NEXUS Pipeline Ruling Could Have Broader Implications
While unsuccessful in their request for rehearing at FERC and before a U.S. district court, Oberlin, a small college city in northern Ohio, and landowners in the state that formed the Coalition to Reroute Nexus, won what ClearView Energy Partners LLC called a “precedential opinion” last week before the DC Circuit in the case City of Oberlin, Ohio v. Federal Energy Regulatory Commission, No. 18-1248.
Nexus secured precedent agreements with eight different entities for 825,000 Dth/d, or just 59% of the pipeline’s capacity. Two of the agreements were signed with Canadian companies serving customers in Canada, according to court documents.
Without the foreign agreements, the DC Circuit noted that only 42% of the project would have been subscribed. “…Because the Commission never considered whether the public benefits of the Nexus pipeline would outweigh its adverse impacts if it were only subscribed for 625,000 Dth/d, we may affirm its finding of public convenience and necessity only if the Commission’s inclusion of the export precedent agreements in its analysis was proper,” the court said.
But the panel of judges said the Commission failed to explain during oral arguments and in other proceedings why it is lawful to credit demand for export capacity in issuing a certificate. In order to receive a certificate approval under the Natural Gas Act (NGA), a developer must show that its project is in the public interest and meets unserved market demand.Read more by clicking here.