PennEast Pipeline Archives - RKR Hess

FERC Releases PennEast Pipeline Draft Impact Statement

Public comments are now open on the PennEast Pipeline Draft Environmental Impact Statement (DEIS), released in July and prepared by the Federal Energy Regulatory Commission (FERC) in cooperation with several other agencies.

The over 1,000-page DEIS examines the possible effects of the 119-mile pipeline, proposed to carry one billion cubic feet per day of natural gas between Pennsylvania and New Jersey.

“Approval of this project would result in some adverse environmental impacts; however, most of these impacts would be reduced to less-than-significant levels with the implementation of PennEast’s proposed mitigation and additional recommendations in the draft EIS,” the draft states.

The DEIS indicates that the environmental and visual impact of the pipeline would be “effectively minimized or mitigated” based on the project’s current plans. These impacts include disruption to five threatened or endangered animal and plant species located along the 119-mile stretch.

The DEIS concluded that the PennEast Pipeline would “contribute to a cumulative improvement in regional air quality if a portion of the natural gas associated with the project displaces the use of other more polluting fossil fuels.”

Opponents of the pipeline argue that mitigation throughout the project will not be enough to limit the pipeline’s potential damage to the environment.

In a news release addressing the DEIS, the Delaware Riverkeeper Network said, “For those who think that the issuance of this document and the FERC finding that mitigation is enough to address the immense and irreparable harms the PennEast Pipeline would inflict means the project is a done deal, that’s just not the case.”

Pennsylvania and New Jersey have yet to issue Clean Water Act certifications, and the project has not yet been approved by the Delaware River Basin Commission. However, the DEIS cited a November 2017 projected start date for the project, pending all necessary state and agency approvals.

Released on July 22, the draft’s public comments phase will close 45 days later on Sept. 5. That period includes six public comment meetings throughout Pennsylvania and New Jersey.

Comments about the DEIS are due to the FERC by September 5, 2016.  There are four ways to submit comments:

  1. For brief, text-only comments, use the eComment feature under the Documents and Filings link at the FERC website.
  2. For longer comments or comments that are in an electronic file, use the eFiling feature under the Documents and Filings link at the FERC website. (You must create an account to use the eFiling system.)
  3. Paper comments should be mailed to:Nathaniel J. Davis, Sr., Deputy Secretary
    Federal Energy Regulatory Commission
    888 First Street NE, Room 1A
    Washington, DC 20426
  4. Public comment meetings will be held to record oral comments. The meetings are scheduled as follows:
  • Monday, August 15, 2016
    6-10 p.m.
    Best Western Lehigh Valley Hotel & Conference Center
    300 Gateway Drive
    Bethlehem, PA 18017
  • Monday, August 15, 2016
    6-10 p.m.
    Penn’s Peak
    325 Maury Road
    Jim Thorpe, PA 18229
  • Tuesday, August 16, 2016
    6-10 p.m.
    Grand Colonial
    86 Route 173 West
    Hampton, NJ 08827
  • Tuesday, August 16, 2016
    6-10 p.m.
    Peddler’s Village
    (Lahaska and Neshaminy Rooms)
    Routes 202 & 263
    Lahaska, PA 19831
  • Wednesday, August 17, 2016
    6-10 p.m.
    Best Western Genetti Hotel & Conference Center
    77 E. Market Street
    Wilkes-Barre, PA 18701
  • Wednesday, August 17, 2016
    6-10 p.m.
    Clifford B. Memorial Hall
    1666 Pennington Road
    Ewing, NJ 08618

The Rewards and Risks of Natural Gas Pipelines

A possible 4,800 feet of natural gas pipeline from Delmont, Pa., to Lambertville, N.J., could be completed as early as 2018, according to the Energy Information Administration. The new pipeline would add to the area’s existing 6,800 feet of pipeline completed prior to 2014.  But the benefits and risks of natural gas pipelines are still being weighed against each other as advocates and opponents of the project battle it out in courts of law and the court of public opinion.

In 2005, horizontal drilling and hydraulic fracturing methods made it possible to capture natural gas from shale. Less than a decade later, in 2014 Pennsylvania became the second-largest natural gas supplier in the country according to the Pennsylvania Department of Environmental Protection (DEP).

An analysis by Argonne National Laboratory in 2010 indicated that natural gas is the “cleanest burning commercially available alternative fuel,” and the potential impact of a natural gas market is fueled by regional large companies with reliable energy needs. Today, the rate of drilling has surpassed the infrastructure in place to transport natural gas to the market. The DEP estimates that approximately 30 percent of the wells drilled for natural gas have no means for the gas to reach consumers.

In Pennsylvania, the proposed 118-mile PennEast Pipeline would transport that natural gas and serve two states. A study released by the Greater Philadelphia Chamber of Commerce noted that increased demand in the Philadelphia region, combined with an excess natural gas supply, presents the opportunity for Pennsylvania to become an important East Coast energy hub. The study cited the potential impact the Marcellus Shale industry could have on economic revitalization in the region.

