Court Halts Work On Important Energy Pipeline
On July 10, two days before construction on the Mountain Valley Pipeline was to resume after a nearly-year long delay, a panel of judges on the U.S. Court of Appeals for the Fourth Circuit halted construction on the important energy infrastructure project.
The ruling came after Congress approved, and President Joe Biden signed, a bill earlier this summer that mandated that construction on the project move forward. Indeed, that legislation had removed the Fourth Circuit’s jurisdiction over litigation surrounding the project. The Mountain Valley Pipeline (MVP) had finally received all remaining permits from the Federal Energy Regulatory Commission to restart construction just two weeks ago.
The developer, Equitrans Midstream, promised it is “evaluating all legal options, which include filing an emergency appeal to the U.S. Supreme Court.” (Equitrans has, indeed, filed that appeal.)
Equitrans also said that if the decision is not promptly reversed, it would jeopardize the company’s ability to complete the project by the end of this year — a problem that would threaten energy stability in the region. (The Mountain Valley Pipeline is the only natural gas project underway in Appalachia.) The Fourth Circuit’s decision also will hurt the regional economy.
According to the developers, the pipeline would:
- Result in direct spending of $520 million in Virginia and $1.58 billion in West Virginia;
- Sustain an average of 2,100 construction jobs in Virginia and 3,700 construction jobs in West Virginia through its targeted completion date;
- Support an estimated average of $59,800 per person in Virginia and $60,600 per person in West Virginia; and
- Generate additional state and local tax revenue of approximately $49 million in Virginia and $82 million in West Virginia.
Additionally, once the MVP is operational, counties along the pipeline’s route would continue to receive tax revenues, generating an estimated $10 million annually in Virginia and $35 million annually in West Virginia.