Jersey City officials and activists who oppose a proposed natural gas pipeline that could be routed through the city are beginning to publicly map out how they plan to block the controversial project if federal authorities give it approval this summer.
The Federal Energy Regulatory Commission (FERC) is currently reviewing an application by the Texas-based Spectra Energy to build a miles-long natural gas pipeline that could be routed through much of Jersey City and near sensitive infrastructure. FERC has said it will issue a final Environmental Impact Statement on the project by March 16. The agency is expected to approve or deny the project by June 14.
City officials and No Gas Pipeline, an anti-pipeline membership organization comprised of Jersey City residents, say they expect FERC to approve the pipeline, over the objections of elected leaders, many residents, the real estate and business communities, and health and public safety professionals.
Should FERC approve the pipeline, as the agency is expected to do, No Gas Pipeline and the city have each said they will sue in federal court to block the project. Part of their plan, they said last week, is to delay construction as long as possible. A lengthy delay could force Spectra or its chief partner in the project, Consolidated Edison (ConEd), to abandon their plans.
Proposed project
If approved by FERC, the proposed pipeline would include 19.8 miles of new and replacement pipes, six new stations, and other related modifications in Linden, Jersey City, and Bayonne. In Jersey City, the underground pipeline route would run through nearly every municipal ward and near such sensitive areas as Jersey City Medical Center, several schools, the Holland Tunnel, the New Jersey Turnpike, and transportation infrastructure near the Jersey City-Hoboken border.
The pipeline would cross the Hudson River into New York to connect the company’s existing pipeline to Manhattan and Staten Island, supplying customers of Con Edison.
Spectra has also said that it will supply energy to power facilities operated by Bayonne Plant Holding and boilers at the International Matex Tank Terminals, also in Bayonne.
But because of the pipeline’s close proximity to sensitive areas, local activists and city officials have argued that a natural gas explosion could cause mass casualties and significantly damage important transportation infrastructure. Mayor Jerramiah T. Healy has also noted that the potential hazards posed by a gas pipeline could hurt future commercial and residential development in the city.
Despite these concerns, the energy company has already received several required environmental permits from the New Jersey Department of Environmental Protection. These permits were approved in December.
A lengthy court battle could derail Spectra’s ability to meet its obligations to ConEd, a fact not lost on Jersey City.
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Preparing for approval
Assuming FERC approves the pipeline this summer, the city will have 30 days to appeal the ruling, according to Derek Fanciullo, associate corporation counsel for the city.
FERC can take a second look at its original decision, but will likely approve the pipeline again and grant Spectra a building certificate.
Jersey City – and other entities that filed as interveners – then have 60 days to file lawsuits. “Interveners” are people, organizations, businesses, or municipalities that filed for intervener status with FERC. Having intervener status gives these entities the right to sue.
The most visible organization likely to file a class action lawsuit is the nonprofit No Gas Pipeline, an activist group of residents that has been fighting the Spectra pipeline for two years. The organization has already lined up pro-bono legal representation to assist in their fight if the project is approved by FERC.
“We have to sue in federal court. There are absolutely no other ways to stop this pipeline from going through Jersey City [if FERC gives approval],” said No Gas Pipeline co-founder Dale Hardman. “It can’t be done at the presidential level. It can’t be done at the Congressional level. It can’t be done at the lobbyist level…The city obviously has legal standing to file suit. No Gas Pipeline will try to get legal standing to do the same thing. People may ask, why don’t we join forces? It’s simple. We each have our own strategies, both technical and tactical. Plus, the ability to have at least two parties with lawsuits is something that is obviously beneficial to us.”
Thousands of residents, community organizations, and businesses are believed to have filed for intervener status. The city of Hoboken has also filed for intervener status.
Hudson County’s construction unions have been supportive of the project and could play a role as well.
Lawsuits are part of a two-prong approach opponents of the pipeline plan to use to block the project from breaking ground, after federal approval. The other part of their emerging strategy will be to stall the project in the hope that schedule delays will doom its viability.
Stall, stall, stall
ConEd expects to have natural gas flowing from the Spectra pipeline in November 2013. Even Spectra has conceded that if the project can’t meet this target date it might not be economically feasible to move forward with it.
In order to meet this deadline, Spectra needs to break ground at the end of this year.
A lengthy court battle could derail Spectra’s ability to meet its obligations to ConEd, a fact not lost on Jersey City.
“The longer we draw this out, the better it is for us,” said Fanciullo. “Maybe the problem will naturally abate, so to speak.”
Citing documents submitted to FERC, Fanciullo said Spectra is already making contingency plans should pipeline construction be delayed until next year. “What they have done is they have asked FERC to allow them to truncate their construction schedule to meet those deadlines,” he said.
Already, the city has purposely blocked some necessary preliminary work. For example, last year Spectra requested city permits to conduct soil samples in Jersey City. The city denied this request.
In 2009, when the ConEd-Spectra deal was announced, ConEd President and CEO Kevin Burke said in a press release, “The new pipeline will help us meet the growing energy needs of our area, strengthen the reliability of the natural gas system, and improve air quality for all New Yorkers. The Spectra Energy Project will also help us achieve the goals of the mayor’s and governor’s long-term energy and environmental goals as outlined in PlaNYC and the state energy plan.”
But how long will ConEd wait before coming up with a backup plan to get its natural gas somewhere else?
When asked whether the utility would drop its commitment to Spectra and re-bid its natural gas contract if Spectra gets embroiled in a long court fight, a spokesperson for ConEd said, “The Spectra project is essential for us to reliably meet growing natural gas demand in future years, particularly with the significant increase we are seeing in oil-to-gas conversions.”
Fanciullo said there are a number of delaying tactics the city can use. However, the city has declined to publicly discuss some aspects of its possible legal strategy to prevent Spectra from having the information.
Marylee Hanley, a spokesperson for Spectra, said in response, “As has been true since the NJ—NY Expansion Project began, we will continue to reach out and work with the community.”
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