Consulting firm Arbo, in a note to clients, said that if Mountain Valley accepts the order, a key condition could pause forward construction until the project provides evidence and receives approval from PHMSA that the exposed pipe is safe to install. In Arbo’s view, fall 2024 appeared the most likely timeline for in-service.
Mountain Valley Pipeline may need to take more steps to ensure integrity of the natural gas infrastructure prior to installing and commissioning the pipeline, according to a notice issued Aug. 11 by federal safety regulators.
The notice to lead project developer Equitrans Midstream, or ETRN, on Aug. 11 was the latest in a series of regulatory ups and downs for the long-delayed 2 Bcf/d project, which would run 304 miles through West Virginia and Virginia, adding another outlet for Appalachian Basin producers. Just earlier in the day on Aug. 11, the project received a boost when the US Court of Appeals for the 4th Circuit dismissed several pending legal challenges to the project from environmental groups.
The Pipeline and Hazardous Materials Safety Administration Aug. 11 said the regulator’s ongoing investigation indicated conditions may exist on the pipeline system that “may present” an immediate safety risk if the pipeline is commissioned without remediation.
PHMSA's concerns mostly centered on pipeline coating exposed to the elements such as sunlight during the years when the project was delayed, and burried pipe segments that were “essentially orphaned” from the originally planned corrosion control systems during the interruption.
In addition, PHMSA detailed some concerns over prior practices when some pipe was placed in rock-laden trench without adequate padding, and PHMSA noted its general concern about stress risks associated with landslides in the steep terrain along the route.
Proposed conditions
The proposed order would require third-party inspections and potential remediation prior to installation and commissioning — though the regulator allowed room for ETRN to seek an administrative hearing or engage in informal consultation about the conditions or work plan.
Under the proposal, prior to installation of pipeline, ETRN would need to conduct an analysis, evaluated by an independent third-party and approved by PHMSA, of all pipe currently stored on the right-of-way to assess potential damage to coating of pipeline stored outdoors.
And before commissioning the pipeline, Mountain Valley would need to conduct inspections, using direct or alternating current voltage gradient, or other methods, to assess coating conditions indicative of corrosion risks. It would also need to remediate damage.
Mountain Valley response
Mountain Valley, in a statement Aug. 12, supported efforts to instill public confidence and ensure transparency, while it also asserted that PHMSA’s notice did not accurately portray Mountain Valley's “extraordinary efforts” around ensuring safety.
The company held to its targeted completion date of late 2023, and said it planned to pursue informal consultation to resolve the matter expeditiously.
“To date, Mountain Valley has not been notified of any outstanding compliance concerns, and the proposed order includes no new allegations of non-compliance,” said Mountain Valley spokeswoman Natalie Cox. “While the proposed preliminary findings do not present an accurate view of the extraordinary efforts we have taken to ensure the safety and integrity of the pipeline, which has faced unprecedented delays due to circumstances beyond our control, Mountain Valley remains committed to working with PHMSA and other regulators as the project enters the final phase of construction.”
Some analysts suggested the project schedule could be extended.
Consulting firm Arbo, in a note to clients, said that if Mountain Valley accepts the order, a key condition could pause forward construction until the project provides evidence and receives approval from PHMSA that the exposed pipe is safe to install. In Arbo’s view, fall 2024 appeared the most likely timeline for in-service.
The PHMSA notice also makes reference to land movement as a factor in recent pipeline failures in the general area of the route, such as the 2018 explosure of the Leach XPress pipeline. It called attention to stresses that can occur on pipeline sag bends and tie-in welds in such areas, and it proposed sag and in-line-inspection tool assessments after commissioning occurs.
After a deal to ensure the project's completion was included in US debt ceiling legislation in June, non-profit groups have been pressing federal regulators to heighten scrutiny of safety matters and sending images documenting pipeline conditions in the field.
Roberta Bondurant of Preserve Bent Mountain said her group appreciated PHMSA’s concern regarding pipeline safety in light of its prior documentation of Mountain Valley safety issues as set forth in the notice. But in an Aug. 12 email, Bondurant worried the proposal leaves room for the project to negotiate out of the requirements, and that it does not adequately address landslide risks.
