West Virginia Executive Spring 2019 | Page 56

policy, natural gas—which emits 50 percent less carbon dioxide than coal and 30 percent less than oil—is a natural match for a more climate-friendly energy mix. “My experience and research suggest that natural gas is the path to more renewables because it works so well with intermit- tent resources like wind and solar—i.e., the wind doesn’t always blow and the sun doesn’t always shine,” he says. “Natural gas is so inexpensive that it is creating opportunities for renewables that were not clearly available before the shale gas boom.” Dominion Energy, the leading percentage owner of the ACP, sees the importance of embracing renewable energy sources. In fact, it plans to become the most environmentally friendly utility in North America by investing in solar and other re- newables. It would seem that if Dominion were to combine its resources and innovation with the protesters’ passion for fighting climate change, a happy medium could be struck, but common ground is elusive in this battle. The Benefits of Pipelines It’s easy to wonder why companies like Dominion and Equi- trans Midstream Corporation, the operator of MVP, continue to fight back—until you consider the wide-reaching economic impacts of both success and failure. There is much to be gained in this fight, especially for the Mountain State, where natural gas production just makes sense. West Virginia has a long his- tory of fossil fuel extraction, and the more recent shale gas boom has given the natural gas industry new life. Its possibilities are endless and wide reaching—but only if there is infrastructure to move the natural gas to where it can be used or sold. A rich supply needs a strong demand, and that demand also exists in the region. “In our neighboring states, millions of residential and busi- ness customers are being denied access to an abundant, reliable supply of low-cost natural gas found right here in West Virginia,” says Bob Orndorff, state policy director for Dominion Energy. “Once the Atlantic Coast Pipeline is completed, it will bring cleaner and more reliable electricity and lower consumer energy costs, improve air quality and help rebuild our manufacturing economy.” That’s right: pipeline infrastructure will contribute to the manufacturing renaissance sparked by the recent shale gas boom. According to Natalie Cox, communications director for Equitrans Midstream Corporation and spokesperson for MVP, the design and purpose of the MVP is to safely transport cost-effective natural gas to markets with growing demand, including local distribution companies, industrial users and power generation facilities. The economic impact for each state touched by these two pipelines is doubled for West Virginia because it would be home to a portion of both. Prior to having its permits revoked, the MVP was expected to create more than 4,500 construction jobs in West Virginia and generate $47 million in state and local taxes. ACP’s expected economic impact included 17,000 construction jobs for the three-state route and $4.2 million in tax revenue per year per state. Permits that Protect The biggest objection to pipeline construction is the envi- ronment: the disruption of land, run-off into streams, impact 54 WEST VIRGINIA EXECUTIVE on ecosystems, destruction of trees and interruption of habitats of birds and animals along the route. Protesters find no com- fort in explanations of the many regulations that must be met and approvals that must be obtained prior to the start of con- struction, despite the extensive permitting process. “Interstate pipelines are heavily regulated by the Federal Energy Regulatory Commission (FERC), which works with multiple other state and federal agencies in the permitting process,” says Anne Blankenship, executive director of the West Virginia Oil and Gas Association. “The permitting process takes many years and includes everything from stream cross- ings and tree cuttings to the location of the pipeline route. It is a rigorous process with public involvement and opportunity for comments and objections along the way. Every potential impact is considered, analyzed and regulated.” The ACP project was reviewed by more than a dozen state and federal agencies over a three-year period before receiving project approval in 2017. “No other project in our region’s history has been developed with greater attention to the envi- ronment,” says Orndorff. “With input from agencies and communities, more than 6,000 miles were considered for the pipeline route, and the plan was adjusted more than 300 times to minimize environmental and landowner impact.” What Lies Ahead Despite current stop work orders, leaders behind both the MVP and ACP intend to move forward with their projects. Both have revised their completion dates and are making plans to put people back to work. The MVP project is now targeting a fourth quarter comple- tion and is preparing to ramp up for late spring and summer construction activities. As of mid-April 2019, the total project work was 80 percent complete. “We have been pursuing options and alternatives that would address the MVP’s outstanding issues and, if realized, allow for a fourth quarter completion and in-service date,” says Cox. Dominion Energy also hopes to get back to work on the ACP later this year. According to Orndorff, the U.S. Fish & Wildlife Service authorization appeal is scheduled to be heard in early May, and the company expects an appeal to be filed with the U.S. Supreme Court by the end of May for the U.S.