Project Development: Challenges and Strategies Northwest Gas - - PowerPoint PPT Presentation

Project Development: 
 Challenges and Strategies


• Northwest Gas Association

2016 Annual Energy Conference

Molly Lawrence Mona Tandon Emily Pitlick Mallen

• June 10, 2016

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AGENDA

◘ Challenges Facing FERC Projects ◘ Challenges under Federal Environmental Laws ◘ Public Perception: Strategies and Solutions

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Challenges Facing FERC Projects


Emily Pitlick Mallen (202) 298 – 1859 erp@vnf.com

• June 10, 2016

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The Role for FERC: Economic v. Environmental Oversight – A Brewing Conflict?

◘ Section 7 of the Natural Gas Act (NGA), 15 U.S.C. § 717f(c), provides authority to grant a authorize a pipeline project that is required by the public convenience and necessity. ◘ Section 102 of the National Environmental Policy Act (NEPA), 42 U.S.C. § 4332(C), directs executive level Federal agencies to assess the environmental impact of a proposed major Federal action significantly affecting the quality

• f the human environment.

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Challenges to FERC’s Regulatory Role:
 Tactics & Disruption

◘ Interventions and Protests

• “Swamping” the FERC process through an unprecedented number of

interventions and protests in virtually every FERC NGA § 7 certificate proceeding

• ver the last year or more.

◘ Litigation

• Repeated filing of judicial appeals and petitions for stay of NGA § 7 certificate by

anti-fossil fuel advocates and landowners in order to prevent condemnation or construction

◘ Petition for Rulemaking

• Environmental and consumer groups filed a petition asking FERC to implement

16 USC § 825q–1 by initiating a rulemaking to establish an Office of Public Participation.

◘ Congressional Action

• Environmental groups want senators to issue a formal request to GAO to

investigate FERC. Members of the New Hampshire Congressional Delegation sent a request to the Inspector General of the Department of Energy.

◘ Obstruction and Civil Disobedience

• See pictures above

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Legal Challenges to Pipeline Projects

◘ Direct legal challenges to FERC certificates

• Myersville Citizens for a Rural Cmty., Inc. v. FERC,

783 F.3d 1301 (D.C. Cir. 2015).

◘ Opposition to FERC NEPA process

• Delaware Riverkeeper Network v. FERC, 753 F.3d

1304 (D.C. Cir. 2014) (remanded on NEPA segmentation grounds).

• Gunpowder Riverkeeper v. FERC, 807 F.3d 267 (D.C.
• Cir. 2015) (NEPA claims dismissed).

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Legal Challenges to Pipeline Projects

◘ Procedural attacks on FERC

• In re Stop the Pipeline, No. 15-926 (2d Cir. Apr. 21, 2015)

(writ of mandamus denied).

• In re: Clean Air Council, No. 15-2940 (3d Cir. Aug. 13, 2015)

(writ of mandamus denied).

◘ State permit challenges/State veto

• Constitution Pipeline Co. v. N.Y. State Dept. of Envtl.

Conservation, No. 16-1568 (2d. Cir. filed May 16, 2016).

• Dominion Transmission, Inc. v. Town of Myersville Town

Council, 982 F. Supp. 2d 570 (D. Md. 2013).

• Bosley v. Md. Dep’t of the Env’t, No. 03-C-14-5417, et. al.

(Cir. Ct. Balt. Cnty. Apr. 30, 2015).

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Legal Challenges to Pipeline Projects

◘ Local opposition

• Minisink Residents for Environmental Preservation

and Safety, et al. v. FERC, No. 12-1481 (D.C. Cir.,

• Aug. 15, 2014).
• Millennium Pipeline Co., 140 FERC ¶ 61,045, reh’g

denied, 141 FERC ¶ 61,198 (2012) (two Comm’rs dissented on location of compressor station).

◘ Post-certificate delay tactics

• See Constitution Pipeline proceeding (state

permitting; tree clearing issues).

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Challenges Under Federal Environmental Laws


Molly Lawrence Partner (206) 802-3836 mol@vnf.com

• June 10, 2016

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NEPA Environmental Review Process

• Project Description / Purpose and Need
• Level of Review (Cat Ex, EA or EIS)
• Reasonable Range of Reasonable Alternatives
• Connected Actions, Indirect Effects and

Cumulative Impacts

• Public Participation
• “Hard Look” Standard of Review

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T&E Species and Critical Habitat

• ESA Section 7 and Section 9

Obligations

• Section 7 Consultation

Requirements

• Emerging Issues
• Candidate Species Reviews &

Listing

• Trend toward voluntary

conservation efforts to avoid listing

• Migratory Bird Treaty Act
• Bald and Golden Eagle Act

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Crossing Waters

• Clean Water Act 404 Permits
• NWP or Individual Permit
• Use of multiple NWPs
• Trigger one IP and . . .
• Cumulative impacts
• General and Regional Permit

Conditions

• 401 Water Quality Certification
• Pending change to WOTUS
• Floodplain crossings
• Executive Order 13690
• ESA Compliance

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Cultural Resources

• National Historic Preservation Act Section 106

Consultations

• Integrate with NEPA?
• Identifying cultural resources
• Resolving “Adverse Effects”: Memorandums of

Agreement and Programmatic Agreements

• Crossing “Tribal Lands”
• Inadvertent Discovery Plans

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Public Perception:
 Strategies & Solutions


• Mona Tandon

Partner (202) 298-1886 mxt@vnf.com

• June 10, 2016

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Public Opposition

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Public Opposition

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Public Perception: Reasons To Oppose Pipelines

◘ 1. Safety standards don’t protect people.

• ◘ 2. Accidents are inevitable.

◘ 3. Pipelines = lower property values. ◘ 4. Difficulties selling homes and property. ◘ 5. Fracking accelerates climate change.

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Public Perception: Reasons To Oppose Pipelines (cont)

◘ 6. Gas is not for America. ◘ 7. Exporting shale gas = increased energy bills. ◘ 8. Fracking blocks transition to renewable energy. ◘ 9. Pipelines do not create many local jobs. ◘ 10. Pipelines don’t bring tax-revenue windfalls.

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Strategies & Solutions

◘ BE PROACTIVE!

• Political campaign approach

◘ Routing ◘ Early Outreach

• Be the first to create your story
• Understand your stakeholders

◘ Information

• Statistics
• Project benefits
• Social Justice

◘ What is the stakeholders’ stake in the project? ◘ Social media ◘ Partner with different industries

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Independent Petroleum Association of America’s Energy In Depth Campaign www.energyindepth.org 21

Questions?

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For more information: www.vnf.com

• Emily P. Mallen

202-298-1859 erp@vnf.com

• Molly Lawrence

206-623-9372 mol@vnf.com

• Mona Tandon

202-298-1886 mxt@vnf.com

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