Feb 8, 2018 6 min read

The state Department of Environmental Protection has penalized Sunoco Pipeline $12.6 million for permit violations related to work on the Mariner East 2 pipeline, which crosses the breadth of Washington County, but will allow work to complete it to resume.

DEP, which made the announcement Thursday morning, stressed that this is a civil penalty. The agency, which ordered a suspension of construction Jan. 3, is allowing Sunoco to resume work after a compliance review.

This, according to DEP, is one of the largest civil penalties collected in one settlement. The $12.6 million will go to the Clean Water Fund and the Dams and Encroachments Fund. As part of its compliance review, Sunoco will put additional controls in place to ensure all permit conditions will be followed and that inadvertent water supply incidents are minimized.

Patrick McDonnell, DEP secretary, said in a prepared statement: “Since the permit suspension … Sunoco has demonstrated that it has taken steps to ensure the company will conduct the remaining pipeline construction activities in accordance with the law and permit conditions. … DEP will be monitoring activities closely to ensure that Sunoco is meeting the terms of this agreement and its permits.”

Sunoco issued the following statement: “Today we entered into a consent order and agreement with the Pennsylvania Department of Environmental Protection that allows us to resume construction on the Mariner East 2 pipeline. While we strongly disagree with their legal conclusions that our conduct was willful or egregious, we felt it was important to our unit holders and to the Commonwealth of Pennsylvania that we move forward rather than engage in continued litigation. We are committed to fully complying with the DEP order, which includes following all permit requirements. Our willingness and ability to comply was acknowledged by the DEP in the consent order and agreement. Safety is paramount for any energy infrastructure project we do – the safety of the communities in which we work and operate, the safety of our employees, and the safety of the environment. Mariner East 2 is critical to Pennsylvania’s economy, and resumption of construction will put thousands of workers back on the job. With mainline pipeline construction approximately 93 percent complete and horizontal directional drilling approximately 64 percent complete for in-service, we look forward to completing the Mariner East 2 project safely and beginning service in a timely manner.”

The pipeline, when completed, will extend about 400 miles from Scio, Ohio, through the West Virginia panhandle, through the geographic center of Washington County, and on to Marcus Hook. It will carry natural gas liquids to a processing plant in Marcus Hook, near Philadelphia and on the Delaware border.

Mariner East 2, eventually, will be one of three pipelines that will stretch across the state. Mariner East 1 has been completed and Mariner X is in planning mode.

Econsult Solutions, of Philadelphia, issued a report in early January saying those pipelines and the Marcus Hook plant could have a $9.1 billion economic impact statewide over the next six years. Sunoco/Energy Transfer Partners, which is building the pipelines, paid Econsult for the report.

As part of the agreement, Sunoco agreed to withdraw its court appeal of the DEP’s suspension order, which was filed Feb. 2.

Thursday’s announcement provoked responses from both sides of the polarizing natural gas issue.

Kurt Knaus, spokesman for the Pennsylvania Energy Infrastructure Alliance, said in a prepared statement: “The restart of this project is good news for the workers who were idled and hoping for a speedy resolution … and good news for commonwealth residents who are eager to realize the benefits of one of the state’s largest energy infrastructure projects.

“DEP’s action proves that regulators are being an effective watchdog to ensure safe, responsible development. With the stop-work order lifted, this project can get back on track and Pennsylvania’s skilled laborers can get back to work.”

Ashley Funk, an executive committee member of the Sierra Club Allegheny Group, disagreed with the consent order and agreement. “Effectively, we think there are a lot of inadequacies in the Mariner East permitting,” said Funk, whose group represents the southwestern end of the state.

She also is a community organizer for the Mountain Watershed Association in Melcroft, Fayette County, which she said is working with two other organizations – the Delaware Riverkeeper Network and the Clean Air Council – “to appeal the overall permits.”

Funk said she has spoken with property owners in several area counties who have complained about their land “being torn up” during construction.

“Sunoco is not being a good neighbor to property owners and is not upholding environmental regulations. The $12.6 million is not enough to compensate for the damages they have done.”

Sam Rubin, an organizer for Food & Water Watch, echoed her thoughts. Speaking for his advocacy group, a nonprofit that focuses on corporate and government accountability, Rubin said in a statement: “This outrageous deal sacrifices the health and safety of Pennsylvanians for mere pocket change from Sunoco. Governor (Tom) Wolf’s message to the thousands of schoolchildren living within the blast zone of the Mariner East 2 is simple: Your safety is less important than Sunoco’s profits.

“But make no mistake: The communities threatened by this pipeline will protect themselves from this danger, with or without Governor Wolf’s support.”

“Sunoco’s Mariner East 2 pipeline remains vitally important for Washington County. This project will generate a one-time economic impact of nearly $9.1 billion in Pennsylvania and support 57,070 jobs during the entire construction period with earnings of $2.7 billion. With the pipeline passing through our region, we are realizing those benefits locally, both in terms of direct development but also in creating new markets for the natural gas we have here. The Mariner East projects overall could generate an estimated $122 million in total to the Commonwealth over the length of the construction period. We compliment the state Department of Environmental Protection and the company for working quickly to resolve their issues and keeping this economic development driver moving forward.”

Jeff Kotula, president of the Washington County Chamber of Commerce, said the pipeline will provide an economic boost locally and beyond.

“(It) remains vitally important for Washington County. This project will generate a one-time economic impact of nearly $9.1 billion in Pennsylvania and support 57,070 jobs during the entire construction period, with earnings of $2.7 billion.

“With the pipeline passing through our region, we are realizing those benefits . . . in terms of direct development, but also in creating new markets for the natural gas we have here . . . We compliment (DEP) and the company for working quickly to resolve their issues and keeping this economic development driver moving forward.”

Joseph Otis Minott, executive director and chief counsel of Clean Air Council, an environmental nonprofit, said in a statement: “I am dismayed by DEP giving this large multinational corporation what amounts to a slap on the wrist for the destruction it has caused to priceless natural resources and harm to nearby residents. DEP should have verified that landowners’ concerns would be fully addressed by the agreement.

“The council and grassroots organizations affected by the pipeline will do everything in their power to ensure DEP will hold Sunoco accountable to the law going forward.”