BergerWorld: 2nd Quarter 2007

U.S. Natural Gas Pipeline Inspections
Under a five-year contract, the Berger Group was retained by FERC's Office of Energy Projects to provide environmental and project management services for a number of U.S. natural gas pipeline projects to ensure compliance with the Natural Gas Policy Act. The services included inspecting the replacement of physically deteriorated or obsolete facilities; the installation of auxiliary facilities; and pipeline integrity repairs, replacements and abandonment activities.

Post-certification inspection monitoring for compliance with specific construction-related conditions requires knowledge of the regulatory framework for construction, current pipeline construction techniques and appropriate environmental mitigation methods. Berger mobilized a nationwide staff with extensive pipeline inspection and environmental compliance experience, as well as expertise in physical and natural sciences, safety and structural engineering. The Team initially conducted field inspections to ensure that the pipeline projects were constructed in compliance with applicable standards and that the rights-of-way were properly restored (i.e., compliance with FERC construction, erosion control, and restoration plans and procedures). Berger staff also reviewed the project files to verify compliance with specific recommendations established in natural resource clearance letters from State Historic Preservation Officers, the USFWS, Coastal Zone Management agencies, and other state and federal agencies.

In all, Berger staff completed more than 180 inspections of nearly 900 miles of natural gas pipelines. Many of the projects were greater than two miles long, and several of the shorter pipelines crossed environmentally sensitive areas, including wetlands, bodies of water, agricultural land, drainage ditches, railroad and residential areas. Each site inspection was documented with photographs, and detailed reports of activities and findings were prepared for FERC's review. If the inspection revealed non-compliance, such as damage to a resource or failure to adhere to the required construction or restoration procedures, Berger staff assisted FERC in bringing the project into compliance.

Magnolia Gas

Under a General Services Contract with Gulf South Pipeline Company L.P., the Berger Group prepared and presented training seminars to assist pipeline construction professionals improve performance and enhance their understanding of the environmental issues and requirements associated with the construction and restoration of natural gas pipelines. Berger's seminars focused primarily on the regulations specified in FERC's certificate awarded to Gulf South's Magnolia Project in Assumption Parish, Louisiana. The Magnolia Gas Storage Project consists of over two miles of 30-inch-diameter pipeline; over one mile of 24-inch-diameter pipeline, 12-inch brine return line and 12-inch above-ground water supply line; a 200- by 300-foot well pad and associated road; and a 4,735 horsepower compressor station. The seminars included a review of both Gulf South's and FERC's Upland Erosion Control, Revegetation and Maintenance Plan, as well as Wetland and Waterbody Construction and Mitigation Procedures.

Through the training seminars and a series of training modules, personnel were instructed on procedures for proper directional drilling, erosion control, topsoil segregation, hazardous waste storage, refueling procedures, and stream and wetland crossings. Berger also addressed restoration of and construction through environmentally sensitive sites, including agricultural areas, bodies of water and wetlands.

Duke Energy
The Berger Group provided environmental inspection services for Duke Energy's Choctaw Lateral in Attala County, Mississippi. This 8.5-mile, 16-inch natural gas pipeline included 22 water body crossings, a 3,000-foot forested wetland and a 900-foot directional drill. The Team was responsible for ensuring compliance with Duke Energy's Erosion and Sediment Control Plan, USACE's Nationwide Permit and Mississippi's National Pollutant Discharge Elimination System Permit. Berger experts also assisted Duke Energy in obtaining water withdrawal permits for the directional drill.

Additionally, in Scioto and Lawrence Counties, Ohio, Berger provided Duke Energy with environmental inspection services for Hanging Rock Lateral. The project consisted of the construction of nearly 10 miles of 24-inch natural gas pipeline, a tap, and two meter and regulator facilities in open fields, forested uplands, wetlands, agricultural and residential areas. Sixteen water bodies were crossed, including six perennial and 10 intermittent streams. The Team's tasks included training construction personnel; monitoring construction for compliance with environmental permits; identifying areas for dewatering; and providing FERC with required documentation.

Algonquin Gas

The Berger Group was commissioned by Algonquin Gas for the design of three projects in Massachusetts comprising nearly four miles of natural gas pipelines. Berger prepared construction plans as well as environmental and other regulatory permits and applications for projects in Braintree, Malden and Medford.

