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Tuesday, July 3, 2018

Rover Pipeline Presses FERC for Approval on Laterals; FERC Tells Rover to Keep Its Word

First, from Kallanish Energy:
The company, in a strongly worded letter to FERC, said it had expected to begin service next week on its delayed Burgettstown and Majorsville laterals. 
“It is not in the public interest for the commission to withhold this supply from market any longer,” the company said. 
The company said that “significant volumes of natural gas have been unable to flow on pipeline facilities that have been completed for nearly a month.” 
In a June 21 letter to FERC, the company requested approval by June 25. It intended to then notify shippers that service would begin on July 1, it said. 
Rover Pipeline said that FERC appears to have changed the rules in requiring additional work from the company after heavy rains caused slippage and erosion problems along the two laterals. 
The company said both laterals are now more than 50% restored, but not enough to win FERC approval. 
“This change is unwarranted and unreasonable,” the company said.
And then there is this response from the FERC, as reported by NGI:
Rover Pipeline LLC is once again in regulators’ crosshairs as FERC staff on Thursday said the company is unlikely to meet the restoration deadlines set out in a May 1 order approving service on the Vector Delivery Meter Station, Defiance Compressor Station and the Market Segment. 
According to a letter to the pipeline signed by the Federal Energy Regulatory Commission’s John Wood, deputy director of the Office of Energy Projects, Rover was expected to miss the June 30 (Saturday) deadline for completing restoration work on those facilities, in violation of the terms of the May order. Rover told FERC staff via email that it expected restoration on the Market Segment to take until at least the end of July, according to Wood. 
Thursday’s letter echoes an earlier missive from FERC that chided Rover for lagging behind schedule on restoration of Mainline Compressor Stations 1 and 2, and it raises the possibility of delays to pending in-service authorizations for four supply laterals. 
“Because restoration of these facilities was not complete at the time of in-service authorization, Rover committed to completing the remaining restoration activities by specified dates,” Wood wrote, noting a checklist of items including grading, reseeding, restoration of stream banks, rill erosion and repair of erosion control devices, among other activities.
The construction of the Rover pipeline has been marked by drilling mud spills, property damage, and other mistakes, including the destruction of a house that was under consideration for historical status in Carroll County.  ETP has generally come out firing with strongly worded letters to the FERC as regulators have kept the company squarely in their sights.  With as much back-and-forth as there has been between ETP and both the FERC and Ohio EPA, it's a little bit remarkable that the project has been able to progress as much as it has.

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