Atlantic Coast Pipe Gets Ready to Build: Union Help, Eminent Domain
We have a couple of important signs that Dominion and Duke Energy, the main sponsors of the Atlantic Coast Pipeline, are getting ready to begin building the pipeline. Atlantic Coast Pipeline is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Years after the project filed with the Federal Energy Regulatory Commission (FERC), it was finally approved by FERC in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In November, the U.S. Forest Service granted its blessing for the pipeline to traverse small portions of two national forests (see USFS Approves Atlantic Coast Pipeline Thru 2 National Forests). Although some of the state water crossing permits are still an issue, it’s a pretty much foregone conclusion WV, VA and NC will not hold up construction of this important project. An announcement from Dominion on Friday to say the company has cut deals with four labor unions for workers, and a story in NC about the pipeline being forced to use eminent domain proceedings with some holdout landowners, combine to paint the picture that this project will soon begin construction…
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On Wednesday the West Virginia Department of Environmental Protection (WVDEP) “waived” the state’s authority under the federal Clean Water Act to determine if Atlantic Coast Pipeline (ACP) will harm rivers and streams, instead deferring to the US Army Corps of Engineers’ (USACE) Nationwide permit. The USACE Nationwide permit has the same exact standards as found in the WV version–so there’s no need to duplicate the paperwork. This is not the first time WVDEP has deferred to the USACE’s permit. They did the same exact thing with a water crossing permit for the Mountain Valley Pipeline project in November (see
Atlantic Coast Pipeline is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The project will be built by Dominion Energy (lead) and Duke Energy (important partner). Years after the project filed with the Federal Energy Regulatory Commission (FERC), it was finally approved by FERC in October (see
Dominion announced yesterday it has introduced “feed gas” into it’s new $4 billion LNG export plant in Cove Point, Maryland. Feed gas is used for testing purposes and is the final step before the plant goes online into full production later this month. Dominion said the feed gas will come from Shell, and Shell will take delivery of the LNG that results. Following the test, Marcellus/Utica gas will begin flowing to the plant and the LNG produced will begin shipping to Japan and India. We are on the cusp of something we’ve waited for, cheered for, and agonized over for more than three years. Think of the Shell’s feed gas as the dress rehearsal the night before a play opens…
North Carolina has a Democrat governor. The state Dept. of Environmental Quality (DEQ) is an executive branch agency. So it’s no surprise to learn that the DEQ has turned antagonistic toward Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. In October the DEQ rejected the plan submitted by Dominion for the pipeline project, claiming the erosion and sediment control plan is not up to snuff (see
In January 2016 the Obama U.S. Forest Service (USFS) turned down a request from Dominion’s $5 billion Atlantic Coast Pipeline (ACP) project from West Virginia through Virginia and into North Carolina, to pass through two different national forests (see
We find it particularly offensive when a liberal/leftist group, like the National Association for the Advancement of [Liberal] Colored People, or NAACP, declares a pipeline project to be racist. The far-left organization made the outrageous claim, in a report they issued yesterday called “Fumes Across the Fence-Line: The Health Impacts of Air Pollution from Oil and Gas Facilities on African American Communities” (full copy below), that Dominion’s $5 billion 594-mile Atlantic Coast Pipeline (ACP) will force black people in low income communities in eastern North Carolina to bear “more than their fair share” of the so-called “risks” posed by the pipeline. ACP is a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The Federal Energy Regulatory Commission (FERC) issued a final approval for ACP in October (see
No doubt being advised and funded by national Big Green groups, a group of backbencher local green groups (Little Green) have taken the first step in what will no doubt turn into a lawsuit to try and stop the Atlantic Coast Pipeline project from getting built. The Federal Energy Regulatory Commission (FERC) approved Atlantic Coast, a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, in October (see
Yesterday midstream and utility giant Dominion Energy issued their third quarter 2017 update. During an analyst phone call, Dominion CEO Thomas Farrell shared some great news regarding both the Cove Point LNG export facility and Atlantic Coast Pipeline (ACP). Farrell said Cove Point will “begin generating LNG” in November, “conclude commissioning” in December and be fully operational by the end of this year. Fantastic! In response to a question by an analyst about Atlantic Coast Pipeline, Farrell said he expects water permits from West Virginia, North Carolina and Virginia will all be issued by the middle of December. Again, fantastic! These two projects are HUGE with respect to the future of the Marcellus/Utica region. Christmas has come early this year. 🙂 Below is yesterday’s 3Q17 update for Dominion, along with the latest slide deck and select comments pulled from the analyst phone call…