In Braintree, Berger designed 2.1 miles of 16-inch, high-pressure gas pipeline through densely developed residential areas to the Braintree Electric Company Potter II Station. The work included two stream crossings requiring local and state permits, as well as rail and state highway crossing permits. Berger also prepared the final "as-built" record plans and provided construction supervision services.

In Malden, the Team designed 1.4 miles of 24-inch, high-pressure gas pipeline that traversed a densely developed business and industrial corridor, a rail line and several stream crossings.

Finally, in Medford, Berger designed 3,000 feet of natural gas pipeline for Algonquin Gas and the Boston Gas Company. The pipelines consisted of 1,700 feet of 12-inch gas pipeline and 1,300 feet of 16-inch distribution line.

Electrical Transmission Lines

The rapid industrialization in the 20th century made electrical transmission lines and grids a critical part of the economic infrastructure for most industrialized nations. An early method of high-voltage direct current (HVDC) transmission was first installed in Italy in 1889 by the Acquedotto de Ferrari-Galliera Company, transmitting 14 kilovolts over a distance of 120 kilometers. The first transmission of three-phase alternating current using high voltage took place in 1891, when a 175-kilometer, 25-kilovolt transmission line connected Lauffen and Frankfurt in Germany.

TrAIL

The proposed $1.3 billion Trans-Allegheny Interstate Line (TrAIL) calls for the construction of approximately 240 miles of transmission line extending from southwestern Pennsylvania to northern Virginia, including the construction and operation of three 138-kilovolt lines south of Pittsburgh, Pennsylvania, and nearly 180 miles of 500-kilovolt line connecting existing and proposed substations in southwestern Pennsylvania, northern West Virginia and northern Virginia. The Berger Group, in association with Commonwealth Associates, Inc., was retained by TrAILCo to conduct a siting study and associated environmental evaluations for this major transmission infrastructure improvement project.

The Berger Team was responsible for conducting route planning efforts, facilitating public meetings and preparing line route evaluation reports to support the permitting process for the proposed lines. A combination of GIS analysis

and mapping techniques, as well as on-the-ground site review and planning, was used to support the identification of possible routes. Planning documents, such as Threatened and Endangered Species Recovery Plans, National Forest Management Plans and other regional natural resource conservation plans, were obtained and reviewed by the Team to identify potential concerns regarding the location of the TrAIL. The Team's review of potential impacts included the evaluation of current land use, cultural resources, wetlands, vegetation, wildlife, socioeconomics and aesthetics. Additionally, Berger supported public outreach efforts by developing computer-generated visual simulations, facilitating public workshops and gathering public comments. Public comments and input regarding line siting alternatives were considered and incorporated into the analysis of the alternative routes, and a Line Route Evaluation Report for each of the affected states was prepared. The Line Route Evaluation Reports were then submitted as part of TrAILCo's Certificate of Public Convenience and Necessity permit application for the project. The Berger Team is currently supporting TrAILCo through the state regulatory process. When completed in 2011, the TrAIL will benefit the Mid-Atlantic region in a number of ways, including improving system reliability; meeting the growing demand for electricity; increasing electricity transfer capability; and providing cost-effective generation for consumers.

Lake Elsinore
California's Elsinore Valley Municipal Water District and Pacific Gas and Electric Company filed an application with FERC to license the proposed Lake Elsinore Advanced Pumped Storage (LEAPS) Project. The $1.5 billion project would consist of a new upper reservoir in Decker or Morrell Canyon; a 500-megawatt powerhouse with two reversible pump-turbine units; the utilization of Lake Elsinore as a lower reservoir; and a 30-mile, 500-kilovolt transmission line that would connect the project with the existing Southern California Edison and San Diego Gas and Electric Company transmission lines. The proposed LEAPS Project would also provide $1.8 million a year to support the ongoing Lake Elsinore Stabilization and Enhancement Program to improve the water quality in Lake Elsinore, which is prone to frequent algae blooms.

