Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline
It appears the PA Supreme Court’s ill-fated decision to toss out zoning provisions in the Act 13 drilling law is now affecting more than just drilling. Sunoco Logistics is trying to build a new natural gas liquids (NGL) pipeline that spans the state–running from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). MDN reported in January that Sunoco Logistics has a lot riding on a court case in Washington County, PA because they are attempting to use eminent domain to force some landowners to allow the pipeline across their property (see PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case).
We now throw in a new wrinkle for Sunoco Logistics and the Mariner East NGL pipeline: Sunoco Logistics has made a request to the state Public Utility Commission (PUC) to exempt the pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline. Based on the PA Supreme Court decision in December, two Philadelphia state senators say Sunoco Logistics does not have the right to be exempted from local zoning…
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Sunoco Logistics–and for that matter, MarkWest–have a lot riding on a single court case in Washington County, PA. It might be a bit melodramatic to say the future of the Mariner East NGL (natural gas liquids) pipeline hangs in the balance, but it certainly is not inaccurate to say the case could cause an extended delay–if it goes the “wrong” way (for Sunoco). What’s the case about?
Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see