GSX pipeline project cancelled
posted 12/27/04
The Gerorgia Strait Crossing (GSX) project proposed by BC Hydro and Williams has been cancelled because it is no longer a "competitive option". The $340 million natural gas pipeline project included a four-mile segment in San Juan County waters.
The pipeline has been in the works since 1998. The project which would have transported natural gas to Vancouver Island. San Juan County Marine Resource Committee opposed the project citing environmental concerns. A permit issued by the county was overturned last month.
BC Hydro and Williams issued the following press release:
Proposed GSX pipeline project cancelled
Other Options More Cost Effective at Ensuring Reliable Supply for Vancouver Island
BC Hydro and Williams announced the cancellation of the Georgia Strait Crossing (GSX) pipeline project. The $340 million natural gas pipeline had been proposed by the two companies in 2000 as the best way to meet the demand for gas transportation along its United States route and to natural-gas fired electricity generation facilities on Vancouver Island.
"A large capacity pipeline like GSX is no longer a competitive supply option because the large gas supply requirements it was designed to meet have not materialised," said Dawn Farrell, Executive Vice President, Generation. "There are other lower cost alternatives to meet these gas requirements which, together with the fuel switching capability now available at the Island Cogeneration Plant (ICP) in Campbell River, means there can be enough reliable natural gas supply on the Island to meet required demands without GSX."
"Cancelling the project now will stop all further expenditures on the project and also eliminate it as an issue in ongoing regulatory processes relating to Terasen and the Duke Point Power Project."
In April 1998, BC Hydro sought private sector proposals to help it meet the natural gas requirements for ICP, a proposed natural gas fired (then to be situated in Port Alberni) and a possible third facility somewhere else on Vancouver Island. BC Gas (now Terasen), Centra/ West Energy and Williams Gas Pipelines submitted proposals. Williams' proposal was deemed the most cost effective at that time.
"Our goal now remains the same as it was when we starting looking at GSX – to ensure the lowest cost, most reliable electricity for our customers on Vancouver Island," added Farrell. "There are a range of lower cost alternatives to GSX, including a number with Terasen. These will ensure that on-Island electricity generating facilities – including the proposed Duke Power Project in Nanaimo – have enough natural gas supply to maintain their firm reliable supply of electricity for our customers even during the most critical winter months."
Hearing examiner's decision on GSX overturned
posted 11/10/04
In a two to one vote, San Juan County Board of County Commissioners overturned Hearing Examiner Wick Dufford's decision about a gas pipeline. He had approved a permit for the Georgia Strait Crossing Pipeline Project after listening to testimony in an April 9, 2004 hearing. The project includes a four-mile segment in county waters.
The Friends of the San Juans appealed the decision to the BOCC on the grounds Dufford erred when he approved the permit. "We believe the hearing examiner essentially rewrote San Juan County shoreline code," said FOSJ attorney John Karpinsky. Pipelines were only to be allowed if there were no feasible alternatives. Dufford interpreted feasible as preferable, Karpinsky said.
In order to be approved, the pipeline would have to be in the public interest. "The hearing examiner said because someone is going to make money, it is a
benefit to the state. People can make money off prostitution," said Commissioner Rhea Miller said. "I don't see anyway this (the pipeline) promotes public interest."
Commissioner John Evans did not think there was an error of law and voted against overturning Dufford's decision. He also noted, "it is not a crime to make money."
Commissioner Darcie Nielsen believed Dufford made a stretch to approve the permit. She voted with Miller to overturn the decision and go back to the original staff recommendation to deny the permit.
Because federal agencies including the the Federal Energy Regulation Commission (FERC) are involved in permitting the project, it is unclear how much of an impact the county's decision will have. The next step in the permit process would be an appeal to the Shoreline Management Hearings Board if the pipeline company decides to appeal the BOCC decision.
