ENB Region 7 Completed Applications 10/04/2006

The applicant proposes to place approximately 140 linear feet of (4 X 3 X 2 foot) limestone blocks along the shoreline of Cayuga Lake for erosion protection, and install a 198 foot culvert in an un-named tributary to Cayuga Lake.  All work is proposed at the applicants property which is located approximately .5 miles south of the intersection of Lock Road and Route 90.

Construction of a storage building partially within the adjacent area of FWW JAM-15. The proposed project is located west of NYS Route 11 approximately 1/2 mile north of US Route 20, in the Town of LaFayette.

Central New York Oil and Gas Company, LLC (CNYOG) proposes to modify and expand the existing Stagecoach Storage Field Project, an underground natural gas storage facility, located in Tioga County, New York.

The Federal Energy Regulatory Commission (FERC or Commission) is the lead federal agency responsible for evaluating applications filed for authority to construct and operate interstate natural gas facilities under Section 7(c) of the Natural Gas Act.  The proposed project, known as the Stagecoach Phase II Expansion Project, has been assigned FERC Docket Number CP06-64-000.  Public meetings were held to obtain comments on the proposed action and comments were solicited through public notice.  An Environmental Assessment was prepared by the FERC to satisfy the requirements of the National Environmental Policy Act.  The EA, which was released on July 28, 2006, recommends that "the Commission Order contain a finding of no significant impact."  The EA assesses the potential environmental effects of the construction and operation of CNYOG’s proposed expansion of its underground gas storage facilities and related pipeline facilities in New York and Pennsylvania.  The portion of the project that is in New York State is in the Towns of Owego and Nichols in Tioga County and involves the addition of three adjacent and nearly depleted gas production reservoirs to the existing storage facility.  FERC issued an order issuing Certificate for the project on September 22, 2006.

CNYOG’s application states that the New York portion of Stagecoach Phase II Expansion Project will add a total gas capacity of 4.4 billion cubic feet ("BCF") at a reservoir pressure of 3,250 psi in three distinct Oriskany sandstone storage pools: the Brenchly-Cook, Nichols-Mead and Racht pools.  The proposed storage pools reside at a depth of almost one mile below the earth’s surface.  The additional capacity will bring the total gas capacity of the storage pools located in New York at the Stagecoach facility to 21.15 BCF.  Three newly drilled injection/withdrawal wells and three existing wells proposed for conversion to observation will be used to support CNYOG’s storage in pools in New York.  The tentative Underground Storage Modification Permit will not cover the addition of storage capacity from a separate pool located in Pennsylvania which is part of the overall expansion project.  The Stagecoach Storage Field, upon completion of Phase II, will be designed to support natural gas withdrawals of up to 500 million cubic feet per day ("MMCFD") and injections of up to 250 MMCFD.

The Department has prepared a Draft Underground Storage Modification Permit and has made a tentative determination to approve the application.  The Draft Underground Storage Modification Permit and associated permit application are available for public review at the Department's Albany Office: Mr. John K. Dahl, Director; Bureau of Oil & Gas Regulation; NYS Department of Environmental Conservation; Division of Mineral Resources; 625 Broadway, 3rd Floor; Albany, NY 12233-6500.

In addition, elements of the proposed project will impact federally protected wetlands and streams regulated under Section 404 of the Federal Clean Water Act which required obtaining a permit from the U.S. Army Corps of Engineers.  The Corps issued a Section 404 Permit for the project under Nationwide Permit 12.  A requirement of Section 401 of the Clean Water Act and Section 404/Nationwide Permit 12 is the necessity for the project sponsor to obtain a Water Quality Certification from NYSDEC.  The Section 401 Water Quality Certification application for this project was previously noticed and a permit was issued on August 10, 2006.