Pointing out the obvious flaws in FERC’s regulatory process

People who live in towns affected by the PennEast pipeline are getting fed up with the obvious deficiencies in the FERC process, and over time they are learning where all the cracks and faults and problems lie. And they’re starting to bring all that information together and present it back to the FERC. The hope is that perhaps the new FERC head, Norman Bay, will start a serious round of introspection and meditate on what FERC’s true role is in the industry. And to possibly reconsider their what their legal responsibilities and moral obligations are when energy companies start exceeding all common sense and propose new projects with reckless abandon and little or no concern for people who are impacted.

Lorraine from Milford, NJ is one of the people leading this charge, and I hope you all will lend your voice to hers and echo her sentiment. Lorraine is talking about recent peaceful protests in Washington D.C. against the FERC, and how they are violating people’s rights while turning a blind eye to energy company’s misdeeds. She submitted this comment to the FERC today:

Lorraine Crown, Milford, NJ.
Re: FERC Utilizing Homeland Security to Deny the Public Access to its Public Meetings

I have seen several videos taken yesterday, May 14, 2015 from the FERC meeting in Washington D.C.

I am writing to say the following: the community members who oppose the PennEast Pipeline and other pipeline projects and who attend public meetings with the pipeline company, FERC scoping sessions and your commission meetings, are citizens, taxpayers, landowners, and voters – fully recognized stakeholders in the FERC process. To treat this community as though we are eco-terrorists who require the heavy hand of Homeland Security to make sure we don’t become dangerous and to deny our presence at meetings is absurd, unjust and possibly illegal.

Most of the community members who attend public meetings to voice their concerns with PennEast, other pipeline companies, and FERC, have gray hair and are farmers and families. Any protest against FERC organized by BXE has been peaceful and respectful – their stated mission, and our right as citizens of the United States. In all of the many public meetings that I have attended on the proposed PennEast project – all of which had extreme police presence completely out of scope for the nearly zero crime rates in the communities in which these meetings took place – the only time there was ever a disturbance, it was caused by a PRO-PennEast attendee who screamed obscenities at the audience as he stormed out.

We are reaching out to our legislators – and to our lawyers – to put a stop to this harassment of citizens attempting to exercise our free speech and to fully engage the regulatory process that impacts our lives. FERC is not a neutral or fair actor in this process when it allows the PennEast and other pipeline companies to dismiss stakeholder concerns outright in their meetings with the public and with landowners, and in their Response to Scoping reports; when it fails to sufficiently examine cumulative impact; and when it makes a mockery of the critical scoping process by not allowing communities adequate time to complete environmental impacts on continuous route changes, or to schedule sufficient scoping meetings; and when it implies by heavy police presence at its meetings, that its stakeholders are dangerous and criminal. Citizens – not eco-terrorists – have been shown by FERC that our interests are meaningless and are being ignored in the regulatory process, which appears to be nothing more than a “going through the motions” exercise on the way to FERC rubber stamping the next pipeline project.

Lorraine Crown
Milford (Holland Township), New Jersey

Cc: NJ Senator Mike Doherty
NJ Assemblyman John DiMaio
NJ Assemblyman Erik Peterson
Representative Bonnie Watson Coleman
Representative Leonard Lance
NJ Senator Shirley Turner
US Senator Corey Booker
US Senator Robert Menendez
Department of Homeland Security

Her comment is available below:

Lorraine’s text submission
Lorraine’s text submission, alternate FERC site

Calling All West Amwell Residents: West Amwell Citizens Against the Pipeline is forming

I’m excited to announce that a citizen’s group is being created called the West Amwell Citizens Against the Pipeline. The purpose of this group is to do our part to help preserve our township’s character and its investment in conservation and open space by opposing the PennEast pipeline. This will be a non-profit organization that will serve as both an informational source to let residents know what’s going on with PennEast, and also as a platform of active opposition to the pipeline company itself.

I know many people in the township believe that PennEast is inevitable and that fighting it is pointless. I don’t believe this is the case. Not at all. While the government has a history of rubber stamping these projects in the past, this time it’s different. I’ve talked to journalists in the area and they’ve said that they have never seen the level of opposition that they’ve seen in against PennEast. One reporter I spoke to said “I’ve been writing for 20 years and I’ve never seen as much push back by so many”. People here and around the country are waking up to the reckless over-exploitation of resources by fracking companies, and how pipeline consortiums are rushing in to lay pipe as fast as they can before the money runs out. Politicians are waking up to this fact, and old policies of going easy on energy companies are being looked at in a very hard light. We are at a unique point in history where we can stand up and make a change, and together we have an excellent chance to stop PennEast dead in its tracks.

