September 25, 2015 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426 Re: Trans-Pecos Pipeline, LLC, Docket No. CP15-500-000 Presidio Border Crossing Project Response to Scoping Comments Dear Ms. Bose: On May 28, 2015, Trans-Pecos Pipeline, LLC (“Trans-Pecos”) filed with the Federal Energy Regulatory Commission (“FERC” or “Commission”) an Application for Natural Gas Act Section 3 Authorization and Presidential Permit to Construct Natural Gas Pipeline Facilities at the United States – Mexico Border (“Application”).1 On July 23, 2015, the Commission issued a Notice of Intent to Prepare an Environmental Assessment for the Proposed Presidio Border Crossing Project, as amended by the Commission’s Notice of Extension of Time issued August 5, 2015 (together, the “Notice”) initiating a scoping period to solicit comments regarding the potential environmental effects associated with the Presidio Border Crossing Project (defined below). The Notice requested that comments be filed with the Commission by September 4, 2015. Trans-Pecos reviewed each of the comments received through the close of the scoping period, and categorized the comments into subject matter categories based on the issues raised in the comments. Trans-Pecos hereby responds to the comments by subject matter category below. The majority of the comments apply to matters that Trans-Pecos has already addressed on the docket, including whether the entirety of the Trans-Pecos Project should be subject to FERC’s Natural Gas Act jurisdiction or whether the scope of the Commission’s National Environmental Policy Act (“NEPA”) review of the Presidio Border Crossing Project should also include non-jurisdictional upstream facilities or the facilities of another border crossing project. Trans-Pecos explains below where these matters have been addressed already in the record in this proceeding. Additionally, several scoping comments will be addressed by Trans-Pecos’ forthcoming response to the Commission’s Environmental Information Request issued to Trans-Pecos on September 8, 2015 (“Data Request”). Trans-Pecos is working to submit its responses to those requests on or before the Data Request deadline of October 6, 2015. Trans-Pecos is proposing to construct and operate certain natural gas pipeline facilities at the international boundary between the United States and Mexico to export and/or import natural gas between the United States near the City of Presidio, in Presidio County, Texas, and Mexico near the City of Manuel Ojinaga, State of Chihuahua (“Presidio Border Crossing Project” or 1 Trans-Pecos Pipeline, LLC, Application for Natural Gas Act Section 3 Authorization and Presidential Permit to Construct Natural Gas Pipeline Facilities at the United States – Mexico Border, Docket No. CP15-500-000 (May 28, 2015) (“Application”). Ms. Kimberly D. Bose September 25, 2015 Page 2 “Project”). The Project consists of the construction of approximately 1,093 feet of 42-inch-diameter natural gas pipeline that will commence on the north side of the Rio Grande River in Presidio County, Texas, and terminate in the middle of the Rio Grande River bed at the international boundary between the United States and Mexico. As discussed in detail in the Application, in addition to the Presidio Border Crossing Project, Trans-Pecos intends to construct approximately 143 miles of 42-inch pipeline, multiple meter stations, and ancillary facilities wholly within the State of Texas (“Upstream Facilities”) pursuant to the jurisdiction of the Railroad Commission of Texas (“RCT”). The Upstream Facilities will interconnect with and supply or receive gas into or from the Presidio Border Crossing Project facilities at the international boundary. When Trans-Pecos places its pipeline system into service, including both the Presidio Border Crossing Project facilities and the Upstream Facilities, Trans-Pecos will provide transportation in intrastate commerce and will be an intrastate pipeline. Accordingly, service on the Trans-Pecos pipeline system and the construction and operation of the Upstream Facilities are subject to the jurisdiction of the RCT. Project Need Several commenters discuss the need for the Project and whether the Project would benefit the City of Presidio, Presidio County, or the State of Texas. For the reasons discussed in this section, the Project is in the public interest. Contrary to the Big Bend Conservation Alliance’s (“BBCA”) allegation that Trans-Pecos’s Application must satisfy the Commission’s Certificate Policy Statement, which establishes criteria for determining whether there is a need for a proposed project and whether the proposed project will serve the public interest,2 the Certificate Policy Statement provides guidance for evaluating