Panel considers regional pipeline control

by robert swift (Harrisburg Bureau Chief)
Published: September 8, 2010

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HARRISBURG - Decisions about expanding natural gas pipelines in Pennsylvania would be removed from the hands of federal officials under a bill facing a House hearing today.

The Consumer Affairs Committee will take testimony on a measure to create an interstate compact involving Pennsylvania and one or two other states with authority to approve or reject applications to expand pipeline to accommodate development of Marcellus Shale gas deposits.

The hearing will show how the long-term Marcellus Shale development impacts not just the drilling and exploration areas of Northeast and Southwest Pennsylvania, but also outlying regions. A Transcontinental Gas Pipeline Co. expansion project in Chester County is stirring controversy there. The company operates a major interstate pipeline extending from Texas to the New York City area.

The hearing will feature testimony from a UGI Utilities Inc. executive and members of a watershed association in Chester County.

Rep. Curt Schroder, R-155 Exton, the bill sponsor, said state officials should prove more responsive to concerns that property owners and local officials have about pipeline projects than the Federal Energy Regulatory Commission, which has exclusive authority.

He said property owners in his Chester County district have complained to FERC about easements for new pipelines and threats to natural areas and have gotten little response.

"The homeowner or business owner really stands no chance," Schroder added.

A provision in a 1938 federal law allows for interstate compacts to make siting decisions, but they aren't widespread. If Pennsylvania enters into a pipeline compact with other states, congressional approval would be needed to ratify it. Mr. Schroder has made overtures to Maryland officials about participating.

The proposed Mid-Atlantic Area Natural Gas Interstate Compact would be run by a council of respective state officials, state lawmakers, conservation district officials, local officials and business and housing industry representatives.

The council would be required to consider a project's impact on conservation areas and wildlife and minimize the use of easements and impact on developed areas.

Contact the writer: rswift@timesshamrock.com

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