At the core our organization objects not only to the route that PennEast has proposed through West Amwell, but we also object to the entire idea of the pipeline in general. No matter what route this pipeline takes, it is an unwanted blemish upon the country side, a source of constant danger to people living nearby, and a project that will further the purposes of the fracking industry. Its construction and ongoing operation will cause unwarranted damage to the ecosystem and foster increased use of fossil fuels.

We contend that this entire project is unnecessary, and that our existing natural gas infrastructure is more than adequate to meet our current energy needs. Development for the future should focus on investment in renewables, not in hydraulic fracturing.

The organization will assist landowners directly impacted by the pipeline and get them the information they need to help understand their legal rights, including their right to deny survey access to the pipeline company. We’ll help educate residents on how to deal with PennEast, the Federal Energy Regulatory Commmision (FERC), and other government entities. And we will work in conjunction with other regional CAP organizations such as Delaware Township Citizens Against the Pipeline, Hopewell Township Citizens Against the PennEast Pipeline, stoppenneast.org, and others here in NJ and in PA to organize our opposition against PennEast.

We’re still in the early stages of forming the group. A web site is being put together, I’m working on incorporation and non-profit status, and also talking to other citizens groups in the area to see how best to proceed.

If you would like to join the organization and help out, or just want more information on what we’re doing, please contact me. Also please forward this to any of your neighbors who you think might be interested.

If you’d like to get more information in person I’ll be attending the Delaware Township Citizens Against the Pipeline meeting today, Thursday, May 14th. Sorry for the short notice! The meeting will be held at 7:30 at the Delaware Township School (http://www.dtsk8.org/). The DTCAP organizers have graciously invited all West Amwell residents to attend and get more information about fighting the pipeline.

We’ll get more information sent out once it’s available, including the web site information and particulars for a first formal meet up.

Please note that this group will not be officially tied to the West Amwell Township municipal government, but we will strive to work with our elected officials wherever possible. Together we can make a difference and beat this thing!

One family’s PennEast Story

When people ask me why I started this blog, I always relate the story of how I started searching through the FERC docket for PennEast and was struck by the poignancy and sheer brilliance of some of the submissions.  These aren’t documents written up by a lobbying firm or copy edited by a marketing team.  They’re not paid advertisements.  None of it’s coming from professional reporters.  They’re just the sincere thoughts of ordinary residents in the area.  After I had read my 20th or so submission I knew I had to publicize some of these stories.

This is one of them.

Winifred and Jeffrey Waldron live in Holland Township.  I highlighted one of their FERC submissions awhile back:

https://thecostofthepipeline.com/2015/03/09/winifred-tells-it-like-it-is/

They have a beautiful property in Holland, 7.5 acres of land in the rolling hills that are a major attraction of this section of Hunterdon County. In an earlier FERC submission Winifred describes what their property is like and what it means to them:

I grew up in a rural area and planned to raise my family in a similar environment here in New Jersey, “The Garden State”. When I completed my residency program, my husband and I had to decide where we going to settle our family. While touring different properties, we found a secluded, flag lot, surrounded by trees, not too far from the road, on a hillside with a little stream running through the woods and no easements. Even in the winter, it was a gem. I had fallen in love with the land as soon as I saw it. I was already imagining sledding with the kids on the hillside, gardening, exploring the woods and stream. We have lived here for more than 10 years now. We have invested in the land, removing debris dumped in the woods and stream, planting trees and cultivating the soil for the gardens, fruit trees and berries.

You can imagine my resentment when the Western Land Services land agent, Larry Gilbert, showed up at my home and threatened to take my land when I balked at the thought of having a natural gas pipeline constructed through my property. The agent reminded me “this is New Jersey and we have eminent domain”.

Visiting children call our house, “The house with the playground”, or the “park”. They are referring to the multiple places outside to explore. Our children and their friends have had sleep overs – camping in the back yard. They play hide and seek in the woods. In August, we watch the meteorite showers from the hill. We have campouts in the backyard and use our fire pit on warm summer nights. We watch the bats dipping down to snatch bugs attracted to the lights.

