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FAQs

Questions and Answers concerning our proposed pipeline project.

As we begin work on the Cypress Pipeline Project, we anticipate that people will have a number of questions about our plans for the project and how these plans could potentially affect Georgia’s and Florida’s environment and property crossed by our pipeline right of way.

We thought you might find it useful to have some information now to answer many questions we are being asked and to begin an open dialogue between Southern Natural Gas and the public.

Questions we’ve answered here include some about our company, proposed routes, safety, and protecting sensitive areas. We’ve also tried to address some of the key topics of possible interest to people whose property may be involved in the project. Finally, we’ve included a section on how you can get more information.

Of course, these questions are not all the questions that could be asked about the project. And they may not be the questions that have come to your mind. If you would like an answer to a question not addressed here, please call your respective land agent at the number provided to you by each agent, or feel free to contact Southern Natural Gas at (800) 633-8570 ext. 7501.

Questions Addressed Here Include:

Pipelines and This Project:

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Safety:

Protecting Significant Cultural Sites and Environmentally Sensitive Areas:

Property Owner Interests:

Communication and More Information:


Pipelines and This Project:

Who is Southern Natural Gas Company?

Southern Natural Gas Company (SNG), a subsidiary of El Paso Corporation, is headquartered in Birmingham, Alabama, and has been in the natural gas pipeline business since 1929. SNG is the premier provider of natural gas transportation services in the Southeast, transporting more than 3 billion cubic feet of natural gas per day during peak periods to customers from Louisiana to South Carolina, including Georgia and Florida. SNG is the largest provider of such services into Georgia, providing natural gas to Atlanta Gas Light Company and certificated marketers. SNG also provides service to many Georgia municipalities and serves customers in Hamilton, Baker, and Nassau Counties in Florida.

Who is Southern LNG?

Southern LNG is a subsidiary of Southern Natural Gas Company. Southern LNG owns and operates the Elba Island liquefied natural gas (LNG) terminal in Savannah, Georgia. The Elba Island terminal is one of four facilities in the United States capable of providing domestic terminaling and vaporization services to international producers of LNG.

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Who is El Paso Corporation?

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest gas pipeline system and one of North America’s largest independent natural gas producers.

El Paso’s regulated business segment consists of an interstate transmission system that spans the nation, border to border and coast to coast. The company’s Southern Pipelines consist of Southern Natural Gas, a 50-percent ownership interest in Florida Gas Transmission (Citrus Corp.), and a liquefied natural gas terminal located on Elba Island, Georgia. El Paso’s Western Pipelines include El Paso Natural Gas, Colorado Interstate Gas, Wyoming Interstate, and Mojave Pipeline. The company’s Eastern Pipelines include Tennessee Gas Pipeline, ANR Pipeline, a 50-percent ownership interest in Great Lakes Gas Transmission, and joint ventures in Mexico.

El Paso’s non-regulated businesses consist principally of production and processing; marketing; an integrated Brazilian business; and global power assets.

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What is the Cypress Pipeline Project?

Southern Natural Gas intends to construct a new 175-mile natural gas pipeline beginning at its existing pipeline in Chatham County, Georgia, near Port Wentworth, and terminating at a point of interconnection with a natural gas pipeline owned by Florida Gas Transmission in Clay County, Florida, near Jacksonville.

What is the purpose of the Cypress Pipeline Project?

The purpose of this project is to provide natural gas transportation services to a variety of new customers. Electric utilities and major industrial customers can access this important new source of natural gas. Existing distribution companies and municipal gas systems will also have an opportunity to have gas transported by Cypress pipeline delivered into their systems. The new pipeline will increase gas supplies into Georgia and Florida. Cypress pipeline will not be licensed to directly serve the public.

What is the proposed route of the pipeline?

The proposed route begins in Chatham County, Georgia, at a point near an existing meter station, operated by SNG near Port Wentworth. The pipeline will be adjacent to an existing pipeline right of way until it intersects with an electric utility transmission corridor in Effingham County. The new pipeline will then parallel the electric utility corridor as near as possible as it runs from Effingham County to Clay County, Florida, traversing southern Bryan, Liberty, Long, McIntosh, Glynn, Camden and Charlton Counties in Georgia, and Nassau and Duval Counties in Florida. Southern plans to terminate the pipeline at a point of interconnection with FGT approximately one-half mile into Clay County.

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Why was this proposed route chosen?

Southern Natural Gas maintains existing natural gas pipelines in Chatham County. These pipelines provide an important connection to gas supply, which will come from SNG’s Elba Island liquefied natural gas terminal. In order to serve additional customers in south Georgia and Florida, SNG sought the most direct route, with minimal environmental impact, to interconnect with FGT and with existing pipelines in south Georgia. SNG’s engineers and environmental specialists examined publicly available information, such as maps and studies, to help locate the route. Environmental impact will be minimized by paralleling existing pipeline and power transmission utility corridors.

