FERC Directs Pipeline to Respond to Potential Certificate Violations

Troutman Pepper
Contact

Troutman Pepper

On December 16, 2021, FERC ordered Energy Transfer Partners, L.P. and its subsidiary Rover Pipeline, LLC (“Rover Pipeline”) to explain why it should not pay a $40 million civil penalty for alleged violations of the Natural Gas Act, and the pipeline’s certificate order, during construction of its 711 mile interstate natural gas pipeline.

FERC’s Office of Enforcement report (“OE Report”) concluded that in April 2017, crew members employed by Rover Pipeline’s contractors: 1) included diesel fuel, other toxic substances, and unapproved activities in the drilling mud during its horizontal directional drilling operations; 2) failed to adequately monitor the pipeline right-of-way; and 3) improperly disposed of inadvertently released drilling mud that was contaminated with diesel fuel and hydraulic oil. The OE Report alleges that during the construction of a $6.7 billion pipeline project, Rover Pipeline added the toxic, unapproved fluids to combat drilling difficulties and keep up with progress demands.

Rover Pipeline has 30 days to respond to the order, including seeking a modification to the penalty amount. FERC staff will then have 30 days to reply.

A copy of the show cause order is available here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Troutman Pepper | Attorney Advertising

Written by:

Troutman Pepper
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Troutman Pepper on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide