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Mid-Atlantic Express

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Mid-Atlantic Express

Project Overview
Mid-Atlantic Express, LLC has proposed to build a natural gas pipeline project that will transport 1.5 billion cubic feet per day ("BCFD") of natural gas into the Mid-Atlantic regional market. The source of the natural gas will be a new natural gas import terminal that has been proposed to be built at the Sparrows Point Industrial Complex, on an existing 60-acre industrial and commercial complex once used for the manufacturing and building of ships. The gas will be imported in liquid form on ships that are specially designed to carry and unload the liquid cargo. The liquid gas will be transferred ashore to three storage tanks located on the terminal site. When ready for use, the liquid gas will be converted back to its gaseous state and piped from the terminal site to local connections with the Baltimore Gas & Electric ("BG&E") system then on to interconnection points with Columbia Gas Transmission, Texas Eastern, and Transco pipelines near Eagle, Pennsylvania. For more information regarding the natural gas import terminal ("Sparrows Point LNG Project"), please visit the following website - www.aessparrowspointlng.com.

The Mid-Atlantic Express pipeline project will be approximately 85 miles in length and 28 inches in diameter. It will follow existing utility and/or roadway rights-of-way to the maximum extent practicable. At each of the interconnection points with the existing pipeline systems, there will be a metering system for measuring flow to each of the delivery points.

The Mid-Atlantic Express Pipeline will help satisfy the growing demand for natural gas in Maryland and the Mid-Atlantic Region, diversify the sources of supply to the region, and increase competitive alternatives to the existing pipeline infrastructure for the benefit of customers - all in an environmentally acceptable manner.

Pipeline Routing
Natural gas imported to the AES Sparrows Point LNG facility will be transported via the Mid-Atlantic Express Pipeline to local connection points and with three existing interstate pipeline systems located in Eagle, Pennsylvania. These pipeline systems will in turn deliver the natural gas to homes, electrical generating plants, and other regional industry facilities. The proposed site location of the import terminal and the pipeline route are shown below.

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The pipeline will be a 28-inch outside diameter, 2,200 psig pipeline that extends from the Sparrows Point LNG Project to Eagle, Pennsylvania. The pipeline is expected to be approximately 85 miles in total length. The general alignment of the pipeline envisions leaving Sparrows Point via Bethlehem Boulevard (the access road to the existing industrial complex). After reaching North Point Road, the pipeline is expected to be routed along the shoulder of the Beltway (Interstate-695) and then along the shoulder of Interstate-95. Once the pipeline reaches a point north of Gunpowder Falls State Park, it is expected to depart the Interstate-95 corridor and follow an existing BG&E transmission line corridor heading in the northerly direction. Once the pipeline reaches approximately Whiteford and Dublin road intersection, it is expected that the pipeline will parallel an existing Columbia Gas Transmission pipeline corridor through Pennsylvania to the interconnection points with Columbia Gas Transmission, Transco, and Texas Eastern pipelines. An alternate route has been identified that would parallel existing BG&E pipeline and/or electric transmission line rights-of-way to the point where it intersects with the Columbia Gas Transmission pipeline. Both primary and alternate routes are shown on the map above.

In evaluating potential pipeline routes, Mid-Atlantic Express sought to select a routes that avoid or minimize potential environmental impacts, particularly impacts to sensitive or protected ecological areas. For example, Mid-Atlantic Express has chosen the most environmental preferable route to run the pipeline within or adjacent to existing utility corridors where feasible. This helps to avoid additional impacts to surrounding areas.

Since the inception of the pipeline project, AES has and will continue to confer with landowners, government agencies, public officials and other interested stakeholders to refine its route in a collaborative fashion. These consultations are intended to meet AES's objective of avoiding or minimizing potential impacts on the environment, natural resources, and landowners.

Pipeline Rights-of-Way
In order to cross all the lands from Sparrows Point to Eagle, Pennsylvania, the pipeline will be located in a specific corridor known as a right-of-way or ROW. The ROW serves several functions:

  • It enables pipeline personnel to gain access for construction, inspection, maintenance, testing, and emergencies.
  • It maintains an unobstructed view for frequent aerial surveillance of the pipeline.
  • It identifies an area that restricts certain activities to protect the landowner, the community through which the pipeline passes, and the pipeline itself.

