How Williams approaches a project from a Land Perspective

Presented by:Patrick McClusky, Senior Land Representative

Williams is an energy infrastructure company focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids, and olefins. Williams owns and operates midstream gathering and processing assets, and interstate natural gas pipelines.

  • Based in Tulsa, Oklahoma

• Founded in 1908

• Operates 3 major natural gas pipeline systems

− Transco

− Northwest Pipeline

− Gulfstream

• Delivers approximately 14% of the natural gas consumed in U.S.

• 15,000 miles of interstate natural gas pipelines

Who is Williams?

Williams operates the Transco pipeline, a 10,200-mile natural gas transportation system that extends from South Texas to New York City. Transco’s deliveries account for 8% of the natural gas consumed in the U.S.

The Transco pipeline has reliably served New Jersey for more than 60 years, providing service to major local distribution companies such as PSE&G, South Jersey Gas, Elizabethtown Gas and New Jersey Natural Gas. The pipeline transports about 60% of the gas used in New Jersey, with supplies originating primarily from the Gulf Coast and Appalachia.

New Jersey statistics 534 miles of pipe 4 compressor stations 69 meter stations 1 LNG facility 101 employees

Williams’ presence in New JerseyTranscontinental Gas Pipe Line

In New Jersey, the project included:

a 6.64 mile loop of 42” diameter pipeline in Hunterdon County

uprating of 25.5 miles of existing pipeline in Essex, Passaic, Bergen, and Hudson Counties

a 0.46 mile replacement of pipeline in Essex County the construction of a new electric-powered compressor

station in Essex County

An overview of a portion of a recent project Northeast Supply Link

Four main stages Preparation Acquisition Construction Restoration

The Land Department is typically “the first one in and the last one out”

Land’s Approach to an Expansion Project

Create a budget Determine staffing needs Obtain a regional appraisal Create a line list and field files Update records (title, tax maps, etc.) Identify potential Land issues Assist survey and review plats Initiate landowner outreach Attend Open Houses

Preparation

Formulate offers Engage in negotiations Order appraisals Initiate condemnation where necessary Special acquisition issues in New Jersey

Proximity of homes to pipeline corridor Extreme environmental regulation

Green Acres, etc.

Acquisition

Remain in constant communication with landowners

Assist construction department where needed

Handle the multitude of landowner issues that arise

Construction

Investigate/handle damage claims Settle outstanding damage payments/repairs

Restoration

Landowner fears Safety concerns

Pipeline accidents Fear of construction workers

Stigma Impact on the ability to sell home Possible loss of home resale value

Damage concerns Damage to house foundation Damage to well or septic system

Obstacles & Challenges

Negative publicity Increased media coverage of industry Environmental organizations Landowner coalitions Perpetuation of false information

Bad reputation Frequent accusations of low-balling offers,

using strong-arm tactics, and outright lying

Obstacles & Challenges (continued)

Questions? Comments?