Pipeline hearing April 9, 2004
posted 04/07/04
San Juan County Marine Resources Committee recommends the county deny the shoreline permit application submitted for the Georgia Strait Crossing Pipeline Project. A hearing will be held at 10 a.m. Friday, April 9, 2004 in KeyBank in Friday Harbor. The GSX Project is a joint proposal by BC Hydro
and Williams Gas Pipeline Co. to provide natural gas transportation service from the market hub near Sumas, Washington to Vancouver Island.
The MRC believes Williams has not made a good faith effort to research the effects of the pipeline regarding:
- acoustic impacts of the noise emanating from submarine pipelines, on various animals, and especially marine mammals.
- chronic low levels of dissolved hydrocarbons, and any contaminants they contain, upon the larval forms of diverse invertebrate organisms, e.g. crabs, urchins and sea cucumbers
- a local magnetic anomaly extending the width of the strait, transecting the pathways of benthic crabs, bottomfish, mollusks, and other organisms that evidence now suggests may use geomagnetic cues to orient during migration.
In a letter submitted to the Community Development and Planning Department as part of the public record for the shoreline permit hearing, the MRC stated:
This year, San Juan County adopted a resolution designating all of San Juan County as a marine stewardship are. This resoltuion highlights the importance of the marine environment to San Juan County and the concern of citizens and elected officials for its long-term health. The introduction of a natural gas pipeline into this environment, without a demonstration of need by or benefit to the people of the state, raises many questions, not answered, and not answerable, byt he reams of material produced for the FERC, NEB and the state of Washington to date.
The hearing examiner will run the hearing. A representative for the GSX Pipeline will present the application for a Shoreline Substantial Development Permit for installation of the Georgia Strait Crossing natural gas pipeline . Anyone is welcome to attend and express either concerns or support for the project.
Whatcom county: Pipeline belongs under local jurisdiction
posted 07/02/02
San Juan County Commissioners agreed to support Whatcom County's contention that the Georgia State Crossing Pipeline's route through Washington does not fall under federal regulation. In a brief filed with the Federal Energy Regulatory Commission last month, Whatcom County argued, "there is no interstate transportation involved. No U.S. domestic gas will flow through it."
The GSX Project is a joint proposal by BC Hydro and Williams to provide natural gas transportation service to Vancouver Island. The project begins and ends in Canada and passes through 47 miles of Washington including 3.65 miles in San Juan County waters. Whatcom County is asking that the FERC "not exercise jurisdiction over the intrastate portion of this project. That task should fall to Washington State's own regulatory agencies and affected local governments."
The brief asks that the FERC dismiss the GSX application. If that was done, jurisdiction would go to either the state or Whatcom and San Juan counties.
Pipeline meeting June 28, 2001
posted 06/28/01
Representatives from the Federal Energy Regulatory Commission (FERC) will host a meeting from 7 to 9 p.m. tonight (Thursday, June 28, 2001) in the Mullis Center. Public input regarding the scope of the environmental impact statement (EIS) for the Georgia Strait Crossing (GSX) Pipeline project will be solicited. GSX project is a joint proposal by BC Hydro and Williams to provide natural gas transportation service from Sumas to Vancouver Island. The natural gas pipeline would cross 3.65 miles of San Juan County waters.
Williams, a $17.8 billion energy and communications corporation, would construct and operate the U.S. portion of the GSX project. The natural gas pipeline would cross 3.65 miles of San Juan County waters. A county shoreline permit is necessary.
Williams operates in all fifty states and its 27,000 mile gas pipeline network delivers 16 percent of the natural gas used in the U.S. According to a Williams press release:
The Georgia Strait Crossing (GSX) Project is a joint proposal by BC Hydro
and Williams to provide natural gas transportation service from the market
hub near Sumas, Wash. to Vancouver Island. The application filed by
Williams focuses on the U.S. mainland and marine segments of the
proposed international project. A similar application, focusing on the
Canadian portion of the GSX Project, was filed with the National Energy
Board (NEB) today by Georgia Strait Crossing Pipeline Limited, a wholly
owned subsidiary of BC Hydro.
