20090416- FERC-Order.pdf>> <<20091023-PREPA-to-FERC-change-to-SouthCoastplant.pdf>> This is the email I promised to provide background to our phone conversation regarding the EcoEléctrica L.P.'s terminal in Puerto Rico and your agency’s Order issued April 16, 2009, Docket No. CP9535001 (copy enclosed) and to enable you to coordinate a reply. I am reviewing the application by the Puerto Rico Electric Authority (PREPA) for a Department of the Army Permit for certain activities related to the construction of a 92 mile pipeline (Via Verde) to supply gas from the terminal on the south coast to three powerplants on the north coast (enclosed “project.pdf”). The purpose of my questions are to confirm whether FERC’s 2009 Order provides the NEPA and other evaluations for the modifications at EcoElectrica’s facility

Transcript of Barron, Robert B SAJ - Congressman Luis Gutierrez · PDF fileBarron, Robert B SAJ From: ......

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    Barron, Robert B SAJ

    From: Chris Zerby [[email protected]]Sent: Thursday, September 01, 2011 12:01 PMTo: Barron, Robert B SAJCc: Phillip SuterSubject: RE: EcoElctrica L.P.'s terminal and Via Verde (UNCLASSIFIED)

    Bob Barron, To answer the questions you sent to Phil, the 2009 Order would not need modifications for supplying PREPA up to the authorized 93 MMscf/d. If PREPA were to request an increase above 93 MMscf/d, EcoElctrica would need to file an application with FERC for the additional send-out facilities. An environmental analysis, including the issues you noted, would be part of the FERC review process. Thanks, Chris Zerby LNG Compliance Branch Chief 202-502-6111

    From: Barron, Robert B SAJ [mailto:[email protected]] Sent: Wednesday, August 31, 2011 10:59 AM To: Phillip Suter Subject: EcoElctrica L.P.'s terminal and Via Verde (UNCLASSIFIED)

    Classification:UNCLASSIFIED

    Caveats:NONE

    Mr.Suter,

    ThisistheemailIpromisedtoprovidebackgroundtoourphoneconversationregardingtheEcoElctricaL.P.'sterminalinPuertoRicoandyouragencysOrderissuedApril16,2009,DocketNo.CP9535001(copyenclosed)andtoenableyoutocoordinateareply.IamreviewingtheapplicationbythePuertoRicoElectricAuthority(PREPA)foraDepartmentoftheArmyPermitforcertainactivitiesrelatedtotheconstructionofa92milepipeline(ViaVerde)tosupplygasfromtheterminalonthesouthcoasttothreepowerplantsonthenorthcoast(enclosedproject.pdf).

    ThepurposeofmyquestionsaretoconfirmwhetherFERCs2009OrderprovidestheNEPAandotherevaluationsforthemodificationsatEcoElectricasfacility

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    neededforViaVerdeand,ifconfirmed,thereforetherearenoissuestobereplicatedoraddedtotheevaluationfortheDepartmentofArmyPermit.

    YourOrderamendsyour1996OrderbyauthorizingtwoadditionalheatexchangervaporizerstoincreasetheregasifiedLNGsendoutcapacityupto93MMscf/daybywayofthesendoutpipethat,atEcoElectricasfenceline,wouldinterconnecttoPREPAspipelinetosupplytheAquirrepowerplant(paragraphs4,5,and6ofSectionII).InsteadofAquirre,PREPAconstructedapipelinetotheirSouthCoastplant(PREPAslettertoyouenclosed)andaswasenvisionedinyouroriginal1996Order. ForViaVerde,PREPAwillreplacethefirstmileofthatexistingpipeline(startingatEcoElctricasfenceline)andinsertameteringstationtointerconnectboththeCostaSurplantandthe92milepipelinetothenorthcoastplants.PREPAstates(theirlettertotheCorpsenclosed)the93MMscf/daywouldbedistributedamongtheCostaSurplantandthethreeplantsattheendoftheViaVerdepipeline,thatnoadditionalFERCauthorizationsarerequired,andtheywillbenotifyingFERCofthechange.PREPAsletteralsonotestheFERCauthorizationalreadyevaluatedtheincreaseinvesseltraffic,alludingtoparagraph14ofSectionIVofyourOrderwhereFERCcoordinatedthisincreasewithU.S.FishandWildlifeService.Anothermemberofmyoffice,Mr.EdgarGarcia,spoketoMr.DavidHanobicbytelephoneinJanuaryandreportshedidnotseeaproblemifthepipelineconnectedtothecurrentapprovedmodificationandthatamodificationmaybeneeded.

    MyfirstquestioniswhetheranymodificationsareneededtoyourOrdertoenableEcoElctricatosupplyViaVerde?Mysecondis,ifEcoElctricawereaskedbyPREPAtoincreasethesendoutbeyondthe93MMscf/day,wouldFERCrequireamodificationandperformthecoordinationwithU.S.FishandWildlifeandothersrelatedtotheincreaseinvesseltraffic(Ipresumeyesbasedonyouractionsforthe2009Order)?

    Thankyou!

