Daily Local News (West Chester, PA)

Sunoco pays $12M fine

Pennsylvan­ia puts pipeline back on track

- By Bill Rettew brettew@dailylocal.com

While Sunoco Pipeline got the green light Thursday to resume constructi­on on the Mariner East 2 Pipeline, it came with a cost.

Sunoco and the state Department of Environmen­tal Protection agreed to a $12.6 million civil penalty, as part of a settlement agreement that lifted a Jan. 3 suspension stopping most work on the 350-mile-long project.

The $12.6 million penalty will go to the Clean Water Fund and the Dams and Encroachme­nts Fund. The penalty is one of the largest civil penalties collected in a single settlement.

Plans call for the pipeline to deliver hundreds of thousands of barrels of ethane, propane and butane across the full width of Pennsylvan­ia from Marcellus Shale sites, through large highdensit­y swaths of Delaware and Chester counties, to the former Sunoco refinery in Marcus Hook.

The DEP referred to the fine as a historic civil penalty and a stringent compliance review, while lifting the order suspending DEP-permitted operations.

“Throughout the life of this project, DEP has consistent­ly held this operator to the highest standard possible,” said DEP Secretary Patrick McDonnell. “A permit suspension is one of the most significan­t penalties DEP can levy. Our action to suspend the permits associated with this project, and the collection of this penalty, are indicative of the strict oversight that DEP has consistent­ly exercised over this project.

“Today’s announceme­nt is by no means the end of DEP’s oversight. Since the permit suspension over a month ago, 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, and will be allowed to resume. DEP will be monitoring activities closely to ensure that Sunoco is meeting the terms of this agreement and its permits.”

Jeff Shields, Sunoco Pipeline communicat­ions manager, said Thursday that the pipeline builder will be mobilizing, but to not expect actual constructi­on to begin immediatel­y. Shields also said that mainline constructi­on is approximat­ely 93 percent complete and horizontal directiona­l drilling is approximat­ely 64 percent complete for in-service.

Shields released this 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. We look forward to completing the Mariner East 2 project safely and beginning service in a timely manner.”

Mariner East 2 has been under consistent attack by ever-growing community groups opposed to its routing through densely populated areas and in close proximity to elementary schools, churches and senior centers.

Food & Water Watch organizer Sam Rubin blasted the agreement.

“This outrageous deal sacrifices the health and safety of Pennsylvan­ians for mere pocket change from Sunoco. Gov. (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 Gov. Wolf’s support,” he said.

Critics have been seeking an independen­t risk assessment study of the project. Delaware County Council is considerin­g performing such a study. State Sen. Andy Dinniman, D-19 of West Whiteland, has been pushing Wolf for a similar study at the state level.

“What we have is a $12.6 million fine. And it seems to me that the very least DEP could do is dedicate a portion of that to obtaining an independen­t risk assessment of Mariner East 2 , or even support our effort do so. Our residents and their families deserve to know and thoroughly understand the risks and potential safety issues at stake. So far, citizens have already raised $14,000 of a $50,000 goal to obtain the assessment. There is no reason why the administra­tion cannot bridge that gap. After all, that’s something it should have done from the beginning,” Dinniman said.

“I find the timing of this announceme­nt very interestin­g,” Dinniman said. “First, it was released to the public on a day that so many residents of our region are preoccupie­d with the Philadelph­ia Eagles Super Bowl Victory parade and celebratio­n. Second, it comes just days after Sunoco filed an appeal to the suspension. Remember, the suspension order was issued on Jan. 3. Sunoco had one month to respond and they did so on the very last possible day, Feb. 2. And then, less than a week later we have a settlement. It’s almost like DEP couldn’t settle soon enough.

“The bottom line is you cannot put a price tag on the health, safety, and well being of our communitie­s. We still don’t have an independen­t risk and safety assessment of Mariner East II. We still don’t have any regulation of the placement of intrastate pipelines in Pennsylvan­ia. We still don’t have rules governing the placement or permitting of pipelines in high-density or high-consequenc­e areas.”

Tom Casey, a West Goshen resident, member of Del-Chesco United and chairman of the Risk Assessment Committee, said he is demanding part of the settlement pay for a risk assessment study.

“The PA DEP’s actions have proven that citizens have been put at risk with little or no oversight of this ill-conceived pipeline project,” Casey said. “The governor was asked to look out for us; he has failed.

“As part of the Citizen’s Risk Assessment team, I am demanding that the PA DEP provide $250,000 of this judgment to our process so that all the factors of risks with this project, as well as ME1 (existing pipeline) can be fully understood. The money will be used to look at all risk factors involved with transporti­ng highly volatile liquids through high consequenc­e areas. We have a right to know just how much danger we are being asked to accept, especially when we are dealing with a company that has a less than stellar performanc­e which could pose higher risks to our health, safety and welfare.” Grass roots organizati­on Del Chesco United for Pipeline Safety was unhappy as well.

“Gov. Wolf failed to use the suspension period to assess the risk Mariner East imposes on vulnerable, dense population­s. In January 2018 alone, the federal government issued three additional Notices of Probable Violation of safety regulation­s to Sunoco, clear evidence of a pattern of ongoing noncomplia­nce,” the group said in a statement.

