Mountain Valley Pipeline Files Formal Application Requesting FERC Authorization To Construct 301-Mile Interstate Natural Gas Pipeline
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Delivery points will provide natural gas service to communities
along the route; enhancing service reliability and delivering to
previously unserved or underserved markets
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Proposed route incorporates landowner considerations and
thoughtfully addresses many concerns brought forth during the
pre-filing process
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The project is expected to be a magnet for economic development;
attracting manufacturers, stimulating job growth, and providing
additional tax revenues to Virginia and West Virginia
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The project has the support of Virginia Governor Terry McAuliffe
and West Virginia Governor Earl Ray Tomblin; as well as the Virginia
Chamber of Commerce, Roanoke Regional Chamber of Commerce, West
Virginia Chamber of Commerce, Doddridge County Economic Development
Authority, Nicholas County Commission, Webster County Commission,
Webster County Economic Development Authority, Lewis County Economic
Development Authority, and other organizations
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MVP is committed to utilizing the pipeline installation as an
opportunity to increase conservation and biodiversity value along the
route; with right-of-way restoration plans that would surpass
regulatory requirements
Mountain Valley Pipeline, LLC, today, formally applied to the Federal
Energy Regulatory Commission for authorization to build a 301-mile
interstate natural gas transmission pipeline designed to provide timely,
cost-effective access to the growing demand for natural gas for use by
local distribution companies, industrial users, and power generation
facilities in the Mid-Atlantic, Southeast, and Appalachian regions of
the United States.
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Mountain Valley Pipeline, LLC is a joint venture between EQT Midstream
Partners, LP (NYSE:EQM), majority owner and operator of the proposed
Mountain Valley Pipeline; and affiliates of NextEra Energy, Inc.
(NYSE:NEE); WGL Holdings, Inc. (NYSE:WGL); Vega Energy Partners, Ltd;
and RGC Resources, Inc. (NASDAQ:RGCO). The Mountain Valley Pipeline (MVP
or Project) would transport the abundant supply of Marcellus and Utica
natural gas - commencing in Wetzel County, WV and traversing south
through 11 counties in WV; and southeast through six counties in VA
before ending in Pittsylvania County, VA. The MVP is expected to provide
at least 2 Bcf per day of firm transmission capacity; and pending
regulatory approval, construction is anticipated to begin in late 2016,
with a full in-service targeted for the fourth quarter 2018.
Through this certificate application filing, the Federal Energy
Regulatory Commission (FERC) is being asked to certify the public
convenience and necessity of the MVP project. The FERC, together with
several cooperating agencies, will conduct a detailed review and
evaluation of a broad number of subjects, including public safety; water
resources; karst topography; air quality; wildlife, soils, and
vegetation; protected species; cultural and historic resources; sound
levels; realistic alternatives; and cumulative economic benefits.
On October 31, 2014, the FERC granted authorization to begin the
pre-filing process for the MVP project. During the past year, the MVP
team has conducted 16 open houses, in addition to the six scoping
meetings hosted by the FERC, all aimed at encouraging an open dialogue
with community members, landowners, and public agencies in order to
receive comments and feedback on the MVP project.
The certificate application is a collection of information gathered
before and during the FERC pre-filing process. This comprehensive set of
documentation includes extensive research from environmental,
geological, and economic studies conducted by the MVP project team and
outside experts – and perhaps more importantly includes intelligence
learned during discussions with landowners along the route and local
elected officials.
The MVP project team considered more than 1,000 miles of alternatives
and variations to the proposed route, and made numerous minor
adjustments for individual property owners along the route, in order to
mitigate concerns that were raised during the pre-filing process. The
proposed route identified in the application encompasses these various
revisions, which include the protection of streams, wetlands, and
cultural resources, as well as the avoidance of or modification to
several sensitive areas and karst topography regions. Examples of such
adjustments include:
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Reduction in permanent right-of-way width from 75' to 50'
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Avoidance of the Spring Hollow Reservoir and Camp Roanoke areas
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Avoidance of the Elk River Wildlife Management Area
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Alteration to the Blue Ridge Parkway crossing in order to minimize
vegetation clearing and long-term visual impact
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Avoidance of Cahas Mountain Rural Historic District and the Town of
Boones Mill’s water source treatment plant
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Avoidance of the Burnsville Lake Wildlife Management Area
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Proposed number of compressor stations during construction reduced to
three
"Filing of the formal application is a milestone for MVP and we thank
the many landowners, elected officials, and community members who have
worked with us to design a proposed route that takes into account a
multitude of individual requests and environmental considerations,”
stated Randy Crawford, chief operating officer, EQT Midstream Partners.
“Since the Project’s inception, we have been committed to listening,
learning, and continuing an open dialogue. We will preserve this same
attention to detail as the Project progresses; and we will maintain our
diligent focus on building a world-class pipeline.”
