Common use of Site Certification Clause in Contracts

Site Certification. A. This agreement certifies that, to the extent authorized by state law and those warranties and conditions set forth herein, the State approves and authorizes the construction and operation of an underground storage facility for natural gas and related or supporting facilities at the Mist Site, in the manner described in NWN’s site certificate application, this agreement, and the record of the administrative hearings held pursuant to ORS 469.300 through ORS 469.570, including supporting testimony filed by ONG or NWN with EFSC. This approval by the State binds the State and all counties, cities and political subdivisions in the State as to the approval of the site and the construction and operation of the underground storage reservoir and related or supporting facilities, subject only to the conditions of this agreement. However, each agency and county that issues a permit, license or certificate shall continue to exercise enforcement authority over such permit, license or certificate. B. This certificate requires NWN to comply with applicable state laws or EFSC rules as they exist on the date it is executed by EFSC, and with stricter state laws or EFSC rules adopted subsequent thereto if compliance with such stricter state laws or EFSC rules is necessary to avoid a clear danger to the public health and safety. C. The Site Certificate has been amended 12 times, as follows: 1. Amendment 1, approved October 24, 1987, amended the site map and amended certain conditions regarding monitoring for safety and vibration. 2. Amendment 2, approved August 2, 1988, amended the site map to allow the addition of a monitoring well. 3. Amendment 3, approved September 21, 1990, amended the site map to replace two poorly functioning injection/withdrawal ▇▇▇▇▇ and add two new ▇▇▇▇▇ to increase capacity during the “heating season.” 4. Amendment 4, approved July 21, 1997, enlarged the site boundary and authorized NWN to develop related and supporting surface facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek Storage Area, and upgrade related and supporting surface facilities at NWN’s ▇▇▇▇▇▇ Station. The amendment also authorized NWN to develop and operate new pipelines connecting the storage facilities at ▇▇▇▇▇▇ Creek to ▇▇▇▇▇▇ Station. It authorized the replacement of two reciprocating compressors with one turbine driven compressor with rated horse power of 5,035 BHP at ▇▇▇▇▇▇ Station, subject to an operating limitation to 6,650 total horsepower.1 It added new conditions regarding the development of new related and supporting facilities associated with the ▇▇▇▇▇▇ Creek Storage area and ▇▇▇▇▇▇ Station improvements. This amendment increased the total throughput of the facility to 145 million cubic feet per day (MMcfd). The Site Certificate to Amendment 4 covered the ▇▇▇▇▇▇ Station improvements and the pipelines and other surface facilities. The underground storage reservoirs were under the Department of Geology and Mineral Industries (DOGAMI) jurisdiction.2 1 The Council imposed the operating limitation in response to a request for a contested case by United Pipefitters Local 290. See Section III.A, Final Order Approving Amendment 4. 2 State law grants DOGAMI broad authority “to regulate the underground storage of natural gas and the drilling and operation of any ▇▇▇▇▇ required therefor.” ORS 520.095(16). DOGAMI has exercised this authority through the adoption of comprehensive rules governing underground storage facilities at OAR 632 Division 10. 5. Amendment 5, approved March 13, 1998, replaced the Site Certificate amendment process set forth in section VII of the Site Certificate with the process set forth in Council rules at OAR 345, Division 7. 6. Amendment 6, approved March 30, 1999, authorized NWN to develop related and supporting facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek storage area. The amendment also removed operating restrictions at the ▇▇▇▇▇▇ compression station (added in Amendment 4) and added new Site Certificate conditions associated with further development of the ▇▇▇▇▇▇ Creek storage area. 7. Amendment 7, approved November 17, 2000, authorized NWN to increase the allowed throughput at the Mist storage facility from 190 million cubic feet per day (“MMcfd”) to 245 MMcfd. 8. Amendment 8, approved October 26, 2001, authorized NWN to increase the allowed throughput from 245 MMcfd to 317 MMcfd and to install a new 7324 BHP turbine driven compressor and a new injection/monitoring well, served by existing pipelines. The compressor authorized by Amendment 8 is subject to EFSC’s carbon dioxide standards at OAR 345 Division 24. 