New York State Executive Branch Agency Denies Permits for National Fuel’s Northern Access Pipeline Project
April 10 2017 - 5:45AM
Business Wire
National Fuel Gas Supply Corporation ("Supply") and Empire
Pipeline, Inc. ("Empire"), both wholly-owned subsidiaries of
Western New York-headquartered National Fuel Gas Company ("National
Fuel") (NYSE:NFG), received information at 11:22 p.m. on Friday,
April 7, 2017, that the New York State Department of Environmental
Conservation (“NYS DEC”) issued a denial of the Clean Water Act
Section 401 Water Quality Certification and other state stream and
wetland permits for the Northern Access Project (“Northern Access”
or “Project”).
“While we are still analyzing the NYS DEC’s rationale, the
denial is purportedly based upon NYS DEC’s determination that
Supply and Empire’s construction activities will impermissibly
affect the quality of waters in the state, notwithstanding
voluminous detailed studies prepared and submitted by the companies
and our consultants that show any such effects are temporary and
minor," said Ronald J. Tanski, President and Chief Executive
Officer of National Fuel Gas Company. "These construction
activities would certainly have less effect than either exploding
an entire bridge structure and dropping it into Cattaraugus Creek
(Route 219) or developing and continuously operating a massive
construction zone in the middle of the Hudson River (Tappan Zee
Bridge) for a minimum of five years, both NYS DEC approved
projects. We and our contractors have a great record with respect
to our construction practices. Our Empire Connector, Tioga County
Extension, and Tuscarora Lateral projects were completed through
NYS DEC Region 8 between 2007 and 2015, consisting of 110 total
miles of pipeline and crossing 104 streams and 182 wetlands, and
utilizing the same proposed construction practices with an
excellent environmental record.
Tanski continued, “What is perhaps the most troubling aspect of
this decision is that the NYS DEC waited literally until the 11th
hour to issue this denial, even though we had detailed discussions
with NYS DEC staff over a 34-month period and undertook detailed
engineering and environmental studies at the agency's request, to
support the stream-crossing techniques that now form the basis of
their denial.We believe the NYS DEC’s analysis completely ignores
the record that we developed in this process and is inconsistent
with the standards of the Clean Water Act. Further, it attempts to
set a new standard that cannot possibly be met by any
infrastructure project in the state that crosses streams or
wetlands, whether it is a road, bridge, water, or an energy
infrastructure project."
Tanski explained, “Moreover, we are highly concerned about the
ability of utilities in the state to meet the future energy needs
of their consumers and the businesses and industries that drive the
state’s economy. New York’s continued denial of permits for energy
infrastructure projects is simply not sustainable, as it will have
the effect of reducing New York’s energy reliability, lead to
higher costs for consumers and be a limiting factor in the ability
for industry to locate or expand in the state. While New York
proclaims that it is ‘open for business,’ and ‘a premier place to
invest and grow,’ the NYS DEC’s action belies that claim.
He continued, “Today, 57 percent of the electric generation
capacity in the state is powered by natural gas, and, as more coal
and nuclear power plants are scheduled to be shut down, new
gas-fired plants are being built in their place. Additional natural
gas infrastructure is essential to connect nearby, growing supply
areas to New York consumers. As New York continues a long-term
transition to more and more renewable electric generation, it is
essential for the natural gas industry to stand ready, at a
moment’s notice, to provide the gas supply necessary to generate
the power to support the reliability of the power grid. National
Fuel remains committed to this energy infrastructure project that
will be an important contributor to the energy dependability and
economic vibrancy of New York state.”
Northern Access is a half billion dollar privately-funded
natural gas infrastructure expansion investment by Supply and
Empire in Western New York and north-central Pennsylvania. The
Project is designed to transport domestically-produced natural gas,
providing increased reliability to the Western New York natural gas
markets, and access to a low-cost source of energy for residential
and commercial customers throughout the North American pipeline
grid. The Project also supports new and growing employment at
National Fuel and is estimated to increase annual property tax
receipts by $11.8 million for four New York counties, with an
additional one-time sales tax impact of $6.6 million for the same
four counties. Twelve school districts within those counties will
benefit from the annual incremental increase in tax revenue.
National Fuel is a diversified energy company headquartered in
Western New York that operates an integrated collection of natural
gas and oil assets across five business segments: Exploration and
Production, Pipeline and Storage, Gathering, Utility, and Energy
Marketing. Additional information about National Fuel is available
at www.nationalfuelgas.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170410005411/en/
For National Fuel Gas Company:Karen Merkel, 716-857-7654
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