Constitution Pipeline Challenges Decision by New York State to Block Federally Approved Pipeline
May 16 2016 - 4:15PM
Business Wire
- NYSDEC decision blocks millions of New
York and New England consumers from lower cost energy
- Thousands of New York jobs delayed and
threatened by the decision
- State and regional leaders say decision
impacts economic development, school funding
- Decision slows U.S. transition from
coal to natural gas; Slows carbon reductions and adoption of more
renewable resources
Constitution Pipeline Company, LLC today announced that it has
appealed the New York State Department of Environmental
Conservation’s (NYSDEC) refusal to grant the company’s request for
a Section 401 Water Quality Certification under the Clean Water
Act. The appeal was filed with the United States Circuit Court of
Appeals for the Second Circuit and contends, among other things,
that the refusal is arbitrary and capricious and constitutes an
impermissible challenge to the Federal Energy Regulatory
Commission’s Certificate of Public Convenience and Necessity which
was issued to the company in December 2014.
Also today, the company filed an action with the U.S. District
Court for the Northern District of New York seeking a declaration
that the State of New York’s authority to exercise permitting
jurisdiction over certain other environmental matters is preempted
by federal law.
“Upon its review of the evidence, we believe the court will
agree that this permit denial was arbitrary and unjustified and
improperly relies on the same failed arguments that the NYSDEC made
during the FERC certificate proceeding regarding the pipeline route
and stream crossings. The NYSDEC’s allegation that it did not
receive the necessary information is inaccurate as demonstrated by
extensive and comprehensive technical materials submitted by
Constitution for the record. We believe this allegation was
intended to distract stakeholders from the application of a fair
technical and regulatory review of the merits of Constitution’s
application for a water quality certification. We are ultimately
seeking to have the court overturn this veiled attempt by the state
to usurp the federal government’s authority and essentially 'veto'
a FERC-certificated energy infrastructure project,” the project
sponsors said in a joint statement.
The project sponsors continued, “We would like to express our
appreciation to the many project supporters in New York who have
expressed disappointment in the state’s decision, which blocks
millions of northeastern consumers from accessing lower-cost energy
while ultimately slowing the region’s capabilities in transitioning
from coal and fuel oil to natural gas, as well as its ability to
integrate more renewable energy sources into its power
portfolio.”
To see what others are saying about the state’s decision, visit
www.constitutionpipeline.com.
Denial of the 401 Water Quality Certification by NYSDEC further
delays the potential for Constitution Pipeline to help facilitate
local natural gas service to homes and businesses in Southern New
York by Leatherstocking Gas Company, LLC.
The permit denial will also delay about 2,400 direct and
indirect jobs that would be created during pipeline construction,
generating $130 million in labor income for the region. The
decision could also cost local governments approximately $13
million in annual property tax revenue.
The Federal Energy Regulatory Commission on Dec. 2, 2014 issued
its certificate of public convenience and necessity for the
Constitution Pipeline. In its final environmental review of the
proposed Constitution Pipeline, FERC concluded that environmental
impacts would be reduced to “less than significant levels” with the
implementation of proposed mitigation measures by the company and
recommendations by FERC.
Constitution Pipeline Company
Constitution Pipeline Company, LLC is owned by subsidiaries of
Williams Partners L.P. (NYSE:WPZ), Cabot Oil & Gas Corporation
(NYSE:COG), Piedmont Natural Gas Company, Inc. (NYSE:PNY), and WGL
Holdings, Inc. (NYSE:WGL). The 125-mile pipeline project is
proposed to connect domestic natural gas production in northeastern
Pennsylvania with northeastern markets during the second half of
2017. Additional information about the Constitution Pipeline can be
found at www.constitutionpipeline.com.
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual reports filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20160516006544/en/
for Constitution Pipeline Company, LLCChris Stockton,
713-215-2010christopher.l.stockton@williams.com
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