As advisor to FERC, and in cooperation with the U.S. Forest Service (USFS), Berger prepared a draft and final EIS for LEAPS. The EIS evaluated the potential natural resource benefits, environmental impacts and economic costs of the proposed project. The Team then undertook an extensive engineering review of the constructability of LEAPS and developed alternative transmission alignments, including underground lines and helicopter installation of transmission lines in steeper areas to minimize conflict with current recreational use and residential development. Additionally, the Team evaluated the need for both power and transmission to be provided by the project, and performed an extensive economic analysis of alternative transmission alignments and pumped storage configurations. Seismic and geotechnical risks, as well as socioeconomic, land-use, recreational, geological, water, aquatic, terrestrial and cultural resource impacts, were also evaluated. Finally, Berger recommended environmental protection, enhancement and mitigation measures for consideration by FERC and USFS for inclusion in any new license and permit.

Issued in January of 2007, FERC is using Berger's EIS to determine whether to issue an original hydropower license for the project, while USFS is using the EIS to decide whether to issue a special-use permit for constructing the Talega-Escondido/Valley-Serrano 500-kilovolt transmission interconnection.

VELCO
The Vermont Electric Power Company (VELCO) was the first company in the United States to exclusively provide non-discriminatory transmission services. VELCO was founded in 1956 to develop a transmission system to interconnect the numerous Vermont electric utilities and to provide access to low-cost power from the St. Lawrence River Project. The initial 224-mile, 115-kilovolt VELCO system began operating in 1958, and since that time, the company has expanded its facilities and services to accommodate the growing needs of its customers as well as the evolution of the power industry. Currently, its transmission system includes 610 miles of transmission lines, 34 substations and a 200-megawatt back-to-back HVDC Converter. The Berger Group is presently assisting VELCO complete three ambitious transmission reliability projects.

Following an 18-month study, VELCO found that increased electricity demands and aging infrastructure had led to a declining reliability on the existing Lamoille County transmission system. As a result, the Lamoille County Project (LCP) was proposed to upgrade transmission lines between Duxbury and Stowe, replacing the existing 34.5-kilovolt transmission line with a more substantial 115-kilovolt line. The proposed $40 million line will follow the existing transmission corridor, but necessitate the construction of larger poles to support the heavier lines. LCP is expected to serve the county's power needs until 2015 and accommodate economic growth. VELCO retained Berger to review the proposed improvements and archaeological sensitivity of the line. Drawing on previously compiled background data, Berger conducted a field inspection of the line, recorded archaeologically sensitive locations using handheld GPS and prepared an Archaeological Resources Assessment report.

Berger is also assisting VELCO with the addition and relocation of transmission lines on the Northwest Vermont Reliability Project (NRP). Upon completion, NRP will include the addition of nearly 36 miles of new 345-kilovolt transmission line between West Rutland and New Haven, and the replacement of more than 27 miles of aged transmission line between New Haven and South Burlington with a new 115-kilovolt line. Additionally, 12 substations will be upgraded and approximately six miles of transmission line between Williamstown and Barre will be replaced with new cable. Berger experts conducted extensive cultural resource surveys for the various project components, including the on-corridor alignments, the substations and the access roads. NRP will improve not only the reliability of the transmission system in northwest Vermont, but also the bulk transmission system that serves the entire New England region.

Finally, VELCO has undertaken the proposed Southern Loop Project - a 345-kilovolt transmission line to be located within VELCO's existing transmission right-of-way, extending from VELCO's Coolidge substation located in Cavendish, Vermont, to a proposed 345-kilovolt substation in Vernon, Vermont. The new 345-kilovolt line would address growing constraints on southern Vermont's existing electrical system and help to solve the local reliability problem in the Southern Loop area as well as regional reliability issues.

In order to connect the proposed line to the rest of the affected electrical network, VELCO would need to expand the Coolidge substation and construct new substations in Vernon and Dummerston. Berger will review applicable statutory standards and guidelines from the U.S. Environmental Protection Agency, World Health Organization and Vermont Natural Resources Board to evaluate potential impacts of air and noise pollution. The Team will also conduct public health and safety assessments related to electric and magnetic field issues. Additionally, Berger will conduct an Archaeological Resources Assessment to review the sensitivity of the proposed project corridor; a Historic Architecture Survey to identify historic properties listed, and/or eligible for listing, on the National Register of Historic Places and the Vermont State Register of Historic Places; and a Viewshed Aesthetic Analysis to prepare photo simulations and plans for mitigation to include in the application of the proposed connector.