Rights-of-way are either owned by the pipeline company or acquired through easement agreements with the property owner.

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AES Sparrows Point LNG

The AES Sparrows Point LNG Project is designed to serve the growing need for natural gas supplies in the Mid-Atlantic Region. At present, the forecasted demand growth of natural gas cannot be met with the existing natural gas pipeline infrastructure. As a result, these parts of the country experience high price volatility and increasing supply challenges. In addition, because this region of the country is a long way from the areas where natural gas is produced (Gulf of Mexico, Rocky Mountains, and Canada), as demand grows, constraints on the existing long-distance pipeline system may become a critical choke point. Additionally, the Mid-Atlantic Region of the United States has experienced significant gas price volatility and increasing supply challenges. To reduce the negative effects created by this situation, there is a need to add new gas supplies to the United States.

The Sparrows Point Project is AES's solution for bringing additional supplies of natural gas to homes, electrical generating plants, and industry in the region in a reliable, safe, and cost-effective manner. To accomplish this, AES intends to receive its LNG from reputable international sources that will transport the cargo in vessels designed to specifically handle the natural gas that has been converted to LNG through a cooling and condensing process that occurs where the gas originates. Upon receipt of the LNG, AES will convert the LNG to natural gas so it can be delivered to homes, electrical generating plants, and industry in the region and provide a new reliable source of supply. For more information on the Sparrows Point LNG Project, please visit the following website - www.aessparrowspointlng.com.

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Safety & Security

Mid-Atlantic Express pipeline facilities will be designed, constructed, operated, and maintained to meet or exceed the safety standards established by the Natural Gas Pipeline Safety Act and the U.S. Department of Transportation ("USDOT") in 49 CFR Part 192, and the U.S. Department of the Interior, Minerals Management Service ("MMS") in 30 CFR Part 250, Subpart J. The pipeline will comply with applicable regulations governing material selection and qualification, design requirements, and protection from internal, external and atmospheric corrosion. Pipe wall thickness, shutoff valve spacing, and depth of cover will comply with the applicable requirements for the particular Class Location along the pipeline. The following are but a few measures that will be employed to ensure the integrity and safety of the pipeline.

Pipeline Design: The pipeline will be designed and constructed using carbon steel pipe manufactured to conform to American Petroleum Institute ("API") Specification 5L.

Pipeline Welds: Pipeline welds will meet or exceed the minimum requirements of 49 CFR Part 192, with weld acceptance in accordance with API 1104, prior to pipeline installation. There will be no mechanical connections that make use of rubber seals or gaskets.

Hydrostatic Testing: Hydrostatic testing of the piping will be performed with a minimum pressure of 1.25 times the design pressure or 90 percent of the specified minimum yield strength of the line pipe, whichever is less. All testing will be conducted at levels that meet or exceed the specifications in 49 CFR Part 192.

Pigging: The pipeline will be designed to accept both conventional and "smart" pipeline pigs. Pigs are cylindrical devices of the same diameter as the pipeline into which they will be inserted. Conventional pigs are used for cleaning and sealing. A smart pig uses a variety of sensors that can measure the wall thickness of the pipe around the circumference as it travels internally. Changes in wall thickness might indicate corrosion or metal loss. The use of smart pigs will provide a reliable record of any changes in pipeline conditions to ensure that the pipeline integrity is maintained. The frequency of pipeline inspection by pigging and other surveillance measures to confirm integrity will meet the requirements of 49 CFR Part 192, which requires periodic patrols and inspections based on Location Class. See 49 CFR § 192.705.

Corrosion Protection: The exterior of the pipe will be factory coated with 16 mils of fusion-bonded epoxy ("FBE") to prevent corrosion. The field joints (at the welds) will have a similar coating applied in the field. Cathodic protection may also be used in areas where such measures are appropriate. Cathodic protection uses a constant low-voltage current that runs through the pipeline to counteract the potential corrosion caused by the interaction of the pipe with the soil.