One of the Project’s primary objectives is to serve communities along
the route. The working partnership with Roanoke Gas Company, who will be
a shipper, is designed to supply and potentially expand the Roanoke Gas
customer base throughout southwest Virginia. Additionally, markets in
the area that presently do not have natural gas service will have the
ability to access the MVP, which in turn is expected to attract
manufacturing opportunities to the area. It is clear that having a safe,
reliable source of natural gas is important to secure industry growth,
which subsequently will stimulate job creation and spending throughout
the region.
Joyce Waugh, President, Roanoke Regional Chamber of Commerce, stated,
“The Roanoke Regional Chamber supports the continued development of
infrastructure that is integral to business expansion in our region. Our
prosperity depends on the presence of robust transportation – education
– recreation – healthcare – telecommunication – and energy
infrastructure. With these building blocks in place, our economy and our
quality of life are given great opportunities for growth.
“As a result of this philosophy, the Roanoke Regional Chamber supports
the Mountain Valley Pipeline project and strongly encourages its
development in accordance with laws and regulations of the United States
and the Commonwealth of Virginia; in cooperation with property owners;
with the utmost safety; and with respect for the environment and our
region’s beauty,” Waugh continued.
Steve Roberts, President of the West Virginia Chamber of Commerce
provided a similar endorsement, stating, “Having access to a reliable,
cost-efficient source of natural gas is essential for growth and
progress in any region of the United States. Over the long-term, the
Mountain Valley Pipeline project will not only generate significant tax
revenues for counties to fund local schools, roads and other important
priorities of county government; but it will also serve as a magnet for
manufacturers and other economic development opportunities for our
various West Virginia communities along the route.”
From an economic benefits perspective, the MVP project is expected to
bring significant and meaningful benefits to West Virginia and Virginia,
and the counties along its route, based on findings from FTI Consulting,
the company that managed and produced the MVP economic benefits report.
FTI took a conservative and reasonable approach to estimating the
state-level impacts related to the MVP – utilizing cost data for MVP’s
in-state spending for goods and services only and excluding spending
related to out-of-state goods and services. The MVP project estimates:
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Spending of $811 million in WV and $407 million in VA on labor,
equipment, materials, and services
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Employment support at the peak of construction of more than 4,500 jobs
in WV and 4,400 jobs in VA, including direct, indirect, and induced
jobs
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Direct employment will generate more than $335 million in labor income
in WV and more than $165 million in VA during construction
Increased state tax revenue is also a significant factor related to the
MVP project. For county level tax benefits, FTI discussed the process of
estimating annual pipeline property (ad valorem) taxes with WV and VA
state tax officials in order to be consistent with how the states would
determine the property taxes owed by MVP. For state-level tax benefits,
FTI estimated taxes based on historical state tax revenues and the
sources for those revenues. The state tax analysis reflects taxes
generated mainly from one-time construction and commissioning spending.
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Annual MVP ad valorem taxes for WV are estimated at almost $17 million
once the pipeline is operational, and more than $7 million in VA
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Estimated state and local tax revenues generated during construction
are more than $47 million in WV and more than $34 million in VA
(sales, use, income, property, and other tax categories)
The application and resource reports, along with state and county maps
are available on the MVP website (www.mountainvalleypipeline.info).
Paper copies will be placed in public libraries or community buildings
along the proposed route.
About Mountain Valley Pipeline
The Mountain Valley Pipeline (MVP) is a proposed underground, interstate
natural gas pipeline system that spans approximately 300 miles from
northwestern West Virginia to southern Virginia. Subject to approval and
regulatory oversight by the Federal Energy Regulatory Commission, the
MVP will be constructed and owned by Mountain Valley Pipeline, LLC – a
joint venture of EQT Midstream Partners, LP; NextEra US Gas Assets, LLC;
WGL Midstream; Vega Midstream MVP LLC; and RGC Midstream, LLC. The MVP
was designed to transport clean-burning natural gas from the prolific
Marcellus and Utica shale regions to the growing demand markets in the
Mid-Atlantic and Southeast areas of the United States. Targeting a full
in-service of late 2018, EQT Midstream Partners, majority interest
owner, will operate the pipeline. From planning and development, to
construction and in-service operation – MVP is dedicated to the safety
of its communities, employees, and contractors; and to the preservation
and protection of the environment.