9. Amendment 9, approved December 5, 2003, authorized NWN to increase the allowed throughput from 317 MMcfd to 515 MMcfd. It authorized the construction of improvements at ▇▇▇▇▇▇ Station, including the installation of new dehydration facilities and gas quality and monitoring equipment. It also authorized NWN to develop related and supporting facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek storage area. The amendment also allowed NWN to terminate the vibration monitoring program created in Amendment 1. 10. The 1981 site certificate and first nine amendments were stand-alone documents. Amendment 10, approved May 30, 2008, consolidated these documents into a single unified site certificate. Amendment 10 made no substantive changes to the facility or the site certificate. 11. Amendment 11, approved April 21, 2016, authorized NWN to expand the site boundary to include the ▇▇▇▇▇ storage reservoir, as well as the ▇▇▇▇▇▇, When EFSC approved the Site Certificate for the Mist Site in 1981, its jurisdiction included the surface and underground components of the facility. In 1993, the siting law was amended to included within the Council’s jurisdiction only the “surface facility related to an underground gas storage reservoir that, at design injection or withdrawal rates, will receive or deliver more than 50 million cubic feet of natural or synthetic gas per day, and require more than 4,000 horsepower of natural gas compression to operate ***.” ORS 469.300(11)(a)(I). Underground storage reservoirs, injection, withdrawal, and monitoring ▇▇▇▇▇, and individual wellhead equipment remain under DOGAMI’s pervasive authority over the ▇▇▇▇▇ and other subsurface components. ORS 469.300(11)(a)(I)(i)-(ii). Medicine, Crater, and Stegosaur future storage areas. The amendment authorized NWN to develop only the ▇▇▇▇▇ reservoir as a new underground storage area; to construct and operate a new compressor station, the North Mist Compressor Station (NMCS); and, to construct and operate an approximately 12-mile natural gas transmission pipeline, the North Mist Transmission Pipeline (NMTP), between the NMCS and Portland General Electric’s Port Westward Industrial Park (PWIP). The amendment authorized NWN to increase the allowable throughput from 515 MMcfd to 635 MMcfd. New conditions were added to ensure compliance with EFSC requirements. 12. Amendment 12, approved September 22, 2017, authorized a new limited water use license for water withdrawn from a diversion point in the Beaver Slough (referred to as the ▇▇▇▇▇▇ Mint Farm Diversion Point, see Figure 2 in Final Order on Amendment 12) during construction of the North Mist Expansion Project from August through November 2017.

Site Certification. A. This agreement certifies that, to the extent authorized by state law and those warranties and conditions set forth herein, the State approves and authorizes the construction and operation of an underground storage facility for natural gas and related or supporting facilities at the Mist Site, in the manner described in NWN’s site certificate application, this agreement, and the record of the administrative hearings held pursuant to ORS 469.300 through ORS 469.570, including supporting testimony filed by ONG or NWN with EFSC. This approval by the State binds the State and all counties, cities and political subdivisions in the State as to the approval of the site and the construction and operation of the underground storage reservoir and related or supporting facilities, subject only to the conditions of this agreement. However, each agency and county that issues a permit, license or certificate shall continue to exercise enforcement authority over such permit, license or certificate. B. This certificate requires NWN to comply with applicable state laws or EFSC rules as they exist on the date it is executed by EFSC, and with stricter state laws or EFSC rules adopted subsequent thereto if compliance with such stricter state laws or EFSC rules is necessary to avoid a clear danger to the public health and safety. C. The Site Certificate has been amended 12 11 times, as follows: 1. Amendment 1, approved October 24, 1987, amended the site map and amended certain conditions regarding monitoring for safety and vibration. 2. Amendment 2, approved August 2, 1988, amended the site map to allow the addition of a monitoring well. 3. Amendment 3, approved September 21, 1990, amended the site map to replace two poorly functioning injection/withdrawal ▇▇▇▇▇ and add two new ▇▇▇▇▇ to increase capacity during the “heating season.” 