Salt Cavern Gas Storage

Background

On January 11, 2010 Inergy L.P announced that its wholly-owned subsidiary, Inergy Midstream, LLC ("Inergy"), executed an agreement to purchase the Seneca Lake natural gas storage facility located in Schuyler County, New York, ("Seneca Lake") and two related pipelines for approximately $65 million from New York State Electric & Gas Corporation ("NYSEG").

Seneca Lake is an approximate 2.0 billion cubic feet (Bcf) underground salt cavern storage facility located on Inergy's US Salt property outside Watkins Glen, NY, and has a maximum withdrawal capability of 145 MMcf/day and maximum injection capability of 75 MMcf/day. Seneca Lake is connected to the Dominion Transmission System via the 16-inch, 20 mile Seneca West Pipeline and indirectly to the city gate of Binghamton, NY, via the 12-inch, 37.5 mile Seneca East Pipeline, which runs within approximately 4 miles of Inergy's Stagecoach North Lateral interconnect with the Millennium Pipeline.

Inergy in September 2009, proposed a $40 million project to expand the storage and distribution of propane and butane on a 576 acre site near Routes 14 and 14A, north of Watkins Glen.  The proposal is to use existing salt caverns with a capacity of 88.2 million gallons to store LPG.  The caverns currently are filled with salt brine.  The LPG would displace the salt brine which would be stored in a 14 acre lined surface pond above Seneca Lake.   As LPG is withdrawn the stored brine from the pond would be use to displace the LPG in the cavern.  Inergy has also announced plans for a transfer station to transport propane and butane by truck from the site and butane by rail. Since Feb. 2010 the NYS DEC has been in charge of the State Environmental Quality Review (SEQR).

(Most recent information is listed first)

October 3, 2011: SLPWA Comments on Draft Environmental Impact Statement (DEIS)

On October 3, 2011, SLPWA submitted comments to the DEC regarding the DRAFT Environmental Impact Statement (DEIS) for this project.  Concern was expressed that the salt caverns may not have the geologic stability to proerly contain the liquified petroleum gas (LPG) under the pressures specified without failure and potential harm to Seneca Lake.  SLPWA is also concerned about the risk of catastrophic failure of the proposed brine pond and damage to the ecology of Seneca Lake.  The detailed letter can be read here.  These same concerns were expressed in a separate letter to Governor Cuomo which can be read here.

August 17, 2011: DEC accepts Draft Environmental Impact Statement for Gas Storage Project in Salt Caverns.

The New York State Department of Environmental Conservation, as Lead Agency for the Finger Lakes liquefied petroleum gas (LPG) storage project, has accepted a  Draft Environmental Impact Statement (DEIS) for this project and has issued  the Notice of Public Hearing.  The DEIS can be read or download from this website.

The public hearing will be held in the Watkins Glen High School auditorium at 301 12th Street, Watkins Glen, New York 14891 on Tuesday, September 27, 2011 at 7:00 PM.  The Department will accept written comments on the DEIS until Monday, October 10, 2011. Written comments should be sent to the Department contact:

David L. Bimber
Deputy Regional Permit Administrator
Address: NYSDEC, 6274 East Avon-Lima Road, Avon, New York 14414-9516
Telephone Number: 585-226-5401 .

In a 7-page letter dated April 28, 2011 sent via email, fax and U.S. mail to the law firm that is handling Inergy's environmental impact study for the storage of gas in the salt caverns in the Town of Reading, the New York State Department of Environmental described the study as inadequate and asked for details on a number of points including an alternative plan which would place two brine ponds in a different location.  See a copy of the letter here.

April 21, 2011: Cayuga Lake Watershed Network Voices Strong Opposition to Salt Cavern Project on Environmental Grounds

Dr. Hilary Lambert, Steward of the Cayuga Lake Watershed Network sent a strongly worded letter to the Town of Reading Planning Board and the Schuyler County Legislature raising objections to this project based on a number of environmental concerns.

January 27, 2011: Seneca Lake Pure Waters Association Comments on the DSEIS

Seneca Lake Pure Waters Association provided comments to the New York State DEC regarding the DSEIS Scoping Outline that can be found here.

January 5, 2011: Finger Lakes, LLC LPG Underground Storage Facility - Draft Scoping Outline for the Draft Supplemental Environmental Impact Statement (DSEIS)

The New York State Department of Environmental Conservation, as Lead Agency for the Finger Lakes liquefied petroleum gas (LPG) storage project, has determined that the scope of the proposed action and its potential for significant adverse environmental impacts is such that a draft Supplemental Environmental Impact Statement (DSEIS) should be prepared.  The Draft Scoping Outline for the DSEIS can be found at:  http://www.dec.ny.gov/permits/71619.html