FERC did have a productive last week before former Chairman Norman Bay resigned, leaving behind only new Chair Cheryl LaFleur and Commissioner Colette Honorable. The three used their last day together to approve the Atlantic Sunrise pipeline. This 180-mile, $3 billion effort will expand an existing system to better connect Northeast Pennsylvania’s gas fields to Mid-Atlantic and SouthEastern customers. The project has become controversial, as activists have hoped to derail it to throw cold water on the hydraulic fracturing business. Companies that operate in the area, saw an immediate stock price bump from the approval.
FERC also signed off on a $455 million natural gas project called Northern Access 2016, which will improve connections between Pennsylvania and customers in the Northeast U.S. and Eastern Canada. Around the same time, FERC also approved the Rover Gas Pipeline, which is a $4.2 billion project that will cover 550 miles and take gas from Pennsylvania, Ohio, and West Virginia into Northern Ohio and Michigan. FERC may be waiting awhile until it gets new Commissioners nominated by President Donald Trump. Congress has been slow-walking his nominees, and it may take some time until the lower-profile FERC Commissioners get a chance to be confirmed. In the meantime, these pipeline projects will move forward but Mr. Trump’s efforts to speed up infrastructure approvals could be stalled by an understaffed FERC.
If you are a company looking to benefit from these pipelines, give Cimmaron Land a call. We are experienced throughout the Utica/Marcellus region and we can help with all of your land services needs.