Pipe Dreams

On Friday, April 22 officials from the New York State Department of Environmental Conservation (DEC) announced the denial of the Clean Water Act Section 401 Water Quality Certification for the proposed Constitution Pipeline. Their reason: these certificates fail to meet New York State's water quality standards. You can read the full decision, outlined in a letter by John Ferguson, Chief Permit Administrator here (pdf).

The Constitution pipeline, a partnership between Williams Partners, Cabot Oil and Gas, Piedmont Natural Gas and WGL Holdings, was approved by FERC in December 2014. The proposed pipeline would transport gas from Susquehanna County, PA to Schoharie County, NY along a 124-mile route. In NY, Constitution proposed nearly 99 miles of new right-of-way for the 30-inch diameter pipeline, rather than co-locating within existing rights-of-way.

Stream bank clearing for pipelines harms trout habitat

DEC told the media that the agency had requested “significant mitigation measures” to limit impact on the 251 streams along the route. Many of those streams are unique and sensitive ecological areas, including trout spawning streams, old-growth forest, and undisturbed springs, which provide vital habitat and are key to the local ecosystems.

In addition, DEC requested that Constitution provide a “comprehensive and site-specific analysis of depth for pipeline burial to mitigate the project's environmental impact”. According to DEC’s announcement last week, Constitution failed to do this, providing only limited analysis for 21 of the 250 streams. The problem, notes DEC, is that pipes not buried deep enough can become exposed, and any action to correct problems could further affect streams and water quality. 

On Monday, April 25 Constitution Pipeline Company accused DEC of making “flagrant misstatements” and “inaccurate allegations” in defense of its permit denial. In a statement to the press, the pipeline company said DEC’s decision “appears to be driven more by New York State politics than by environmental science”

The company claims that they worked closely with DEC staff for more than three years to make sure that water quality concerns would be adequately addressed. “Completely contrary to NYSDEC’s assertion, we provided detailed drawings and profiles for every stream crossing in New York, including showing depth of pipe.  In fact, all stream crossings were fully vetted with the NYSDEC throughout the review process.” You can read their entire statement here.

Final SGEIS Released ...

... but getting to the NY State Dept. of Environmental Conservation website to read it might be difficult. Apparently traffic is heavy and the site is overwhelmed.

The SGEIS review generated over 260,000 comments

Late on Wednesday, May 13 - at 4:05 pm eastern time - the DEC press office sent out notification that the DEC had issued their final SGEIS. It's huge - so large that the document has been broken into small chunks of "downloadable" size that you can download - IF you can get onto the site. The appendices are full of splendid info, including the DOH report issued in December in which the Dept. of Health concluded that High-Volume Hydraulic Fracturing "should not proceed in New York."

Here is Wednesday's press release:

DEC ISSUES FINAL SUPPLEMENTAL GENERIC ENVIRONMENTAL IMPACT STATEMENT ON HIGH-VOLUME HYDRAULIC FRACTURING

The state Department of Environmental Conservation (DEC) today released the Final Supplemental Generic Environmental Impact Statement (FSGEIS) for high-volume hydraulic fracturing that identifies and examines continued major uncertainties about potential significant adverse health and environmental impacts associated with the activity. After a required 10-day period, DEC will issue its formal Findings Statement, in accordance with the State’s Environmental Quality Review Act (SEQRA).

“The Final SGEIS is the result of an extensive examination of high-volume hydraulic fracturing and its potential adverse impacts on critical resources such as drinking water, community character and wildlife habitat,” DEC Commissioner Joe Martens said. “We considered materials from numerous sources, including scientific studies, academic research and public comments, and evaluated the effectiveness of potential mitigation measures to protect New York’s valuable natural resources and the health of residents. I will rely on the FSGEIS when I issue a Findings Statement in accordance with state law.”

The FSGEIS incorporates the State Health Department Public Health Review report issued December 17, 2014, which determined there is significant uncertainty about adverse health outcomes and whether mitigation measures could adequately protect public health, including impacts to air, water, soil and community character.

DEC first issued a draft SGEIS for HVHF in September 2009 examining the potential impacts from HVHF, including: contamination of drinking water supplies, groundwater and surface waters; air pollution; spills; wastewater and solid waste treatment and disposal; ecological impacts; and adverse effects on communities. Concurrently, DEC also evaluated whether mitigation measures would be sufficient to prevent adverse impacts to the environment and public health.

A revised draft SGEIS was released in September 2011, which proposed to: prohibit drilling in the New York City and Syracuse Watersheds, state-owned lands and primary aquifers; restrict HVHF on certain forest and grassland areas; and require additional drinking water mitigation measures. The 2011 draft also expanded the earlier review of socio-economic and community impacts.