proposals to certificate new interstate natural gas pipeline construction under Section 7 of the Natural Gas Act (“NGA”). Although some of the analysis for the balancing of benefits against burdens is similar, the Certificate Policy Statement does not specifically apply to facilities constructed under Section 3 of the NGA such as the Presidio Border Crossing Project.3 Section 3 of the NGA provides for the Commission’s approval of an application under that section “unless it finds that the proposal will not be consistent with the public interest.”4 Section 3 further provides that the exportation and importation of natural gas between the United States and “a nation with which there is in effect a free trade agreement requiring national treatment for trade in natural gas, shall be deemed to be consistent with the public interest, and applications for such importation and exportation shall be granted without modification or 2 Scoping Comments of the Big Bend Conservation Alliance, p. 10 (Sept. 4, 2015) (“BBCA Comments”). 3 Certification of New Interstate Natural Gas Pipeline Facilities, Statement of Policy, 88 FERC ¶ 61,227 (1999), as clarified by 90 FERC ¶ 61,128 (2000) and 92 FERC ¶ 61,094 (2000). See e.g. Bradwood Landing LLC, et al., 126 FERC ¶ 61,035 at P 180 (2009) (clarifying that “the Certificate Policy Statement is applicable only to determining the public convenience and necessity under NGA section 7 for pipeline projects”); Pacific Connector Gas Pipeline, LP, et al., 139 FERC ¶ 61,040 at FN20 (2012) (noting that “the Certificate Policy Statement does not apply specifically to terminal and storage facilities authorized under section 3 of the NGA”). 4 15 U.S.C. § 717b(a) (2012). Ms. Kimberly D. Bose September 25, 2015 Page 3 delay.”5 The United States and Mexico are signatories to the North American Free Trade Agreement.6 The Presidio Border Crossing Project facility is needed to export gas that is being produced in the United States for sale to expanding electric generation and industrial markets in Northern Mexico. Authorization for construction of the facilities will promote national economic policy by reducing barriers to foreign trade, stimulating the flow of goods and services between the United States and Mexico, and facilitating the transportation of natural gas imports and exports authorized by the U.S. Department of Energy’s Office of Fossil Energy.7 In addition, and as articulated in Trans-Pecos’ answer submitted to the Commission on July 15, 2015, in the referenced docket (“July 15 Answer”),8 by providing access to new natural gas markets, the Trans-Pecos system will encourage further development of natural gas production in the Permian Basin, benefit air quality in the border region by replacing Northern Mexico’s less environmentally-friendly fuel sources, and financially benefit local communities along the pipeline route through increased local access to multiple natural gas markets for local communities and, for the City of Presidio, access to natural gas where no gas service existed previously.9 International Conservation Efforts in the Big Bend / Rio Bravo Region Many commenters reference various international conservation efforts along the United States-Mexico border in the Big Bend/Río Bravo region, including, for example, a May 2010 declaration by U.S. President Barack Obama and Mexico’s President Felipe Calderón that recognized the region’s conservation value for both nations,10 the Conservation Assessment for the Big Bend-Rio Bravo Region,11 and others.12 While these documents promote the joint conservation efforts by the United States and Mexico in the Big Bend region, they also encourage enhancement of the trading partnership between the two nations, reinforce efforts to create jobs, and support economic recovery and expansion. The documents advocate for developing the border in ways that facilitate the secure, efficient, and rapid flows of goods and services between the United States and Mexico, and for ensuring energy security in North America. As discussed above, contrary to the assertions in the scoping comments that TransPecos’ actions conflict with these documents, the Project in fact upholds these bi-national objectives. The facilities will, among other things, reduce barriers to foreign trade, stimulate the flow of goods and services between the United States and Mexico, and improve air quality in the border region. Additionally, the Project is not located within any areas designated as a priority 5 Id. 6 Pub. L. No. 103-82, 107 Stat. 2057 (1993); Implementation of the North American Free Trade Agreement Act, Executive Order No. 12889, 58 Fed. Reg. 69,681 (Dec. 27, 1993). 7 See, e.g., Impulsora Pipeline, LLC, 151 FERC ¶ 61,117, at P 14 (2015). 