Federal review of PennEast gas pipeline project delayed 7 months

Critics of the PennEast pipeline say a lack of information is the reason behind the delay, while PennEast said the schedule is a milestone. Watch video

The federal government's schedule for its environmental review of the proposed PennEast Pipeline project is seven months longer than what the pipeline's developer wanted.

The Federal Energy Regulatory Commission has set Dec. 16, 2016, for issuing a notice of availability of the final environmental impact statement, and March 16, 2017, for the deadline for a federal decision on authorization.

The proposed 36-inch natural gas pipeline would travel 114 miles from northeastern Pennsylvania to Hopewell Township. It is expected to cost $1.2 billion to build.

PennEast's application to FERC had requested a final decision by August of 2016.

"Clearly, PennEast's lack of responsiveness to FERC's request for critical information has caused the project to be significantly delayed," said Tom Gilbert, campaign director for ReThink Energy NJ and the New Jersey Conservation Foundation.

"We are renewing our call to FERC to protect the integrity of its review process and the public interest by not allowing this incomplete and grossly inaccurate application to proceed," Gilbert said.

PennEast spokeswoman Patricia Kornick said Thursday morning that the company is "evaluating how the Notice of Schedule might affect PennEast's initial proposed timeline.

Study: Pipeline would increase gas rates

"Whether it be the construction of a highway, bridge or underground pipeline, many variables are factored into the proposed timeline of most major infrastructure projects, including the PennEast Pipeline Project," Kornick added.

"Contrary to the misinformed and wishful claims of those opposed to natural gas development, the FERC Notice of Schedule is a milestone for the PennEast Pipeline Project," she added. "It enables PennEast to take the next steps in its plans to build the PennEast Pipeline Project to alleviate existing system constraints, increase reliability and deliver reduced costs to local natural gas and electric consumers."

Jeff Tittel, director of the New Jersey Sierra Club, said the schedule change "is because the large opposition to the project by municipalities and landowners along the route has made it difficult for PennEast to get the information they need to apply for permits, thereby delaying the project."

Group wants to HALT pipeline

Gilbert said in a release that information filed by PennEast has been lacking details. "The latest submission by PennEast on March 25, which was filed more than a month late, is again missing answers to questions and important details requested by FERC as far back as last November 24, and more recently reiterated on February 10. Instead, PennEast provided numerous inadequate responses or merely indicated they would submit information when it 'becomes available.'"

Kornick said PennEast is "engaged in a comprehensive, fluid FERC process" and "looks forward to continuing through the process that, upon completion, ultimately will deliver numerous long-term benefits to energy consumers throughout the region."

The proposed pipeline has met fierce opposition in New Jersey where both Hunterdon and Mercer county governments have banned the company from surveying on public lands, joining 70 percent of New Jersey homeowners in the project's proposed path who also have refused PennEast surveyors.

All the municipalities in New Jersey impacted by the proposal have passed resolutions against it and the Delaware Riverkeeper Network sued the federal energy commission over its lax oversight of the PennEast application and other pipeline projects.

A spokesperson for HALT PennEast, comprised of Hunterdon and Mercer County homeowners, expressed outrage that eminent domain could be used to build the 114-mile pipeline, which is proposed to cut through more than 300 properties in New Jersey after it crosses over from Pennsylvania.

PennEast foes rip up offers

"We are extremely concerned about the possibility of losing our property through eminent domain to a project that is unneeded and so harmful," said Vince DiBianca of Delaware Township, an organizer of HALT PennEast (Homeowners Against Land Taking). "It's an outrage to think this threat exists when PennEast, time and again, fails to provide critical information requested to back up its proposal, or to demonstrate public need."

PennEast issued a media packet dated Oct. 9 titled, "Landowner Bill of Rights," which says that if PennEast cannot reach an agreement with landowners and federal regulators approve the $1.2 billion project, the company says it can use eminent domain to acquire the land.

Announcing the project in September of last year, Peter Terranova, PennEast board chairman, cited figures from a study backed by Drexel University's business school that said the pipeline would support 12,160 jobs and create $1.6 billion in economic activity.

The project would generate 2,500 temporary construction jobs, 21 permanent jobs, and 9,960 ancillary positions, according to PennEast.