Since the issuance of the 2009 draft SGEIS, and the subsequent 2011revised draft  SGEIS, DEC has gained a more detailed understanding of the potential impacts associated with high-volume hydraulic fracturing with horizontal drilling from: (i) the extensive public comments from medical and public health professionals, environmental organizations, municipalities, industry groups, and other members of the public; (ii) its review of reports and studies of proposed operations prepared by industry groups; (iii) extensive consultations with scientists in several bureaus within the NYSDOH; (iv) the use of outside consulting firms to prepare analyses relating to socioeconomic impacts, as well as impacts on community character, including visual, noise and traffic impacts; and (v) its review of information and data from the Pennsylvania Department of Environmental Protection (PADEP) and the Susquehanna River Basin Commission (SRBC) about events, regulations, enforcement and other matters associated with ongoing Marcellus Shale development in Pennsylvania.

During the review process, DEC hosted numerous public forums and received more than 260,000 public comments. The FSGEIS includes a lengthy summary of the public comments and DEC’s Response to Comments. The Response to Comments, which is over 300 pages long, systematically reviews each type of impact and the public comments about the impacts and potential mitigation measures.  In it, DEC recognizes extensive uncertainties about the impacts and how to mitigate them.

A copy of the FSGEIS can be found at: http://www.dec.ny.gov/energy/75370.html.

DEC Seeks Public comments on Constitution Pipeline

Today the NYS Department of Environmental Conservation announced it is seeking public comments on the Draft State Permit Applications for proposed construction of the Interstate Constitution Pipeline. Public comments will be accepted through Jan. 30, 2015

The public is invited to comment on permit applications the State Department of Environmental Conservation (DEC) received for the proposed, federally regulated Constitution Pipeline and an upgrade to the Iroquois Wright Compressor station in Schoharie County that is part of the project.

The 30-inch Constitution Pipeline is a proposed interstate natural gas pipeline that would traverse 124 miles though Broome, Chenango, Delaware and Schoharie counties, transporting 650,000 dekatherms of gas per day – enough to serve approximately 3 million homes.

Just last month, November 15, more than 200 people converged on Ithaca College to discuss how communities can protect their interests in the face of development from pipelines, compressor stations, and other fracking infrastructure. Pipelines represent a huge investment in continuing to burn fossil fuels to power our economy – a $21 billion investment in pipeline development for moving gas extracted from Marcellus shale alone, said environmental lawyer David Slottje. Overall, he said, current estimates point to building 15,000 miles of pipeline each year between now and 2035. Not the sort of investment a company makes for a “bridge fuel”, he noted.

The Federal Energy Regulatory commission (FERC) and NY State Public Service Commission (PSC) are in charge of big projects, such as pipelines. The major difference, especially important in the case of pipelines, is that FERC decisions grant eminent domain whereas PSC doesn’t. Which agency has oversight also depends on whether a pipeline is crossing state borders or connecting to an interstate pipeline, and how big it is.

While transmission lines are regulated, “gathering lines” and those carrying gas at pressures below 125 pounds per square inch (psi), or that are shorter than 1,000 feet fall into the unregulated category.

The Constitution Pipeline is only one of the pipelines scheduled for this area. There’s also the “Millennium Phase-1 North-South Upstate Pipeline Connector”, locally referred to as the “I-81 Pipeline”. This is a 24-inch, high-pressure pipeline slated to run from Johnson City in Broome County north along I-81 to Syracuse. A pipeline that large needs 75-foot easements, she said – a large swath across people’s property.

According to Delaware Riverkeeper, a 100-foot wide right-of-way translates into twelve acres of disturbed land for every mile of pipeline. People need to consider the impacts along the entire length of these pipelines. But instead, some pipeline companies are breaking down their project to look like shorter pipeline projects so that FERC doesn’t see assessments for cumulative damage along the entire route.

Because the proposed Constitution pipeline and compressor station upgrade are components of an Interstate Natural Gas Transmission project, the Federal Energy Regulatory Commission (FERC) was responsible for conducting an environmental review of the project and has the authority to approve the pipeline route. FERC issued a final Environmental Impact Statement (FEIS) in October, but additional federal reviews and approvals for the project also are necessary. You can read the FEIS at: http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20141024-4001

DEC maintains the authority to review applications for specific permits and approvals. These include an Air Title V permit for the proposed compressor station upgrade, as well as a Water Quality Certification, a Protection of Waters permit, a Water Withdrawal permit and a Freshwater Wetlands permit for state-protected wetlands and adjacent areas for the pipeline installation.

DEC Notice of completed Application (second one) at  http://www.dec.ny.gov/enb/20141224_reg0.html#099990018100009

 

Comments will be accepted on the permit applications from Dec. 24, 2014 to Jan. 30, 2015. Comments can be submitted to:

Stephen M. Tomasik

DEC - Division of Environmental Permits

625 Broadway, 4th Floor

Albany, NY 12233-1750

constitution@dec.ny.gov

In addition, DEC will hold public meetings to allow people to provide verbal or written comments. The meeting schedule is:

    Binghamton - Monday, Jan. 12, 2015, 6 p.m.

