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Houston —
PennEast Pipeline asked the Federal Energy Regulatory Commission for a two-year extension to put its federally approved 1.1 Bcf/d natural gas pipeline project in service after difficulties in obtaining permits and right of way in New Jersey and Pennsylvania.
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PennEast, backed by affiliates of Enbridge, Southern Company, New Jersey Resources, South Jersey Industries and UGI, sought a new deadline of January 19, 2022, in a request Monday. FERC issued Natural Gas Act certificates for the pipeline project January 19, 2018, and required the developer to put the pipeline in service by January 19, 2020.
"As the commission has explained, good cause [for an extension] can be shown by a project sponsor demonstrating that it has made good faith efforts to meet its deadline, but has encountered unforeseeable circumstances, such as difficulties in obtaining permits," PennEast told FERC.
One of the largest obstacles is a decision by the US Court of Appeals for the 3rd Circuit that not only limited pipeline companies' ability to use eminent domain to obtain right of way on lands in which a state holds an interest, but complicated PennEast's application for a Clean Water Act permit from New Jersey. Based on the court decision, the New Jersey Department of Environmental Protection denied the application.
"PennEast continues to diligently pursue all available legal remedies in an effort to obtain the individual permit," including a planned petition to the US Supreme Court for review of the 3rd Circuit opinion, the company told FERC.
For the part of the project in Pennsylvania, PennEast said it is working with the state and the US Army Corps of Engineers on permits and authorizations under the National Historic Preservation Act, the Rivers and Harbors Act, and the Clean Water Act. The pipeline would carry gas from the Marcellus Shale in Pennsylvania to East Coast markets and pipeline connections.
The pipeline company said it is committed to placing the approximately $1 billion project in service "as soon as possible" (CP15-558, CP19-78).
-- Sean Sullivan, S P Global Market Intelligence, newsdesk@spglobal.com
-- Edited by Bill Montgomery, newsdesk@spglobal.com
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