8 Trans-Pecos Pipeline, LLC, Motion for Leave to Answer and Answer of Trans-Pecos Pipeline, LLC, Docket No. CP15-500-000 (July 15, 2015) (“July 15 Answer”). 9 Id. at pp. 3-4. 10 See, e.g., Scoping Comments of Ann Daugherty (Aug. 28, 2015). 11 See, e.g., Scoping Comments of Beth Doolittle (Aug. 26, 2015). 12 See, e.g., Scoping Comments of Cheryl Frances (Aug. 24, 2015). Ms. Kimberly D. Bose September 25, 2015 Page 4 conservation area in the Conservation Assessment for the Big Bend – Rio Bravo Region.13 Moreover, the Project has been designed and located to comply with all applicable laws and regulations, and Trans-Pecos will take all appropriate measures to minimize impacts from the Project to the environment and the Big Bend/Rio Bravo region. Jurisdiction Several commenters request that the Commission analyze the jurisdiction of the planned Upstream Facilities that will connect to the Project and propose that the Commission assert jurisdiction over the Upstream Facilities. They also request that the Commission’s review under NEPA include both the Presidio Border Crossing Project and the Upstream Facilities. Trans-Pecos provided a detailed explanation in its July 15 Answer explaining why the Upstream Facilities are not subject to FERC jurisdiction and are not required to be included in the NEPA review for the Project. Only the facilities located at the international border are FERC-jurisdictional facilities, and upstream pipeline facilities, when used to transport gas in intrastate commerce to the international border, are non-jurisdictional facilities subject only to state jurisdiction.14 As a result, the Commission’s review of the Project under NEPA will only consider potential environmental impacts associated with the FERC-jurisdictional facilities located at the international border. Nevertheless, the Commission indicated in its Notice that it would provide available descriptions of the Upstream Facilities and include available environmental impact information under its analysis of cumulative impacts in the environmental assessment (“EA”) in this proceeding.15 Furthermore, the Commission has specifically requested this information for its EA in September 8, 2015 Data Request issued to Trans-Pecos. Because the Upstream Facilities do not fall under the jurisdiction of the FERC, this Response only addresses those comments relating to the Presidio Border Crossing Project facilities at the international border. However, as noted herein, numerous comments will not be addressed specifically in this response, but Trans-Pecos will provide detailed information in its responses to the Commission’s September 8, 2015 Data Request. Environmental, Health and Safety Impacts National Environmental Policy Act Several commenters assert that the Commission’s NEPA review for the Project must include the Upstream Facilities. As discussed above and in detail in the July 15 Answer, the Commission has correctly determined that its NEPA review will extend only to the Presidio Border Crossing Project and not to the Upstream Facilities.16 Additionally, many commenters 13 See Commission on Environmental Conservation, Conservation Assessment for the Big Bend-Río Bravo Region: A Binational Collaborative Approach to Conservation, p. 1 (2014), available at http://www3.cec.org/islandora/en/item/11495-conservation-assessment-big-bend-r-o-bravo-region-binationalcollaborative-approach-en.pdf. 14 July 15 Answer at pp. 4-11. 15 Federal Energy Regulatory Commission, Notice of Intent to Prepare an Environmental Assessment for the Proposed Presidio Border Crossing Project, Docket No. CP15-500-000, p. 3 (July 23, 2015) (“Notice”). 16 July 15 Answer at pp. 11-16; see also id. Ms. Kimberly D. Bose September 25, 2015 Page 5 request that the Commission develop an environmental impact statement (“EIS”) in this proceeding. As discussed in detail in the July 15 Answer, the Commission has correctly determined that preparation of an EA for the Presidio Border Crossing Project and not an EIS is appropriate because approval of the Project will not constitute a major federal action significantly affecting the quality of the human environment.17 Furthermore, several commenters assert that Trans-Pecos improperly segmented the environmental review for the Trans-Pecos pipeline from Comanche Trail Pipeline, LLC’s (“Comanche Trail”) proposed pipeline and request that FERC consider the environmental impacts of the Trans-Pecos pipeline and the Comanche Trail pipeline together. Trans-Pecos provided a detailed explanation in its July 15 Answer as to why the Presidio Border Crossing Project is not “connected” to, and has independent utility from, the Comanche Trail proposed pipeline.18 Environmental, Health and Safety Many commenters request information