Delay or no delay? What are the implications?
Late on Thursday, February 2, 2017, FERC approved the Rover Pipeline Project. While FERC approved the project itself, which is slated to be online this summer, Rover did not escape unscathed from the permitting process. FERC denied Rover a portion of their blanket certificate, which will not allow them the usual authority a pipeline has to complete maintenance activities without conferring with FERC. Additionally, Rover has only until March 31 to fell necessary trees along the right of way. Rover has received permission to cut (fell) the trees, but may not start clearing the cut trees or any kind ground-disturbing activities prior to receiving all of their water permits. Genscape currently believes that Rover will most likely will be delayed and will not be able to meet its current in-service date of July 2017. In the worst case, if cutting trees gets pushed out of this year’s window, or eminent domain (required for full construction) becomes a major problem and the project could be delayed a year.
In this blog, we look at the implications that a delay would have on various players in the region.
It is important to understand Energy Transfer’s (ET) Rover pipeline project to grasp its impact on ET’s gathering assets, producers, and other third party gas processors in this infrastructure constrained region.
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