[USA] FERC prohibits pipeline construction until legal issues are resolved

On June 10, 2020, the Federal Energy Regulatory Commission (FERC) issued an order prohibiting natural gas pipeline developers from beginning construction on a project until regulators act on rehearing requests.[1] The order partly addresses the issues raised during the D.C. Circuit Court of Appeals’ April 2020 en banc hearing, a hearing held in front all the judges in court, in Allegheny Defense Project v. FERC, which regards the Atlantic Sunrise Pipeline project to expand existing pipelines.[2] Under the Natural Gas Act (NGA), litigation is prevented until FERC makes a ruling on requests for rehearing, but FERC is capable of delaying those requests through tolling orders. Petitioners argued that the commission has been delaying requests for rehearing indefinitely while also allowing construction on pipeline projects to proceed. Critics say this practice has led to a legal purgatory of opposition to critical orders on wholesale markets which favors pipeline developers. FERC Commissioner Richard Glick dissented in part to the order, stating that although the order is a good first move, it does not address concerns that pipeline developers can still begin to condemn private land through eminent domain before the landowner is able to challenge the developer's ability to do so.[3]

[1] https://www.ferc.gov/CalendarFiles/20200609181333-RM20-15-000.pdf

[2] https://www.ferc.gov/legal/court-cases/briefs/2020/DC17-1098etalAlleghenyDefenseProject.pdf

[3] https://www.ferc.gov/media/statements-speeches/glick/2020/06-09-20-glick.asp#.XuKfvjpKg2y