Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC
A disappointing setback for the much-needed Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. As you may recall, in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) decided not to grant (i.e. denied) the Constitution the permits it needs to cross creeks and swamps. That was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). Judge Norman Mordue of the Northern District of New York ruled last week that since NY has not officially denied the water crossing permits–simply not yet acted on them–there is no injury to the project. Even though the pipeline is losing money every day it doesn’t get built due to NY’s inaction. We fail to see how not acting on the permits over the long-term is any different from denying those same permits. It is a distinction without a difference in our book. But that’s what the judge ruled, granting the DEC’s motion to dismiss the case. The thread of hope that remains for the project is another case in which Williams (the builder of the Constitution) filed in an appeals court. Williams is maintaining the second case will go in their favor and when it does, construction is not far behind…
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Sometimes this regulatory stuff gives us a headache. Like today. A common practice by anti-fossil fuel nutters when opposing a pipeline project at the Federal Energy Regulatory Commission (FERC) is to request a “re-hearing” on a decision FERC has made to authorize a project. It’s just standard operating procedure. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order”–which grants FERC more time to consider whether or not a full re-hearing is justified. During the time of the tolling order (which can last up to six months), work on a pipeline continues. Sometimes the work even gets completed! Which of course drives the antis bonkers. Antis claim FERC uses tolling orders to avoid lawsuits. You see, antis can’t take their frivolous cases to a court until FERC has officially denied a re-hearing request. So by using a tolling order, FERC can drag out the process of deciding to deny a re-hearing, avoiding the inevitable frivolous lawsuit that comes with it, and work on important projects gets done. This is how things must operate in our litigious society that tolerates the antics of anti-fossil fuelers (with seemingly bottomless pockets of money to litigate every project). New wrinkle: When FERC Commissioner Norman “cry baby” Bay resigned in a huff effective Feb. 3, it left FERC without enough Commissioners (without a quorum) to vote on tolling orders, re-hearing requests, etc. So on Feb. 3, before Bay left, the existing three Commissioners delegated their authority over re-hearings and tolling orders to FERC staffers–until a new Commissioner is appointed and sworn in. Antis against Atlantic Sunrise are using the delegated tolling order issue against FERC in their attempt to stop commencement of construction on Williams’ Atlantic Sunrise Pipeline project, claiming they are being deprived of their “due process”…
The Federal Energy Regulatory Commission (FERC) approved Atlantic Sunrise in early February (see
Ding dong–Lush is calling. A British cosmetics company (think UK version of Avon), looking to get bought-and-paid-for publicity here in the states, has donated $22,000 to the anti-Atlantic Sunrise Pipeline group, Lancaster Against Pipelines (LAP). Anti-drilling losers like those in LAP would flare out if not for the backing of companies and Big Green groups with deep pockets. Which cosmetics company did the donating? The name is Lush. You’ve never heard of them and almost certainly have never purchased any of their forgettable products–which is why they donate money to groups like LAP, to get far more exposure than advertising can buy. There’s enough nutjobs out there that will buy products from companies like Lush to make “donating” money for “causes” to these groups a profitable venture. Another funder of LAP? The Universal Unitarian Church in Lancaster, which forked over $5,000 of parishioner contributions to LAP. Hello IRS! Will you please investigate the non-profit Universal Unitarian Church for giving money to an overtly political cause? Who else is donating money to the small group of LAP rabble-rousers?…
You may recall that in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists once again and block the building of the federally-approved Constitution Pipeline (see
An interesting article in the Harrisburg Patriot-News looks (favorably) at a trouble-making anti from Lancaster County, PA who participated in the illegal activities at Standing Rock, ND. He earnestly hopes he can attract that kind of disruption and mayhem to peaceful Amish Country in an attempt to stop the Transco Atlantic Sunrise Pipeline project from getting built. But just like Standing Rock, this effort will fail. What we found interesting is that this is an open admission of something we’ve been reporting (warning about) for months–that some of the miscreants from North Dakota are targeting the Marcellus/Utica for their next round of anarchy. There’s nothing “peaceful” about what these people do…
There’s always a few holdouts, no matter how hard you try to be reasonable. We’re talking about landowners who refuse to negotiate in good faith with pipeline companies. Earlier this month amidst a flurry of activity, the Federal Energy Regulatory Commission (FERC) handed Williams a final final final approval for its Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County (see
As we reported last week, a small group of anti-fossil fuelers were planning on grabbing their sleeping bags and heading to Amish country for a sleepover at the Magic Tree House (see
You beg and plead and beg and plead. You come with your hat in your hand. You try to explain that no, the pipeline isn’t going to avoid your property, Mr. or Ms. Landowner. But some landowners refuse to negotiate. So the last resort option must be exercised. That’s the situation with Williams’ Atlantic Sunrise Pipeline in several counties in Pennsylvania–including Lancaster, Lebanon, Columbia, Northumberland and Schuylkill. The Federal Energy Regulatory Commission (FERC) issued a final certificate for Atlantic Sunrise, allowing construction to begin, just two weeks ago today (see
Williams released its fourth quarter and full year 2016 update yesterday. CEO Alan Armstrong reports “strong” 8% year-over-year growth for the company. Williams operates nationwide, but our primary area of interest is, of course, the northeast. The company reports the northeast operation’s EBITDA (earnings before interest, tax, depreciation and amortization) was $840 million in 2016, up from $753 million in 2015 (an 11.5% increase). Below is the update, along with the latest PowerPoint slide deck used on an analyst call, and the latest Williams “Data Book,” loaded with lots of great details about their various pipeline systems…
In the midstream (i.e. pipeline) world, it seems like nobody owns 100% of anything. Big midstream companies like Williams and Kinder Morgan (and others) are composed of subsidiaries and (sometimes) MLPs–master limited partnerships. And beyond the companies within companies (like a Russian nesting doll), often pieces of pipeline systems are co-owned with other companies, even competitors! In 2014 Williams bought out Access Midstream, the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see
Anti-fossil fuel protesters (some of them paid) will go on a camp-out in Amish country (Lancaster County, PA) beginning this Friday to protest the imminent start of construction for the Williams Atlantic Sunrise Pipeline project. The same group built themselves a magic tree house along the planned route of the pipeline (see