New York State Executive Branch Agency Denies Permits for National Fuel’s Northern Access Pipeline Project
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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