    BobBarron

    ProjectManager,RegulatoryDivision

    Cellphone(904)3049572Office(904)2322203

    Classification:UNCLASSIFIED

    Caveats:NONE

  • ,~ '--..,./

    GOVERNMENT OF PUERTO RICO eN 078-04495 REV. 06110 PUERTO RICO ELECTRIC POWER AUTHORITY

    SAN JUAN, PUERTO RICO

    GPO BOX 364267 www.prepa.com SAN JUAN, PR 00936-4267

    March 7, 2011

    Mr. Edgar Garda Regulatory Project Manager Antilles Regulatory Section US Army Corps of Engineers 400 Fernandez Juncos Avenue San Juan, Puerto Rico 00901-3299

    Re: Additional Information Requested for Via Verde Project regarding Natural Gas Availability SAJ 2010-028811P-EWG

    Dear Mr. Garcia:

    The Puerto Rico Energy Power Authority (PREPA) filed a Joint Permit Application (JPA) with the U.S. Army Corps of Engineers (CoE) on September 20, 2010, regarding the construction of the Via Verde Project. The Project involves the construction of a 92 miles pipeline of 24" diameter, originating at the LNG Terminal owned by EcoElectrica Corporation (EcoElectrica) in the Municipality of Penuelas.

    As requested, , this letter provides the CoE with additional information (which supplements the details provided in the JPA for the Project) which indicates that no additional Federal Energy Regulatory Commission (FERC) permits or authorizations are required in order for EcoElectrica to provide natural gas service for the Via Verde Project.

    As indicated in the JPA, as well as in the approved Final Environmental Impact Statement (FEIS) prepared for the Project, the natural gas supply for the Project (approximately 93MM scf/day) will be purchased by PREPA in accordance with the Order and Authorization granted by FERC in 2009. This amount of gas will be utilized by PREPA in fueling the power plants that are part of its generating system, providing an option to dispatch the power generating units based on each unit's heat rate, as well as the overall operation cost. This will allow the selection, on a daily basis, of the most efficient operational scenario that yields a reduction in the power cost in Puerto Rico.

    At this time, and with the natural gas volumes mentioned above, PREPA will be able to fuel, on different operational and loads ratios, Units 5 & 6 of the San Juan Steam Plant, Units 5 & 6 that recently were converted into dual fuel operation located at the South Coast plant, and PREPA's other co-fired generating units. The selection of the specific operating scenario for these units that yields the lowest operational cost to PREPA will be undertaken daily through the use of the installed Smart Grid Technology that integrates the use of computer algorithm utilized by PREPA for the last twenty years.

    "We are an equal opportunity employer and do not discriminate on the basis of race, color, gender, age, national or social origin, social status, political ideas or affiliation, religion; for being or perceived to be a victim of domestic violence, sexual aggreSSion or harassment; for

    physical or mental disability, for veteran status or genetic information."

    http:www.prepa.com

  • Mr. Edgar Garcia Page Number 2 March 7, 2011

    To accomplish the actual delivery of natural gas to PREPA's operational system in compliance with the FERC 2009 Authorization, PREPA will provide written notice to EcoElectrica and FERC with respect to the change in the gas usage end pOint for the additional gas supply that has been authorized. Gas will be supplied through the use of an existing main header coming out from the gasifying units located within the EcoElectrica facilities, as allowed by the FERC Order and Authorization. This infrastructure will be utilized in supplying natural gas to South Coast Plant units 5 & 6 in the forthcoming weeks.

    It must be pointed out that all permits and authorizations required for the delivery of the volumes of natural gas mentioned above are in place at EcoElectrica as of the date of this communication. This permit also considers an increase in the amount of LNG deliveries to the Pefiuelas LNG terminal from the actual number of vessels of 12 per year to 24 vessels per year.

    In the event additional information related to this subject is needed, please do not hesitate to contact us at your earliest convenience.

    Cordially Yours,

    ~~~1.:~? Planning and Environmental Protection

    c. Mr. Jaime Sanabria (EcoElectrica) Eng. Carlos Reyes {EcoElectrica} Via Verde Project File

  • I 0 0 9 1 1 0 4 - 0 0 9 7 FERC PDF ( U n o f f i c i a l ) 11/02/2009

    COMMONWEALTH OF PUERTO RICO Puerto R/co F.JecUfc Pcmw ~hec r t y

    MIguel A. Cordero Lbpez, P.E. Executive D4rector

    OF THE

    I~E'[;U~ ~" ~',,;,; ,V",~.nu r . . . . . . r uu~t'(!SStO~

    October 23, 2009

    Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street NE, Room 1A Washington, DC 20426

    Re: EcoElectrica Terminal Modification Project, Docket No. CP95-35-001

    Dear Secretary Bose:

    The purpose of this communication is to inform the Federal Energy Regulatory Commission (FERC) that the Puerto Rico Electric Power Authority (PREPA) has recently revised its Capacity Expansion Plan in consideration of key environmental and fuel diversification goals of the Government of Puerto Rico's Public Energy Policy Plan.

    This Capacity Expansion Plan includes a new Natural Gas Combined Cycle (NGCC) power facility that wdl be constructed in the vicinity of the existing PREPA owned South Coast Steam Power Plant and the EcoEk~tdca LNG Import Terminal, located on the south coast of the island, in the municipality of Guayanilla. The first phase of this new project will include a 270 IVIW generating facility that will be powered by natural gas, supplied from the EcoEh~tdca LNG Import Terminal, which remains the only source of natural gas in puerto Rico.

    PREPA is aware that on April 16, 2009 the FERC issued EcoEl~ctrica an Order Amending Authorization Under Section 3 of the Natural Gas Act (Order), approving certain modifications to the EcoEISctdca LNG Import Terminal to supply natural gas to PREPA for use in its Aguirre Combined Cycle Power Plant. In consideration of the abovementioned revised Capacity Expansion Plan, PREPA will fully support EcoEI6ctdca if any modification is required to the April 16, 2009 Order, to reflect the foregoing change in destination of the natural gas from the Aguirre Combined Cycle Power Plant to the new South Coast NGCC.

    Executive Directer