Daily Local News (West Chester, PA)
Sunoco pays $12M fine
Pennsylvania puts pipeline back on track
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-