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February 23, 2012
Z0I2FEB27 AH 10:1,2
^CREkRrs'hREAl)
Ms. Rosemary Chiavetta
Pennsylvania Public Utility Commission
Commonwealth Keystone Building
400 North Street, 2 n d Floor North
Harrisburg, PA 17120
RECEIVED MAR 6 2012
PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU
Re: Application of Peregrine Keystone Gas Pipeline LLC for Approval on a Non-exclusive Basis to
Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration,
and Transportation or Conveying Service by Pipeline to the Public in All Municipalities Located in
Greene and Fayette Counties and in East Bethlehem Township in Washington County,
Pennsylvania
Docket #A-3fl 10'220304
Dear Ms. Chiavetta:
Please find attached my filing for a Reply Brief in the above ref
of Service in the above mentioned case was served
Thank,yQuv .. ..
icec|,pfoceeding. Certificate
mail and first class mail.
Marigrace Butela
1601 West Crawford Avenue
Connellsville, PA 15425
Enclosures
c: Honorable Susan D. Colwell
Certificate of Service
INTRODUCTION
I, Marigrace Butela, file this Reply Brief in response to the Main Brief filed by Peregrine
Pipeline LLC as ordered by Susan D. Colwell, Administrative Law Judge on September 12,
2011, as Scheduled and Adopted in the Fourth Prehearing Order.
SUMMARY OF ARGUMENT
A. To deny and forever put to rest Peregrine's Proposed Ordering Paragraphs on Page 55 of
their Main Brief requesting that the Filed Protests of James E. Rosenberg, Veronica
Coptis and myself, Marigrace Butela to be dismissed and marked closed.
B. Health issues and sickness from obnoxious odors being emitted from natural gas
(Marcellus Shale) compressor stations and wells were told by several witnesses who
gave direct testimony at the public input hearing held on October 26, 2011, in
Uniontown, Pennsylvania. There are no air monitoring stations in the Peregrine's
proposed service territory of Fayette, Greene and Washington Counties. All 36
witnesses who testified at the Public Input Hearing including two Fayette County
Commissioners opposed Peregrine Pipeline, LLC's approval for a Certificate of Public
Convenience.
C. Peregrine does not meet the definition "to or for the public" within the meaning of the
Public Utility Code. 66 Pa. C.S.A. § 102.
D. The rapid increase of the Marcellus drilling without comprehensive and completed
health and environmental studies violates the Commonwealth of Pennsylvania's, Article
1, Section 27 of the Pennsylvania Constitution which states. The people have a right to
clean air, pure water, and to the preservation of the natural, scenic, historic and
esthetic values of the environment Pennsylvania's public natural resources are the
common property of all the people, including generations yet to come. As trustee of
these resources, the Commonwealth shall conserve and maintain them for the benefit
of all the people.
ARGUMENT
Peregrine's Main Brief Pg. 42 states they have not yet constructed facilities in Fayette
County. Direct Testimony given was related to operating compressors and natural gas
wells operated by other parties. Peregrine believes that the commitments it has made
concerning environmental compliance and compressors were responsive to the direct
testimony of Marigrace Butela.
1. Peregrine's compressor stations (engines, dehydrators, etc.), and their affiliate's well
drilling methods are no different than other companies that are presently located and
doing business in Fayette, Greene and Washington Counties. Health problems
associated with the drilling of the Marcellus Shale and other shale plays exist all over the
country, not just in Pennsylvania. Attached to my reply brief is a recent news article
entitled "Marcellus and Medic ine" which appeared in the Washington County
Newspaper, The Washington Observer-Reporter on Tuesday, February 21, front page
(see attached). The article provides information about a Southwest Pennsylvania
Environmental Health Office that recently opened and will address possible exposure
related to the natural gas drilling industry in the surrounding service proposed area. It
will offer medical evaluations as well as provide information and resources to those who
are impacted from natural gas activity such as compressor stations, well pads, and
impoundment ponds. Raina Rippel, project director stated in the article "rural public
health issues in Southwestern Pennsylvania were not being addressed", and, "it
became clear that the Marcellus and gas drilling was probably the biggest new public
health threat around." Even the EPA is in the process of investigating whether
Marcellus Shale drilling and compressor station operations in Peregrine's proposed
service area of Washington County, has caused environmental damage that violates
federal regulations. (Pittsburgh Post-Gazette.com, Monday February 13, 2012 entitled
"EPA probing Washington County Shale Operations, Federal agency looking for
violations in air, water, soil, by news reporter, Don Hopey, (copy attached). The
environmental concerns that Peregrine claims to have satisfied is unsatisfactory.
