Future of Constitution Pipeline Hazy, Analysts Say

April 2016, Vol. 243, No. 4

New York State still has yet to give final approval for the $700 million Constitution Pipeline which Williams and several partners have proposed building from northeastern Pennsylvania through New York’s Southern Tier. On Jan. 29 the operators received authorization from the Federal Energy Regulatory Commission (FERC) for limited tree clearing along the Pennsylvania right-of-way (25% of the trees are in Pennsylvania).

For full construction to begin on Constitution, two hurdles remain: 1. Corps of Engineers 404 Permit, which is contingent upon the New York State 401 Water Quality Permit 2. FERC Notice to Proceed, which cannot happen until the Corps of Engineers 404 Permit is approved. Analysts at Jefferies said, “We believe this project is at risk to cancellation due to a combination of regulatory risk and funding risk.”

FERC issued a preliminary construction permit on Dec. 14, 2014. Gov. Andrew Cuomo, an avowed foe of fracking, has yet to sign off on the application.

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