Pressure Control Valves: At the tie-in interconnection points with BG&E, Columbia Gas Transmission, Texas Eastern Pipeline, and Transco Pipeline, automated pressure control valves and shut down systems will be installed. The automated pressure control valves will regulate the outlet pressure of the pipeline at a controlled pressure, less than or equal to the maximum allowable working pressure ("MAWP") of the receiving transmission line, so that the pressure will be compatible with that in the interconnecting systems. The MAWP at the tie-in location is approximately 975 psig.. A pressure reducing station will be installed at the interconnection points to reduce the pressure of the Project's line to that of the interconnecting pipelines. In the unlikely event of an abnormal operation or failure, there would be automatic shut-down of the pipeline at the tie-in location and activation of an automatic shut-down valve at the interconnection points. These automatic shutdown valves will be sited and installed in accordance with the requirements of 49 CFR § 192.179.

Shut Down Systems: In the unlikely event of an abnormal operation or failure, there would be automatic shut-down of the pipeline at the interconnection points and at the operations center at Sparrows Point.

Pipeline Markers: Because the pipeline will be placed underground, aboveground signs and markers will be used to indicate its presence and provide certain information relative to contents, and operator contact for both emergency and non-emergency situations. The markers will be monitored as part of the right-of-way surveillance program.

Operation and Maintenance: Mid-Atlantic Express will operate and maintain the proposed pipeline in a manner that meets or exceeds the requirements of 49 CFR Part 192. AES will prepare and implement an Operation and Maintenance Plan based on 49 CFR Part 192 that includes the following provisions:

  • Employees will be trained/qualified to operate and maintain the pipeline system in accordance with the requirements of 49 CFR Part 192, Subpart N. Operating procedures will be developed in a way so that operators are trained for the activities they are expected to perform on a routine and emergency basis;
  • Because much of the pipeline has available ground access, it will be walked or inspected at regular intervals at least monthly along the pipeline right-of-way to monitor its condition, including indications of third-party encroachment, with such inspections exceeding the requirements of 49 CFR Part 192.705(b);
  • On-the-ground leak surveys (with gas detectors) will be performed at Class 3 locations, at least twice per year. 49 CFR § 192.706;
  • Annual contact of property owners, utilities, local government agencies, contractors, and other interested parties will be performed to inform them of pipeline location and procedures to be followed in reporting and responding to potential pipeline emergencies;
  • Participation in the Maryland and Pennsylvania "One Call" system, including staking and marking service for third-party construction and landowner requests;
  • Internal audits of field locations to ensure compliance with existing operating and maintenance standards and safe-work procedures;
  • Periodic pipe-to-soil potential surveys and condition of anodes surveys to verify cathodic protection systems are performing properly and to identify sections of the line where the protection systems may require maintenance;
  • Annual in-house training refresher program for operation and maintenance personnel to maintain skill levels and review safety procedures in case of a pipeline emergency;
  • Annual testing and inspection of pressure limiting devices and emergency shutdown systems at compressor stations. Pressure and flow rate detectors will be installed at either end of the pipeline, so that the initiation of a shut-down on one end will automatically trigger a shut-down at the other end as well;
  • A full Emergency Shut Down test will be carried out annually during the planned plant maintenance period;
  • Monthly circuit testing of the Emergency Shut Down system will be performed as a simulated test; and
  • The pressure safety valves will be tested at regular intervals.

In addition to the safety and security measures described above, pipeline operators carry out extensive public education programs to educate key stakeholders and the public on the presence of pipelines in their communities, as well as actions they can take to help prevent any type of pipeline incident. Examples of information covered through public education programs includes the following:

  • Recognition of pipeline markers.
  • Appropriate steps to recognize a pipeline leak.
  • Proper reporting procedures, including emergency points of contact.
  • Use of the One-Call system described in the Operations and Maintenance section above.
  • Proper excavation methods when working in and around the pipeline right-of-way.

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Pipeline Construction

Pipeline construction cannot begin until the final route has been selected, easements or land purchases have been completed, all applicable permits and approvals have been obtained, and numerous other pre-construction actions have been accomplished, including design, survey, and environmental investigation activities. By selecting existing pre-disturbed right-of-way corridors, AES hopes to minimize both the time necessary for the construction activities and any impacts due to construction that might cause disturbance to the public. Use of existing corridors also helps avoid or greatly minimize impacts to the environment.

The first construction task is the clearing and preparation of the rights-of-way. The next task is to dig a trench in which to place the pipe. Minimum trench depths are specified in 49 CFR Part 192.327. Once the pipeline trench is completed, a layer of protective bedding material (for example, sand free of large stones that could damage the protective coating) is placed in the trench and then compacted to provide support for the pipeline. Once the trench is ready, the pipeline is carefully placed into it using side boom tractors. The trench is then filled with backfill in a manner to retain, as close as possible, the original nature of the route.

