U.S. Fish and Wildlife Service issues new opinion for MVP project

WASHINGTON (WV News) — A new federal filing could help the developers of the Mountain Valley Pipeline meet their goal of completing the long-delayed pipeline project later this year.

The Federal Energy Regulatory Commission (FERC) recently released a new Biological Opinion for the project issued by the U.S. Fish and Wildlife Service. The opinion replaces the one previously vacated by the U.S. Court of Appeals for the Fourth Circuit.

The project still has “four to five months of remaining construction activity,” according to its developers, and still needs several key approvals, including permits from the U.S. Army Corps of Engineers that would allow the pipeline to cross bodies of water in the Jefferson National Forest.

During the fourth-quarter earnings call for MVP developer Equitrans Midstream Corp. (ETRN) at the end of February, CEO and Chairman Thomas Karam said the company expects the needed authorizations to be issued “over the next several months.”

“... which we believe would position us to safely complete construction of MVP in 2023,” Karam said. “However, we must acknowledge that the ultimate hurdle remains legal challenges of the permits before the U.S. Fourth Circuit Court of Appeals.”

The developers believe “the remaining construction activity could be completed to achieve a second half of 2023 in-service at a total project cost of approximately $6.6 billion,” according to ETRN’s earnings report.

However, due to “significant uncertainty” regarding how the Fourth Circuit will rule, the developers continue to support federal legislation to overhaul the permitting process for energy projects.

“ETRN continues to support potential enactment of federal energy infrastructure permitting reform legislation that specifically requires the completion of the MVP project” the report says. “ETRN believes that there remains bipartisan support and prospects for such legislation.”

During the company’s third quarter earnings call in November 2022, Karam said passing federal permitting reform was the “best path” to seeing the natural gas transmission line finished in 2023.

“The litigation and regulatory issues present for critical natural gas infrastructure projects like MVP, combined with global events, clearly highlight the need for expeditious action by Congress on federal permitting reform legislation as the best path to complete the MVP project in 2023.”

West Virginia Sens. Joe Manchin and Shelley Moore Capito have each backed efforts in the last year to streamline the rules and regulations for energy projects, with the specific goal of seeing the MVP completed.

At the beginning of February, Capito said although previous efforts have originated on the Senate side, proponents were now looking to the House Commerce and Natural Resources committees to start the process this time.

“I’m certainly going to be pressing, and we’re going to be having meetings with our House colleagues on this very issue,” Capito said. “We’ll look and see what the House comes up with and see if it’s something I think we can get good compromises on.”

Passing reform legislation — which would rein in project timelines and limit legal actions against projects — would benefit other stalled energy projects, not just the MVP, Capito said.

“Finding reasonable compromise to permit pipelines and power lines and other things is important to both sides,” she said. “If you want more renewable, you can’t do it without transmission. If you want more natural gas, like I do, you can’t do it without pipelines.”

At the end of December, Manchin tried to attach a permitting reform measure to the annual defense sending package.

 “Permitting reform and the completion of the Mountain Valley Pipeline are essential to ensuring lasting American security and independence,” Manchin said in a statement released shortly after the measure was rejected. “Continued inaction will be felt by every American in every part of the country. If I made a mistake anywhere along the way it was that I trusted my colleagues to rise above partisan politics and do what is best for our country. Instead they chose to kick the can down the road when America cannot afford to wait. What crisis will have to occur to spur bipartisan action?”

The MVP project is planned to span approximately 303 miles from northwestern West Virginia to southern Virginia, transporting natural gas from the Mountain State to markets in the Mid-Atlantic and South Atlantic regions.

In West Virginia, the MVP’s route is planned to include Braxton, Doddridge, Fayette, Greenbrier, Harrison, Lewis, Monroe, Nicholas, Summers, Webster and Wetzel counties.

The pipeline is being constructed by and is owned by Mountain Valley Pipeline LLC, a joint venture of EQM Midstream Partners LP, Next-Era Capital Holdings Inc., Con Edison Transmission Inc., WGL Midstream and RGC Midstream LLC. EQM Midstream Partners would operate the pipeline and own a significant interest in the joint venture.

The MVP project has faced numerous delays and cost increases caused by legal challenges brought by environmental groups and other opponents.

When the project was initially announced in 2014, developers said it was expected to cost around $3.5 billion and would be completed by the end of 2018.