Peregrine states that the Commission does not have jurisdiction to address
environmental matters as they refer to PECO Energy Company v. Township of Upper
Dublin, 922 A.2d 996,102 (Pa. Commonwealth Ct. 2007)
2. House Bill 344 that was signed by Executive on December 22, 2011 and was approved
by the Governor is an Act providing for gas and hazardous liquids pipelines and for
powers and duties of the Pennsylvania Public Utility Commission; and imposing civil
penalties. This covers all natural gas gathering pipeline companies doing business in
Pennsylvania.
Peregrine maintain they qualify as a public utility under Section 102 of the Public
Utility Code. Peregrine's Main Brief provides an analysis of the applicable statutes and
case law demonstrating that they qualify as a public utility.
3. " [A" public use is not confined to privileged individuals, but is open to the indefinite
public " and "it is this indefinite or unrestricted quality that gives it its public character."
Drexelbrook 436, Canip Wohelo, Inc. v. Novitiate of St. Isaac Jogues, 36 Pa. P.U.C. 377
(1958).
Peregrine does not satisfy the definition of public utility within the meaning of the
Public Utility Code. 66 Pa. C.S.A. §102.
4. A Certificate of Public Convenience is not necessary or proper for the service as all
natural gas gathering companies doing business in Fayette, Greene and Washington
Counties are presently conducting business without a Certificate of Public Convenience.
A Certificate of Public Convenience is not necessary or proper for accommodation as all
natural gas gathering companies operating in Fayette, Greene and Washington Counties
have contractual agreements with customers and potential customers without a CPC.
A Certificate of Public Convenience is not necessary or proper for the convenience as
eminent domain would be the convenience. However, all natural gas gathering
companies serving Fayette, Greene and Washington Counties have entered or will enter
into contractual agreements satisfying the need for convenience with a CPC.
A Certificate of Public Convenience is not necessary or proper for the Safety to the
Public as HB344 addresses this issue as stated above.
The service proposed by Peregrine is not "to or for the public" within the meaning of
the Public Utility Code. 66 Pa. C.S.A. § 102.
5. Peregrine has demonstrated in their direct testimony PKGP Statement No. 1, Line 4A
that they are actually a single end user and therefore do not meet the required
definition as concluded in Bethehem Steel Corp vs. Pennsylvania Public Utility
Commission, 713 A.2d 1110, 552 Pa. 134, Sup. 1998.
Peregrine states in its Main Brief, Pg. 11 "A map of Peregrine's initial proposed
gathering and transportation systems is attached to PKGP Statement No. 1 as Exhibit "A."
6. The map presented in this case and to the public by the applicant does not mark or
indicate where the proposed gathering lines are to be located in Fayette County. This,
in my opinion, is of a deceitful nature in itself and does not adequately give the public a
clear and accurate description of where the proposed pipeline may go, therefore,
limiting the public's knowledge. This limited knowledge infringes upon the public's right
to have an input on the approval of the applicant's application for a Certificate of Public
Convenience.
