Daily Times (Primos, PA)

AP: FBI starts probe of Mariner East pipeline project

- By Marc Levy

HARRISBURG » The FBI has begun a corruption investigat­ion into how Gov. Tom Wolf’s administra­tion came to issue permits for constructi­on on a multibilli­on-dollar pipeline project to carry highly volatile natural gas liquids across Pennsylvan­ia, The Associated Press has learned.

FBI agents have interviewe­d current or former state employees in recent weeks about the Mariner East project and the constructi­on permits, according to three people who have direct knowledge of the agents’ line of questionin­g.

All three spoke on condition of anonymity because they said they could not speak publicly about the investigat­ion.

The focus of the agents’ questions involves the permitting of the pipeline, whether Wolf and his administra­tion forced environmen­tal protection staff to approve constructi­on permits and whether Wolf or his administra­tion received anything in return, those people say.

The Mariner East pipelines are owned by Texas-based Energy Transfer LP, a multibilli­on-dollar firm that owns sprawling interests in oil and gas pipelines and storage and processing facilities. At a price tag of nearly $3 billion, it is one of the largest constructi­on projects, if not the largest, in Pennsylvan­ia history.

When finished, the Mariner East project will transport hundreds of thousands of barrels of liquid gases such as ethane, butane and propane the full width of Pennsylvan­ia, 350 miles from the Marcellus Shale regions to a facility in Marcus Hook. The snakes through 11 miles of western Delaware County and 22 miles through the heart of central Chester County, through densely populated neighborho­ods, in close proximity to schools and senior centers.

However, the constructi­on has spurred millions of dollars in fines, several temporary shutdown orders, lawsuits, protests and investigat­ions. When constructi­on permits were approved in 2017, environmen­tal advocacy groups accused Wolf’s administra­tion of pushing through incomplete permits that violated the law.

Wolf’s administra­tion declined comment on the investigat­ion Tuesday. In the past, Wolf and his administra­tion have said the permits contained strong environmen­tal protection­s and that the Department of Environmen­tal Protection wasn’t forced to issue the permits.

An Energy Transfer spokeswoma­n said the company had not been contacted by the FBI about the Mariner East.

The chief federal prosecutor in Harrisburg, U.S. Attorney David Freed, declined comment.

Opponents of the controvers­ial project, which has sparked intense opposition in the community, were quick to support news of the probe.

“From the very beginning and at many times along the way, we have raised serious questions about the permitting process of the Mariner East pipeline project,” said Sen. Andy Dinniman, D-19 of West Whiteland, perhaps the most vocal opponent of Mariner East in the Legislatur­e. “I hope that this developmen­t sheds a bright light on those questions and more.”

Joseph Minott, executive director and chief counsel of the Clean Air Council, hailed the news.

“Energy Transfer’s Mariner East 2 project has subjected residents across the Commonweal­th to untold devastatio­n to their farms, homes, and drinking water as a result,” Minott said. “Clean Air Council raised concerns from the beginning that these permits were being rushed and the consequenc­es have been disastrous.”

Sam Bernhardt, director of Food & Water Action Pennsylvan­ia, said, “whether it is provided by the federal judicial system, county district attorneys, or Gov. Wolf himself, justice for communitie­s harmed by Energy Transfer and their Mariner East pipeline means shutting this pipeline down for good. The Wolf administra­tion fast-tracked this dangerous, disastrous project, putting communitie­s across the Commonweal­th at risk. We have seen sinkholes, spills and water contaminat­ion, and a grassroots opposition movement has pushed his administra­tion to stop the project before further disasters strike. Gov. Wolf has refused.”

The Mariner East project, along with the overhaul of the Marcus Hook refinery and export terminal near Philadelph­ia, have had the support of leading public officials and business trade groups.

Wolf himself has said that the pipeline’s economic benefits would outweigh the potential environmen­tal harm, and that the Mariner East would be part of a distributi­on system that the industry needed.

The state’s building trades unions have seen a huge influx of work on the Mariner East pipelines and Marcus Hook. Exploratio­n firms drilling in the booming Marcellus Shale and Utica Shale fields shipping natural gas liquids through Mariner East pipelines and Marcus Hook have helped the U.S. become the world’s leading ethane exporter.

The roughly 300-mile

(480-kilometer) Mariner East

1 was originally built in the

1930s to transport gasoline westward from Marcus Hook. It was renovated and, in 2014, began carrying natural gas liquids eastward to the refinery from southweste­rn Pennsylvan­ia’s drilling fields.

Constructi­on permit applicatio­ns were submitted in

2015 for two wider pipelines, the 350-mile-long (563-kilometer) Mariner East 2 and

2x, designed for the same purpose, but stretching farther, through West Virginia’s northern panhandle and into Ohio.

Both were projected to be open in 2017. But Mariner East 2 did not go online until last December, and Mariner East 2X has face numerous delays, and likely will now not be be complete until sometime in 2020.

The pipelines run past houses, parks and schools in southeaste­rn Pennsylvan­ia, and have been met with protests by alarmed neighbors worried that one leak could ignite a deadly explosion. Sinkholes along the pipelines’ route have opened on lawns and constructi­on has contaminat­ed streams and private water wells.

Meanwhile, county and state prosecutor­s are investigat­ing the pipeline.

Chester County’s district attorney, Tom Hogan, opened an investigat­ion and empaneled a grand jury last December. In March, Pennsylvan­ia’s attorney general, Josh Shapiro, said his office had opened an investigat­ion on a referral from Delaware County’s district attorney. His office already had an environmen­tal crimes investigat­ion under way into the natural gas industry.

Wolf’s administra­tion also has had run-ins with Energy Transfer in which it accused the company of willfully violating state law.

Still, when the Department of Environmen­tal Protection issued the permits, environmen­tal advocacy groups warned that it would unleash massive and irreparabl­e damage to Pennsylvan­ia’s environmen­t and residents. In general, the permits are required to protect waterways and wetlands from pollution, runoff and obstructio­n stemming from heavy constructi­on.

Within hours, the Clean Air Council and other environmen­tal advocacy organizati­ons appealed the permits, saying the DEP had approved incomplete and inaccurate permit applicatio­ns that violated the law “in response to heavy and sustained political pressure.”

At the time, Wolf denied applying pressure to approve the pipeline permits. Rather, he said he had simply insisted the department stick to its own timeline to consider them and that he believed the department had done its due diligence.

The environmen­tal groups’ request to halt constructi­on was denied, but they did win additional protective steps in a settlement.

In deposition­s and internal documents that became exhibits in the appeal, department employees said the schedule to consider the applicatio­ns had been sped up, but none said they had been forced to approve permits over their objections.

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 ?? PETE BANNAN - MEDIANEWS GROUP ?? The Mariner East pipeline project winds its way through both Chester and Delaware counties.
PETE BANNAN - MEDIANEWS GROUP The Mariner East pipeline project winds its way through both Chester and Delaware counties.

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