Individuals, industry oppose Rover natgas pipe

OREANDA-NEWS. A variety of groups and individuals — including environmental organizations, a coal producer, owners of agriculture businesses and dozens of landowners — have asked the US Federal Energy Regulatory Commission (FERC) to reject the Rover natural gas pipeline project which would bring shale gas from the northeastern US to new markets.

Rover, a project of midstream company Energy Transfer Partners (ETP), would carry as much as 3.25 Bcf/d (92mn m/d) of gas from the prolific Marcellus and Utica shales in Ohio, Pennsylvanai and West Virginia for delivery to markets in the midcontinent, southern Canada and the US Gulf coast. It includes building 710 miles (1,143km) of pipe, four main compressor stations, six lateral compressor stations and other facilities.

In a series of FERC filings, groups and individuals said the proposed pipeline is not needed, will harm agriculture businesses, will cause damage to forests and wetlands, risk the health and safety of nearby residents and trample on the rights of property owners by the exercise of eminent domain.

About 100 people filed comments to FERC as individuals, not affiliated with any company or group. They are mostly landowners in Michigan and Ohio where they say ETP is threatening to use eminent domain to use parts of their property for the new pipeline. They say that the pipeline is not in the public interest, would hurt property values, and that a significant portion of the gas will move to Canada and not serve US communities.

In addition, at least five law firms representing landowners in Michigan and Ohio have filed motions to intervene with FERC.

The law firm Goldman & Braunstein, which represents an undisclosed number of landowners in Ohio, said that the mainline segment of Rover will cause "considerable – and in some cases irreparable – damage to sensitive agricultural lands, wetlands, forests, residences, businesses and other environmentally sensitive features of the land."

In addition, the lawyers said that the proposed schedule for Rover threatens the constitutional rights of landowners because it would effectively allow ETP to use "quick take" which goes beyond eminent domain. Quick take allows developers to lay the pipe and enter into arbitration later to pay the land owner. Ohio law puts strict limits on the right of quick take and the US Natural Gas Act denies it to non-governmental entities, Goldman & Braunstein said.

ETP is asking for a FERC certificate in November 2015 so construction can start in January 2016, a schedule that makes it impossible for Rover to comply with the limits of the Ohio constitution, the lawyers contend. As a result, "hundreds, perhaps thousands of Ohio landowners will be dispossessed of their land without ever having a meaningful opportunity to be heard."

ETP filed a response to the Goldman & Braunstein filing, saying the law firm did not provide evidence that any specific landowner will be adversely affected either as a result of environmental impacts or eminent domain proceedings.

ETP said that it intends to work with all affected landowners to address concerns as it acquires the necessary property for the pipeline and that it has demonstrated willingness to adopt re-routes when feasible.

Another objection to Rover was filed by US coal producer Murray Energy on behalf of various coal industry interests.

Murray said that portions of the Rover pipeline and the planned construction of a compressor station could cause "significant damage" to mining operations in Ohio including "possible loss of life" of mine workers who already face health and safety hazards.

The Sierra Club also urged FERC to oppose Rover, saying that the pipeline is not in the public interest as its main purpose it to help producers ship stranded gas. "The limited benefit that the pipeline would bring to the financial interest of corporate shareholders must be weighed against the considerable harm that it would bring to ecosystems, landowners, and local communities," the Sierra Club said.

In a 7 May earnings call, ETP officials said the Rover project is "on track and on budget" and that they expect FERC to issue a draft environmental impact statement in June. The company also said it has purchased all the major materials for Rover and is on schedule and on budget with right of way acquisitions.