PennEast firms stay dedicated to PA-NJ pipe after loss in court docket


Nov 7 (Reuters) – The businesses creating the $1 billion PennEast pure gasoline pipeline mentioned on Wednesday they continue to be dedicated to constructing the challenge and are evaluating choices after a federal appeals court docket determined to not rehear an earlier choice in opposition to the pipeline:

* The U.S. Circuit Court docket of Appeals for the Third Circuit on Tuesday denied PennEast’s petition for rehearing of an earlier choice in September that rejected the pipeline’s use of eminent area on properties in New Jersey beneath state possession or through which the state has an curiosity.

* PennEast obtained approval from the U.S. Federal Power Regulatory Fee (FERC) to construct the pipeline in January 2018 and promptly sued in federal court docket to make use of the federal authorities’s eminent area energy to achieve entry to properties alongside the route in New Jersey beneath the U.S. Pure Fuel Act.

* New Jersey opposes development of the pipeline and didn’t consent to PennEast’s condemnation fits on properties it controls.

* PennEast wants the land to construct its 120-mile (190-km) pipeline, which is designed to ship 1.1 billion cubic ft per day of gasoline from the Marcellus shale formation in Pennsylvania to clients in Pennsylvania and New Jersey.

* In October, the New Jersey Division of Environmental Safety (NJDEP) denied PennEast’s software for a number of permits, citing the Third Circuit’s eminent area choice.

* “We consider each actions (Third Circuit and NJDEP) had been profoundly improper primarily based on established authorized precedent beneath the Pure Fuel Act and we’re at the moment pursuing authorized and different choices,” South Jersey Industries Inc (SJI), one of many firms creating PennEast, mentioned in its earnings launch on Wednesday.

* SJI famous demand for gasoline infrastructure to satisfy rising demand for the gas in New Jersey has grown considerably because the challenge was introduced 5 years in the past.

* Up to now, PennEast mentioned it anticipates beginning development in 2020.

* The businesses looking for to construct PennEast embody models of SJI, New Jersey Assets Corp (NJR), Southern Co , Enbridge Inc and UGI Corp.

* The businesses with contracts to make use of the challenge embody models of NJR, SJI, Southern, Public Service Enterprise Group Inc and Consolidated Edison Inc.

* PennEast is just not the one gasoline pipeline going through state opposition within the U.S. Northeast. Two of Williams Cos Inc’s proposed pipelines are going through state opposition, together with Structure in New York and Northeast Provide Enhancement in New Jersey.

(Reporting by Scott DiSavino Enhancing by Marguerita Choy)