Mountain Valley Pipeline wants permit extension until 2026 to finish last elements

Developer Mountain Valley Pipeline asked the Federal Energy Regulatory Commission for a four-year permit extension to wrap up the 2 Bcf natural gas transportation project in Appalachia, citing "ongoing legal and permitting challenges" that have held up construction.

The pipeline company on June 24 asked FERC to move its deadline for completing the project to Oct. 13, 2026, from Oct. 13, 2022.

FERC approved the existing deadline when it granted the developer a two-year extension in October 2020. The developer said the reason for the new four-year timeline was to match an amendment it filed for an application for a permit extension for its Southgate expansion project, a request that has not been contested and remains pending (CP16-10, CP21-57 and CP19-477).

"Despite a continual barrage of attacks from project opponents, Mountain Valley remains committed to completing this critical infrastructure project," the pipeline developer told FERC. "Mountain Valley is aware that project opponents will stop at nothing in their attempts to kill the project, and Mountain Valley expects vigorous opposition to this request for an extension of time."

A Mountain Valley spokesperson said in a June 27 email that it continues to target a full in-service for the 304-mile pipeline project in the second half of 2023.

"Completion of construction and final restoration is best for the environment and the affected landowners who have been inconvenienced for an extended period of time," the spokesperson said.

FERC has recently shown a willingness to grant permit extensions to other natural gas infrastructure projects over the objections of project opponents. The regulator has historically limited its decisions on time extensions to considerations of construction timing and whether there is "good cause" to grant more time. It has generally steered clear of revisiting the findings that supported the original project approval.

Developer seeks quick extension approval

Mountain Valley asked FERC to approve its extension request by Aug. 8.

"It is imperative that the commission act swiftly to grant the requested extension so that all reviewing agencies and stakeholders have the benefit of the commission's decision, which will provide predictability and stability about the status of the project's central federal authorization, as other agencies work to finalize the outstanding permit," the developer said.

FERC may be more likely to act on Mountain Valley's request closer to the permit expiration date in October, analysts at ClearView Energy Partners said in a note to clients. But Mountain Valley seeking the extension in June could give FERC additional time to seek and consider public input, ClearView analysts said.

"It is not clear to us that FERC would move as early as Aug. 8, given that the project's opponents are likely to be vocal in their calls to reject it," the analysts said.

Series of setbacks

The Mountain Valley pipeline is 94% complete, but litigation and permitting challenges have delayed work on the final pieces, according to the developer's filing. Mountain Valley also said it has been "actively progressing the final steps necessary to restore required permits."

Equitrans said in May that it would pursue new federal permits for the project as a result of the rulings. The company also raised its cost estimate for the project to about $6.6 billion, a figure the developer maintained in the June 24 filing.

Early 2022 setbacks for the Equitrans Midstream-led project included rulings by the 4th US Circuit Court of Appeals that invalidated federal authorizations allowing the project to cross the Jefferson National Forest and struck the U.S. Fish and Wildlife Service's Endangered Species Act biological opinion for the facility.

FERC recently authorized alternate water crossing methods for a 77-mile section of the pipeline. But questions remained as to how the 4th Circuit would view the next-round permits for the project from resource agencies and challenges to those permits.

"[Mountain Valley Pipeline's] fate appears to lie more with the successful acquisition of new permits from the Forest Service and Fish & Wildlife Service than from FERC," ClearView analysts wrote. "Therefore, we do not think that the commission granting the project more time notwithstanding the opposition from green groups poses a heavy lift."