Calvert County, Md., Welcomes FERC's Approval of Dominion Cove Point LNG Expansion

PRINCE FREDERICK, Md., -- June 16, 2006 - The Calvert County, Md., Board of County Commissioners (BOCC) announced today their support of the Federal Energy Regulatory Commission’s (FERC) orders that authorized the expansion of the Dominion Cove Point Liquid Natural Gas (LNG) terminal facilities in Calvert County, Md.

The expansion includes construction of two new storage tanks, each capable of storing 160,000 cubic meters of LNG, increasing storage capacity at the terminal to approximately 14.6 billion cubic feet from 7.8 billion cubic feet. FERC also authorized Cove Point Pipeline to construct and operate approximately 47.8 miles of 37-inch diameter loop pipeline in Calvert, Prince George’s and Charles counties in Maryland, add other related facilities and refurbish and reactivate two existing waste heat vaporizers. Dominion purchased the Cove Point LNG terminal in 2002 and reopened it in the summer of 2003.

"Throughout this process, Dominion has been actively engaged with County government, landowners, and the citizens of Calvert County," said David F. Hale, president, Calvert County Board of County Commissioners (BOCC). "The approval of FERC comes with much public involvement that considers our input and offers a solution that is environmentally and operationally sound. These factors, when combined with the local, regional and statewide economic impact of the expansion are a true benefit to Calvert County. The pipeline project is key in providing new gas supplies to the mid-Atlantic region and Northeast – areas that are in significant need of energy and during a period of time when energy supply is critical,” Hale said.

Construction of the new Cove Point LNG storage tanks is set to begin as soon as practical. Construction of the pipelines in Maryland and Pennsylvania will be timed to go into service concurrent with completion of the new LNG facilities in 2008.

In FY 2005, Dominion paid $3.7 million in taxes to Calvert County; in FY 2006 it is anticipated that Dominion will pay $4.4 million.

A 2004 study, prepared by RESI economic research and policy institute affiliated with Towson University, Towson, Md., outlined how the proposed expansion of Cove Point would provide major economic benefits to Southern Maryland, including creation of hundreds of new jobs, stronger economic activity and significantly more revenues for state and local governments. The expansion project, scheduled for completion in 2008, is anticipated to bring approximately 392 new jobs in the region – 244 during construction and 148 at completion. Approximately 38 of those jobs would be high-wage positions directly associated with the terminal and pipeline with average annual earnings of $70,000 – more than double the Calvert County average and almost 80 percent higher than the statewide average.

For more information on the Calvert County, Maryland Department of Economic Development, our visitor sites and attractions and the services available to assist County businesses, call 410.535.4583, 800.331.9771 or 301.855.1880; or send an e-mail to info@ecalvert.com