I was nodding my head as I was reading this because Winifred’s description reminds me so much of our property in West Amwell. Ironically we also have a flag lot and fire pit :-). All of Hunterdon county is like this, it’s a remarkable area that takes people familiar with the eastern portion of the state by surprise.

Winifred’s complete original submission is available below. I recommend everyone take a look, the style is a delight to read and the facts and analysis are sobering.

http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=13789196

You would think that people like the Waldrons who have spent a considerable amount of time researching this pipeline and objecting to many aspects of it would be able to catch PennEast’s attention, right? Maybe they would sit and up and listen to dedicated individuals like this?

Nope. Jeffrey and Winifred wrote to me a couple of weeks ago to share the frustrations they’ve had in dealing with PennEast and the endless layers of deceit and trickery they’ve had to endure. To get a better picture the impact PennEast is going to have on them, here’s a shot of their property (outlined in red) with the 400′ pipeline survey corridor in blue:

They begin:

Hi Michael,

I am also an affected landowner of Penn East in Holland NJ and I wanted to thank you for your recent submission scolding Penn East to tell truth. The pipeline cuts my property literally in half and is currently situated to be approximately 150’ from my house and well. My barn is in the construction corridor and Penn East will not make any statement on its status (whether it be leveled or not) unless we grant permission to survey- which we are also continuing to deny.

Our initial exposure to Penn East was Larry Gilbert from Western Land Services last August. He came in our home and showed us the map of the pipeline on our property. When we pointed out how it would cut us in half, his response was, “Oh well”.

When we refused permission to survey, he told us our property would be surveyed without our permission and that if we felt the need to be “uncooperative” that our land would be taken from us using eminent domain.

We attended 3 of the 4 open houses in PA and NJ to register our dismay and get more information. We got no information as we were passed along from one person to another and Mr. Gilbert was at every meeting despite Mr. Cox telling me at the first meeting “that is not how we do business”. I guess that’s a lie too that further evidence has proved out. We complained to the FERC representative, Medha Kochhar, at the final open house regarding all of this and we were passed on to Alyssa Harris who promised to call us in 48 hours to review our concerns. Our phone has still not rung. At the landowners meeting in Holland in April, she presented her card to my wife who pointed out we were still waiting for a phone call. Ms. Harris had no response and still no call.

If you’ve read my notes from the Frenchtown PennEast landowners meeting, then what the Waldrons are describing should be familiar to you.

https://thecostofthepipeline.com/2015/04/14/last-nights-penneast-meeting-at-razzberrys-in-frenchtown-nj-part-1/
https://thecostofthepipeline.com/2015/04/16/penneast-meeting-at-razzberrys-in-frenchtown-nj-part-2/

If one or two people were complaining about PennEast abusing their trust and trying to force them to give survey permission you might pass it off as no big deal. But every land owner I’ve talked to has been pressured by PennEast the way the Waldrons have described, and are tired of getting a run around from PennEast. They smile and promise you answer to questions – and then they promptly forget it and never call you back. Repeated requests get the same smiling response, and still nothing ever happens.

The Waldrons conclude:

Our property, all 7.5 acres of it, is completely and clearly posted and we are fully prepared to take whatever legal action we must should they decide to trespass. We have grave concerns about the effects on the water, the wells, the trees and wildlife that this area so richly contains. A large portion of one half of our property is NJ designated wetlands and cannot be developed or manipulated, at least by us. We have taken great care to preserve and monitor those areas. Moving from Vermont, we never thought we could find property in NJ which could be this tranquil and native. We have nesting Bobolink birds and Jack in the Pulpit flowers on our property, both are listed as threatened/endangered species. We have Cooper Hawks and have had a few Bobcat sightings. We want to keep our property this way and are engaged in the fight. We also attended the Holland scoping meeting but were among the 20-30 people who were denied the opportunity to speak. Ironically, when we spoke to Ms. Kochhar from FERC at the open house, she told us we would have the opportunity to speak and express our concerns. Another lie. We did submit comprehensive comments but how seriously and completely they will be reviewed is another question especially given Tetra Tech’s status with Marcellus shale. It is like asking the fox to design the security system on the henhouse.

