Breaking News: West Virginia Halts Rover Pipeline Construction in the State

Today the West Virginia Department of Environmental Protection (WVDEP) released publicly that, on July 17, 2017, it ordered Rover Pipeline to "cease and desist" from any further "land development activities until such time when compliance with the terms and conditions of its permit and all pertinent laws and rules is achieved." Given that all of the segments of the Rover pipeline in West Virginia are not planned to be in-service until November 1, 2017, the issuance of the Order, caused by Rover's failure to meet water pollution standards, may not have an immediate impact on the in-service dates for these facilities, unless Rover's response challenges the enforcement authority of the WVDEP, or is otherwise uncooperative. As such, more clarity regarding the impact will be known following Rover's response.

The portions of the Rover project that are located in West Virginia include the CGT, Sherwood, Majorsville and Burgettstown Laterals, and the Sherwood Compressor Station. All of these facilities are part of Rover Pipeline's Phase 2, which is projected to be in-service on November 1. Areas inspected by the WVDEP include the Sherwood Compressor Station, the Sherwood Lateral and the CGT Lateral and Meter Station. The Order is based on violations observed on inspections conducted on April 26 and July 12, although pictorial evidence included with the order is dated May 24, June 2, June 6 and July 12. In general, the violations are based on the improper implementation or maintenance of controls to limit sediment laden water from migrating from the construction sites into adjoining streams and tributaries.

Rover has at least three options, which could include a combination thereof, when considering how it will respond to the Order. First, Rover could challenge the authority of the WVDEP to issue a cease and desist order. Second, Rover could seek authority to continue working in some areas on the basis that completing the work in those areas will be less harmful to the environment than stopping work and resuming at a later date. Third, Rover may simply comply with the Order's requirement that it cease work until it can submit a plan of corrective action and demonstrate it intends to bring its activities into compliance with applicable legal standards, which involves submitting a plan within 20 days following the issuance of the Order.