The Federal Energy Regulatory Commission faces pushback in an environmental review for Mountain Valley Pipeline LLC's 375-MMcf/d Southgate natural gas pipeline expansion, including warnings from the U.S. Fish and Wildlife Service and the U.S. Environmental Protection Agency about making determinations before agencies have all the information they need.
The Fish and Wildlife Service and other federal agencies — including the U.S. Forest Service and the U.S. Army Corps of Engineers — have faced legal challenges and some recent court losses over actions associated with the Mountain Valley pipeline and the Atlantic Coast pipeline.
The Fish and Wildlife Service said it "does not believe there is sufficient information for FERC to make a determination about effects to listed species." It cited data gaps on stream crossings, a lack of completed surveys for listed species and the absence of an erosion and sedimentation control plan.
"Throughout the [draft environmental impact statement], there are statements that [Mountain Valley Southgate] erosion and sedimentation control plan will minimize or avoid impacts to surface waters and fish and wildlife resources in them," the agency said in a Sept. 17 letter from its Raleigh, N.C., field office. "Based on our conversations with FERC as recently as Sept. 9, 2019, [MVP Southgate] has not provided the plan. This plan is an integral part of assessing impacts to listed species."
The EPA Region 4 office in Georgia suggested FERC study a new alternative route in North Carolina, starting at milepost 32.8, in order to increase co-location along power line and pipeline corridors, even if it adds mileage to the project. The needs determination also should be better developed, the EPA said, pointing to North Carolina Department of Environmental Quality data suggesting the available volume of gas in the state exceeds present consumption.
The EPA also urged that all permits, consultations and the biological opinion be concluded and available in the final environmental impact statement or at the time of a final decision.
Closely watched project
The 73-mile Southgate gas transportation project would connect the mainline of the Mountain Valley pipeline near Chatham, Va., and extend to Rockingham and Alamance counties in North Carolina. It is supported by a 300,000 Dth/d firm contract with the Dominion Energy Inc. gas utility Dominion Energy North Carolina, formerly PSNC Energy. Dominion completed its takeover of then PSNC parent SCANA Corp. in January.
In a July draft environmental impact statement, FERC staff found that the project would have environmental impacts but that these could be reduced to less-than-significant levels through avoidance, minimization and mitigation. (FERC docket CP19-14)
In response to the environmental report, FERC was flooded with objections from environmental groups, including those in court fighting Mountain Valley and the neighboring Atlantic Coast Pipeline LLC. Several organizations, including chambers of commerce and labor unions, expressed support for the project and the FERC findings.
While Dominion is now Mountain Valley Southgate's main shipper, a separate joint venture led by Dominion that is developing the Atlantic Coast project is arguing that FERC staff too easily dismissed the potential for Atlantic Coast to serve as an alternative to Mountain Valley.
FERC staff concluded Atlantic Coast would not provide significant environmental advantage because it would require at least 100 miles of new pipeline to reach the delivery point in North Carolina. But in Sept. 16 comments Sept. 16, Dominion countered that the Atlantic Coast route is close to the eastern side of Dominion Energy North Carolina's service area and that Atlantic Coast has already leased capacity on the Piedmont Natural Gas Co. Inc. system that could be used to ship gas to the Dominion Energy North Carolina system near Clayton, N.C.
Separately, North Carolina regulators continued to press their case against the project. The North Carolina Department of Environmental Quality said FERC's draft report ignored the scope of changes in the state's energy economy and tipped the scales to gas. Since the state agency last wrote to FERC questioning the need for the project, a North Carolina executive order set a goal of a 40% reduction in statewide greenhouse emissions and directed the department to adopt a clean energy plan, the state agency said. The agency also asked FERC to study the imposition of pass-through pipeline costs on populations that have an "unaffordable" energy burden.
In comments supporting the Southgate project, the Virginia Chamber of Commerce said the project will likely help Virginia lower competitive electric rates, "a factor considered by businesses looking to relocate to Virginia," and potentially advance long-term economic growth. The organization suggested that Fish and Wildlife and other agencies provide comments in a timely manner and avoid delays.
Maya Weber is a reporter with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