IV. CONCLUSION
Peregrine does not meet the definition of "to or for the public" within the meaning of the Public
Utility Code. 66 Pa .C.S.A. §102. A Certificate of Public Convenience is not needed for Peregrine
to provide service to its customers and future potential customers. All natural gas gatheprlg
companies operating in Fayette, Greene and Washington C o u n t i ^ a r e presentlypp^rating
without a CPC. Therefore, I, Marigrace Butela, do hereby pray^nd humbjy^sk that Susan D.
Colwell, Administrative Law Judge will recommend, and t h ^ t o m m j ^ o n approve, to deny
Peregrine's Application for a Certificate
roached ndition at Ruby
•lice said Derek I, of Washington, hg south when he ' fell asleep. His okee rolled over es before coming ie left lane in the in overpass, d Aberaethy had D render assis-the three were jump over the he overpass to ; hit by the truck, lid the three fell ;tety 40 to 50 feet nd.
also was listed in idition late Mon-
md Abernethy ;duled at Ruby For clinicals.
4 UTI / OBSERVER -REPORTEH
ee from his coach, ; Gabe Pritz in the iturday atCalifor-
nsider teen
jabe Pritz in the Cal U. spokes-
ristine Kindl. attorney Gene Vit-meone on his staff sed the case with • •n h u t U o U n H T T Q f
Mutticuttural Communrty Center, in East Washington Monday as part oflMAACP's first festival for Black History Month. To see video online, visit www.ob-server-re-porter.com.
JIM MCNUTT / OBSERVE R-REPORIER
New McMurray office responds as industry breeds health concerns BY CHRISTIE CAMPBIILL, Staff writer [email protected]
A public health office "to addhpss possible exposure related to the natural gas drilling industry is opening in McMurray.
Southwest Pennsylvania Environmental Health Project has announced the opening of the office in Suite 5,4198 Washington Road.
Through the office, people can schedule medical evaluations and receive additional health information arid resources.
Raina Rippel, project director, said rural public health issues in Southwest-em Pennsylvania were not being addressed.
"We met with a couple residents in Washington County, and it became" clear that the Marcellus and gas drilling was probably the biggest new public health threat around," she said.
iKwww.env^nmental! \ I*he'aiAproject̂ org. |
Despite gas! drilling in.- other .parts of the country, she believes this response by
the nonprofit SWPA-EHP may be the first of its kind.
The gas industry differs vehemently with Rippel's assessment of risks stemming from drilling. It has claimed consistently that its drilling methods are safe, falTwithintregulatory guidelines and pose no health threats.
.The McMurray office includes a nurse practitioner, outreach coordinator and part-time managing director. They will work with environmental health specialists in New England.
A person's initial visit includes an intake and health assessment and a de-
Wa ste water a key issue in N.Y. tracking debate..PA(JE'A2 ,'
termination of whether their health care needs are being met.
"We've created a very targeted piece toward those who are impacted who are,within a gas industry type activity -well pads, impoundment ponds or compressor stations," explained Rip-,petf
• Rippel said the primary objective is to provide an immediate response to public health concerns, not a research or epidemiological study. Recommendations may include ways a person can limit his or her exposure, she said.
Additional information is available at www.environmentalhealthproject org.
Dozens express concern over drive for secession irnm Rmcmrnlrl rlictrirt
EPA probing Washington County shale operations Page 1 of 2
post-qazette.coM
EPA probing Washington County shale operations Federal agency looking for violations in air, water, soil Monday. Fabruary i3, 2012 By Don Hopey, Pittsburgh Post-Gazelle
The U.S. Erivironmental Protection Agency is investigating whether specific Marcellus Shale drilling and compressor station operations in Washington County have caused environmental damage that violates federal regulations.
The federal "multi-media" investigation of air, water and hazardous materials impacts, which the EPA has not previously acknowledged, began in late September when on-site testing was done and is the initial stage of a possible enforcement action or actions.
"In Washington County, EPA has conducted inspections at active industrial operations including well pads and compressor stations," Terri White, an EPA spokeswoman at the agency's Philadelphia regional office, said in an email response to questions last week.
