PA DEP fines gas pipeline builder $12M but allows continued construction

February 20th, 2018 by Dakota Software Staff

The Pennsylvania state Department of Environmental Protection recently fined the company behind a major natural gas pipeline stretching across the middle of the state more than $12 million. The fine is a significant one to say the least, and the builder has already endorsed a consent order and agreement that clarify various specifics related to the penalty, as well as the amount, OHS Online said. In exchange for accepting the fine and making related corrections to the construction process, the DEP will allow construction on the project to resume.

A major fine following a number of construction issues

"The DEP fined the pipeline builder more than $12 million."

The pipeline is designed to take various petroleum products from the natural gas-rich Marcellus Shale region and carry them to other parts of Pennsylvania and beyond, according to OHS Online. The pipeline was shut down for a month following a number of leaks and spills that led to pollution in areas around the project, area news source Lancaster Online reported. There were also documented issues with unapproved drilling under a stream, and pollutants escaping into protected habitats.

Although construction recently resumed, the DEP made it clear it will still closely monitor the project as it continues.

"Throughout the life of this project, DEP has consistently held this operator to the highest standard possible," said DEP Secretary Patrick McDonnell in a prepared statement. "A permit suspension is one of the most significant penalties DEP can levy. Our action to suspend the permits associated with this project, and the collection of this penalty, are indicative of the strict oversight that DEP has consistently exercised over this project. Today's announcement is by no means the end of DEP's oversight."

The DEP said it believes the builder has addressed a number of issues related to safe construction and operation, so it will allow the project to continue. Extensive revisions and additions to the operating plan developed by the builder helped convince the state environmental regulator that it was prudent to allow further construction and completion of the pipeline.

This notably large fine - one of the most significant ever issued by the Pennsylvania DEP - is an important reminder of the need to ensure regulatory compliance with all relevant federal, state and local rules. A failure to do so can lead to negative consequences up to and including work stoppages and multimillion-dollar fines.