Dunkirk Gas Corporation. Dunkirk Natural Gas Pipeline Project. Exhibit 6. Economic Effects of Proposed Facility

Transcription

1 Dunkirk Gas Corporation Exhibit 6 Economic Effects of Proposed Facility

2 EXHIBIT 6: ECONOMIC EFFECTS OF PROPOSED FACILITY This Exhibit addresses the requirements of 16 NYCRR 86.7 regarding the direct and indirect economic effects of the Project in the Chautauqua County, City of Dunkirk, Town of Dunkirk and Town of Pomfret region. This evaluation includes only the pipeline and associated aboveground facilities. Secondary economic effects related to adding natural gas to the Dunkirk Generating Station are not included in this Application. 6.1 Introduction and Summary of Findings Construction of the (the Project ) will require a contract work force of as many as 70 workers in various disciplines assigned to carry out the process of right-of-way preparation, trenching, pipe installation, inspection and restoration. Construction activities along the pipeline are anticipated to take between 4 and 6 months. The Applicant expects that generally, construction will progress linearly along the pipeline route with the exception of special crossings (i.e., major highways, streams, wetlands, rails or other roadways) or specific locations that may require horizontal direction drilling ( HDD ) or jack and boring construction methods. The Project s cost and the relatively short duration of its installation will not impact the local economy sufficiently to induce any significant changes in the local residential, commercial, or industrial land use patterns. In addition, the underground installation of the new pipeline will not permanently displace any existing land uses, disrupt any retail or industrial establishments or otherwise cause a loss of business income. The proposed site for the metering station and regulating station will also not result in any changes. Therefore, no mitigation measures are proposed. 6.2 Demographics The will be located within the City of Dunkirk and Towns of Dunkirk and Pomfret, Chautauqua County, New York. The population of these jurisdictions, according to Census 2010, is presented in Table 6-1. Dunkirk Gas Corporation 6-1 Exhibit 6: Economic Effects of Proposed Facility

3 Table 6-1. Population of Communities Along the Proposed Pipeline Jurisdiction Population (2013 Estimate) Chautauqua County 133,080 1 City of Dunkirk 12,328 2 Town of Dunkirk 1,300 2 Town of Pomfret 14,616 2 Source: 1 U.S. Census Bureau American Fact Finder. County Totals Dataset: Population, Population Change and Estimated Components of Population Change: April 1, 2010 to July 1, EST2013-Alldata.csv. Access June 18, U.S. Census Bureau, American Fact Finder. Annual Estimates of the Resident Population: April 1, 2010 to July 1, Population Estimates. Accessed June 18, Construction Effects and Mitigation Land use pattern changes are typically induced by a significant change in one or more influential variables such as: (1) large-scale physical improvements to some aspect of the local infrastructure; (2) a change in the regulatory environment; (3) or major employment and/or income growth trends in the local economy. Given an adequate level of demand, such changes tend to enhance land for development, induce construction that responds to the demand, and hence cause changes in residential, commercial and/or industrial land use patterns. The proposed pipeline and associated facilities will not result in any perceptible change in local infrastructure. The increased reliability in the local electric distribution system facilitated by the proposed project will support continued, modest growth in the Project area. The Project itself will require only minimum land use changes at the aboveground facilities (i.e., the regulating station metering station and mainline valves). The Applicant does not expect any indirect land use changes or land development Construction Schedules and Major Phases The overall construction period for the proposed pipeline and associated facilities is estimated to last approximately 4 to 6 months. The major phases of Project construction and their approximate durations are listed below: Dunkirk Gas Corporation 6-2 Exhibit 6: Economic Effects of Proposed Facility

4 Site preparation 2 months Trenching and Pipelaying 2-3 months Hydrostatic Testing 0.5 month Metering and Regulating Station Construction 3-4 months Final grading and restoration 1 months Number of Workers by Construction Discipline The construction work force for the proposed pipeline will average approximately 50 construction workers (essentially all contractors) during the 4 to 6 months of construction. The trenching, pipe laying and backfilling will be done by three to six person crews working at multiple locations along the rights-of-way. The metering and regulating stations construction will involve, on average, 10 workers (contractors) per day for up to 6 months, with a peak construction staff of 20 workers for a period of approximately 1 months if work proceeds simultaneously at both metering and regulating stations Mitigation It is estimated that the Project will be constructed in approximately 4 to 6 months. Because the new pipeline and associated facilities do not constitute large-scale infrastructure improvements, will not result in any changes in land use regulations, and will induce only minor income and employment growth, these facilities will not generate adverse alterations to the residential, commercial, or industrial land-use patterns of any area adjacent to the pipeline route. Therefore, no mitigation of the economic effects of construction is necessary. 6.4 Operational Effects and Mitigation The proposed pipeline and associated facilities will not require additional full-time employees for the operation and maintenance. One less than full time employee will manage and oversee the operation and maintenance of the proposed pipeline and associated faculties. Therefore, there will be no direct economic impact from the operation of the pipeline and associated facilities. The Project is essential to ensure the future sustainability of the Dunkirk Generating Station to Dunkirk Gas Corporation 6-3 Exhibit 6: Economic Effects of Proposed Facility

5 continue to maintain safe and reliable power generation at a reasonable cost. By facilitating the addition of natural gas fuel at the Dunkirk Generating Station, the Project will support reliability needs, reduce emissions, help relieve Western New York electric transmission congestion, reduce costs for consumers, retain local jobs, create temporary construction jobs, stabilize the local property tax base, and improve the local economy. For the reasons cited above, construction and operation of the Project will cause no foreseeable adverse alterations to the residential, commercial, or industrial land use patterns in the proximate area. Dunkirk Gas Corporation 6-4 Exhibit 6: Economic Effects of Proposed Facility