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2019-051 Atmos Energy UpdateDate: March 15, 2019 Report No. 2019-051 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Update relating to Atmos Energy’s efforts to detect gas leaks and improve infrastructure, including information on how the City partners with Atmos to coordinate construction projects and communications. EXECUTIVE SUMMARY: In addition to increases in planned pipeline replacement projects, Atmos Energy has deployed leak detection vehicles within the City of Denton to increase leak detection capabilities. With the increase in planned and unplanned repair and replacement activities, continued staff coordination with Atmos will be critical. BACKGROUND: Atmos Energy Corporation, headquartered in Dallas, is the country's largest, fully-regulated, natural-gas-only distributor, serving over 3 million natural gas distribution customers in over 1,400 communities in eight states. As a natural gas franchisee with the City of Denton, Atmos operates and maintains 393 miles of pipeline serving 21,738 customer accounts. Increased Investments and Leak Detection Atmos has steadily increased its infrastructure within the City of Denton has seen a similar rise. Of the $24 million that Atmos invested in its system within the city of Denton since 2011, $8.8 million occurred within the last year. Much of this capital investment activity is related to the replacement of older distribution pipelines. Denton’s gas distribution system no longer includes cast iron pipes, with Atmos reporting that the system is 69.8% plastic polyethylene, 22.4% coated steel, and 7.8% bare steel. Much of this investment is designed to reduce or prevent leaks in the pipeline system. Leaks are primarily caused by accidental damage from a third-party, corrosion, or other environmental factors. When a leak is reported or detected, Atmos will assign the leak a priority level in accordance with state and federal guidelines. Leaks with the highest priority level receive immediate attention. Atmos has launched a new leak detection technology system within the city of Denton – Leak Detection Vehicles. As these leak detection vehicles drive throughout the city, they detect faint plumes of methane in the air. The methane data is catalogued and mapped to narrow down an approximate location of a possible leak. Field crews are then dispatched to do a more thorough investigation. Additionally, leak detection vehicles will primarily drive at night due to the ability to achieve more accurate data collection during that time. Considering the planned increases in pipeline replacement, expected increases in repairs due to enhanced leak detection capability, and overall development growth within Denton, residents and businesses should expect to see a high level of Atmos activity for the foreseeable future. Date: March 15, 2019 Report No. 2019-051 Partnering with Atmos The coordination of construction and repair projects between City staff and Atmos is a critical and ongoing component in our partnership. This coordination ensures that street and pipeline projects are planned to minimize the adverse impact each organization’s projects have on the assets of the other and to minimize the overall impact to the Denton community. At the heart of this partnership is the sharing of the City’s long-term capital project plans with Atmos. They are then re-engaged at different project design milestones and at project design completion. With this information, Atmos can determine which of their assets require relocation or can proactively plan to replace assets as the same time the City project is in active construction. This is most advantageous for street construction projects where Atmos can replace older pipe after the old pavement is removed, but before the new pavement is laid down. The City meets with Atmos representatives, as with other franchise utilities, on a monthly basis to discuss active and planned projects and coordinate construction schedules. Communicating to the Denton Community The City also partners with Atmos in communicating important information regarding road closures, detours, and general gas infrastructure project updates to the public. The Public Affairs and Capital Projects departments work with Atmos to gather project information one to three weeks in advance of the actual start date so that a communications plan and language can be prepared. If an Atmos project is tied to a City construction project or is expected to have a significant impact to traffic, it is included in the Street Construction Report that is available on the City of Denton website and included in the Friday Report every week. In the cases of emergency closures, email notifications are sent to Improving Denton subscribers and the information is posted on our social media channels. CONCLUSION: Atmos Energy continues to increase its investment in capital infrastructure and deployment of leak detection technologies within Denton. As Atmos activity increases, City staff will continue to work closely to maintain project efficiency and to minimize the adverse impacts to the public. ATTACHMENT(S): Atmos 2018 Mid-Tex Operations Report (hardcopy provided in Council Packet) STAFF CONTACT: Ryan Adams Assistant to the City Manager (940) 349-8565 Ryan.Adams@cityofdenton.com