Aug 31, 2017 3 min read

There is no denying that the energy industry has an incredible economic impact on Washington County. Washington County boasts the highest revenue generated through impact fees in the state and the Marcellus Shale is currently producing the largest gas output, more than double the closest shale region, according to the U.S. Energy Information Administration.

However, a constant concern that does not seem to be dissipating is how we get these energy resources to market. Developing these resources is not enough if the companies responsible for the development cannot sell it. Without pipeline infrastructure that transports these resources to market, selling these products becomes more inefficient and will hurt the investments currently being made in Washington County.

The need for expanded pipeline infrastructure is clear in our county more than anywhere. Our economy has the most to gain from an adequate build-out and the most to lose if we do not. Unfortunately, many of the projects that have been on the horizon are on hold or experiencing delays.

One of these projects is Sunoco’s Mariner East 2 project, which would transport natural gas liquids, such as propane, ethane and butane 350 miles from Western Pennsylvania to the Marcus Hook Industrial Complex in the southeastern part of the commonwealth. This project will also provide transport of these resources along the line for off-take, such as ethane for Cambria County’s $900 million CPV Fairview, 1,050-megawatt electric generating station. Yet, despite receiving the necessary permits in February by the Pennsylvania Department of Environmental Protection to begin construction, Sunoco has experienced delays.

While less than 15 percent of construction was been directly impacted on the Mariner East 2 pipeline, delays are a growing concern for these infrastructure development projects. Recently, the Environmental Hearing Board shut down about 50 drilling sights due to side-effects from a common construction technique called horizontal direction drilling. The board has since allowed the process to resume after a review and settlement. However, this situation speaks to the issue of delays negatively impacting the development of our energy infrastructure.

Similarly, Pennsylvania, Ohio, and West Virginia regulators have delayed some construction on Energy Transfer’s Rover Pipeline, and Williams’ Atlantic Sunrise Pipeline is still waiting for their Pennsylvania DEP permits to begin construction.

So why are these projects experiencing delays? This is the critical question that needs to be addressed.

The problems created by an unpredictable regulatory permitting and oversight system were reasons why Gov. Tom Wolf instituted a task force about pipeline infrastructure in 2015. It was known then that an increase of pipeline infrastructure development was on the horizon; however, it is unclear whether the recommendations made by the task force produced progress. The projects referenced here were proposed at the time of that task force, and are still not fully operable, demonstrating that challenges still exist.

Pipelines are known to be the safest mode to transport these materials, and are the most efficient. Our economic growth as a county and Commonwealth depends upon increasing our pipeline infrastructure not increasing uncertainty around further pipeline development.

Kotula is the president of Washington County Chamber of Commerce.