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Researched by Industrial Info Resources (Sugar Land, Texas)--Even under the best of circumstances, it isn't easy to develop an energy pipeline project. In the northeast, two major natural gas pipeline projects have run into roadblocks, but for very different reasons.
The New York State Department of Environmental Conservation (NYSDEC) last week announced it denied a permit for the proposed 124-mile Constitution Pipeline, which would include construction of 124 miles of piping from northeastern Pennsylvania into New York State. The pipeline would have a capacity to move 650,000 dekatherms of natural gas per day, extending from Susquehanna, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schorie County, New York.
The project to move shale gas to markets in New York and New England was developed by Constitution Pipeline Company LLC, which is owned by subsidiaries of Williams Partners LP (NYSE:WPZ) (Tulsa, Oklahoma), Cabot Oil & Gas Corporation (NYSE:COG) (Houston, Texas), Piedmont Natural Gas Company (NYSE:PNY) (Charlotte, North Carolina) and WGL Holdings Incorporated (NYSE:WGL) (Washington, D.C.).
The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the pipeline in late 2014, but New York environmental authorities say the project application to the state fails to meet its water quality standards. For related information, see December 5, 2014, article - Constitution Natural Gas Pipeline Receives FERC Approval.
"In New York State, the project proposed to include new right-of-way construction of approximately 99 miles of new 30-inch diameter pipeline, rather than co-locating within existing rights-of-way," the NYSDEC said in a press release. "Although DEC requested significant mitigation measures to limit affecting the state's water bodies, this new right-of-way construction would impact approximately 250 streams across New York State. Many of those streams are unique and sensitive ecological areas, including trout spawning streams, old-growth forest, and undisturbed springs, which provide vital habitat and are key to the local ecosystems."
The state agency said it repeatedly asked Constitution to provide a "comprehensive and site-specific analysis of depth for pipeline burial to mitigate the project's environmental impact - but the company refused - providing only a limited analysis of burial depth for 21 of the 250 New York streams." The NYSDEC said it had reports that area landowners had clear cut old-growth trees near streams and water bodies in preparation for the project, although FERC had ruled Constitution could not cut trees in the right-of-way.
Constitution Pipeline Company said Monday it "remains steadfastly committed to pursuing the federally-approved energy infrastructure project," and the project sponsors would "pursue all available options to challenge the legality and appropriateness of New York's decision," and may appeal to the U.S. Circuit Court of Appeals. "We believe NYSDEC's stated rationale for the denial includes flagrant misstatements and inaccurate allegations, and appears to be driven more by New York State politics than by environmental science," the project sponsors said in a joint statement.
Constitution Pipeline Company said it worked closely with the NYSDEC for more than three years to ensure water quality measures were met and agreed to fund about $18 million for wetland mitigation and banking, and about $8.6 million for the restoration and preservation of migratory bird habitats. It added it was not a party to the tree cutting by landowners.
"Completely contrary to NYSDEC's assertion, we provided detailed drawings and profiles for every stream crossing in New York, including showing depth of pipe," Constitution Pipeline Company said in a press statement. "In fact, all stream crossings were fully vetted with the NYSDEC throughout the review process. We are appalled with the comments that Constitution failed to provide sufficient data to ensure every crossing was totally in compliance with the NYSDEC guidelines."
The NYSDEC maintained that digging pipe trenches across streams can cause serious environmental harm, and said Constitution only fully evaluated 24 of the 251 streams for "trenchless" pipeline crossings.
Also last week, Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) said it was discontinuing its pursuit of the proposed Northeast Energy Direct [NED] Market natural gas pipeline, but for a very different reason than the issues confronting Constitution Pipeline. Kinder Morgan Chief Executive Officer Steve Kean said the company had placed the NED project on a "back burner" due to failure to gain enough contractual commitments. The project would have run through parts of New York, Pennsylvania, Massachusetts, New Hampshire and Connecticut.
