Mitigation Monitoring, Compliance,

and Reporting Program

N O V E M B E R 2 0 1 0

California Public Utilities Commission

Energy Division

505 Van Ness Avenue

San Francisco, CA 94102

P R E P A R E D F O R :

P R E P A R E D B Y :

Central Valley Gas Storage, LLCsCentral Valley Gas Storage Project

F I N A L

(CPCN Application No. A 09-08-008) (Decision D10-10-001)

Compressor Station

Remote Well Pad

Metering Station

Interconnection to

PG&E Line 400/401

Observation Well Conversion

Saltwater Disposal Well & Tank

Compressor Station

Remote Well Pad

Underground Natural Gas

Storage Reservor

MITIGATION MONITORING, COMPLIANCE, AND REPORTING PROGRAM

CENTRAL VALLEY NATURAL GAS

STORAGE PROJECT

Prepared for:

California Public Utilities Commission 505 Van Ness Avenue

San Francisco, California 94102

Prepared by:

605 Third Street Encinitas, California 92024

NOVEMBER 2010

Printed on 30% post-consumer recycled material.

Mitigation Monitoring, Compliance, and Reporting Program Central Valley Natural Gas Storage Project

6055-01 i November 2010

TABLE OF CONTENTS Section Page No. 1.0 OVERVIEW AND PURPOSE..........................................................................................1

1.1 Authority of the Program ........................................................................................ 1 1.2 Project Overview .................................................................................................... 2

1.2.1 Construction Components ........................................................................... 2 1.2.2 Notice-to-Proceed ....................................................................................... 3 1.2.3 Project Compliance Requirements .............................................................. 5

1.3 Agency Jurisdiction ................................................................................................ 5

2.0 ROLES AND RESPONSIBILITIES ................................................................................7 2.1 Organization Overview ........................................................................................... 7

2.1.1 Central Valley Project Manager .................................................................. 7 2.1.2 Central Valley Field Representative ........................................................... 7 2.1.3 Central Valley Environmental Manager ..................................................... 7 2.1.4 CPUC Project Manager............................................................................... 8 2.1.5 CPUC Third-Party Environmental Monitors ............................................ 10 2.1.6 Central Valley Environmental Monitors ................................................... 10 2.1.7 Construction Personnel ............................................................................. 10 2.1.8 Mitigation Monitoring Program Contact List ........................................... 11

2.2 Responsibilities ..................................................................................................... 11 2.2.1 Monitoring ................................................................................................ 11 2.2.2 Enforcement .............................................................................................. 11 2.2.3 Mitigation Compliance ............................................................................. 12

2.3 Communication ..................................................................................................... 12 2.3.1 Construction Progress Meetings ............................................................... 12 2.3.2 Daily Communication ............................................................................... 13 2.3.3 Communicating Compliance Issues .......................................................... 14 2.3.4 Coordination with Other Agencies ........................................................... 14 2.3.5 Dispute Resolution .................................................................................... 14

3.0 ENVIRONMENTAL COMPLIANCE AND FIELD PROCEDURES .......................17 3.1 Mitigation Measures Compliance and Reporting ................................................. 17

3.1.1 Compliance Verification ........................................................................... 17 3.1.2 Compliance Reporting .............................................................................. 17 3.1.3 Compliance Levels.................................................................................... 17

3.2 Project Changes .................................................................................................... 18 3.3 Records Management............................................................................................ 19

Mitigation Monitoring, Compliance, and Reporting Program Central Valley Natural Gas Storage Project

6055-01 ii November 2010

3.4 Public Access to Records ...................................................................................... 19

4.0 MITIGATION MONITORING PROGRAM TABLE.................................................21 4.1 Using the Table ..................................................................................................... 21 4.2 Effectiveness Review ............................................................................................ 21 4.3 Mitigation Measures and Applicant Proposed Measures (APMs) ........................ 22

5.0 REFERENCE LIST .........................................................................................................80

LIST OF ATTACHMENTS

A Project Contact List B Sample Site Inspection Form C Variance Request Form D Pre-Construction Mitigation Measures E Construction Mitigation Measures F Design Phase Mitigation Measures G Communication Protocol Summary

LIST OF FIGURES

1 Organizational Chart ...........................................................................................................9

LIST OF TABLES

1 Construction Components ....................................................................................................2 2 Estimated Construction Schedule ........................................................................................4 3 Associated Jurisdictional Agencies......................................................................................6 4 Mitigation Measures and Applicant Proposed Measures (APMs) .....................................22

Mitigation Monitoring, Compliance, and Reporting Program Central Valley Natural Gas Storage Project

6055-01 1 November 2010

1.0 OVERVIEW AND PURPOSE

The Final Mitigated Negative Declaration (FMND) for the Central Valley Natural Gas (Central Valley) Project, as adopted by the California Public Utilities Commission (CPUC) October 14, 2010, includes procedures for preparing and implementing a Mitigation Monitoring, Compliance, and Reporting Program (MMCRP) to ensure compliance with mitigation measures approved in the FMND. Section 6 of the FMND provides the recommended framework for the implementation of the MMCRP by the California Environmental Quality Act (CEQA) Lead Agency, the CPUC, and describes the roles and responsibilities of responsible agencies in implementing and enforcing adopted mitigation measures. This MMCRP includes the information provided in Section 6, as well as specific protocols, guidelines, and standardized procedures for environmental compliance to be followed prior to and during construction by CPUC third-party environmental monitors (CPUC EMs) and Central Valley project staff. The goal of the MMCRP is to provide a clear understanding of the projects organization, establish lines of communication related to mitigation monitoring, and establish a method to effectively document and report compliance with all of the mitigation measures.

The projects MMCRP includes direct participation and commitment from Central Valley and CPUC EMs. The success of the program depends on the project management staff, monitors, and construction contractor personnel. The procedures have been developed in coordination with Central Valley, CPUC, and CPUC EMs to help define the reporting relationships, provide detailed information about the roles and responsibilities of the projects environmental compliance team members, define compliance reporting procedures, and to establish a communication protocol.

1.1 Authority of the Program

The California Public Utilities Code in numerous places confers authority upon the CPUC to regulate the terms of service and the safety, practices and equipment of utilities subject to its jurisdiction. It is the standard practice of the CPUC, to protect the environment, to require that mitigation measures stipulated as conditions of approval are implemented properly, monitored, and reported. In 1989, this requirement was codified statewide as Section 21081.6 of the Public Resources Code. Section 21081.6 requires a public agency to adopt an MMCRP when it approves a project that is subject to preparation of a mitigated negative declaration (MND) and where the MND for the project identifies significant adverse environmental effects. CEQA Guidelines Section 15097 was added in 1999 to further clarify agency requirements for mitigation monitoring or reporting. The CPUC views the MMCRP as a working guide to facilitate not only the implementation of mitigation measures by the project

Mitigation Monitoring, Compliance, and Reportin