AES expects to use horizontal directional drills ("HDD") for crossing water bodies, bridge abutments, major roadways, and sensitive environmental areas. A jack and bore technique will be used for crossing minor roadways where trenching is not considered to be a feasible means of construction. The decision on the type of crossing technique will be made on a case-by-case basis with appropriate input from applicable regulatory agencies.

Before the pipeline is placed in service, the pipe and components undergo a series of tests and inspections, including x-rays of welds, water pressure tests (hydro tests), and other inspection tests. Each stage of the inspection process is conducted to meet the requirements of the engineering design, regulatory approvals, industry standards, permit conditions, and landowner and easement agreements.

Post-construction restoration and reconstruction of the surface area affected by the trenching will be accomplished as necessary or required. AES's objective will be to restore the land to its approximate original condition as quickly as practical. Typical restoration measures include the following:

  • Decompact construction work areas.
  • Replace topsoil.
  • Repair irrigation systems or drain tiles.
  • Apply lime or fertilizer.
  • Restore fences, etc.
  • Replant vegetation where appropriate.
  • Carefully grade the right-of-way and in hilly areas, install erosion prevention measures such as interceptor dikes, which are small earthen mounds constructed across the right-of-way to divert water.

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Regulatory Compliance

The Federal Energy Regulatory Commission ("FERC") is the lead federal agency responsible for the approval on all technical aspects of the Mid-Atlantic Express Project. Construction of the Mid-Atlantic Express Project can only move forward when all FERC, state, and local approvals are in place.

Mid-Atlantic Express has begun the formal pre-filing meeting with FERC. During this phase of the project, public participation programs are both required and encouraged. The public participation program involves a series of local meetings among other things, along with facility surveys and preparation of the required Resource Reports in preparation of the filing its formal application with FERC. Mid-Atlantic Express anticipates being in a position to file the formal application in the latter part of 2006.

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Permitting/Consultation Agencies

As detailed in the list below, numerous federal, state, and local permits and consultations are required to construct, operate, and maintain the Mid-Atlantic Express Pipeline and Sparrows Point LNG Terminal. AES has sought out and implemented suggestions from the regulatory entities and other interested parties below, and will continue to seek constructive input throughout the process.

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Economic Benefits

The Mid-Atlantic Express and associated AES Sparrows Point LNG Projects will create significant economic benefits. Some of the benefits from this facility include the following:
  1. Potential to off-set natural gas and electricity prices:
    • Energy demand is increasing: Approximately 40% of America's electrical power-generating plants are powered by clean natural gas.
    • Natural gas sets the price of electric power in the Mid-Atlantic Region almost 50% of all hours
    • Experts estimate a 15-to-30% savings over piped-in natural gas, now coming long-distances to Maryland.
  2. Over $13 million in State & local government sales, income, and property taxes each year.


  3. Direct good-paying jobs: Up to 4 million union man-hours during construction and 60+ permanent jobs.


  4. Numerous indirect jobs: tug boat operators, ship pilots, maintenance, security, etc.


  5. No government subsidies or taxpayer support.


  6. Beneficial long-term re-use of underutilized 80-acres on Sparrows Point industrial site.


  7. Spin-off commercial and industrial opportunities that can benefit from clean natural gas.


  8. Innovative re-use of dredge sediments may be used to kick-start a statewide program to recycle dredging material into roadbed or other concrete-like uses: An environmentally-preferred option to disposal sites.


  9. Direct/indirect construction benefits to the local economy: $200+ million.


  10. Direct operating expenditures and indirect/induced business supports local vendors: $40 million per year.


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Environmental Resource Reports

Under Development

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Timeline

Pre filing phase - April 06 - January 2007
FERC Application - January 2007
Draft EIS - 2nd Quarter 2007
Final EIS - 3rd Quarter 2007
FERC Certificate - Late 3rd / Early 4th Quarter 2007
Start of Construction/ Detailed Engineering/ Procurement - First Quarter 2008
Construction Complete - First Quarter 2010
Pipeline Operational - 2nd/3rd Quarter 2010

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