Currently, no single federal or state agency has oversight of pipeline infrastructure.  In 2011, the Public Utility Commission was given the legal authority to conduct safety inspections, but only for pipelines in populated areas (i.e., Class 2, 3, and 4 pipelines).  In 2015, Pennsylvania Governor Tom Wolf created a Pipeline Infrastructure Task Force that held several public meetings. Recommendations from the task force included creating long-term operations and maintenance plans, reducing environmental impact in construction phases, and creating an atmosphere that maximizes the efficiency of permits and reviews. A final report, filed in February by the Pipeline Infrastructure Taskforce, recommended that the next steps include assessing which regulations recommended in the report fall under the state’s jurisdiction.

Safety concerns have become a reality. In May 2016, a natural gas explosion severely burned one person in Salem Township, Pa., and blew a hole 1,500-square-feet in diameter 12 feet deep into the ground. The resulting fire burned approximately 40 acres, according to NPR’s State Impact. The Pipeline Hazardous Materials Safety Association issued a corrective order following the incident, citing possible corrosion on the pipeline, which “indicates a possible flaw in the coating material.” Spectra Energy, the company that owns the pipeline, stated that a 2012 inspection revealed no such flaws.

In response to growing safety and land-use concerns, the Delaware River Basin Commission (DRBC) is conducting multiple public hearings in Pennsylvania and New Jersey during its technical review of the PennEast plan. The DRBC is a regional body with the goal to oversee management of the Delaware River system across state boundaries. No meetings are scheduled during 2016, but future meeting schedules will be available on the DRBC website.

New regulations and long-term plans are still under review with both regulatory bodies and legislators. In June, the Pennsylvania House Environmental Resources and Energy Committee approved an amendment to exclude conventional drilling companies from proposed regulations for the Marcellus Shale industry, citing differences between how the two methods of extraction operate.  A spokesman for Governor Wolf declined to indicate whether or not the Governor approved of the amendment, and instead expressed the intention to continue working with the legislature on regulations for the oil and gas industry.

Application Submitted for PennEast Pipeline to Proceed With Construction

An application to construct a 118-mile pipeline that will carry natural gas between Pennsylvania and New Jersey was submitted to the Federal Energy Regulatory Commission (FERC) in September by PennEast Pipeline Company, LLC (FERC Docket #CP15-558) The proposed pipeline would transport gas from Luzerne County, Pennsylvania, to other pipelines near Trenton, New Jersey.

An interactive map of the proposed route is available online from PennEast Pipeline. Because the pipeline, which will transport Marcellus Shale gas, will serve two states, the federal government maintains regulatory authority over its construction. The pipeline will be 36 inches in diameter and run underground. According to a PennEast Pipeline Company news release, the pipeline is expected to deliver approximately 1 billion cubic feet of natural gas per day. If approved, construction could begin in 2017.

The PennEast Pipeline Company, headquartered in Wyomissing, Pennsylvania, is comprised of several pipeline and energy companies, including PSEG Power LLC, SJI Midstream, Spectra Energy Partners, AGL Resources, NJR Pipeline Company, and UGI Energy Services. UGI serves as the project manager for the effort and would be the operator of the pipeline once it is completed. The project is publicly supported by organizations such as the New Jersey Chamber of Commerce, the New Jersey Business and Industry Association, and the Pennsylvania Manufacturers Association.

A study by Econsult Solutions and Drexel University concluded that construction of the pipeline would result in approximately $890 million in direct expenditures and approximately $730 million in indirect and induced economic impacts (a total of approximately $1.62 billion in overall economic impact). According to that study, construction of the pipeline is expected to support more than 12,000 jobs. The same study projected annual recurring economic impacts of approximately $23 million, including support for approximately 98 jobs.

Another study, by Concentric Energy Advisors, examined the theoretical effect of the proposed pipeline if it had been in service during the winter of 2013/2014. This period was selected because the cost of natural gas reached record pricing and was extremely volatile. The study concluded that if an additional 1 billion cubic feet per day of natural gas had been available at the time, ratepayers in eastern Pennsylvania and New Jersey could have saved $893 million.

Opposition to the pipeline alleges that its construction will not reduce the cost of energy because it is believed the natural gas will be exported instead of used domestically and the plan to cut through 4,000 acres of preserved open space and farmland is being questioned. According to NPR’s StateImpact, in some cases local landowners may be asked to lease their property to house the pipeline underground. In many cases, these landowners have not yet granted access to surveyors. According to the New Jersey Sierra Club, the project crosses 88 waterways, 44 wetlands, 33 farms, and the Delaware River. The Concerned Citizens Against the Pipeline documents more than 25 municipalities, townships, or counties where resolutions in opposition to the pipeline have been introduced.

Approximately 1,440 people or organizations have registered as interveners with the FERC. Registration provides the opportunity to present evidence for or against the pipeline and provides standing to appeal the FERC’s decision in federal court. Public comments to date about the PennEast pipeline are made available online by the FERC. An additional opportunity for public comment will occur once a draft Environmental Impact Statement is completed.