DC Court to Rehear Atlantic Sunrise Pipe Eminent Domain Decision

Here we go again. In August a three-judge panel from the U.S. Court of Appeals for the District of Columbia ruled that the Federal Energy Regulatory Commission (FERC) had the right to approve Williams’ Atlantic Sunrise Pipeline project, including the right to use eminent domain to build it before details are finalized over compensation to landowners (see DC Court Upholds FERC Authority in Approving Atlantic Sunrise Pipe). The Sierra Club and other Big Green groups, with endless mountains of money from people like Mike Bloomberg and Tom Steyer, kept pushing and finally convinced the entire DC Circuit (all of the judges, call “en banc”) to rehear and reconsider the case already decided by three of their number.
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In October, MDN reported that Williams had temporarily withdrawn three of four applications with the New Jersey Dept. of Environmental Protection (NJDEP) to build its Northeast Supply Enhancement (NESE) pipeline project to offshore Long Island (see
Williams, one of the largest midstream (pipeline) companies in the U.S., released its third quarter update yesterday. The company has major operations in the northeast, including the Marcellus (mainly) and the Utica. Williams is the operator of the mighty Transco pipeline system that carries a significant amount of Marcellus gas south. The company wants to build a new 23-mile pipeline to the New York City/Long Island region, called the Northeast Supply Enhancement (NESE) pipeline, which is currently being blocked by both New York and New Jersey. We have news from yesterday’s 3Q update on NESE, Transco and the Williams northeast PA gathering system.
Williams has temporarily withdrawn three of four applications with the New Jersey Dept. of Environmental Protection (NJDEP) to build its Northeast Supply Enhancement (NESE) pipeline project. Just last month NJDEP gave Williams an extra month with the permits (see
A recent editorial written by the editors of the Wall Street Journal begins with this superb sentence: “New York Governor Andrew Cuomo has a habit of bullying others to cover for and fix his policy blunders.” It goes on to rip Cuomo to shreds for his bullying of National Grid, forcing the company to add new natural gas customers against its wishes because come wintertime, they may not have enough gas to service all customers in the Greater New York City/Long Island region. Why a moratorium on new customers? Because Cuomo denied National Grid a pipeline to supply the gas they need–the Northeast Supply Enhancement (NESE) pipeline.
In April 2018 Williams filed a request with the Federal Energy Regulatory Commission (FERC) to expand capacity along the mighty Transco Pipeline to increase the amount of gas the pipeline can flow to the Mid-Atlantic and Southeastern U.S by 296,375 dekatherms (296 million cubic feet) per day (see
Did you know that building just two new compressor stations in Pennsylvania will bring the state an extra $100 million in economic activity and support 680 direct, indirect and induced jobs? We sure didn’t! Last week Williams filed a newly published study with the Federal Energy Regulatory Commission on the economic impact of their proposed Leidy South Expansion Project (full study embedded below). The study makes an irrefutable case for building the new compressor stations in Luzerne and Schuylkill counties.
In April, the D.C. Circuit Court of Appeals slapped down both New York and North Carolina regulators who tried to block three important Williams pipeline projects, all related to the mighty Transco Pipeline (see
New York City’s CBS affiliate WLNY Channel 2 recently got a sit-down interview with National Grid President John Bruckner to discuss the company’s moratorium on new gas hook-ups, to grill Bruckner on whether or not there really is a gas shortage in the region. Bruckner handled the adversarial interview well, telling the reporter that yes, there really is a shortage. Currently there is a shortage between supply and demand–to the tune of 10,000 homes. Bruckner said if there’s a serious cold snap this winter, Long Island and parts of NYC served by National Grid will experience a service outage–a natural gas blackout, if you will. It’s a scary prospect.
National Grid, the electric and natural gas utility company that serves part of New York City and all of Long Island, has been the target of a smear campaign by New York Gov. Cuomo, who ordered his Dept. of Environment Conservation (DEC) to reject the Williams Northeast Supply Enhancement (NESE) pipeline project in May (see
Here’s a cautionary tale for landowners who think they can go court-shopping on the other side of the country to settle their differences with pipelines that cross their land. Don’t do it. A Pennsylvania landowner in Schuylkill County, PA thought he could force Williams’ (Transco Pipeline) into arbitration to compensate him for allowing the Atlantic Sunrise pipeline crossing his land. Except the landowner filed for arbitration in California! Williams/Transco refused to participate in the arbitration since Cali has NOTHING to do with Pennsylvania when it comes to arbitrating compensation for eminent domain.
In New York State it’s not popular–frankly it’s not safe–if you’re a Democrat who opposes mob boss Andrew Cuomo for any reason/any issue. Yet six Long Island State Senators, all Democrats, are doing just that. The six sent a letter to Basil Seggos, who runs the Dept. of Environmental Conservation (DEC) and does whatever Cuomo tells him to do, asking Seggos to provisionally approve the Williams Northeast Supply Enhancement (NESE) pipeline project.
On Monday MDN brought you the news that NextEra Energy, largely a renewables company, has made the bold move of buying 39% of the Central Penn Line, otherwise known as Williams’ Atlantic Sunrise Pipeline project (see
Our friends at RBN Energy launched a new mini-series of blog posts delving into Marcellus/Utica gas processing and fractionation back in August. The first post in the series dealt with an overview of processing and fractionation in the wet gas region–meaning southwest PA, eastern OH, and the northern panhandle of WV (see
Two very important (perhaps we should say critically important) cases now sit before the U.S. Supreme Court–cases that have a direct bearing on the Marcellus/Utica region. Both cases deal with pipelines. The first case we’ve written about before: Dominion Energy’s Atlantic Coast Pipeline case to overturn a nutty decision by the U.S. Court of Appeals for the Fourth Circuit that judicially creates a new law that pipelines can’t cross under the Appalachian Trail without (no kidding) an Act of Congress. The other case involves the Hoopa Valley Indian Tribe in California–a case that has profound implications for the Constitution Pipeline from Pennsylvania into New York.