Peregrine Pipeline Withdraws Public Utility Application

Peregrine Keystone Gas Pipeline had planned to construct a gathering pipeline in Greene, Fayette and Washington counties in western PA. They filed an application with the PA Public Utility Commission (PUC) in 2010 to become a public utility which would grant them the right to use eminent domain to force landowners to allow them to build a pipeline across their property.

Last month an administrative law judge ruled against Peregrine’s application, and on June 8 Peregrine withdrew the application. Although they believe they have a strong case, with the low price of natural gas and the high likelihood of an extended court battle, Peregrine has given up on public utility status.

PUC Administrative Law Judge Susan D. Colwell had recommended denial of the application in a decision issued last month, saying the company failed to meet standards for certification as a public utility. The company filed a petition to withdraw with the PUC June 8.

Reduced natural gas activity was one of the reasons the company withdrew its application, said Loren Fuller, vice president of operations for Peregrine Keystone.

The company also didn’t believe litigation that would likely result from continuing the process would be "worth the effort," he said.

The company continues to believe it is on the "right side of the law" and would prevail with its application; however, because of the number of parties against the proposal, litigation would likely result, Fuller said.*

*Washington (PA) Observer-Reporter (Jun 14, 2012) – Pipeline company ends bid to become a utility