Project Continues to Target a Q1 2019
In-Service
Mountain Valley Pipeline, LLC released the following statement
and background information in response to a project-wide stop work
order issued by the Federal Energy Regulatory Commission (FERC)
issued on August 3, 2018, related to the adequacy of permits issued
by the U.S. Forest Service (USFS) and Bureau of Land Management
(BLM) granting a 3.5 mile right-of-way in the Jefferson National
Forest (JNF) for the Mountain Valley Pipeline (MVP) project. The
right-of-way permits in question affect only approximately 1% of
MVP’s overall 303-mile project route.
As part of the order, the FERC stated, “There is no reason to
believe that the Forest Service or the Army Corps of Engineers, as
the land managing agencies, or the BLM, as the federal rights of
grantor, will not be able to comply with the Court’s instructions
and to ultimately issue new right-of-way grants that satisfy the
Court’s requirements.”
“We agree with the FERC that the USFS and BLM will be able to
satisfy the Fourth Circuit Court’s requirements regarding their
respective decisions; and we believe that the two agencies will
work quickly to supplement their initial records. In addition, we
are confident that the BLM has reached the correct conclusion
during their initial analysis of alternatives in the JNF and agree
that MVP’s current route has the least overall impact to the
environment. MVP had previously halted operations in the JNF, with
exception of work needed to manage any unnecessary environmental
erosion and maintain slope stability. We will continue to closely
coordinate with all agencies to resolve these challenges as they
work to have the right-of-way grants reissued. While disappointed
with this recent setback, MVP is confident in the BLM’s
alternatives analysis, as well as with the approvals received by
state and federal agencies; and we look forward to continuing the
safe construction of this important infrastructure project.”
Previously, the Sierra Club and other opponents challenged the
USFS and BLM issuance of MVP’s 3.5 mile right-of-way in the JNF. In
a July 27, 2018 decision, the U.S. Fourth Circuit Court held that
the USFS did not fully explain its rationale on sedimentation
impacts; and also held the BLM did not address the impracticality
of various alternative routes. Additionally, however, the Court
largely upheld compliance with the National Environmental Policy
Act (NEPA) by the USFS and BLM – rejecting many of the Sierra
Club’s claims that challenged the agencies’ NEPA compliance.
As the USFS and BLM work to supplement and recast their initial
filings to be more inline with the Court’s order, MVP is evaluating
its construction plan on a daily basis and continues to target a
first quarter 2019 in-service date. MVP will provide updates as the
regulatory process progresses.
About Mountain Valley Pipeline
The Mountain Valley Pipeline (MVP) is a proposed underground,
interstate natural gas pipeline system that spans approximately 303
miles from northwestern West Virginia to southern Virginia. Subject
to approval and regulatory oversight by the Federal Energy
Regulatory Commission, the MVP will be constructed and owned by
Mountain Valley Pipeline, LLC – a joint venture of EQT Midstream
Partners, LP; NextEra US Gas Assets, LLC; Con Edison
Transmission, Inc.; WGL Midstream; and RGC Midstream, LLC. The MVP
was designed to transport clean-burning natural gas from the
prolific Marcellus and Utica shale regions to the growing demand
markets in the Mid-Atlantic and Southeast areas of the United
States. Targeting a full in-service during the first quarter of
2019, EQT Midstream Partners (NYSE:EQM), primary interest owner,
will operate the pipeline. From planning and development, to
construction and in-service operation – MVP is dedicated to the
safety of its communities, employees, and contractors; and to the
preservation and protection of the environment.
