The US Federal Energy Regulatory Commission partly granted Rover Pipeline's request to bring additional segments into service Thursday morning, but held off on giving the go-ahead for two key laterals where restoration is ongoing.
FERC's Office of Energy Projects said Rover could begin full service on Mainline B of the project and start up service on its Supply Connector B. But it did note agree to let gas flows begin on the Burgettstown and the Majorsville laterals, which connect to supply areas.
Rover made the case Wednesday for an urgent market need for FERC to sign off on the facilities by 9 am CDT Thursday to provide time to finalize contractual arrangements for service June 1. Placing into service additional segments of the Rover gas pipeline now completed would unlock 850 MMcf/d of incremental capacity and gas supply, helping to refill "dangerously low" natural gas storage inventory levels, the company had said.
In partially granting the request, FERC said the decision was based on ongoing inspections, reports of third-party compliance monitors, "staff's determination that rehabilitation and restoration of the affected areas are generally proceeding satisfactorily and Rover's commitment to promptly finalize restoration of these facilities."
It noted that final restoration was over 90% complete in those areas.
FERC STILL EVALUATING REQUESTS FOR LATERALS
But FERC said it was continuing to evaluate the requests for remaining facilities. For the Burgettstown lateral, which straddles Pennsylvania and Ohio, Rover's latest filing said 34.3% of final cleanup and restoration would be complete by Friday, when some shipper contracts are set to take effect. For the Majorsville lateral, which straddles Ohio and West Virginia, Rover said 18.7% of the final cleanup and restoration would be complete by then.
Rover's description of remaining work in the Burgettsown Lateral area, as stated in a May 24 filing, includes plans to install toe keys and drains to remove water that saturates material, as well as reconstruction of hillsides.
With the new approval, Rover is now able to bring the entirety of the pipeline's Supply Connector, Mainline and Market Zone North into service.
FLOWS MAY STAY BELOW FULL CAPACITY WITHOUT LATERALS
It is not immediately clear how much flows along Rover will pick up with the full in-service of the pipeline's mainline, but only four of the eight upstream supply laterals operational. Rover should now have the physical ability to flow the project's full 3.25 Bcf/d of capacity along the Mainline with both Mainlines A and B in service. But the amount of gas that will be able to flow along the pipeline is likely well below the project's full capacity as the pipeline still only has half of its supply laterals in service, according to S&P Global Platts Analytics. Amid several spills and other environmental problems during construction, the commission has previously said FERC's decision on remaining in-service requests will depend on whether the agency is satisfied with Rover's commitments to complete environmental restoration.
Multiple Rover laterals have been beset with recurring erosion-control problems, in some cases involving land slips and landslides requiring substantial remediation. The most recent FERC environmental reports tally 635 noncompliance instances for the project.
ETP sought to head off in its latest filing any concerns FERC may have, while also focusing on market needs.
"Given the substantial progress Rover has made toward restoration, and the commitment Rover has made to complete the restoration work, Rover respectfully submits that it is not in the public interest to prevent gas from flowing," ETP said.
"This incremental supply would likely be used to offset the large deficit the nation is facing to replenish storage inventories in preparation for the 2018-2019 heating season." --Maya Weber
