By Brian Pedersen, April 11, 2016 at 8:00 AM
Lehigh Valley Business
The start of construction on a major natural gas pipeline through eastern Pennsylvania may be facing a lengthy delay, but such a disruption is par for the course.
That’s according to an official from PennEast Pipeline, which received news that the federal agency that reviews natural gas pipeline projects has delayed its review and approval of PennEast Pipeline by at least seven months.
The Federal Energy Regulatory Commission released the revised timeline for PennEast Pipeline Co. LLC of Wyomissing, which wants to build a 118-mile pipeline to transport natural gas produced in a Marcellus shale region of northeastern Pennsylvania into New Jersey – by way of the Greater Lehigh Valley.
In its application to FERC on Sept. 24, PennEast originally requested that the agency grant approval for the nearly $1 billion project by this Aug. 1, which would allow PennEast to start construction in March 2017. However, in FERC’s revised schedule, the date for the completion of the environmental impact statement is expected to be Dec. 16, with a final decision by March 16, 2017.
A PennEast official described the event as a key milestone for the project.
“PennEast was optimistic for its initial timeframe,” said Patricia Kornick, spokeswoman for PennEast. “They are also cognizant of the numerous variables that can affect major infrastructure projects.”
PennEast revised its timeline for the pipeline to be operational in the second half of 2018 rather than in 2017, Kornick said.
She described the delay as part of the process for such a large infrastructure project.
According to the leader of an organization opposed to the project, the timeline is delayed because PennEast failed to provide information that FERC requested, such as impacts the pipeline would bring to public resources, such as nearby water wells, and analysis of how historic sites and streams along the pipeline’s path could be affected.
“To me, this is the first sign that PennEast has real problems,” said Tom Gilbert, campaign director for ReThink Energy NJ and New Jersey Conservation Foundation, a nonprofit in Stockton, N.J. “They are going to be fought every step of the way, which will lead to further delays, and it will ultimately be derailed.
“They are at least seven months behind schedule. In all likelihood, even more.”
In New Jersey, property owners have denied PennEast access to survey their land on at least 70 percent of the proposed route, which is further delaying PennEast’s progress, Gilbert said.
“That opposition is not going to go away; if anything, it’s intensifying,” he said.
Gilbert said he is hoping FERC will suspend its review of the project until PennEast can provide the required data.
Kornick refuted these claims by stating that the delay was the not the result of PennEast omitting data.
“This is part of the process, contrary to the wishful thinking of those opposed to natural gas development,” Kornick said. “We are very eager to proceed through the process. PennEast is looking to continue to build the relationship with landowners.”
While a FERC application grants PennEast the option of using eminent domain to acquire a right of way for properties in the pipeline path, it would be “absolutely a last resort option,” Kornick said.
In October, PennEast began working with the landowners whose properties might be affected and began presenting them with initial easement offers, Kornick said.
Mary O’Driscoll, spokeswoman for FERC, said agency policy is not to comment on matters pending a decision by the commission. She confirmed the revised schedule is the first announcement posted by staff on its review of the project.
In the notice, FERC staff identifies Dec. 16 as the date it intends to complete the final environmental impact statement.
The notice also requests that other agencies issuing federal authorizations complete their reviews in order to reach a final decision by March 16, 2017.
This deadline is requested for agencies that include the U.S. Environmental Protection Agency for Clean Air Act certification and the U.S. Army Corps of Engineers for Clean Water Act certification.