With a recent federal court decision in the state of New York, the Northern Access pipeline project of National Fuel is moving forward, which would mean more jobs in McKean County.
On Wednesday, Carly Manino, spokesperson for National Fuel, explained the company doesn’t expect smooth sailing, but is still committed to moving ahead.
The pipeline is a joint project of National Fuel Gas Supply Corp. and Empire Inc., both subsidiaries of National Fuel Gas Co.
“While we are still a couple of years and likely a few legal challenges away from constructing this project, we now have this project with a targeted in-service date as early as 2022,” she said.
The project had hit a big snag in New York two years ago, when the state’s Department of Environmental Conservation denied a key permit, halting construction. Earlier this month, the U.S. Appeals Court for the Second Circuit vacated the denial.
Manino reiterated the company’s prior statement on the project: “We remain firmly committed to the Northern Access project that will provide access to a low-cost source of energy for residential and commercial customers throughout the North American pipeline grid.”
She spoke about the economic impact the project will have, both on New York and to a lesser degree, on Pennsylvania.
“The Northern Access project will support new and growing employment at National Fuel, in addition to good-paying local jobs within the building trades during construction, and is estimated to increase annual property tax receipts by $11.8 million for four New York counties, with an additional one-time sales tax impact of $6.6 million for the same four New York counties,” Manino said. “Twelve school districts within those counties will benefit from the annual incremental increase in tax revenue.”
Pennsylvania will see a benefit from the pipeline, too, as it is to begin in Sergeant Township. The 96.49 miles of 24-inch diameter pipeline would begin in Clermont and end at National Fuel’s Porterville compressor station in the town of Elma, N.Y.
Manino said, “Approximately 30 percent of the jobs deployed during pipeline construction will be in McKean County.”
The natural gas to be shipped through the pipeline is coming from the Pennsylvania Marcellus Shale.
Manino didn’t quantify the potential financial benefit to Pennsylvania from the unconventional well production. According to information from Seneca Resources, between 2012 and 2016, the East Division paid out $263,452 in royalties and working interest; the total impact fees, $45,294; total payments made to Pennsylvania businesses, $711,824; and total royalties paid to the Department of Conservation and Natural Resources, $159,170.
The pipeline, estimated to be a more than $455 million project, is being fully funded by National Fuel.
“The purpose of the project is to provide an outlet for natural gas production in north-central Pennsylvania, connecting it to the interstate pipeline system,” reads a notice on National Fuel’s website. “That system connects to markets in the northeastern U.S. and mid-Atlantic regions as well as eastern Canada. The new sections of pipeline will interconnect specifically with the existing Trans Canada and Tennessee Gas Pipeline systems.”
