IROQUOIS SETTLES N.Y. AGENCY SPAT, FILES TARIFF

Iroquois Gas Transmission System has settled a dispute with two New York state agencies over stream crossing methods.

In addition, Iroquois has filed its tariff with the Federal Energy Regulatory Commission.

As part of the tariff filing, the company announced an Oct. 1-30 open season for gas shipment nominations.

The 370 mile pipeline project is designed to transport 579 MMcfd of natural gas to U.S. Northeast markets.

DISPUTE SETTLED

Iroquois settled dispute with the state's Department of Environmental Conservation on crossing methods for 12 streams.

The state's Public Service Commission, although not formally a party to the agreement, has taken action affecting construction that amounts to its acceptance of the agreement's details.

DEC will drop charges against Iroquois, Spread 4 contractor Murphy Bros., and six employees the agency arrested Sept. 10. In addition, Iroquois will pay $225,000 to the state for what it says were "construction impacts" along streams in upstate New York.

INJUNCTION, ORDER

Completion of the pipeline, originally set for Nov. 1, has been pushed back to Dec. 1, Iroquois' Robert J. Reid said earlier. Full operations are targeted for early 1992.

Iroquois has been embroiled in a dispute with PSC over environmental matters since June.

In the Sept. 10 incident, DEC arrested an Iroquois official and five contract workers for alleged environmental violations.

Iroquois then sought a U.S. federal court injunction barring PSC from issuing more stop work orders and otherwise interfering with construction of the pipeline (OGJ, Sept. 23, Newsletter). Iroquois said the injunction is not being actively pursued now.

The agreement did not include any response by PSC to Iroquois' claim the agency lacks authority to impose a fine of more than $1.1 million for 11 environmental violations cited in July (OGJ, Sept. 16, p. 42).

Iroquois made that claim when the commission ordered it to show why it and five contractors shouldn't be fined $100,000/day/violation.

FERC ROLE

The stream crossing agreement sets out methods approved by the company and both agencies for use primarily on two disputed streams, Wappinger Creek on Spread 4 in Dutchess County and Ten Mile River in Dover County.

It was a dispute over the third crossing of Wappinger Creek that led to the workers' arrest by the DEC.

The DEC had wanted environmental mitigation measures in addition to those specified in the original environmental management and construction plan. The EMCP is part of the commission's certificate allowing construction.

Essentially, the agreement reinstates practices covered by the original EMCP plus some modifications DEC sought, Iroquois said. It replaces an earlier partial accord on stream crossings and allows the company to proceed with construction at all locations.

The agreement with DEC formalizes instructions FERC issued to Iroquois the last week of September. FERC representatives had visited a stream site where crossing methods desired by the state and by Iroquois were demonstrated. FERC then reaffirmed to Iroquois approval of methods previously set forth in the EMCP.

The approved method, wet crossing," calls for construction of a pipeline trench while water is flowing in the creek. The method also will be modified to employ siltation screening to protect the streams from the effects of sedimentation.

TWO PHASE RATE

The Iroquois tariff covers two zones on the system.

For gas moved from the St. Lawrence River crossing to the Wright, N.Y., interconnect with Tennessee Gas, the rate will be 43/Mcfd. For gas moved the entire length of the system, Canada to Long Island, the rate will be 75/Mcfd.

The open season is for companies seeking open access firm and interruptible service on the nearly complete pipeline.

Not affected are companies that currently have firm transportation contracts with Iroquois, Reid noted, unless they want to acquire additional firm or interruptible service.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.