What is a natural gas pipeline and how does it work?

Natural gas pipelines safely transport large volumes of natural gas over long distances. They are specially designed and carefully constructed. Today in the United States, there are more than 300,000 miles of natural gas transmission pipelines in operation. Most of the natural gas consumed in Georgia and Florida is transported to each state through natural gas pipelines, which run from production fields in the Gulf of Mexico, Texas, Louisiana, Mississippi, and Alabama.

Natural gas is put into the pipeline at several locations: at the wellhead; at processing plants located near the gas fields after processing to remove liquids; and at interconnections with other pipelines. Pipelines are located underground and transport the natural gas with the aid of compression to customers in the pipeline's market area. (Compression refers to facilities that help gas move in the pipeline by keeping it under pressure.) These customers include local distribution companies, which resell the gas to residential and business customers; electric utilities that use the natural gas to generate electricity; and large industrial customers.

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Will the new pipeline transport gasoline or petroleum products?

No.

What will be the source of the natural gas?

The natural gas will come from LNG imported from Trinidad and other international locations via ocean-going tankers. The LNG will be received, stored, and regassified at SNG’s LNG terminal on Elba Island near Savannah.

What is liquefied natural gas, or LNG?

Liquefied Natural Gas, or LNG, is natural gas that has been cooled to
–260 degrees Fahrenheit. When cooled to this temperature, 600 cubic feet of natural gas can be stored in an area of approximately one cubic foot. This is done to maximize storage capacity for natural gas on transport ships and at receiving and storage terminals.

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Will individual homeowners be able to receive service directly from the new pipeline?

No. Southern Natural Gas will be an interstate transporter and will be able to provide direct service only to utilities or to large industrial or commercial customers. Local residents near our pipeline may rely on the local gas utility or certificated marketer to contract with SNG to enhance their present service options.

Who will regulate the new pipeline?

Southern Natural Gas, as a federally regulated interstate natural gas transmission company, must obtain permission from the Federal Energy Regulatory Commission (FERC) in Washington, D.C., to build and operate the new pipeline. The FERC will review SNG’s application for compliance with all state and federal environmental laws before approving a route for the pipeline and before awarding SNG permission (called a Certificate of Public Convenience and Necessity) to build the pipeline.

When will FERC complete its review and allow Southern Natural Gas to build the new pipeline?

Southern Natural Gas intends to apply for permission to construct and operate the pipeline in the spring of 2005. The FERC review process will take approximately 9 to 12 months to complete. If approved, construction of the pipeline could begin in the fall of 2006, and the pipeline would then begin flowing gas by May 2007.

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Safety:

Are natural gas pipelines safe?

Natural gas pipelines are a very safe, reliable, and efficient means of transporting natural gas. At Southern Natural Gas we are committed to safety and reliability. As an industry leader in transporting natural gas, we take many measures to maintain the integrity of our pipeline system.

How would Southern Natural Gas protect the pipeline and maximize the safe transportation of natural gas?

Many layers of protection are built into natural gas pipelines. These layers work together to ensure people and properties are well protected throughout the life of a pipeline. The manner and method of pipeline construction and operations are regulated by the Department of Transportation (DOT). DOT officials perform an inspection on the pipeline every three years. Some other layers of protection are described below.

We will help incidents by:

  • Designing and constructing the pipeline to meet or exceed the government safety requirements.
  • Using equipment and material that meet or exceed industry practices.
    Coating the steel pipe with special protective compounds to minimize rust or corrosion.
  • X-rayinspecting of every weld joining each section of pipe.
  • Burying the pipeline to a minimum of 36 inches of ground cover.
  • Using low-voltage electricity on all surfaces to further protect against corrosion (cathodic protection).
  • Pressure testing each section of pipe, using water pressures higher than the normal operating pressures.
  • Inspecting each stage of construction by qualified inspectors.

We will help ensure safe operations by:

  • Maintaining the right of way to provide easy access.
  • Patrolling the pipeline on a systematic basis -- on the ground and from the air -- to make sure that activities around the pipeline do not disturb or damage it in any way.
  • Continuously monitoring operations electronically from our gas-control facility.
  • Inspecting and lubricating all valves on regularly scheduled maintenance intervals.
  • Posting signs to indicate the location of the pipeline and a phone number to call before digging. (We participate in the One Call program, which provides property owners and contractors with accurate information about the pipeline. It’s also an easy way to let us know of any planned excavations near the pipeline.)

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We will help respond effectively to possible problems and emergencies by:

  • Continuously monitoring pressures electronically from our gas-control facility.
  • Training local authorities in preventing and responding to any pipeline-related problems.
  • Supporting local authorities with natural gas transmission professionals and services.

