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NJ lawmakers ask FERC to rethink PennEast pipeline approval

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NJ lawmakers ask FERC to rethink PennEast pipeline approval

New Jersey legislators asked the Federal Energy Regulatory Commission to reconsider its approval of PennEast Pipeline Co. LLC's 1.1-Bcf/d natural gas project that will connect Marcellus Shale supplies to East Coast markets.

In a letter filed at FERC on March 9, members of the state Senate and General Assembly asked the federal commission for a rehearing of the approval order. The lawmakers claimed that the pipeline is unnecessary and that PennEast failed to prove "market need." The lawmakers cited studies by the New Jersey Division of Rate Counsel and Skipping Stone, a consulting firm that has done work for conservation groups.

"The overwhelming use of eminent domain in [New Jersey], while lamented by the commissioners, does not seem to have factored into FERC's decision," said the legislators, who represent the 14th, 15th and 16th districts of New Jersey.

Other groups, including environmental organizations, and the New Jersey Department of Environmental Protection have also asked FERC to revisit the project approval. In February, the state's attorney general denied PennEast's offer to purchase the right of way through lands in which the state has an interest, including 16 areas in a state conservation program.

PennEast has said the commission carefully reviewed the project application and should deny the requests for rehearing. PennEast said, as of the beginning of February, almost 75% of landowners along the pipeline route had granted survey access.

FERC authorized the project in a 4-1 vote on Jan. 19. The project will include 120 miles of 36-inch-diameter pipe in parts of Pennsylvania and New Jersey. PennEast is a joint venture of companies of Enbridge Inc., Southern Co. Inc, New Jersey Resources Corp., South Jersey Industries Inc. and UGI Corp. (FERC docket CP15-558)