MVP asks US FERC to lift hold to maximize progress on gas pipeline before winter

Washington — After regaining a key endangered species authorization, Mountain Valley Pipeline asked the US Federal Energy Regulatory Commission to lift a major stop-work order that has delayed construction of the final portions of the 303-mile, 2 Bcf/d natural gas pipeline.

The EQM Midstream Partners' project would connect Appalachian Shale gasto Mid-Atlanticdemand centers. It has been stalled in its latter stages due to litigation and permitting hurdles.

MVP has said it aims to complete the project by early 2021, and asserts that work is 92% complete with 256 miles of pipe in the ground and 155 miles of final restoration carried out.

On Sept. 22, it asked FERC to lift its hold by Sept. 25 to maximize restoration and construction before the onset of winter.

"By returning to work, [MVP] will be able to put additional portions of the project into final restoration, which benefits the environment and affected landowners," MVP told FERC.

ClearView Energy Partners said in a note to clients it expects FERC to grant MVP's request, but that it also expects some stakeholders to oppose that effort.

The project's recent request for a two-year extension of its FERC certificate of authorization recently drew a large volume of comments, many opposing such a move. Environmental advocates are also objecting to renewed use of a general permit for water crossing authorizations for the project in light of its past problems with sedimentation.

Permit holdups

Among several long-standing barriers to final construction has been a 4th US Circuit Court of Appeals stay of US Fish and Wildlife Service authorizations under the Endangered Species Act. The court action in October 2019 led FERC to issue a stop-work order affecting most of the route, with the exception of areas where MVP said it was necessary to continue work to ensure stability and restoration. A few areas have been on hold since 2018.

In seeking relief from FERC (CP16-10), MVP pointed to FWS' Sept. 4 release of a biological opinion on the impacts on vulnerable species, developed over the course of about a year, superseding the stayed document.

MVP's broad request excluded two short stretches totaling about 8 miles around the Jefferson National Forest. But MVP also promised not to perform any work that required a permit under Section 404 of the Clean Water Act, until it receives the relevant permit from the US Army Corps of Engineers. "Mountain Valley does not believe that commission approval is required to implement the activities permitted by the forthcoming Corps approval, but requests commission approval to the extent necessary," it told FERC.

MVP further promised to avoid work within the Jefferson National Forest until it receives needed authorizations from the US Forest Service and Bureau of Land Management. The 4th Circuit in 2018 also vacated MVP's right-of-way to build through the national forest. MVP said it expects the Forest Service to issue its draft supplemental environmental impact statement for a 3.5-mile forest crossing by the end of September, focusing on sedimentation impacts raised by the court.

In making its case to FERC, MVP also said completing construction would be best for affected landowners who have dealt with idled or incomplete work spaces for more than two and a half years.

Takeaway project

The project is being watched closely by the market as it will provide another outlet for Appalachian gas production, as major corridors flowing out of the producing area edge closer to being fully utilized, according to S&P Global Platts Analytics. Dominion Energy in July shelved the neighboring 600-mile, 2 Bcf/d Atlantic Coast Pipeline amid multiple legal hurdles and as Berkshire Hathaway was poised to purchase Dominion's existing gas transmission and storage assets.

The greenfield MVP project was originally scheduled to enter service in November 2018 at a cost of $3.3 billion, but has since faced an onslaught of regulatory delays that have held up the pipeline's construction.