FAQs

Why does El Paso want to build this facility in Pinal County?
Based on our studies of sub-surface salt deposits in Pinal County, this is the best location in the area to construct the facility's storage caverns. This is a project that will benefit Pinal County, and it will be constructed using state-of-the-art safety systems and the best of engineering principles. At all times, El Paso seeks to operate its natural gas pipeline systems and storage facilities conscientiously and safely. We pride ourselves on the safety and reliability of our facilities which are located across the United States.

How big will the facility be?
As currently planned, the facility will be composed of four underground storage caverns. The working inventory, or the amount of gas that will be injected, stored, shipped to market, and reinjected to replenish storage, will be approximately 3.5 billion cubic feet. The facility will be able to provide 350 million cubic feet per day of natural gas when needed to meet peak demand for natural gas.

Isn't there a risk that the facility will explode?
The facility is being engineered using state-of-the-art safety systems. El Paso will adhere to the following safety and best engineering practices to ensure the integrity of the facility. We will:

• Install surface casing through the aquifer sediments overlying the salt bed.
• Install two strings of casing (a pipe inside a pipe) to ensure that if one pipe fails, the others would be able to contain gas pressure from cavern.
• Install a subsurface safety valve 100 feet below ground level that will automatically close and seal in the gas, if there is a problem at the wellhead or from other surface facilities.
• Install an electronic safety device on the wellhead that will provide better containment of storage gas in the cavern in the event of an incident.
• Install on-site water storage for use in fire protection. In addition, fire protection systems will be installed at the site and company personnel will receive specialized emergency training.
• Commit to not employ solution mining under gas to subsequently expand the storage caverns.
• Implement a ground subsidence monitoring and mitigation program

How will you actually construct the facility?
Salt caverns are in widespread use to store natural gas. El Paso will inject water into the subsurface salt deposit to create four separate caverns that will comprise the facility. The water will essentially carve out the cylindrical shaped caverns that will hold the natural gas, and then we'll pump out the brine and dispose of it.

How will that be accomplished?
El Paso will reinject the water deep into the earth using a disposal well.

When will the project begin and when will it end?
El Paso has already drilled two wells to test the subsurface geology for suitability in storage application, and we’re drilling a deep stratigraphic well to confirm the deeper geology. The first of four storage caverns will be constructed beginning in 2008, subject to regulatory approvals. Plans call for the first cavern to be operational in mid-2010. The remaining caverns will be drilled subsequently and are estimated to be operational in 2011-2012.

How will this project help Pinal County?
This project will provide for greater economic development in Pinal County and the region because it will be a way that utilities can better plan for growth by having sufficient quantities of energy available when they need it. This is what's called a critical infrastructure project—it will enable local, county, and state officials to look to the future and have an additional means of providing natural gas available as they plan for future commerce, including homes and businesses that will benefit Pinal County and the state as a whole.

Can you be more specific about the economic benefits of building the facility in Pinal County?
The project will generate significant local taxes, estimated at a minimum of $3.6 million in local tax payments annually upon build-out. During construction, it will provide local and regional economic benefits and create jobs for skilled workers.

Who will regulate the facility?
The Federal Energy Regulatory Commission (FERC) will have primary oversight, but the state of Arizona, including the Arizona Corporation Commission and other state regulatory and environmental agencies, will also have oversight of the facility and its day-to-day operation to ensure that it's operated under the strictest safety and environmental standards.

Will the facility be manned on a daily basis?
El Paso is formulating our local manpower needs. But there will be personnel assigned to routinely inspect and maintain proper functioning of the facility, and its operation and safety will be monitored constantly. The facility will be remotely operated and electronically integrated into El Paso's pipeline gas control network, giving us the ability to constantly monitor its proper functioning and operation. We can dispatch volumes of gas instantaneously to meet demand using electronic controls, and fire and safety systems can also be activated in a similar fashion with redundancies built in where needed.

Could you have built this elsewhere?
Not in Pinal County. According to data from the Arizona Geological Survey and our own extensive review of suitable geological formations and salt deposits, this is the optimum location in the county. The location of the facility has to be in a salt deposit that can accommodate such a project.

How much land will be required to build the facility?
We need about 50 to 70 acres of surface land to accommodate the facilities above ground. But significant open space will be created by acquiring more acreage than the 50 to 70 acres that's needed for the surface facilities, which we call the storage footprint. We're working with area officials to determine beneficial usage options for the additional acreage that we'll acquire. Our goal is to provide additional land for recreational or other beneficial usage, as well as provide for buffering acreage to help isolate the facility.

How will this facility help satisfy demand for natural gas by Arizonans?
This project is a shot-in-the-arm for the health of Arizona's energy future. Other cities and areas around the country have had natural gas storage facilities constructed in their areas to meet consumer demand, including Santa Barbara, Denver, Houston, Salt Lake City, San Francisco, and Detroit, to name a few. In Arizona, demand continues to increase dramatically for natural gas and other forms of energy to accommodate continual growth in the Pinal County area and in the major metropolitan areas of the state.

The project will enhance energy security for Arizona and the region by providing an in-the-ground supply of readily available natural gas. In other words, it will provide a physical hedge that can mitigate supply and price volatility during times of peak demand. Also, it will support our customers' peak day and hourly load growth management and will provide simplified and responsive services.

Hasn't El Paso had pipeline safety problems in the past? What about the gas storage fire near Houston in 2004?
We're concerned about the safety of all citizens and how our operations may affect them. We pride ourselves on having a good safety and operating record in spite of unforeseen incidents that can occur.

In 2001, we experienced a pipeline rupture near Carlsbad, New Mexico that resulted in the deaths of 12 individuals. This incident was the first of this magnitude in the history of the pipeline. Despite that tragic incident, it is important to note that El Paso Natural Gas has had an outstanding safety record during over 77 years of pipeline operation. Our record has historically been among the best in one of the nation's safest industries. To ensure we do not experience another incident such as this, El Paso currently has a nationwide pipeline inspection program under way. The program has been endorsed by federal authorities as being an excellent form of stewardship by the interstate pipeline industry. All of our 56,000 miles of pipeline will be inspected by 2012, and that program is about 66 percent complete. The inspection program includes our pipelines in Arizona, and we're working with federal and state agencies, including the Arizona Department of Transportation, the Arizona Corporation Commission, and the Arizona Department of Environmental Quality to ensure that our pipelines and facilities are operated safely.

The gas storage incident you referred to in the Houston area in 2004 was not associated with an El Paso facility. It resulted in no deaths or injuries. The area was isolated by the facility's operator. While it made exciting video for TV newscasts, the incident was managed properly. In addition, the industry learned valuable safety lessons from that situation, which is why we're engineering our facility with state-of-the-art safety systems, including down-hole safety valves that will close and seal off the cavern below the earth's surface, if a problem occurs.

Moving natural gas by pipeline is one of the safest forms of transportation, and there are fewer incidents of pipelines having problems than driving a car in congested traffic everyday. This project has been planned with the strictest environmental and safety specifications, and it will be operated in the same fashion.

How will you obtain continual input from citizens about the project?
We are actively discussing the project with local, county, state, and federal officials. As the process continues, we'll be working with state and federal authorities on regulatory oversight by such agencies as the ACC, the Arizona Department of Environmental Quality, and the Federal Energy Regulatory Commission, among others, on permitting issues and required approvals.

Also, we believe based on our local, county, and state contacts, that there is sufficient interest to establish a community advisory body and to provide regular operational information to the area citizens about the facility and its operation. We welcome citizen feedback on all our operations here and across the U.S.