Energy companies cancel Atlantic Coast Pipeline

by John Bowden - 07/05/20 4:46 PM ET

The two energy companies behind plans to build a natural gas pipeline spanning from West Virginia to North Carolina announced Sunday that the project was canceled, citing ongoing legal battles over the pipeline’s construction.

In a statement, Dominion Energy and Duke Energy pointed to a recent court decision in Montana ending the Army Corps. of Engineers’ authority to issue utility line permits across wetlands and bodies of water as a sign of the continued legal troubles the project faced before completion. The project was slated to be completed in 2021, and had won a permit battle at the Supreme Court earlier this year.

“The potential for a Supreme Court stay of the district court’s injunction would not ultimately change the judicial venue for appeal nor decrease the uncertainty associated with an eventual ruling. The Montana district court decision is also likely to prompt similar challenges in other Circuits related to permits issued under the nationwide program including for ACP,” the companies said.

“This new information and litigation risk, among other continuing execution risks, make the project too uncertain to justify investing more shareholder capital. For example, a productive tree-felling season this winter is a key milestone to maintaining the project’s cost and schedule,” they added.

Environmental groups had fought the project for years, with opposition to the pipeline cropping up particularly in Virginia shortly after the project was announced in 2014. The pipeline planned to carry fracked natural gas 600 miles across West Virginia, Virginia and North Carolina. Construction costs for the project soared from initial estimates of $4.5-$5 billion when it was first announced to at least $8 billion, according to the news release.

Activist groups celebrated news of the project’s demise on social media.

“There are way too many people to thank for this huge victory, but from the trees to the streets to the courtrooms, you all know who you are. This project should have never been approved in the first place, and your work made it unviable,” wrote Brennan Gilmore, executive director of Clean Virginia, adding: “THANK YOU!”

There are way too many people to thank for this huge victory, but from the trees to the streets to the courtrooms, you all know who you are. This project should have never been approved in the first place, and your work made it unviable.

THANK YOU! https://t.co/WCaI3LSpsQ

— Brennan Gilmore (@brennanmgilmore) July 5, 2020

“WOW WOW WOW. It looks like the fracked gas Atlantic Coast Pipeline is dead!! Thank you to the thousands of grassroots folks, attorneys, and advocates who have been fighting this every step of the way. Power to the people. Remarkable,” added Mary Anne Hitt of the Sierra Club.

WOW WOW WOW. It looks like the fracked gas Atlantic Coast Pipeline is dead!! Thank you to the thousands of grassroots folks, attorneys, and advocates who have been fighting this every step of the way. Power to the people. Remarkable. https://t.co/9np6fLEfT7 pic.twitter.com/MzjMFcmPdt

— Mary Anne Hitt (@maryannehitt) July 5, 2020

Dominion Energy president Thomas F. Farrell II said in a joint statement with Lynn J. Good, chair of Duke Energy, that they were disappointed in the end result of years of legal battles over the pipeline’s future.

“We regret that we will be unable to complete the Atlantic Coast Pipeline. For almost six years we have worked diligently and invested billions of dollars to complete the project and deliver the much-needed infrastructure to our customers and communities,” they said.

“Throughout we have engaged extensively with and incorporated feedback from local communities, labor and industrial leaders, government and permitting agencies, environmental interests and social justice organizations. We express sincere appreciation for the tireless efforts and important contributions made by all who were involved in this essential project,” the two added.

West Virginia Sen. Joe Manchin (D) also expressed disappointment over the project’s end, arguing in a statement that the project “would have created good paying construction and and manufacturing jobs for hard working West Virginians.”