regarding the environmental, health and safety impacts associated with the Presidio Border Crossing Project. Trans-Pecos considered potential environmental, health and safety impacts associated with the Project in the Environmental Report filed as Exhibit F to its Application.19 Trans-Pecos has received approval from or filed permit applications with numerous federal and state agencies regarding the environmental review for the Project, including the FERC, U.S. International Boundary and Water Commission (“IBWC”), U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, Texas Historical Commission (“THC”), Texas Railroad Commission and Texas Parks and Wildlife Department. As described in more detail in the Application and Environmental Report, construction of the Project will not, individually or cumulatively, have a significant effect on the quality of human health, the environment, or landowners.20 In addition, Trans-Pecos will comply with all applicable state and federal environmental laws and permits and utilize proven construction techniques and mitigation measures that will result in minimal impacts to human health, the environment, and landowners. All stakeholders impacted by the location of the Project will continue to have an opportunity to comment in this proceeding regarding the environmental impacts of the Project. Several commenters mention restoration and revegetation within the temporary work spaces. Trans-Pecos will ensure that all construction and restoration activities for the Project comply with the FERC’s current Upland Erosion Control, Revegetation, and Maintenance Plan, and the FERC’s Wetland and Waterbody Construction and Mitigation Procedures issued in May 2013 (“May 2013 Plan and Procedures”). The May 2013 Plan and Procedures address restoration of the areas temporarily disturbed by the Project and impose post-construction maintenance and 17 July 15 Answer at pp. 16-18. 18 Id. at pp. 18-20. 19 See Application at Exhibit F, Gremminger & Assoc, Inc., Environmental Report for the Presidio Border Crossing Project (May 2015) (“Environmental Report”). 20 Id. at pp. 8-21, 26-35, 37-40. Ms. Kimberly D. Bose September 25, 2015 Page 6 periodic reporting requirements until restoration is completed to the satisfaction of the state and federal authorities with jurisdiction over the Trans-Pecos system.21 Several commenters request information regarding the potential impacts of the Project to water resources and specific plant and animal species. As described in the Environmental Report, the Project will not impact surface water, groundwater, or waterbodies. In addition, the water needed for hydrostatic testing of the pipe segment will not deplete water resources in the Project area because it will be acquired from the City of Presidio, or from an irrigation well in Pecos County and trucked to the Project location.22 Trans-Pecos will provide additional information with the responses to the Commission’s September 8, 2015 Data Request regarding the volume of water needed for horizontal directional drilling (“HDD”) and hydrostatic testing of the pipeline, the ability of the water sources to meet Project water demands without any negative effects to the City of Presidio, private irrigation wells, or other groundwater within the water extraction area. The Project also will have no permanent effect to vegetation, fisheries, wildlife, migratory birds, listed species or their habitat.23 Trans-Pecos will address impacts to specific wildlife and vegetation species raised by individual commenters in its responses to the Commission’s September 8, 2015 Data Request. Trans-Pecos’s response to the Data Request will also address other topics from the scoping comments, including those regarding seismic activity in the Project area, potential air emissions associated with the Project, and noise sensitive areas. The Texas Parks and Wildlife Department (“TPWD”) submitted several comments regarding vegetation clearing, restoration, best management practices to mitigate potential impacts to aquatic species, HDD setback requirements, contingency plans, and potential impacts to state and federally listed endangered or threatened species.24 Trans-Pecos will continue to consult with the TPWD regarding these comments and comply with all requirements for the Project imposed by the TPWD. Additionally, the U.S. Environmental Protection Agency (“EPA”), Region 6, filed comments regarding potential environmental, health and safety issues associated with the Project, including, for example, impacts to water supply and water quality, biological resources, endangered species, air quality, cultural resources, as well as hazardous materials, alternatives, mitigation, environmental justice, and coordination with land use planning activities and Indian tribes. Trans-Pecos will continue to consult with the agency regarding these comments and comply with all requirements for the Project imposed by the EPA.25 21 FERC, Wetland and Waterbody Construction and Mitigation Procedures, pp. 11-12, 17-18 (May 2013), available at http://www.ferc.gov/industries/gas/enviro/procedures.pdf; FERC, Upland Erosion Control, Revegetation, and Maintenance Plan, pp. 12-18 (May 2013) , available at http://www.ferc.gov/industries/gas/enviro/plan.pdf. 22 Environmental Report at pp. 10-11. 