Constitution Pipeline Receives FERC Authorization to Proceed with Limited Tree Felling Activities in Pennsylvania
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Natural Gas Pipeline Critical to Meeting Region’s Expanding Energy
Needs
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Project to Support 2,400 Jobs and $130 Million in Labor Income in
the Region
Constitution Pipeline Company, LLC received authorization from the
Federal Energy Regulatory Commission (FERC) today to proceed with
limited tree felling activities along its federally-certificated
pipeline right-of-way in Pennsylvania. The authorization is a
significant milestone and major step forward for the pipeline designed
to transport enough natural gas to serve approximately 3 million U.S.
homes.
“We appreciate the FERC’s prompt issuance of a limited 'Notice to
Proceed' for non-mechanized hand felling of trees in Pennsylvania,” the
project sponsors said in a joint statement. “Although the Commission has
not yet authorized tree felling in New York, we are optimistic that
authorization will come in order for the project to meet its 2016
in-service commitment while complying with the environmental conditions
of the FERC Order and the USFWS Biological Opinion.”
Approximately one-quarter of the trees planned to be felled are located
within Pennsylvania, while the remaining tress are located in New York.
Constitution Pipeline plans to begin limited tree felling activities in
Pennsylvania as soon as its contractors and crews can be trained and
deployed, finishing before March 31 to avoid adverse impacts to
migratory birds and the Northern long-eared bat. These activities will
be subject to third party environmental monitoring. In coordination with
state and federal agencies, Constitution Pipeline has agreed to
voluntarily provide $8.6 million in conservation funding for the
restoration and preservation of migratory bird habitats as a
conservation measure.
Assuming timely receipt of all remaining permits, in addition to a full
“Notice to Proceed” from FERC, Constitution Pipeline anticipates
beginning mainline construction in the spring of 2016 in order to help
meet growing natural gas demand in New York and New England during the
fourth quarter of 2016.
Last week in Afton, N.Y., more than 300 people, including landowners,
elected officials, business leaders, labor union members and community
leaders, rallied in support of the pipeline project, highlighting the
economic benefits the pipeline will deliver to New York. Construction of
the project is estimated to directly and indirectly support 2,400 jobs
and generate $130 million in labor income for the region. Once
operational, the pipeline’s economic impact is anticipated to result in
more than $13 million in local tax revenue and more than $600,000 in new
income in the region.
In addition to serving markets in New England and New York City,
Constitution Pipeline and Leatherstocking Gas Company, LLC have
announced plans to install four delivery taps along Constitution's
proposed route to facilitate local natural gas service to homes and
businesses in southern New York and northern Pennsylvania.
The Constitution Pipeline project involves the construction and
operation of approximately 125 miles of 30-inch-diameter pipeline from
natural gas supply areas in northeast Pennsylvania and connecting with
existing transmission pipelines in Schoharie County, N.Y. Once complete,
the pipeline will immediately become a key piece of natural gas pipeline
infrastructure in the Northeast, creating an important connection
between consumers and reliable supplies of clean, affordable natural
gas. Constitution will help address pipeline infrastructure issues that
have exposed New England and New York consumers to periods of high
natural gas prices and, significantly higher electric-generation costs.
Constitution will also provide opportunities to improve regional air
quality by using cleaner-burning natural gas in lieu of other fuels.
Constitution Pipeline Company
Constitution Pipeline Company, LLC is owned by subsidiaries of Williams
Partners L.P. (NYSE:WPZ), Cabot
Oil & Gas Corporation (NYSE:COG), Piedmont
Natural Gas Company, Inc. (NYSE:PNY), and WGL
Holdings, Inc. (NYSE:WGL). The 125-mile pipeline project is proposed
to connect domestic natural gas production in northeastern Pennsylvania
with northeastern markets during the fourth quarter of 2016. Additional
information about the Constitution Pipeline can be found at www.constitutionpipeline.com.
Portions of this document may constitute “forward-looking statements”
as defined by federal law. Although the company believes any such
statements are based on reasonable assumptions, there is no assurance
that actual outcomes will not be materially different. Any such
statements are made in reliance on the “safe harbor” protections
provided under the Private Securities Reform Act of 1995. Additional
information about issues that could lead to material changes in
performance is contained in the company’s annual reports filed with the
Securities and Exchange Commission.
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