Dominion Welcomes Favorable FERC Environmental Assessment Of Cove Point LNG Export Project

 Dominion Welcomes Favorable FERC Environmental Assessment Of Cove Point LNG
                                Export Project

- FERC says Cove Point can be built safely with no significant impact to
environment

- Conclusion reached after almost two years of thorough analysis, 21,000+
pages of evidence

- Project to bring thousands of construction jobs, economic boost to Calvert
County, Md.

PR Newswire

LUSBY, Md., May 15, 2014

LUSBY, Md., May 15, 2014 /PRNewswire/ --Dominion (NYSE:D) today welcomed the
release of a federal environmental assessment that finds the natural gas
export project proposed for its existing Cove Point LNG facility in southern
Maryland can be built and operated safely with no significant impact to the
environment.

"The Federal Energy Regulatory Commission and other federal and state agencies
that reviewed our proposal are to be commended for their thorough and
independent assessment. The 241-page report represents nearly two years of
study, tens of thousands of pages of documentation and many thousands of hours
of work. This marks another important step forward in a project that has very
significant economic benefits and helps two allied nations in their efforts to
increase their energy security and reduce their greenhouse gas emissions,"
said Diane Leopold, president of Dominion Energy.

"The Cove Point LNG facility has been in existence for nearly 40 years and
this makes the most of existing facilities. This project will be built within
the existing footprint and fence line of an industrial site. There is no need
for additional pipelines, storage tanks or permanent piers, thus limiting its
impact and making an environmental assessment appropriate," Leopold said.

The release of the FERC Environmental Assessment, which is available at
http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20140515-4002,
begins a 30-day public comment period. The FERC also announced that a public
comment meeting on the assessment would occur May 31 in Calvert County.

Cove Point is the fourth liquefied natural gas export project to receive an
environmental document from the FERC. The cooperating agencies that
participated in the FERC Environmental Assessment for the Cove Point export
project were: the Department of Energy; the Army Corps of Engineers; the
Department of Transportation, including the Pipeline and Hazardous Materials
Safety Administration; the Coast Guard; and the Maryland Department of Natural
Resources.

The Environmental Assessment examined the potential impacts of the proposed
project, including a thorough evaluation of the project's impact on public
safety, air quality, water resources, geology, soils, wildlife and vegetation,
threatened and endangered species, land and visual resources, cultural
resources, noise, cumulative impacts and reasonable alternatives.

"Based upon the analysis in this EA, we have determined that if DCP constructs
and operates the proposed facilities in accordance with its application,
supplements, and our mitigation measures below, approval of this Project would
not constitute a major federal action significantly affecting the quality of
the human environment," the FERC report concluded.

"We recommend that the Commission Order contain a finding of no significant
impact and include the measures listed below as conditions in any
authorization the Commission may issue to DCP."

The construction of the export project, which is estimated to cost between
$3.4 billion and $3.8 billion, will create thousands of skilled construction
jobs, 75 permanent jobs and an additional $40 million in annual tax revenue to
Calvert County. The county today receives $15.7 million a year from the LNG
import facility.

IHI/Kiewit Cove Point, a joint venture between IHI E&C International
Corporation of Houston and Kiewit Corporation of Omaha, Neb., is the
engineering, procurement and construction contractor for the new liquefaction
facilities. Dominion has fully subscribed the marketed capacity of the project
with 20-year service agreements. Pacific Summit Energy, LLC, a U.S. affiliate
of Japanese company Sumitomo Corporation, and GAIL Global (USA) LNG LLC, a
U.S. affiliate of GAIL (India) Ltd., have each contracted for half of the
marketed capacity. GAIL is the largest natural gas processing and distributing
company in India.

"This one project could reduce the nation's trade deficit by up to $7 billion
annually while helping two important allies, Japan and India, meet urgent
clean-energy needs," Leopold said. "At the same time, theUnited Statescan
continue to have ample natural gas supplies to meet domestic needs, and U.S.
industry can maintain a significant energy price advantage over international
competitors."

Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 23,600 megawatts of generation, 10,900 miles
of natural gas transmission, gathering and storage pipeline and 6,400 miles of
electric transmission lines. Dominion operates one of the nation's largest
natural gas storage systems with 947 billion cubic feet of storage capacity
and serves retail energy customers in 10 states. For more information about
Dominion, visit the company's website at www.dom.com.

TV, Social Media Editors: Dominion has loaded an interview with Mike
Frederick, vice president-LNG Operations for Dominion, on its Media Download
page for your use. The interview features 5 cuts with Mike talking about the
FERC Environmental Assessment, how the export project fits into the existing
footprint of the station, how we will recycle waste heat and water with no
discharge to the Chesapeake Bay, how employee and public safety is planned
into the project and how the project will help India reduce its greenhouse gas
emissions. You can download and use the clips by clicking here,
http://www.dom.com/about/av-clips/2014/mike-frederick-may-15.mov.

SOURCE Dominion

Website: http://www.dom.com
Contact: Jim Norvelle, (804) 771-3176, mobile (804) 921-2618,
Jim.Norvelle@dom.com or Karl Neddenien, (410) 286-5749, mobile (804) 317-5267,
Karl.R.Neddenien@dom.com
 
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