Visit www.mountainvalleypipeline.info
Cautionary Statements
Disclosures in this news release contain certain forward-looking
statements that do not relate strictly to historical or current
facts and are forward-looking. Without limiting the generality of
the foregoing, forward-looking statements contained in this news
release specifically include the expectations of plans, strategies,
objectives and growth, and anticipated financial and operational
performance of Mountain Valley Pipeline, LLC, including guidance
regarding the proposed Mountain Valley Pipeline (MVP), such as the
expected impact of the FERC’s stop work order on the MVP and the
Fourth Circuit Court of Appeals’ stay of the Huntington District
stream and wetland crossing permit; the cost, timing and outcome of
regulatory approvals and anticipated in-service date of the MVP;
any engineering, construction and operational changes to the MVP
project; the projected length of the MVP; and the timing of
development and construction for the MVP. The forward-looking
statements included in this news release are subject to risks and
uncertainties that could cause actual results to differ materially
from projected results. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. Mountain Valley Pipeline, LLC has based these
forward-looking statements on current expectations and assumptions
about future events. While Mountain Valley Pipeline, LLC considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory, and other risks and uncertainties, most of which are
difficult to predict and are beyond its control. The risks and
uncertainties that may affect the operations, performance, and
results of Mountain Valley Pipeline, LLC and forward-looking
statements include, but are not limited to:
The business, financial condition, results of operations and
prospects could suffer if Mountain Valley Pipeline, LLC does not
proceed with projects under development or is unable to complete
the construction of, or capital improvements to, its facilities on
schedule or within budget.
The ability to complete construction of, and capital
improvements to, facilities on schedule and within budget may be
adversely affected by escalating costs for materials and labor and
regulatory compliance, inability to obtain or renew necessary
licenses, rights-of-way, permits or other approvals on acceptable
terms or on schedule, disputes involving contractors, labor
organizations, land owners, governmental entities, environmental
groups, Native American and aboriginal groups, and other third
parties, negative publicity, transmission interconnection issues,
and other factors. If any development project or construction or
capital improvement project is not completed, is delayed or is
subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms
that may otherwise be available, and Mountain Valley Pipeline, LLC
could become obligated to make delay or termination payments or
become obligated for other damages under contracts, could
experience the loss of tax credits or tax incentives, or delayed or
diminished returns, and could be required to write-off all or a
portion of its investment in the project. Any of these events could
have a material adverse effect on Mountain Valley Pipeline, LLC’s
business, financial condition, results of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project
siting, financing, construction, permitting, governmental approvals
and the negotiation of project development agreements that may
impede its development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for
licenses and permits from various local, state, federal and other
regulatory authorities and abide by their respective conditions.
Should Mountain Valley Pipeline, LLC be unsuccessful in obtaining
necessary licenses or permits on acceptable terms, should there be
a delay in obtaining or renewing necessary licenses or permits or
should regulatory authorities initiate any associated
investigations or enforcement actions or impose related penalties
or disallowances on Mountain Valley Pipeline, LLC, Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects could be materially adversely affected.
Any failure to negotiate successful project development agreements
for new facilities with third parties could have similar
results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities
and other facilities are subject to many operational risks.
Operational risks could result in, among other things, lost
revenues due to prolonged outages, increased expenses due to
monetary penalties or fines for compliance failures, liability to
third parties for property and personal injury damage, a failure to
perform under applicable sales agreements and associated loss of
revenues from terminated agreements or liability for liquidated
damages under continuing agreements. The consequences of these
risks could have a material adverse effect on Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects.
Uncertainties and risks inherent in operating and maintaining
Mountain Valley Pipeline, LLC's facilities include, but are not
limited to, risks associated with facility start-up operations,
such as whether the facilities will achieve projected operating
performance on schedule and otherwise as planned.
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects can be materially adversely
affected by weather conditions, including, but not limited to, the
impact of severe weather.
Threats of terrorism and catastrophic events that could result
from terrorism, cyber-attacks, or individuals and/or groups
attempting to disrupt Mountain Valley Pipeline, LLC’s business, or
the businesses of third parties, may materially adversely affect
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180806005211/en/
Mountain Valley Pipeline media inquiries:Natalie Cox,
412-395-3941Corporate Director, Communicationsncox@eqt.com
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