23 Id. at pp. 13-20. 24 Scoping Comments of the Texas Parks and Wildlife Department (Aug. 17, 2015). 25 Scoping Comments of the U.S. Environmental Protection Agency, Region 6 (Aug. 31, 2015). Ms. Kimberly D. Bose September 25, 2015 Page 7 Cultural Resources Contrary to several commenters statements that the Project will result in adverse impacts to cultural and archaeological resources near the Rio Grande, Trans-Pecos considered the potential impacts of the Presidio Border Crossing Project to cultural resources in Resource Report No. 4, included within the Environmental Report,26 and found that no existing or previously unknown cultural resources existed within the proposed temporary workspace for the Project.27 Trans-Pecos has submitted the cultural resources assessment and “no effect” determination to the THC for its concurrence, and the THC issued a concurrence letter on June 1, 2015. In addition, some commenters request notification in the event that cultural artifacts are observed during Project construction. Trans-Pecos has prepared an Unanticipated Discovery Plan, included as Appendix F to the Environmental Report, which will govern proper procedures in such circumstances. Trans-Pecos will address impacts to specific cultural resources and archaeological sites raised by individual commenters in its responses to the Commission’s September 8, 2015 Data Request. Safety and Contingency Planning Many commenters discuss the safety and reliability of the Presidio Border Crossing Project and request that an emergency response plan be prepared for the Project in the event of a significant pipeline emergency. As discussed in more detail in the July 15 Answer, Trans-Pecos is committed to designing, constructing, operating and maintaining the Presidio Border Crossing Project in accordance with, and in many instances above, the required industry and regulatory standards.28 In addition, Trans-Pecos has provided detailed information regarding its emergency response plan for the Project in Resource Report No. 11 in the Environmental Report.29 Trans-Pecos will coordinate the emergency response plan with local officials prior to commencing operations in accordance with federal requirements. Rio Grande River – Horizontal Directional Drilling Several commenters discuss potential environmental impacts associated with the HDD process that will be used to install the segment of pipeline under the Rio Grande River, including potential damage to local aquifers from the HDD bore.30 Trans-Pecos considered potential environmental impacts associated with the HDD process in Resource Report No. 2 (water use and quality) and Resource Report No. 3 (vegetation and wildlife) in the Environmental Report.31 As discussed in more detail in Resource Report Nos. 2 and 3, Trans-Pecos will follow the 26 Environmental Report at pp. 17-18. 27 See Environmental Report at Resource Report No. 4, Section 4.1 (citing a May 2015 cultural resources assessment). 28 July 15 Answer at pp. 22-23. 29 Environmental Report at pp. 37-39. 30 See, e.g., Scoping Comments of Coyne A. Gibson (Aug. 10, 2015). 31 Environmental Report at pp. 8-20. Ms. Kimberly D. Bose September 25, 2015 Page 8 FERC’s May 2013 Plan and Procedures and the Project’s Spill Prevention, Containment, and Countermeasures Plan, and, as such, construction of the Project should not result in any adverse impacts to the Rio Grande River, plant, animal or fish species, or habitat.32 With respect to impacts to groundwater resources in particular, the Project will not affect groundwater resources in the Project area, and the HDD activity is not expected to result in contamination of any aquifer resource.33 The FERC’s September 8, 2015 Data Request specifically requested more information related to the HDD feasibility, including a frac-out analysis with drill path calculations and predicted annular pressures and formation pressures along drill path. Additionally, Trans-Pecos also intends to revise its Directional Drilling Contingency Plan to include procedures to capture, clean and respond to an inadvertent release into the Rio Grande River. Alternatives Many commenters request that the Commission consider alternative locations