I am disheartened at what appears to be a rubber stamp from FERC and Penn East’s perception that they just have to check the boxes to get it done. Penn East shows no real concern or interest in the affected landowners, unless they need survey permission. I do not want to see their level of interest once they have it. They have already manipulated the maps and now have recently changes the mile markers and removed building structures etc. from their maps to further obfuscate the truth of the impact the pipeline will have. We hope to stay unified and further the fight and hope our government is actually responsive to the people they are sworn to serve. I constantly wonder how this pipeline promotes our rights to life, liberty and the pursuit of happiness. It seems that everybody forgets that’s why we have this country in the first place.

I could continue to rail on but realize that all of us that are affected have had bad experiences and continue to have worries. We must continue to persevere and stand united. I, we thank you for your time and efforts and we will continue the fight.

In response I can only thank them for all of the considerable time and effort they’ve spent fighting PennEast, and to stand with them and continue to fight. The best thing we can do collectively is to document all of our efforts, keep sending comments into FERC so they are officially logged, and most importantly to keep denying survey rights to PennEast. The one thing PennEast cannot do is come on your land to survey, they can only do that with your permission. Deny them that and they won’t physically be able to do their Environmental Impact Statement (EIS), and thus won’t be able to build their pipeline.

Letting the FERC know what you think about PennEast just got a whole lot easier…

Even though the number of comments to the FERC opposing PennEast have been impressive, we could do better.  I know a lot of people in particular get frustrated trying to navigate the FERC site.  It’s down constantly, and even when it’s up you have to navigate a crusty old web site that feels like a throw back to 1998.

Well, you don’t need to do that anymore.

The Delaware Riverkeeper Network has created a page to make it trivially easy to send a note to the FERC docket:

http://www.delawareriverkeeper.org/act-now/urgent-details.aspx?Id=187

You can choose to either write your own message, edit the sample provided by the Riverkeeper, or just send the default form as is. You can also choose have the DRN either send your submission in electronically, or have them print and mail it.

Some come on folks! Take 5 minutes out of your day, visit the site and add your voice to the opposition. Let the FERC know the depth and breadth of opposition PennEast faces and that their pipeline is not wanted or needed.

Who’s buying the PennEast gas?

So how can PennEast justify this pipeline?  We already seem to have enough natural gas.  The whole state of NJ uses around 1.8 billion cubic feet a day on average across all consumer types (residential, electrical, industrial, transportation).  This pipeline, at 1 billion cubic feet a day, could power more than half the state all by itself.  So how could this work?


Who’s Buying the Gas?

Well, there are a few different ways.  First there’s the Purpose and Need justification they have to provide to satisfy eminent domain. They have to prove that this project will provide material benefit to the people of NJ and PA that outweighs their taking our land via the government.  In this case their purpose and need is that several companies are willing to buy natural gas from the pipeline, and that they will use it to benefit businesses and consumers in Eastern PA and NJ.

The reality is a bit different though.  In PennEast’s most recent government filings they have included the list of “open season” subscribers who have pledged to buy gas from PennEast.  These are shown below:

This table shows each subscriber to the pipeline, how much volume they’ve committed to, what percentage of the total that represents – and most critical, whether the company is an owner of the pipeline or not.

As it turns out 76% of the pipeline capacity is being bought by the pipeline owners (those are the names highlighted in red).  The pipeline owners are literally selling the gas to themselves and using that as their eminent domain justification.

But this still doesn’t solve the question of what it’s going to be used for.  Natural gas consumption in NJ has been flat for years, and is projected to the stay that way except for very moderate growth in gas-fired electrical generation.  So where can it go?

Next up we’ll look at the major pipeline interconnects to see physically where this gas can go.

The fracking industry’s amateurish attempts to mislead the public and FERC

A gentleman by the name of Dustin Kuhlman posted a comment to the PennEast FERC docket this morning. He is very pro-pipeline has some nice turns of phrase in his commentary. His comments in full are below:

The vocal opposition of a few should not be generalized as the common opinion of many. I, like many of my neighbors, colleagues and friends, welcome responsible natural gas development and recognize the PennEast
Pipeline Project as crucial to the region. As such, I would like to add my voice to those who support the PennEast Pipeline Project.

The presence of large quantities of accessible natural gas in our region cannot be ignored. With current state-of-the-art technologies and diligent oversight to ensure established safety protocols are followed,
this natural gas resource must be developed and put to good use for the benefit of homes and businesses.