Visit www.mountainvalleypipeline.info
Cautionary Statements:
Disclosures in this news release contain certain forward-looking
statements that do not relate strictly to historical or current facts
and are forward-looking. Without limiting the generality of the
foregoing, forward-looking statements contained in this news release
specifically include the expectations of plans, strategies, objectives
and growth, and anticipated financial and operational performance of
Mountain Valley Pipeline, LLC, including guidance regarding the proposed
Mountain Valley Pipeline (MVP) and joint venture, such as the projected
length of the MVP; the MVP’s expected interconnections with facilities
and pipelines; the timing of development and construction for the MVP;
the estimated cost of the MVP; the expected in-service date for the MVP;
and the expected economic benefits of the MVP. The forward-looking
statements included in this news release are subject to risks and
uncertainties that could cause actual results to differ materially from
projected results. Accordingly, investors should not place undue
reliance on forward-looking statements as a prediction of actual
results. Mountain Valley Pipeline, LLC has based these forward-looking
statements on current expectations and assumptions about future events.
While Mountain Valley Pipeline, LLC considers these expectations and
assumptions to be reasonable, they are inherently subject to significant
business, economic, competitive, regulatory, and other risks and
uncertainties, most of which are difficult to predict and are beyond its
control. The risks and uncertainties that may affect the operations,
performance, and results of Mountain Valley Pipeline, LLC and
forward-looking statements include, but are not limited to:
The business, financial condition, results of operations and prospects
could suffer if Mountain Valley Pipeline, LLC does not proceed with
projects under development or is unable to complete the construction of,
or capital improvements to, its facilities on schedule or within budget.
The ability to complete construction of, and capital improvement to,
facilities on schedule and within budget may be adversely affected by
escalating costs for materials and labor and regulatory compliance,
inability to obtain or renew necessary licenses, rights-of-way, permits
or other approvals on acceptable terms or on schedule, disputes
involving contractors, labor organizations, landowners, governmental
entities, environmental groups, Native American and aboriginal groups,
and other third parties, negative publicity, transmission
interconnection issues, and other factors. If any development project or
construction or capital improvement project is not completed, is delayed
or is subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms that
may otherwise be available, and Mountain Valley Pipeline, LLC could
become obligated to make delay or termination payments or become
obligated for other damages under contracts, could experience the loss
of tax credits or tax incentives, or delayed or diminished returns, and
could be required to write-off all or a portion of its investment in the
project. Any of these events could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements that may impede its
development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for licenses and
permits from various local, state, federal and other regulatory
authorities and abide by their respective conditions. Should Mountain
Valley Pipeline, LLC be unsuccessful in obtaining necessary licenses or
permits on acceptable terms, should there be a delay in obtaining or
renewing necessary licenses or permits or should regulatory authorities
initiate any associated investigations or enforcement actions or impose
related penalties or disallowances on Mountain Valley Pipeline, LLC,
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects could be materially adversely affected. Any
failure to negotiate successful project development agreements for new
facilities with third parties could have similar results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities and other
facilities are subject to many operational risks. Operational risks
could result in, among other things, lost revenues due to prolonged
outages, increased expenses due to monetary penalties or fines for
compliance failures, liability to third parties for property and
personal injury damage, a failure to perform under applicable sales
agreements and associated loss of revenues from terminated agreements or
liability for liquidated damages under continuing agreements. The
consequences of these risks could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Uncertainties and risks inherent in operating and maintaining Mountain
Valley Pipeline, LLC's facilities include, but are not limited to, risks
associated with facility start-up operations, such as whether the
facility will achieve projected operating performance on schedule and
otherwise as planned.
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects can be materially adversely affected by
weather conditions, including, but not limited to, the impact of severe
weather.
Threats of terrorism and catastrophic events that could result from
terrorism, cyber-attacks, or individuals and/or groups attempting to
disrupt Mountain Valley Pipeline, LLC’s business, or the businesses of
third parties, may materially adversely affect Mountain Valley Pipeline,
LLC’s business, financial condition, results of operations and prospects.
Any forward-looking statement speaks only as of the date on which such
statement is made and Mountain Valley Pipeline, LLC does not intend to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise.
Forward-Looking Statements of RGC Resources,
Inc.
The statements in this release regarding RGC Resources, Inc. (the
"company") that are not historical facts constitute “forward-looking
statements” made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. These statements include the company's expectations
regarding expanding its customer base and access to its natural gas
system, enhancing reliability of its natural gas system and
strengthening natural gas supply. Management cautions the reader that
these forward-looking statements are only predictions and are subject to
a number of both known and unknown risks and uncertainties, and actual
results, performance, and/or achievements of the company may differ
materially from the future results, performance, and/or achievements
expressed or implied by these forward-looking statements as a result of
a number of factors. These factors include, without limitation, failure
or delay of the MVP to be brought into service or failure of demand for
natural gas, those risks and uncertainties described above for Mountain
Valley Pipeline, LLC, and those risks and uncertainties set forth in the
company’s periodic reports and other filings with the Securities and
Exchange Commission. Such filings are available at the SEC’s website at www.sec.gov
and at the company’s website at www.rgcresources.com.
The statements made in this release are based on information available
to the company as of the date of this release and the company undertakes
no obligation to update any of the forward-looking statements after the
date of this release.
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