US Mariner East 2 penalties to fund state environmental grant programme

HOUSTON (ICIS)–The Pennsylvania government has created a grant programme for pollution reduction projects, funded by fines related to Energy Transfer’s construction of the Mariner East 2 pipeline, the US state’s governor announced on Tuesday.

Energy Transfer is developing a pipeline to ship natural gas liquids (NGLs) from the Marcellus and Utica shales to its Marcus Hook terminal in Pennsylvania.

In January, the Pennsylvania Department of Environmental Production (DEP) issued an order to suspend permits for the pipeline project, requesting reports for current and future construction plans.

Energy Transfer had said it planned to address the regulator’s concerns.

The DEP and Energy Transfer reached an agreement in February to lift the order suspending permits for pipeline project. The agreement included a civil penalty of $12.6m and resolved violations from the January order.

On Tuesday, Pennsylvania Governor Tom Wolf announced that grants will be awarded for projects from the 85 municipalities along the pipeline corridor. The grants will be directed to efforts that eliminate pollution and protect the public from unsafe dams, water obstructions and encroachments, he said.

The 45-day grant application period will open on 7 May. The DEP intends to announce approved projects in the summer.

Follow Tracy Dang on Twitter