I proudly encourage environmentally responsible exploration, safe drilling, efficient transportation and proper maintenance of our natural gas resources. This will ensure that our energy needs will be met well
into the future in an environmentally and sound economical manner.

Beyond the logic of putting our own resources at a higher priority than those controlled by often hostile foreign energy suppliers, I point to the growing needs of our local economy. The PennEast Pipeline Project not only will deliver a safe, reliable, affordable supply of natural gas, it will do so with a $1.6 billion economic benefit during its design and construction and provide annual energy savings of close to $900 million per year to Pennsylvania and New Jersey consumers. These are major economic benefits for many of our local and regional families, communities and businesses.

As someone who knows firsthand the benefits of all that natural gas makes possible, I ask you to approve the PennEast Project. Thank you.

I suppose if you read the above opinion in a vacuum it would be pretty impressive. Hey, we should safely and diligently work to exploit this resource to our best abilities, and the boon to the region will be absolutely incredible! Let’s ignore those few pesky whiners out there and focus on all the good this project will do for us!

Sounds good, right?

Except of course we don’t live in a vacuum, and a lot of Dustin’s words will seem eerily familiar to those who have been following the PennEast news closely.

He opens by saying “The vocal opposition of a few should not be generalized as the common opinion of many”. This is eerily similar to what Patricia Kornick, PennEast spokes person, said in a recent article in LehighValleyLive.com. Kornick said: “The vocal voices of a few should not be construed as the overall perception” (the full article is here http://www.lehighvalleylive.com/newjersey/2015/05/residents_along_penneast_pipel.html).

The “1.6 billion” deal is of course referring to PennEast’s bogus Drexel study from a few months ago that was thoroughly debunked by multiple sources. The “energy savings of close to $900 million per year” is a gross perversion of the more recent PennEast study where they claimed they could have saved the region $890 million if they were able to take a time machine back 3 years, magically build the pipeline and have it ready for the polar vortex winter of 2013/2014.

So what’s Dustin’s deal here?

Well it’s pretty simple. Dustin is a Vice President for the firm Civil & Environmental Consultants, Inc. (CEC):

https://www.linkedin.com/pub/dustin-kuhlman/19/5a6/21a

A big part of his firms business is to hire themselves out as high priced consultants to the fracking industry.

http://triblive.com/business/headlines/7011170-74/cec-gas-industry#axzz3ZGpvVtxB

You see, Dustin overseas the consulting group within CEC that focuses on the natural gas industry. His group has grown their revenue from fracking operations from $2 million in 2007 to $32 million last year.

There’s also Frank Jeanson. He wrote an identical comment to the FERC. Here’s his linkedin profile:

https://www.linkedin.com/pub/frank-jeanson/16/694/392

From there we see he works for Shell Oil Company as “Community Relations / Non-Technical Risk Manager for Shell’s Appalachia project which includes over 1 million acres in 4 distinct project areas across the State of Pennsylvania”.

And there’s Devesh Mittal, also with the same identical submission. Here’s his linked in profile:

https://www.linkedin.com/pub/devesh-mittal/23/470/25

He’s a Vice President and General Manager at a company called Aquatech. He’s in charge of their shale gas division. They do water treatment of the contaminated water that comes out of fracking wells. Another company who make tens of millions from fracking.

Jennifer McDonough? She did the same. And guess what industry she works in?

https://www.linkedin.com/pub/jennifer-mcdonough/a/31a/96a

She’s a “Senior Vice President, General Counsel and Corporate Secretary for Rex Energy Corporation”, a big time fracking company.

Amber Benzon. Ditto:

http://marcelluscoalition.org/about/staff/

She works for the Marcellus Shale coalition and is a “Director of Government Affairs”.

None off these people disclosed their employment in the fracking industry. Not a single one.

So, just like the UGI employees commenting on the FERC docket without identifying their conflict of interest to the government, we have multiple people cheerleading the pipeline without disclosing that their companies makes tens of millions of dollars from the fracking industry.

I have no problem with fracking industry leaders voicing their opinions in a public forum. It’s a free company and we’re all entitled to our opinion. But people who have a financial stake in the outcome of a project should disclose their conflict of interest as a matter of course to keep the debate honest. To fail to do so exposes the deep level of deception and lack of ethics that you see in the shale gas boom’s darker corners.