For related information, see April 21, 2016, article - Kinder Morgan Ditches Two Key Pipeline Projects, Cuts Growth Backlog $4 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The New York State Department of Environmental Conservation (NYSDEC) last week announced it denied a permit for the proposed 124-mile Constitution Pipeline, which would include construction of 124 miles of piping from northeastern Pennsylvania into New York State. The pipeline would have a capacity to move 650,000 dekatherms of natural gas per day, extending from Susquehanna, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schorie County, New York.
The project to move shale gas to markets in New York and New England was developed by Constitution Pipeline Company LLC, which is owned by subsidiaries of Williams Partners LP (NYSE:WPZ) (Tulsa, Oklahoma), Cabot Oil & Gas Corporation (NYSE:COG) (Houston, Texas), Piedmont Natural Gas Company (NYSE:PNY) (Charlotte, North Carolina) and WGL Holdings Incorporated (NYSE:WGL) (Washington, D.C.).
The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the pipeline in late 2014, but New York environmental authorities say the project application to the state fails to meet its water quality standards. For related information, see December 5, 2014, article - Constitution Natural Gas Pipeline Receives FERC Approval.
"In New York State, the project proposed to include new right-of-way construction of approximately 99 miles of new 30-inch diameter pipeline, rather than co-locating within existing rights-of-way," the NYSDEC said in a press release. "Although DEC requested significant mitigation measures to limit affecting the state's water bodies, this new right-of-way construction would impact approximately 250 streams across New York State. Many of those streams are unique and sensitive ecological areas, including trout spawning streams, old-growth forest, and undisturbed springs, which provide vital habitat and are key to the local ecosystems."
The state agency said it repeatedly asked Constitution to provide a "comprehensive and site-specific analysis of depth for pipeline burial to mitigate the project's environmental impact - but the company refused - providing only a limited analysis of burial depth for 21 of the 250 New York streams." The NYSDEC said it had reports that area landowners had clear cut old-growth trees near streams and water bodies in preparation for the project, although FERC had ruled Constitution could not cut trees in the right-of-way.
Constitution Pipeline Company said Monday it "remains steadfastly committed to pursuing the federally-approved energy infrastructure project," and the project sponsors would "pursue all available options to challenge the legality and appropriateness of New York's decision," and may appeal to the U.S. Circuit Court of Appeals. "We believe NYSDEC's stated rationale for the denial includes flagrant misstatements and inaccurate allegations, and appears to be driven more by New York State politics than by environmental science," the project sponsors said in a joint statement.
Constitution Pipeline Company said it worked closely with the NYSDEC for more than three years to ensure water quality measures were met and agreed to fund about $18 million for wetland mitigation and banking, and about $8.6 million for the restoration and preservation of migratory bird habitats. It added it was not a party to the tree cutting by landowners.
"Completely contrary to NYSDEC's assertion, we provided detailed drawings and profiles for every stream crossing in New York, including showing depth of pipe," Constitution Pipeline Company said in a press statement. "In fact, all stream crossings were fully vetted with the NYSDEC throughout the review process. We are appalled with the comments that Constitution failed to provide sufficient data to ensure every crossing was totally in compliance with the NYSDEC guidelines."
The NYSDEC maintained that digging pipe trenches across streams can cause serious environmental harm, and said Constitution only fully evaluated 24 of the 251 streams for "trenchless" pipeline crossings.
Also last week, Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) said it was discontinuing its pursuit of the proposed Northeast Energy Direct [NED] Market natural gas pipeline, but for a very different reason than the issues confronting Constitution Pipeline. Kinder Morgan Chief Executive Officer Steve Kean said the company had placed the NED project on a "back burner" due to failure to gain enough contractual commitments. The project would have run through parts of New York, Pennsylvania, Massachusetts, New Hampshire and Connecticut.
For related information, see April 21, 2016, article - Kinder Morgan Ditches Two Key Pipeline Projects, Cuts Growth Backlog $4 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
