Written
by Chloe Marie – Research Fellow
The
Atlantic Sunrise pipeline is an expansion project to the existing Transco
system pipeline, which consists of a 10,200 miles mainline pipeline that
transports natural gas from Corpus Christi in southern Texas to New York City.
The Atlantic Sunrise project would entail the construction of a new 183 mile pipeline
divided in two segments – the Central Penn Line North extending from
Susquehanna County and crossing Wyoming and Luzerne Counties to the existing
Transco pipeline in Columbia County, and the Central Penn Line South starting
from the Transco pipeline in Columbia County and going through Northumberland,
Schuylkill and Lebanon Counties to Lancaster County. This project also includes
the addition of 12 miles of pipeline looping (Chapman loop, Unity loop), two
new compressor facilities and the replacement of existing pipelines in
Pennsylvania as well as addition and modification projects to facilities in the
states of Maryland, Virginia, North Carolina and South Carolina.
This
article will review the timelines of actions taken by FERC and Pennsylvania DEP
related to the construction and operation of the Atlantic Sunrise Project. This
article also will address the eminent domain issue that has been litigated
before the U.S. District Court for the Eastern District of Pennsylvania.
FERC process timeline
Transcontinental
Gas Pipeline Company, LLC initiated a pre-filing process with the Federal
Energy Regulatory Commission (FERC) for the Atlantic Sunrise project in March 2014
and later filed an application for a Certificate of Public Convenience and
Necessity under Section 7(c) of the Natural Gas Act on March 31, 2015. Transco
Company stated in its application that the Atlantic Sunrise project would have
the capacity to transport approximately 1,700,002 dekatherms per day of natural
gas to Southeastern and Eastern U.S. markets and requested approval from FERC
by April 29, 2016.
In
December 2016, FERC issued a Final
Environmental Impact Statement for the project and declared that “environmental
impacts would be reduced to ‘less than significant levels’ with the
implementation of mitigation measures proposed by the company and FERC.” On
February 3, 2017, FERC issued an order
granting authorization to construct and operate the Atlantic Sunrise Project in
Pennsylvania, Maryland, Virginia, North Carolina, and South Carolina.
Eminent domain process
timeline
On
February 15, 2017, following the FERC order approving the construction of the
pipeline project, Transcontinental Gas Pipeline Company, LLC filed a complaint
in condemnation before the U.S. District Court for the Eastern District of
Pennsylvania against several landowners residing in Lancaster County,
Pennsylvania in order to obtain the necessary rights-of-way to construct and
operate the Atlantic Sunrise pipeline project (see docket no. 5:17-cv-00715). The company explained that even
though it offered to acquire the rights-of-way at a price “higher than the
Appraised value,” landowners refused to enter into an agreement despite the
FERC order.
On
February 20, 2017, Transco Company filed a Motion for Partial Summary Judgment
arguing that it should be granted an order of condemnation because it has the
substantive right to condemn under the Natural Gas Act, because it has not been
able to acquire the property necessary for the FERC-approved project, and because
it offered at least $3,000 for the rights-of-way.
On
the same day, Transco also filed an Omnibus Motion for Preliminary Injunction
seeking immediate possession of the rights-of-way. Transco Company recalled
that the FERC concluded that the project “has been designed to minimize impacts
on landowners and the surrounding communities,” and alleged that retention of
the necessary rights-of-way would substantially jeopardize the completion of
the pipeline project causing irreparable harm to Transco while the landowners’ harm
could be compensated with money easily. In addition, Transco Company stated
that “granting possession by March 20, 2017 is in public interest, because the
Project will provide Transco’s customers and the markets they serve with
greatly enhanced access to Marcellus Shale natural gas supplies, support the
overall reliability and diversification of energy infrastructure along the
Atlantic seaboard and points south, and meet the anticipated increase in market
demands for natural gas consumption.”
On
April 6, 2017, the U.S. District Court denied Transco’s Omnibus Motion for
Preliminary Injunction but provided to the company limited access to the
properties in order to complete the needed surveys pursuant to Pa. Cons. Stat §
309. Interestingly, Transco Company filed another Omnibus Motion for
Preliminary Injunction on June 28, 2017, to obtain possession of the rights-of-way
by August 18, 2017. On August 23, 2017, the U.S. District Court granted Transco
Company’s Motion for Partial Summary Judgment as well as its Omnibus Motion for
Preliminary Injunction and ordered condemnation of the properties at issue.
DEP process timeline
The
Pennsylvania Department of Environmental Protection (PA DEP) issued in April 2016 a
Water Quality Certification pursuant to Section 401 of the Clean Water Act for
the project as long as Transcontinental Gas Pipeline Company, LLC obtained
appropriate environmental permits.
On
July 14, 2017, Transco Company submitted a Plan Approval application
to DEP for proposed transfer of nitrogen emission reduction credits (ERCs) in
order to comply with 25 Pa. Code Chapter 127
and offset emissions from the construction activities of the Atlantic Sunrise
Project pipeline.
On
August 30, 2017, Transco Company received the Chapter 105, Water Obstruction
and Encroachment permits as well as the Chapter 102 Erosion and Sediment
Control permit from DEP for the Atlantic Sunrise project. In the Press Release
announcing those permit approval, PA DEP stated that “the permits were issued
with strict special conditions designed to ensure the strongest possible
protections for streams and wetlands, as well as additional stipulations for
landowners with private drinking water wells.”
Recently,
on September 8, 2017, PA DEP announced that it issued
an Air Quality Plan Approval for air emissions related to the construction of
the Atlantic Sunrise Pipeline Project. DEP Secretary Patrick McDonnell declared
that “DEP thoroughly reviewed the application to ensure that temporary
emissions during the construction phase of this project will be minimal and
completely offset by reductions elsewhere.” The Air Quality Plan
authorizes “the transfer and use of 106 tons of NOx ERCs for offset purposes
from the Northeast Maryland Waste Disposal Authority.”
Transco
Company proposed an in-service date in mid-2018 and should begin “preliminary construction
within a few weeks,” according to the Lancaster Online media report.
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