    East Middle School Auditorium, 167 East Frederick Street

    Oneonta - Tuesday, Jan. 13, 2015, 6 p.m.

    SUNY Oneonta Lecture Hall IRC #3, 108 Ravine Parkway

    Cobleskill, Wednesday, Jan. 14. 2015, 6 p.m.

    SUNY Cobleskill, Bouck Hall Theater, State Route 7

Copies of the FEIS and DEC permit application documents can be viewed online at: http://www.constitutionpipeline.com/  Printed copies are available at:

• The Broome County Public Library, 185 Court St., Binghamton
• The Afton Free Library, 105A Main St., Afton
• The Bainbridge Free Library, 13 N Main St., Bainbridge.
• The Franklin Free Library, 334 Main St., Franklin
• Sidney Memorial Public Library, 8 River St., Sidney
• Deposit Free Library, 159 Front St., Deposit
• The Community Library, 110 Union St., Cobleskill
• Schoharie Free Library, 103 Knower Ave., Schoharie

Information on the Iroquois Wright Compressor Station can viewed at: http://www.iroquois.com/documents/WIP_-_NYSDEC_Air_Permit_Application_7-26-13.pdf .  Printed copies are also available at:

• Schoharie Free Library, 103 Knower Avenue, Schoharie
• Town of Wright Municipal Building, 105-3 Factory Street, Gallupville

NY Landowners Denied Homeowners Insurance because of Gas Well

Back on July 9 Greg May, senior vice president of Tompkins Trust Company Residential Mortgage lending, warned residents in Berkshire, NY that gas drilling can bring high costs to landowners. One of his biggest concerns: that “homeowners insurance normally excludes coverage if there are active commercial operations occurring on the property.” Gas drilling falls into that category.

Now, barely a month later, a landowner in the town of Lebanon (Madison County, NY) is facing just that situation. According to Jim Goldstein, town supervisor, the landowner was surprised when his insurance company denied the renewal on his homeowner's insurance policy covering their home and farm because there is a gas well on their property.

There are no problems regarding royalty payments, nor have there been any incidents on the property. The gas royalties go to the previous owner, but the current property owner holds the lease and royalty rights for future wells.

So Goldstein checked out the situation with the insurance agent, who writes a lot of policies in the county. Apparently this is a “new trend that will come up as property owners fill out renewal applications,” writes Goldstein.

So far this seems to be limited to property owners who have gas wells, and so far it hasn’t extended to gas leases or to property owners whose land was pooled into drilling units through compulsory integration.

But, continues Goldstein, “we will have to see how this develops. Initially, we thought it was limited to one company but it turns out it is a trend, and given how many property owners in Lebanon have gas wells on their property, some dating back to the 1960s, this present a tremendous potential problem as those individuals would not have insurance liability coverage and will be exposed, not to mention have great difficulty persuading others to buy their property when they are ready to sell.”

The case in question is on a property where the buyers inherited the gas well and lease from the previous owner. Goldstein worries that other farmers and homeowners may be facing similar insurance problems. Of further concern, he notes, is that the state Department of Environmental Conservation – which oversees and regulates gas drilling – is not aware of this trend. And, says Goldstein, state officials know of no “high risk pool” available to homeowners should they lose their insurance because of gas wells on their property.

“This appears to be directly related to perceived liability of having a gas well on one’s property,” says Goldstein. “And we are talking about Medina and Herkimer Sandstone formation wells, not the new proposed high volume hydraulic fracturing process.” He estimates that 25 percent of Madison County is leased, with about 60 wells in his town of Lebanon.

“If this becomes a widespread practice, this will change the discussion significantly in the upstate region about gas drilling and development,” says Goldstein. He doesn’t know whether insurance companies will respond in a similar fashion to homeowners with gas infrastructure, like pipelines or gathering systems on their properties. But, he says, “this could have significant and profound implications for property owners and municipal governments where gas wells currently exist or are anticipated.”

Read more on insurance and drilling here.

DEC Issues Final Water Withdrawal Regulations

New York Department of Environmental Conservation (DEC) announced today that they have finalized water withdrawal regulations. These regulations limit water withdrawals greater than 100,000 gallons per day, and expand the permitting program to include withdrawals for purposes including commercial, manufacturing and industrial activities.

The regulations go into effect April 13, 2013 with the first set of permit applications to be due on June 1. The regulations are being issued now so businesses will have adequate time to comply, the agency told the press in a release. They promise that DEC will collaborate with stakeholders on implementation of the regulations, and will provide outreach to guide applicants.

“Governor Cuomo signed this legislation to foster responsible conservation practices and economic growth while protecting water bodies and wildlife habitats,” DEC Commissioner Joe Martens told the press. “The regulations will allow the state to protect the environment while promoting economic growth and addressing droughts.”

Some withdrawals are exempt from permitting. For example, agricultural withdrawals that were properly registered or reported to DEC on or before February 15, 2012 need only to continue to annually register and report these withdrawals.

Here's another take on the issue from "No Frackin' Way"...