"We are pleased to be moving forward with BC Hydro to serve the natural
gas needs of British Columbia. At the same time, we believe this project
offers numerous opportunities and benefits for the state of Washington,"
said Doug Whisenant, senior vice president and general manager for
Williams Gas Pipeline-West.
The U.S. mainland portion of the GSX pipeline includes approximately 32
miles of 20-inch pipe from Sumas to compression facilities located at
Cherry Point, Wash., and approximately one mile of 16-inch pipe from
Cherry Point to the water’s edge. The proposed route, which largely
parallels existing gas pipeline facilities, passes near the communities of
Sumas, Lynden, Ferndale, and Birch Bay, Wash.
From the U.S. shoreline, a 16-inch pipeline will travel approximately 41
miles underwater across the Strait of Georgia, through Boundary Pass and
the Satellite Channel, in water depths of up to 1050 feet, to a landfall
near Hatch Point on Vancouver Island. The pipeline will then travel 10
miles inland to interconnect with the existing Centra Gas transmission
system. The estimated cost of the GSX Project is $159 million U.S.
"The GSX pipeline, if approved, will help BC Hydro to continue providing our
customers on Vancouver Island and throughout B.C. with reliable electricity
and among the very lowest rates in North America," said BC Hydro
Treasurer and GSX Project Leader Valerie Lambert.
Subject to regulatory approval, the installation of facilities is scheduled to
begin fall of 2002, targeting an in-service date of late fall 2003.
Newly proposed natural gas pipeline
might cross San Juan County
By Matt Pranger
posted 03/00
Three Pacific Northwest natural gas companies are exploring construction of a new natural gas pipeline. Under one option, the potential 140-mile pipeline would cross San Juan County.
The project, named Orca Natural Gas Pipeline, is being proposed by Cascade Natural Gas Corp. of Seattle, Puget Sound Energy of Bellevue and Westcoast Energy Inc. of Vancouver, B.C. The companies plan to evaluate two routes for the pipeline, which would begin at the Canada-U.S. border in Sumas, Whatcom County.
One would run mostly underwater from Whatcom County through San Juan County and then to Port Townsend. The other would roughly follow the Interstate 5 corridor south to Everett and then cross Puget Sound to Port Townsend. Both could also include spurs to Whidbey Island. Service is targeted for late 2004.
Demand for natural gas is growing, the companies contend. Natural gas, which is abundant in Canada, augments electricity and pollutes less than other fossil fuels, they say.
The companies also note the gas, if accidentally released into the air or water, "dissipates quickly and harmlessly into the atmosphere." Explosions are rare because natural gas is lighter than air and dissipates quickly, they say. Accidental ignition of the gas is also rare because a precise mixture of gas and oxygen are required, the companies state.
San Juan County Commissioners Rhea Miller, John Evans and Darcie Nielsen are not convinced pipelines can be safely laid on San Juan County’s seabed. They are sending a letter outlining their concerns to the companies.
The commissioners sent a similar letter to BC Hydro and Williams, companies interested in installing a pipeline from the southern British Columbia mainland, through northern San Juan County, and to Vancouver Island. The county Marine Resources Committee wrote the original letter.
Westcoast Energy Inc. is based in Vancouver, B.C. and has assets of about $12 billion (CDN). The company’s interest include natural gas gathering, processing, transmission, storage and distribution. They are also involved in power generation, international energy businesses, and financial information technology and energy services businesses. Their Web site is www.westcoastenergy.com.
Puget Sound Energy is Washington state’s largest energy utility. It delivers natural gas and electricity to more than 1.2 million customers in 11 counties in primarily Western Washington.
Cascade Natural Gas Corp. is a local natural gas distribution company serving 185,000 customers in Washington and Oregon.
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