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Would the pipeline be underground?

The pipeline used to transport the natural gas is completely underground. Typically, the pipeline is covered by a minimum of three feet of soil. The pipeline would be buried deeper to accommodate planned surface activities, or where it crosses under roadways or beneath major bodies of water, such as rivers and streams.

Equipment or facilities above ground would include only flow-control valves, gas-measurement instruments, regulating controls, and compressor stations. Above ground facilities will enable our professionals to properly control and service the pipeline.

Protecting Significant Cultural Sites and Environmentally Sensitive Areas:

What is Southern Natural Gas Co.’s commitment to protecting significant cultural sites and environmentally sensitive areas?

Southern Natural Gas is committed to protecting significant cultural sites and environmentally sensitive areas. This commitment extends through all aspects of the project. We will work with appropriate federal and state agencies to comply fully with all applicable laws and regulations. Beyond that, we have our own standards and procedures that help ensure that employed professionals and contractors do their utmost to exercise care and respect for the possible effect of our activities.

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How would Southern Natural Gas protect wetlands and culturally important sites?

We start by selecting a route that avoids sensitive areas whenever possible. This route is based on detailed professional surveys and studies. We also mark wetlands and culturally important sites that need to be avoided during construction. Next, we are very careful around the sites during construction. We choose only qualified and experienced professional pipeline builders. By doing this, we minimize the impact of construction activities on these sites. In addition, we will have on the job a specially trained environmental inspector to look out for environmentally sensitive areas and endangered species. Finally, after construction, we ensure that the site is thoroughly cleaned up. Then, we restore the land, as close as possible, to its original condition.

It is also very important to note that SNG intends to directionally drill under most major rivers along the proposed route. This highly technical and very expensive method of installing a pipeline ensures that plants and animals are protected with the absolute minimum surface disturbance.

Will Southern Natural Gas use existing rights of way?

SNG’s proposed route is almost completely within existing pipeline and electric utility corridors. In most cases, these utility rights of way belong to other companies, and we will work with these companies to utilize the existing rights of way to the extent possible. Southern proposes a 50 foot permanent easement adjacent to the existing power line right of way to minimize construction and operational safety issues and to provide access to the pipeline.

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What is the usual width of the right of way?

A pipeline normally requires a permanent 45 foot wide right of way. During construction, we will need an additional 50 to 60 feet of temporary workspace next to the permanent right of way. We will also need additional temporary workspace in certain areas, such as road, railroad, or stream crossings, to accommodate particular construction activities, and to serve as storage yards for our construction materials. Once construction is complete, the temporary workspace will revert to the landowner.

How close would the pipeline get to residences?

Most often, pipelines are located well away from residences. We can estimate the closeness of the pipeline to residences involved in this project once we have completed surveying for the proposed corridor.

How will Southern Natural Gas handle topsoil in cultivated areas within an easement?

When we begin construction of the pipeline in cultivated areas, Southern Natural Gas’s contractor will clear the right of way of trees and brush, and will collect the topsoil and hold it separate from the subsoils. After the trench for the pipeline is dug and the pipeline is placed in the trench, the subsoil will be used to fill the trench and the topsoil will be placed on top of the subsoil.

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Property Owner Interests:

What is the role of a land agent?

A land agent is a professional who works with property owners along our preferred corridor. If you are the owner of property that may be involved with this project, you can regard the land agent as your primary contact person with Southern Natural Gas. The land agent will be available to meet with you throughout the project to make certain you receive up-to-date information about the project. He or she will listen to your comments and suggestions and report those to the company. Initially, the land agent will work with landowners to obtain permission for the company to conduct a series of surveys along our preferred corridor. (See below for more information on the surveys.) Ultimately, the agent will also work with you to obtain an easement. This will provide us with the legal rights needed to install the pipeline and related facilities.

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What steps are involved in the process of determining where the pipeline will be located?

The first step is for the company to use maps and aerial photography to identify possible corridors for the pipeline. Next, the company identifies the names and addresses of landowners along the preferred corridor. Once the landowners in a county are known, each landowner will receive a letter from the company introducing the project, which will be followed by a visit from one of our land agents.
The first major part of the process of working with each landowner is for the land agent to explain the surveys that must be conducted on their property, and to obtain permission to conduct these surveys. SNG will need to survey more property than it actually needs for pipeline construction. Once the initial information is compiled from surveys of the identified properties, further surveys may be necessary if the initial corridor is adjusted. By spring 2005, SNG intends to have its survey work completed and make its application to the FERC, showing our preferred route and several alternate routes investigated in the process of identifying the preferred route.

What surveys will need to be conducted on my property?

