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Empire North Project Overview
September 2017
The Home Team
NFG is the only large, diversified public energy
company headquartered in Western New York!
Our employees and retirees work, live and raise
families in our operational footprint.
2,080 Full-Time
Employees Across
All Divisions
2,274
Retirees
$5.5 Billion
Investments in N.Y. &
Pa. since 2008
742,000
Utility accounts served
1.2 million people N.Y.
.5 million people Pa.
1,017
Union
Employees
18 N.Y. Counties
23 Pa. Counties
Utility & Midstream footprint
9/30/16 Data
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Integrated Business Model: Key to Long-term Success
National Fuel Gas Company
(NYSE: NFG)
Upstream
Seneca Resources
Corporation
Midstream
National Fuel Gas Supply Corporation
Empire Pipeline,
Inc.
National Fuel Gas
Midstream Corporation
Downstream
National Fuel Gas
Distribution Corporation
National Fuel Resources,
Inc.
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WNY Company Growing New York’s Economy
Investing in New York Since 1902:
• $1.9 billion in assets across New York corporate footprint
• Operating more than 10,000 miles of pipeline in New York
• Invested $1 billion in Utility and Midstream infrastructure
since 2008
Substantial Economic Impact in New York:
• Employs 1,243 employees (730 union)
• Supports 1,574 retirees
• 50,000 shareholders, many residing in Western N.Y.
Over the Last Five Years in New York:
• 456 new employees hired
• $568 million in payroll impact
• $186 million in pensions paid
• $440 million spent with more than 600 vendors
• $369 million in taxes paid in New York state
• $ 14 million in employee, Foundation and Company donations
4
9/30/16 Data
History of Empire Pipeline in Finger Lakes Region
• Currently totaling 249 miles, Empire Pipeline transports natural gas to more than one million residential and major industrial companies, utilities and power producers in western and central New York. Empire Pipeline, Inc. is an interstate pipeline regulated by the Federal Energy Regulatory Commission (FERC).
• Originally constructed in 1993, Empire Pipeline initially was a 157-mile natural gas pipeline, running from near Buffalo to Syracuse.
• In 2008 Empire Pipeline expanded the pipeline’s route by approximately 77 miles through the Empire Connector Project. The Empire Connector Project ran from Victor, N.Y. to near Corning, N.Y., and linked the existing Buffalo-to-Syracuse Empire Pipeline to the Millennium pipeline project. As part of the Empire Connector, one compressor station was built along the existing pipeline in Oakfield, N.Y., in Genesee County to increase its ability to deliver more gas across greater distances along the pipeline route.
• In November 2011, the 15-mile Tioga County Extension was completed, extending the Empire Connector to producer gathering systems located in Jackson, Pa.
• In 2015, the Tuscarora Lateral Project connected a gas storage field and compressor station in Tuscarora, N.Y. with the existing Empire Pipeline. This project made available much needed extra volumes of natural gas for Upstate New Yorkers.
5
Empire North Project
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• Target In-Service: November 2019
• System: Empire Pipeline
• Estimated Cost: $135 million
• Design Capacity:
145,000 Dth/d to Chippawa (TCPL interconnect)
35,000 Dth/d to National Fuel Gas Distribution Corporation (Utility)
25,000 Dth/d to Hopewell (TGP 200 interconnect)
Natural gas delivery for N.Y. and Northeast Utilities as well as the North
American Pipeline Grid. Project involves affiliated and non-affiliated
companies.
• Facilities:
32,000 HP Electric Driven Compressor Station (Farmington, N.Y.)
Minor Regulator Station Upgrade: New Victor Meter Station (Victor,
N.Y.)
Existing Facility Improvement: Empire Connector Pipeline (N.Y.)
22,214 HP Turbine Driven Compressor Station (Jackson, Pa.)
No new pipeline construction
Farmington Compressor Station
Location: Farmington, N.Y.
92.4 acre parcel
Compressor Station to take up less than 10 acres and be located over 1,660 ft. off Hook Road.
Adjacent to Rochester Gas & Electric substation/Utility power lines & ROWs/NYS Thruway
Proposed site zoned GI-Industrial
Description of Facility
Two (2) 16,000 horsepower electric motor drive compressor packages housed in buildings
Substation, medium voltage, e-house, power distribution, and generator buildings
Vent gas recovery, air compressor, storage and office buildings
Ancillary equipment
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Compressor Station: Minimizing Impacts
FARMINGTON
• Commitment to low noise: Minimal to no increase over ambient
noise levels at closest residences
Low noise electric motor driven compressor packages
Acoustically designed compressor buildings with sound
suppression
Low noise auxiliary equipment
Extensive utilization of below grade piping
Low noise station and gas vent silencing
Commitment to low emissions: Electric motor drives, vent gas
recovery system, no stack emissions
Commitment to develop landscape plan during site plan process
Commitment to no perceived increase in vibration
Commitment to minimal, functional facility lighting
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Hinsdale Compressor Station, Hinsdale, NY (Cattaraugus County)
Substantial New York State Investment
Empire North Project Investment
• $135 million overall expected cost
• ~$79 million in New York state
• Expected electric transmission upgrades will enhance reliability for
local utility customers.
• The Farmington Compressor Station will provide an estimated total
property tax revenue of $25 million over 10 years
• Town of Farmington ~$107,700 annually
• Ontario County ~$616,900 annually
• Victor School District ~$1,590,000 annually
• Library Tax ~$17,700 annually
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Extensive Planned Project Outreach
• Early and consistent outreach to Public Officials (Beginning September 2017)
• Early and regular outreach to nearby landowners (Beginning Fall 2017)
• Early outreach and education to local first responders (Beginning Fall 2017)
• Public and transparent FERC process (Planned filing January 2018)
• Project website with up to date facts (Beginning Fall 2017)
• Dedicated project team prepared to answer stakeholders questions (Currently)
• Public meetings (Beginning Fall 2017)
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Additional Information
Diverse Pathways Add Security & Reliability for New Yorkers
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Positive Track Record of Infrastructure Expansion in New York
• Invested $600 million in new Western New York Midstream energy infrastructure since 2008
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Natural Gas Facts
• New York runs on natural gas – the State is the fourth largest natural gas consuming state in the country.
• The NY ISO recently released a report indicating that, power plants fueled by natural gas or that are dual-fueled provide 57 percent of electric power generation capacity in the state.
• As the state moves toward embracing more alternative fuel sources, the New York State 2015 Energy Plan projects natural gas usage will continue to grow, firmly establishing itself as the state’s dominant fuel for the foreseeable future.
• According to the New York State Public Service Commission, natural gas expansion is essential to the state's business climate. Importantly, it can also act as a catalyst for economic growth by attracting businesses to New York. Individuals or corporations considering locating or expanding business in New York will contemplate the availability of gas infrastructure. If infrastructure is not available, those businesses, and the jobs associated with them, may not choose New York.
• New York needs robust and reliable energy infrastructure built to supply the clean, reliable and affordable natural gas to fuel their communities. Improving energy infrastructure could bring lower electric bills for families and businesses keep good paying jobs in the region and help protect the environment.
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Northeast Supplies Benefitting New York State
Twelve months ending September 2016
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Northeast Supplies Benefitting New York State
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
BC
F
NY Large Volume Industrial excluding Power Generation
Actual
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
BC
F
National Fuel System Power Generation Consumption
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