LANDOWNER NOTIFICATION OF FILING
LANDOWNER NOTIFICATION OF FILING BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION
NOTICE OF APPLICATION FOR CERTIFICATE AUTHORIZING DEVELOPMENT OF SAWGRASS STORAGE, L.L.C.'s
NATURAL GAS STORAGE PROJECT
LINCOLN PARISH AND UNION PARISHES, LOUISIANA
DOCKET NUMBER CP11-523-000
On July 27, 2011, Sawgrass Storage, L.L.C. (“Sawgrass”) filed an application with the Federal Energy Regulatory Commission (“FERC”) for a Certificate of Public Convenience and Necessity to construct and operate a gas storage project in Lincoln and Union Parishes, Louisiana. Sawgrass has requested that FERC issue an order approving its certificate application by December 31, 2011.
Brief Description of Applicant
Sawgrass is a joint venture between Mill Creek Gas Storage, LLC, a subsidiary of Samson, a privately held energy exploration and production company with more than 1,000 employees, and Cypress Creek Gas Storage, LLC, a subsidiary of Nicor Inc., a Fortune 1000 corporation (NYSE: GAS) with extensive natural gas storage and distribution operations.
Brief Description of the Sawgrass Storage Facility
In its application, Sawgrass requests authorization to develop, construct, own, operate, and maintain an underground natural gas storage facility in a depleted gas production reservoir located approximately 20 miles north and west of Monroe, Louisiana near the town of Downsville, Louisiana. Figure 1 below shows the general location of the proposed facility. The Sawgrass facility is designed to accommodate 30 billion cubic feet (bcf) of working gas storage capacity.
The Project would include development of up to five well pads with up to 16 new horizontally drilled injection/withdrawal wells in the depleted Vaughn Sandstone reservoir of the South Downsville Field at an approximate depth of 9,100 feet. The well pads would be connected to a new gas handling facility via two sections of high-pressure steel gathering pipeline. The Project would also involve drilling five new observation wells. In addition, the Project would include a pipeline interconnect to the existing Midcontinent Express Pipeline (“MEP”) system via a new 13.9 mile, 30-inch-diameter, bi-directional pipeline. The pipeline will begin at the Project's gas handling facility and extend northeasterly to the MEP interconnect. Sawgrass anticipates that this Project will be complete and in service by March 2013.
If you have any questions regarding the Sawgrass Storage Project, please call:
Sawgrass Storage, L.L.C.
3333 Warrenville Rd., Suite 300
Lisle, IL 60532
877-309-8624 (press 2)
Landowners may obtain a copy of the Sawgrass application by contacting Sawgrass at the number above or from FERC Online, which can be accessed through FERC's website at http://www.ferc.gov/docs-filing/elibrary.asp
In addition, a copy of the application is available for public inspection at the following locations:
Morehouse Parish Library
524 East Madison
Bastrop, LA 71220
Ouachita Parish Library
1800 Stubbs Avenue
Monroe, LA 71201
Lincoln Parish Library
910 N. Trenton
Ruston, LA 71270 Union Parish Library
202 West Jackson
Farmerville, LA 71241
Information of Special Interest to Potentially Affected Landowners
Under FERC's regulations, an affected landowner is a landowner whose property will be temporarily or permanently crossed or used as a result of the proposed construction and/or operation. All potentially affected landowners will receive a separate notice via U.S. mail. Separate notice will also be sent to nearby towns and communities and involved local, state, and federal government agencies.
FERC's pamphlet, An Interstate Natural Gas Facility on My Land? What Do I Need to Know? explains FERC's approval process and the rights of affected landowners. This pamphlet is available on FERC's website at http://www.ferc.gov/for-citizens/citizen-guides/citz-guide-gas.pdf. For additional information regarding FERC's approval process and the rights of affected landowners, please call FERC's Office of External Affairs toll-free at 1-866-208-3372.
Regarding property rights for the Project, Sawgrass has already acquired or is acquiring 100 percent of the surface property rights and 87 percent of the subsurface storage/mineral rights needed for the project's gas handling facility through mutual agreement. Sawgrass has also acquired a majority of the property rights needed for the pipeline from the gas handling facility to the MEP interconnect through mutual agreement. Sawgrass is continuing to work with landowners in good faith to acquire the remaining property interests through mutual agreement. Potentially affected landowners should be aware that if FERC grants Sawgrass a Certificate of Public Convenience and Necessity for the Project, Sawgrass could seek to secure any remaining property interests required for the Project through the exercise of eminent domain. Please be aware that it is Sawgrass' policy only to use the power of eminent domain as last resort in circumstances where a reasonable agreement cannot be reached through mutual agreement. In the unusual circumstance that Sawgrass needed to secure property interests via the exercise of eminent domain, the owner of any property acquired would still have the right to receive fair compensation for the value of that property from Sawgrass.
Sawgrass wants to ensure that potentially affected landowners and other interested parties are fully informed concerning this Project. If you have any questions, please contact Karen Trimble at the telephone number provided above.
2td: August 9 & 10, 2011