for the Project and related facilities. Trans-Pecos provided a description of the “no-action” alternative and whether other alternative crossing locations existed in Resource Report No. 10 in the Environmental Report.34 As discussed in Resource Report No. 10, the “no-action” alternative would result in the loss of new infrastructure to market and export natural gas supplies produced in the United States and would result in fewer gas supplies for electric generation plants in Mexico. Trans-Pecos is not aware of another border crossing facility that could accommodate on a firm basis the volume of gas associated with this Project. Additionally, no alternative crossing locations exist because the location of the Project is dictated by the preferred alignment for the pipeline inside Mexico. Moreover, the proposed Project location was deemed to be environmentally benign and lacks any issues that would prompt consideration of alternative crossing locations. Thus, the “no-action” alternative and any potential alternative crossing locations were incompatible with the purpose and need of the Project to connect the pipeline on the Mexican side of the border and, thus, not in the best interest of the public.35 BBCA asserts that Council on Environmental Quality (“CEQ”) regulations require the Commission to prepare a comprehensive cost-benefit analysis of alternatives for the Trans-Pecos system.36 However, the CEQ regulations governing cost-benefit analyses do not require such assessments and, in any event, the regulations pertain to alternatives analyses in an EIS, not an EA.37 As discussed above and in the July 15 Answer, the Commission has correctly determined 32 Id. 33 Id. at p. 10. 34 Id. at p. 36. 35 Id. 36 BBCA Comments at p. 24. 37 40 C.F.R. § 1502.23 (2015). Ms. Kimberly D. Bose September 25, 2015 Page 9 that preparation of an EA for the Presidio Border Crossing Project and not an EIS is appropriate.38 Finally, some commenters assert that Trans-Pecos has not provided sufficient information regarding the location of the proposed facilities.39 Trans-Pecos provided detailed figures attached as Exhibit G to its Application showing the physical location of facilities to be constructed. Socioeconomic Impacts Several commenters assert that the Project will result in negative socioeconomic impacts to the Big Bend region. As described in Resource Report No. 5 in the Environmental Report, the Project is not expected to have a substantial effect, either positively or negatively, on socioeconomics of the area.40 National Security Some commenters state that the Project will increase threats to national security and facilitate illegal immigration. However, as explained in Section 1.9 of the Environmental Report, Trans-Pecos will coordinate with the U.S. Department of Homeland Security (“DHS”) and the Big Bend Sector of the Customs and Border Patrol (“CBP”) to address threats to national security during construction and operation of the Project.41 Trans-Pecos will comply with all DHS and CBP programs and regulations, and Trans-Pecos will discuss and coordinate the security plan with the relevant state and local emergency responders, agencies, and other personnel with the required security clearances. In addition, Trans-Pecos has an emergency response plan that is discussed in Resource Report No. 11 in the Environmental Report.42 Trans-Pecos will also address its ongoing consultation with the CBP in its response to the Commission’s September 8, 2015 Data Request. 38 July 15 Answer at pp. 16-18. 39 See, e.g., Scoping Comments of Beth Doolittle (Aug. 26, 2015). 40 Environmental Report at p. 24. 41 Id. at p. 6. 42 Id. at pp. 38-39. Ms. Kimberly D. Bose September 25, 2015 Page 10 Trans-Pecos is committed to addressing concerns raised by landowners and other stakeholders in this proceeding. All such stakeholders impacted by the location of the Presidio Border Crossing Project will continue to have an opportunity to participate in the process as the Commission’s NEPA review process continues in this proceeding. If you have any questions regarding this filing, please contact the undersigned at (713) 989-2606. Respectfully submitted, Trans-Pecos Pipeline, LLC /s/ Kelly Allen Mr. Kelly Allen, Manager Regulatory Affairs Department cc: Mr. Anthony J. Rana, Office of Energy Projects CERTIFICATE OF SERVICE In accordance with the requirements of Section 385.2010 of the Commission’s Rules of Practice and Procedures, I hereby certify that I have this day caused a copy of the foregoing document to be served upon each person designated on the official service list compiled by the Commission’s Secretary in this proceeding. /s/ Kelly Allen Mr. Kelly Allen Regulatory Affairs Department Trans-Pecos Pipeline, LLC (713) 989-2606