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ENB - Region 8 Notices 06/23/2010

Notice of Complete Application

Applicant: Inergy Midstream, LLC (Inergy)
Two Brush Creek Boulevard, Suite 200
Kansas City, MO 64112

Permit Applied for: ECL Article 23 Title 13 Underground Storage Modification Permit

Project Location: 7535 Eagle Valley Road
Savona, NY 14879 (Town of Bath, Steuben County)

Project Description: Inergy Midstream, LLC (Inergy) currently operates a liquefied petroleum gas (LPG) storage facility in Bath, Steuben County. The underground storage component of the facility is comprised of wells accessing salt caverns located approximately 3,000 feet below ground surface. Inergy stores LPG in the underground caverns by pumping it into the wells which in turn displaces brine out of the caverns and wells into lined brine ponds. The process is reversed when there is a demand for the stored gas. Because precipitation exceeds evaporation at the project site, fluid must be removed from the ponds to prevent them from overflowing their walls. The excess pond fluid is discharged into the Cohocton River and into an existing disposal well under an existing State Pollutant Discharge Elimination System (SPDES) permit. Routine operation of the storage facility, including well maintenance, has the associated effect of washing the salt caverns used for storage and causing cavern growth at an annual rate of less than 2% by volume. While not overly significant in any given year, the cumulative effect over many years of the operation on individual cavern growth at Inergy is sizable. Despite this long-term projected growth in cavern sizes, no detrimental public safety or environmental effects such as cavern failure, catastrophic subsidence or LPG leakage from the caverns are anticipated. Inergy has requested and applied for an Underground Storage Modification Permit for the modification and operation of an existing liquefied petroleum gas (LPG) storage facility utilizing underground storage caverns. The plans include modification of eleven existing storage caverns (Nos. 1, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13) and construction of one new cavern (No. 14) in the Salina formation (approximately 3,000 feet below ground surface) by operational solution salt mining and well maintenance for LPG storage from existing individual cavern capacities to ultimate capacities ranging from 1.38 million barrels to 3.78 million barrels (one barrel equals 42 U.S. gallons) over a projected operational period of at least 90 years. It has been determined by New York State Department of Environmental Conservation (NYS DEC) that no modification of Inergy's existing SPDES permit for this facility is required in conjunction with the requested modification and operation of Inergy's underground storage caverns.

NYS DEC has made a tentative determination to issue the storage permit referenced above. As a tentative determination, NYS DEC seeks comments on the proposed regulated activity prior to making a final decision on permit issuance.

Availability of Application Documents: Filed application documents, and NYS DEC's draft permit, are available for inspection under the provisions of the Freedom of Information Law during normal business hours at the address of the below listed contact person.

State Environmental Quality Review (SEQR) Determination: Project is a Type I action and will not have a significant effect on the environment. A coordinated review with other agencies was performed and a Negative Declaration is on file.

SEQR Lead Agency: New York State Department of Environmental Conservation

State Historic Preservation Act (SHPA) Determination: The proposed activity was determined to have "No Impact" on cultural resources.

Coastal Management: This project is not located in a Coastal Management area and is not subject to the Waterfront Revitalization and Coastal Resources Act.

NYS DEC Commissioner Policy 29, Environmental Justice and Permitting (CP-29): It has been determined that no additional analysis is required.

Opportunity for Public Comment: Comments on this project must be submitted in writing to the contact person listed below no later than July 27, 2010.

Contact Person: John K. Dahl, NYS DEC - Division of Mineral Resources, Bureau of Oil and Gas Regulation, 625 Broadway, 3rd Floor, Albany, NY 12233-6500 , E-mail: dmnog@gw.dec.state.ny.us.


Negative Declaration

Ontario County - The Village of Naples, as lead agency, has determined that the proposed Sewer Collection and Wastewater Treatment System will not have a significant adverse environmental impact. The action involves the installation of approximately 41,000 linear feet of sanitary sewer main, approximately 75,000 linear feet of sewer lateral, and appurtenances including manholes and pump stations. Also the installation of new wastewater treatment facility at a site located on Ontario Street, including tanks, site piping, buildings, and associated equipment. The facility will discharge treated wastewater into the adjacent Grimes Creek Raceway (Tributary No. 7). The project is located on Main Street, Ontario Street, and other streets in the Village of Naples, New York.

Contact: Donald Braum, Village of Naples, 106 South Main Street, Naples, NY 14512, Phone: (585) 374-2435, E-mail: naplesny@Frontiernet.net.


Steuben County - The New York State Department of Environmental Conservation (NYS DEC), as lead agency, has determined that the proposed Modification and Operation of Inergy Midstream, LLC's Savona Liquefied Petroleum Gas (LPG) facility will not have a significant adverse environmental impact. The action involves the modification of eleven existing storage caverns (Nos. 1, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13) and construction of one new cavern (No. 14) in the Salina formation (approximately 3,000 feet below ground surface) by operational solution salt mining and well maintenance for LPG storage. The project is located at 7535 Eagle Valley Road in the Village of Savona, Town of Bath, New York.

Contact: John K. Dahl,NYSDEC - Division of Mineral Resources, Bureau of Oil and Gas Regulation, 625 Broadway, 3rd Floor, Albany, NY 12233-6500, E-mail: dmnog@gw.dec.state.ny.us.




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