Southern Natural Gas must conduct a preliminary civil survey, as well as environmental and archaeological surveys of each parcel along our preferred corridor. The preliminary civil survey will locate the proposed centerline of the corridor and place stakes and flagging to depict the path of the centerline. The environmental survey will usually extend 150 feet out in both directions from the staked centerline to determine the size and location of wetlands and to evaluate the land for potential habitats for endangered species, including plants and animals. This survey will also locate springs, water wells, erosion prone areas, and man-made features that can affect pipeline construction. The archaeological survey will encompass the same area as the environmental survey and will include the taking of shovel tests of approximate 18 inches in depth every 50 meters. The soil will be sifted to look for historical remains, pot shards, arrowheads, and other significant artifacts. The soil will be replaced after examination.

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If a pipeline is placed on my land, will I lose the use of my property?

In most cases, normal activities on your property can resume as soon as the construction site is cleared and the area has been stabilized. On agricultural property, topsoil will be replaced and normal plowing and planting can resume immediately. Livestock can begin grazing as soon as the re-vegetation is complete. Many tracks of undeveloped land containing natural gas pipelines have subsequently been sold to developers who have erected homes, shopping centers, ball fields and other structures on land adjacent to the pipeline easement. Working with the company, landowners and developers can build access roads across our easements.

What rights do owners have with respect to having a pipeline located on their property?

Property owners are entitled by law to receive fair and just compensation for having a pipeline easement on their property. Our goal is to negotiate with the property owners to obtain a signed easement for the needed property rights described above. The easement agreement will describe in more detail the specific rights that the property owner and the pipeline company will have. During this process, we will also work with property owners to address specific interests or concerns they may have.
The FERC has published a pamphlet entitled “An Interstate Natural Gas Facility on My Land? What Do I Need to Know,” which is available on FERC’s Web site at www.ferc.gov or by calling the FERC Office of External Affairs at (866) 208-3372.

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How will property owners be compensated for their land?

We first need to determine the fair market value of the property and how the pipeline construction will affect it. Our land agents will work with persons familiar with the local real estate market to help make this assessment. Our offer will be based on this information and is subject to adjustment to recognize special factors identified by the landowner. In addition, landowners will be compensated for specific damage to their property caused by our survey and construction activity, such as the removal of trees or crops. Any damage to fences will be repaired.

What happens if an owner and Southern Natural Gas can’t agree?

Our experience is that most property owners will voluntarily agree to participate in a pipeline project like this one by signing an easement at a negotiated price. In a small number of cases, an agreement cannot be reached. Interstate natural gas pipelines do have the right of eminent domain, once a certificate of public convenience and necessity is obtained from the FERC.

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Will property owners be able to use land within the right of way after construction?

In most cases, property owners will be able to use the pipeline right of way just as they did before construction. For example, agricultural activities such as growing crops and pasturing livestock can resume as soon as the land is ready. We will need to operate the pipeline safely, so some restrictions will apply, such as limiting the future placement of buildings or other structures, or the planting of trees within the right of way. The effect of these restrictions will be recognized as part of the easement agreement.

How can the company proceed with survey activity if a landowner refuses survey permission?

As a public service project, Southern Natural Gas can acquire the right to conduct a survey of any parcel that might be included in the pipeline corridor by order of a local court. This right of entry only applies to our ability to conduct the surveys necessary to obtain regulatory approval of our proposed route.

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Communication and More Information:

Who is the primary contact for owners of property involved in the project?

The land agent assigned to work with a landowner will be the landowner’s primary contact throughout the project. This individual is fully authorized by the company to work with landowners at each stage of the survey, route selection and easement process. The land agent's supervisor is Jim Lawn, who is located in our Brunswick, Georgia office. You may call (912) 264-1347 or toll-free at (800) 348-4174 if you have any questions or concerns that your land agent may not be able to answer.

If my property is involved with the project, when will I hear from Southern Natural Gas again?

You should feel free to contact your land agent any time you have a question about our project. At a minimum, your land agent will contact you as soon as our current property survey work is complete or if a re-survey of your property might be required. Some further adjustments may be necessary after we make our application to the FERC in the spring of 2005 to accommodate variations required by the FERC staff. As a property owner, you will continue to receive information from us throughout the regulatory review process.

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What if I want to contact the FERC directly?

You may call or write the FERC at the address below. The attached pamphlet distributed by the FERC may help to provide you with further guidance about the FERC process.
Federal Energy Regulatory Commission
Office of External Affairs
888 First Street, N.E.
Washington , DC 20426
Toll free: 1-866-208-3372
www.ferc.gov

What are the important addresses and telephone numbers for Southern Natural Gas?

Jim Lawn
Southern Natural Gas Company
Bank of America Plaza
777 Gloucester Street
Suite 101
Brunswick, GA 31520
Phone: 912-264-1347
Toll free: 1-800-348-4174
Fax: 912-264-3211
E-mail: jim.lawn@elpaso.com

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