4. Amendment 4, approved July 21, 1997, enlarged the site boundary and authorized NWN to develop related and supporting surface facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek Storage Area, and upgrade related and supporting surface facilities at NWN’s ▇▇▇▇▇▇ Station. The amendment also authorized NWN to develop and operate new pipelines connecting the storage facilities at ▇▇▇▇▇▇ Creek to ▇▇▇▇▇▇ Station. It authorized the replacement of two reciprocating compressors with one turbine driven compressor with rated horse power of 5,035 BHP at ▇▇▇▇▇▇ Station, subject to an operating limitation to 6,650 total horsepower.1 It added new conditions regarding the development of new related and supporting facilities associated with the ▇▇▇▇▇▇ Creek Storage area and ▇▇▇▇▇▇ Station improvements. This amendment increased the total throughput of the facility to 145 million cubic feet per day (MMcfd). The Site Certificate to Amendment 4 covered the ▇▇▇▇▇▇ Station improvements and the pipelines and other surface facilities. The underground storage reservoirs were under the Department of Geology and Mineral Industries (DOGAMI) jurisdiction.2 1 The Council imposed the operating limitation in response to a request for a contested case by United Pipefitters Local 290. See Section III.A, Final Order Approving Amendment 4. 2 State law grants DOGAMI broad authority “to regulate the underground storage of natural gas and the drilling and operation of any ▇▇▇▇▇ required therefor.” ORS 520.095(16). DOGAMI has exercised this authority through the adoption of comprehensive rules governing underground storage facilities at OAR 632 Division 10. 5. Amendment 5, approved March 13, 1998, replaced the Site Certificate amendment process set forth in section VII of the Site Certificate with the process set forth in Council rules at OAR 345, Division 7. 6. Amendment 6, approved March 30, 1999, authorized NWN to develop related and supporting facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek storage area. The amendment also removed operating restrictions at the ▇▇▇▇▇▇ compression station (added in Amendment 4) and added new Site Certificate conditions associated with further development of the ▇▇▇▇▇▇ Creek storage area. 7. Amendment 7, approved November 17, 2000, authorized NWN to increase the allowed throughput at the Mist storage facility from 190 million cubic feet per day (“MMcfd”) to 245 MMcfd. 8. Amendment 8, approved October 26, 2001, authorized NWN to increase the allowed throughput from 245 MMcfd to 317 MMcfd and to install a new 7324 BHP turbine driven compressor and a new injection/monitoring well, served by existing pipelines. The compressor authorized by Amendment 8 is subject to EFSC’s carbon dioxide standards at OAR 345 Division 24. 9. Amendment 9, approved December 5, 2003, authorized NWN to increase the allowed throughput from 317 MMcfd to 515 MMcfd. It authorized the construction of improvements at ▇▇▇▇▇▇ Station, including the installation of new dehydration facilities and gas quality and monitoring equipment. It also authorized NWN to develop related and supporting facilities associated with new underground storage reservoirs in the ▇▇▇▇▇▇ Creek storage area. The amendment also allowed NWN to terminate the vibration monitoring program created in Amendment 1. 10. The 1981 site certificate and first nine amendments were stand-alone documents. Amendment 10, approved May 30, 2008, consolidated these documents into a single unified site certificate. Amendment 10 made no substantive changes to the facility or the site certificate. 11. Amendment 11, approved April 21, 2016, authorized NWN to expand the site boundary to include the ▇▇▇▇▇ storage reservoir, as well as the ▇▇▇▇▇▇, When EFSC approved the Site Certificate for the Mist Site in 1981, its jurisdiction included the surface and underground components of the facility. In 1993, the siting law was amended to included within the Council’s jurisdiction only the “surface facility related to an underground gas storage reservoir that, at design injection or withdrawal rates, will receive or deliver more than 50 million cubic feet of natural or synthetic gas per day, and require more than 4,000 horsepower of natural gas compression to operate ***.” ORS 469.300(11)(a)(I). Underground storage reservoirs, injection, withdrawal, and monitoring ▇▇▇▇▇, and individual wellhead equipment remain under DOGAMI’s pervasive authority over the ▇▇▇▇▇ and other subsurface components. ORS 469.300(11)(a)(I)(i)-(ii). Medicine, Crater, and Stegosaur future storage areas. The amendment authorized NWN to develop only the ▇▇▇▇▇ reservoir as a new underground storage area; to construct and operate a new compressor station, the North Mist Compressor Station (NMCS); and, to construct and operate an approximately 12-mile natural gas transmission pipeline, the North Mist Transmission Pipeline (NMTP), between the NMCS and Portland General Electric’s Port Westward Industrial Park (PWIP). The amendment authorized NWN to increase the allowable throughput from 515 MMcfd to 635 MMcfd. New conditions were added to ensure compliance with EFSC requirements. 12. Amendment 12, approved September 22, 2017, authorized a new limited water use license for water withdrawn from a diversion point in the Beaver Slough (referred to as the ▇▇▇▇▇▇ Mint Farm Diversion Point, see Figure 2 in Final Order on Amendment 12) during construction of the North Mist Expansion Project from August through November 2017.