Report: Pipeline will be a boon to region’s economy

Critics say potential economic benefits don’t outweigh safety risks

PHILADELPHIA » Critics and supporters of the Mariner East 2 pipeline plan have jousted for more than a year over the merits of the much ballyhooed economic benefits of the project.

The argument of pipeline proponents got a huge boost when a private firm estimated the Sunoco project will add as much as $9 billion to the region’s economy and add hundreds of construction and permanent jobs.

Mariner East 2, Sunoco Pipeline L.P.’s plan to bring hundreds of thousands of barrels of ethane, butane and propane across the full width of Pennsylvania, ending at the former Sunoco refinery complex in Marcus Hook, will generate more than $9 billion for the state economy during construction, according to a report issued by Philadelphia consultant Econsult Solutions Inc.

Critics remain unimpressed, noting the study was paid for by

Sunoco.

The Econsult findings indicate that the project will support 9,500 construction jobs over six years, along with up to 530 permanent jobs.

Paul Mullen is the business manager of IBEW Local 654. Five-hundred electricians found work at the Marcus Hook Industrial Complex as part of the Marine East 2 project.

“It’s been a godsend,” he said about pipeline construction and work at the facility in Marcus Hook. “Everybody’s working and earning a good living.

“This is the best thing we’ve had around here for the last 27 years since I started here.”

Jeff Shields, communications manager for Sunoco Pipeline, issued the following statement: “Our people and our facilities throughout Pennsylvania have been contributing to the state’s economy for more than a century, most recently through the expansion of our Marcus Hook facility as part of the Mariner East 1 and Mariner East 2 pipeline projects.

“This economic impact study shows the importance of this project on our state’s economy, not only to the thousands of

local tradespeople who are earning family-sustaining wages and spending their money in the community, but to the hundreds of local companies providing goods and services to those workers, their families and their companies. This is what happens when you invest $5 billion in Pennsylvania.”

Jeff Endrus is with J.R. Metzger Inc. in Aston. He said he was able to find jobs for about 70 full-time employees for an almost three-year time period. That number had dropped to 15 when the former Sunoco Refinery was shuttered in Marcus Hook.

“To have this come back for almost three years was astronomical, not just for our business but for employees out of work for extended periods of time so they can provide for their families.”

The economic impact is more than double that of 2015 estimates. New estimates take into account improvements at the Marcus Hook Industrial Complex and significant expansion of construction and operations for the project.

The report reads that construction will support 57,000 direct, indirect and induced jobs between 2014 and 2019, or 9,500 jobs annually, with earnings of $2.7 billion.

The 2015 numbers accounted of 30,000 jobs

and forecast a $9 million windfall.

The economic boost, which was tagged at $4.2 billion in 2015, doubled with the new calculations.

The refinery at Marcus Hook will produce between $140 and $210 million annually and support between 360 and 530 direct, indirect and induced jobs, with annual earnings of between $30 and $45 million, reads the report.

In Delaware County, $7 million in property taxes for the Chichester School District and local municipalities will be generated, according to the Econsult report.

The combined tax paid to Marcus Hook borough, Chichester School district and the county is expected to triple when the pipeline is up and running.

The economic benefits are not swaying opponents, who continue to point out a series of problems during construction and opposition to a pipeline carrying these materials through densely populated neighborhoods.

Eric Friedman of the Del-Chesco United for Pipeline Safety said that building a pipeline in densely populated Delaware and Chester counties is reckless.

“One weapon deployed during this propaganda blitzkrieg is the assertion that the Mariner East export

project provides an economic benefit to our area,” Friedman said. “On the basis of this supposed benefit, we Pennsylvanians should accept the destruction of our property values, the endangerment of children and seniors, and the infringement of private property rights guaranteed by the Constitutions of Pennsylvania and the United States.

“The existence of such a benefit would hardly justify jettisoning these core American values; but the problem is that Sunoco’s self-serving propaganda continues to amount to little more than admiration for the finery of an emperor which everyone can see is naked.

“One recent pipeline accident in Taiwan killed 32 people and injured 321 others. An accident in densely populated southeast Pennsylvania would cost billions. And Sunoco has reported more leaks from its pipelines than any other operator, 296 of them since 2006 alone, many here in Pennsylvania.

“These accidents include three leaks of highly volatile liquids from Sunoco’s so-called Mariner East 1, two of which occurred on new equipment, one of which the company failed to detect was occurring, and all of which occurred in ‘high consequence areas.’”

Sam Rubin, Eastern Pennsylvania organizer with Food & Water Watch, released the following statement:

“Just days after state officials put Sunoco on notice for its flagrant, repeated violations of environmental laws, the company is making this feeble attempt to change the subject from Sunoco’s monthslong track record of complete negligence for the well-being of Pennsylvania communities. A company-sponsored study of economic impacts should not distract us from the life-and-death safety risks the Mariner East pipeline poses to our communities. There are 40 schools inside the blast zone of this dangerous pipeline. Our children’s safety is worth much more to us than some dubious research commissioned for the benefit of a corporation that was just cited for its ‘unlawful conduct.’”

West Goshen activist Tom Casey also assailed the Econsult report as not outweighing the potential downside.

“Econsult Solutions previously reported the financial impacts of the ME2 project at $4.2 billion as justification for Sunoco to steal land from Pennsylvania residents. Now they simply double the amount and try to use that as justification to property owners

and elected officials.

“The very first page of the report, Econsult contradicts Sunoco’s argument of ‘need’ by mentioning natural gas prices being low due to oversupply. Sunoco is attempting to artificially create ‘need’ for an already saturated marketplace.

“There is no economic uptake to investors unless and until the industry can ram through this project by capitalizing on the flawed public utility status. Where is the economic analysis of loss of life and property damage or the safety risks from a catastrophic event? Nice try Sunoco!”

State Rep. Chris Quinn, R-168th Dist. of Middletown, Monday wrote a letter to Gov. Tom Wolf, asking his administration to conduct a full risk assessment of the Mariner East 2 pipeline project to analyze the potentially catastrophic harm that a leak or other malfunction could cause, and to release its findings to the public.

“This pipeline will run directly through densely populated neighborhoods and right past schools, leaving our children vulnerable,” Quinn said. “Everyone should understand the risks. I am asking that this assessment be conducted and shared with the public before the project is permitted to resume.”