The New Jersey Pineland Commission recently issued approvals for South Jersey Gas to construct a natural gas pipeline through the New Jersey Pinelands. Meanwhile, the 100-mile Penn East Pipeline is working its way through the federal system with an application pending before the Federal Environmental Regulatory Commission (FERC). Like the South Jersey Gas Pipeline, the Penn East Pipeline is projected to be built on many protected and pristine rural properties. This includes properties encumbered by conservation easements granted to the Hunterdon County Land Trust and property owned by the New Jersey Conservation Foundation. There are many competing public policy interests at stake, including job creation, access to natural gas for heating homes and businesses, environmental protection and the use of eminent domain to acquire the necessary property rights. This article addresses a few of these issues.
PennEast must receive a Certificate of Public Convenience and Necessity from FERC under Section 7 of the Natural Gas Act. Further, surveys are required by federal law, including both the Natural Gas Act, 15 U.S.C. §717 et seq., and the National Environmental Policy Act, 42 U.S.C. §4321 et seq. Those surveys are required to fully document the costs of a new pipeline on environmental, economic, archaeological, historical, community and cultural resources, and to establish whether a project produces net public benefits. FERC is required to balance the need for the pipeline against the potential harm to the environment and the public as a whole. Also, PennEast must obtain certain permits from the New Jersey Department of Environmental Protection (NJDEP) before beginning construction. With both FERC and NJDEP reviewing the applications, is there any reason for concern? The answer is yes.
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