“Gov. Wolf continues to pay more attention to Sunoco’s interests than he does to the safety of seniors and children of Pennsylvan­ia. Citizens of Delaware and Chester Counties are committed to working with Sen. Dinniman and Sen. Rafferty to obtain an expert, independen­t, public investigat­ion of the hazards associated with Mariner East.

Caroline Hughes of DelChesco United said, “We deserve to know just how big the blast zone is, how many people are in it, and the chances of continued leaks by Sunoco. If Gov. Wolf won’t do his job, the people will.”

Joseph Otis Minott, executive director and chief counsel of the Clean Air Council, was also critical.

“I am not satisfied that DEP and Sunoco’s agreement will be robust enough to prevent the same types of egregious environmen­tal harm from occurring during future constructi­on,” Otis Minott wrote. “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.”

The order contained detailed facts and findings related to the violations, and 21 specified performanc­e obligation­s. In response to the Jan. 3 order, Sunoco submitted an initial response on Jan. 12 as well as two supplement­al responses on Jan. 22 and 29 in response to DEP requests for additional informatio­n and clarificat­ion.

Sunoco also submitted numerous exhibits with additional informatio­n required by the order. These included an extensive revised operations plan setting forth additional measures and controls Sunoco will put in place to ensure that all permit conditions will be followed at all times moving forward, as well as additional measures and controls that Sunoco will implement to minimize inadverten­t returns and water supply incidents.

After reviewing all submitted materials, and conducting extensive additional inspection activities since the suspension was issued, DEP approved the submission­s as meeting all of the requiremen­ts to submit informatio­n in the Jan. 3 order. Informatio­n about the violations as well as Sunoco’s submission­s to the Department can be viewed at www.dep.pa.gov/Business/ProgramInt­egration/ Pennsylvan­ia-Pipeline-Portal/Pages/Mariner-East-II. aspx.

In addition, the civil penalty resolves the violations that were noted in the Jan. 3 order and violations identified through Sunoco’s response to the order. Pursuant to the COA, Sunoco will withdraw its appeal of the Jan. 3 order.

“DEP will continue to monitor and enforce the conditions of the permits, and will take necessary enforcemen­t actions for any future violations,” said McDonnell. “If a resident should witness pollution from the pipeline affecting streams or other waterways, then please alert DEP at 1-800-541-2050.”

The Pennsylvan­ia Energy Infrastruc­ture Alliance released a statement noting benefits associated with pipeline constructi­on.

According to a Sunoco financed study, consultant Econsult Solutions projected work will generate a one-time economic impact of nearly $9.1 billion in Pennsylvan­ia and support 57,070 jobs during the entire constructi­on period — the equivalent to 9,520 jobs each year for six years — with earnings of $2.7 billion. The report also states that the Mariner East projects could generate an estimated $122 million in total to the commonweal­th over the length of the constructi­on period.

Not everyone had second thoughts about the restart. Kurt Knaus, spokesman for the Pennsylvan­ia Energy Infrastruc­ture Alliance, was pleased.

“The restart of this project is good news for the workers who were idled and hoping for a speedy resolution after constructi­on was halted, 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.”

The GAIN Coalition is-

sued the following statement, attributed to Craig Stevens, spokesman for the coalition:

“The GAIN Coalition is pleased that the Department of Environmen­tal Protection and Sunoco were able to come to a relatively quick consent agreement that will let constructi­on to restart on the Mariner East 2 pipeline. There are thousands of constructi­on workers who have been sidelined during this work stoppage and they will now be able to get back to their jobs.

“Once completed, the ME2 pipeline will allow more of Pennsylvan­ia’s energy to be developed paying dividends in Western Pennsylvan­ia, while also leading to the creation of

hundreds of permanent jobs in the Marcus Hook region, revitalizi­ng that community in the Southeast. In short, completing this project will be a big step in securing Pennsylvan­ia’s economic future and our nation’s energy security.”

Steamfitte­rs Local 420 noted that Mariner East 2 is responsibl­e for more than 300,000 man hours of work among Local 420 members in just the southeaste­rn portion of constructi­on alone. The entire Mariner East project, along with revitaliza­tion of Marcus Hook Industrial Complex in Delaware County, has meant more than 2 million man hours and $170 million in wages and benefits for Local 420 members.

“These projects have been a godsend for Local 420 members,” Steamfitte­rs Local 420 Business Manager

Anthony Gallagher said. “Today’s pipelines are built with the most up-todate technology to ensure the safety of communitie­s and the environmen­t.

“These systems are constructe­d by skilled laborers who have advanced training and education, both in the classroom and in the field. Safety is our highest priority. Remember our workers live here, too. That’s why we’re so focused not just on getting back on the job, but making sure the job gets done right.

“These are local trades doing the work. That’s good news for our workers and great news for our communitie­s, because having skilled tradesmen on the job enhances safety and efficiency in building and maintenanc­e,” Gallagher said. “Projects like this are good for Pennsylvan­ia and deserve our sup-

 ?? DIGITAL FIRST MEDIA FILE PHOTO ?? A bentonite spill at the Mariner East 2 pipeline project in Middletown muddied the waters of Chester Creek behind the Tunbridge apartments last July.
DIGITAL FIRST MEDIA FILE PHOTO A bentonite spill at the Mariner East 2 pipeline project in Middletown muddied the waters of Chester Creek behind the Tunbridge apartments last July.

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