We’d call this a case of Atlantic Coast Pipeline (ACP) and Mountain Valley Pipeline (MVP) getting taken to the (pipe) cleaners. The anti-fossil fuel (and far-left) Virginia Outdoors Foundation (VOF) warned both Atlantic Coast and Mountain Valley, years ago, that land the non-profit previously tied up with non-development easements is off limits for their respective pipeline projects. So-called “open space” organizations like VOF get private landowners to sell them easements to their properties–the right to disallow any kind of development on the land, no matter who buys it in the future. But sometimes “no development” doesn’t actually mean “no development”–it’s just a bargaining position. The VOF has just cut a deal to allow ACP and MVP to cross a cumulative 53 acres of land, land with no-development easements, in exchange for adding 1,130 acres in other places to the their no-development easement stash. Oh, and $4,075,000 in cash for VOF’s coffers will be chipped in too. A true shake-down by shake-down artists, all to stick a couple of pipelines in the ground for a few hundred feet where nothing will get built over top of them anyway…
Great news delivered late Friday afternoon: The Federal Energy Regulatory Commission (FERC) issued final, full approvals for both the Atlantic Coast and Mountain Valley pipeline projects. Atlantic Coast is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Mountain Valley is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. Both projects still face an uphill battle before they get built. The North Carolina Dept. of Environmental Quality (DEQ) issued a rejection letter for Atlantic Coast last week (see
North Carolina has become the first state to complete an environmental evaluation for Dominion’s proposed $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. ACP is slated to run through eight NC counties. After completing it’s evaluation, the NC Dept. of Environmental Quality (DEQ) issued a rejection letter (copy below) for the project. The reason? The DEQ says the erosion and sediment control plan for the project is not up to scratch. Dominion can now do two things: Revise the erosion and sediment control plan and resubmit it, or contest the DEQ’s rejection of the existing plan. Although antis are rejoicing at the news, there really isn’t much here in the way of news. This is not uncommon in pipeline reviews. A government agency (federal or state) will push back on some aspect of the plan, the project builder will modify the plan, and the modified plan will pass muster and life goes on. That’s the way it works. The DEQ is (presumably) doing it’s job and not simply looking for an excuse to reject the project. We’ll give them the benefit of the doubt–this time. Although we’ve not read that Dominion has responded to the rejection, another partner in the project, Duke Energy, has responded–saying they will provide the necessary information the DEQ says is missing in the original plan…
The deep pockets of the radical Big Green group, the Sierra Club, continue to vex the oil and gas industry. The Sierra Club is involved in so many lawsuits against our industry, you literally need a score card to keep track. Three of the cases the Clubbers have on deck come before the D.C. Circuit Court of Appeals in two weeks–on Oct. 18th. The three cases involve Federal Energy Regulatory Commission (FERC) approved LNG export projects. One of the three is Dominion’s Cove Point project, which is due to export its first shipment this month or next (see
In July, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. At least, we *thought* the pipeline would end in North Carolina–at Lumberton. However, Dominion vice president and general manager for Southern pipeline operations, Dan Weekley, seems to have spilled the beans at an industry conference that Dominion has designs on extending Atlantic Coast beyond North Carolina–into South Carolina. He said “everybody knows” that Atlantic Coast is not going to stop in Lumberton, “despite” what current plans say. It was just two months ago that FERC issued a final, favorable environmental impact statement for the project–a project that terminates in NC (see 
We spotted an article that says clergy and lay people from the United Church of Christ in Robeson County, North Carolina will hold a prayer vigil today. A liberal pastor has decided to show up at the state Department of Environmental Quality (DEQ) to pray against approval for Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The DEQ is scheduled to announce a decision about granting the project a necessary permit, at a meeting on Sept. 19th. Which got us to thinking. Perhaps we should pray for the pastor and lay people who will show up to pray today. Here’s our prayer…