"The EPA is assessing the findings of our air, water and hazardous waste investigations in Washington County," said Bonnie Smith, another EPA spokeswoman in Philadelphia, who noted that the agency will not disclose the names of the facility or facilities where testing has been done until the investigation is complete, and that's expected to take "several more months."
Washington County, just south of Pittsburgh, is a hotbed of Marcellus Shale gas development in , southwestern Pennsylvania and has more wells and compressor stations, which pump natural gas through pipelines, than any other county in the region.
n A website for ongoing coverage, resources,
According to the latest accounting on the state Department of Environmental Protection's Oil & Gas comments and more
Reporting website, there are almost 700 drilled Marcellus Shale gas wells in Washington County, and - Follow theposi-Gazeiie-s . , . , c . . „ , , 0 0 •' coverage of Ihe Marcellus
as of the middle of last year 278 of those were producing. Shaieon jwiiter at laoipahnePQ.
Although the DEP does not track compressor stations by county or region, there are at least 11 in Washington County, seven of those owned by Mark West-Liberty Midstream & Resources LLC.
Water use and contamination has been a concern as deep gas drilling has rapidly expanded in Pennsylvania.
And emission of air pollutants by compressor stations -- including nitrogen oxides, sulfur dioxide, volatile organic compounds, airborne particulates and carbon monoxide -- are measured in hundreds of tons per year and have the potential to adversely affect the state's air quality.
"Washington County was chosen for multi-media inspections because there is a significant amount of oil and natural gas development occurring there," said Ms. Smith. "While natural gas operators employ various safeguards to minimize the risks inherent to the industry, legitimate concerns have emerged regarding potential environmental impacts."
Although the EPA informed the state of the federal probe, Katy Gresh, a DEP spokeswoman, declined to comment on it or say if the department is participating in it.
Such "multi'media" federal investigations, which assess air, water and land impacts of various operations, are not common in Pennsylvania or other states that enforce their own environmental laws. But they are a long-standing part of the EPA "tool box," Ms. Smith said.
According to the EPA program web page, multi-media investigations can target single facilities, multiple facilities owned by a single company, or geographically based environmental problems in a given area or industry.
The comprehensive enforcement approach was used in 2002 to address emissions problems nationwide from the polyvinyl chloride manufacturing industry.
In Pennsylvania, an EPA multi-media investigation in 2006 of the pharmaceutical manufacturer Merck & Co. in Northumberland and Montgomery counties, found company discharges violated the federal Clean Air Act and Clean Water Act, and resulted in a $1.5 million civil penalty paid last year to settle the charges.
http://www.post-gazette.com/pg/12044/1209896-503-0.stm 2/23/2012
EPA probing Washington County shale operations Page 2 of 2
The EPA also has the legal authority to step in to supplement state enforcement, much as it did in Dimock, Susquehanna County, last month, where it is supplying replacement water and testing well water supplies in 60 homes where residents say Marcellus Shale gas drilling has contaminated their water supplies. That testing is not a "multi-media" investigation because it's focused only on water problems, but it is similar due to the federal involvement.
The EPA decided to conduct the Dimock tests after receiving water quality complaints from Dimock residents, and after the DEP allowed Cabot Oil & Gas Corp. to stop supplying replacement water.
Rep. Jesse White, D-Cecil, who has been critical of the new Marcellus legislation approved by the Legislature last week and embraced by the Corbett administration, said he was unaware of the on-going federal investigation. He welcomed it because of what he termed "lackluster" regulation by the DEP.
"There are several areas in the county where there are potential problems that might attract the EPA," Mr. White said. "DEP's regulatory efforts should be motivated by facts, not politics. The EPA isn't snooping around here for nothing."
Range Resources, which owns the vast majority of the wells in Washington County, and MarkWest Energy Partners, which owns most of the compressor stations, could not be reached for comment.
Ms. Smith said the EPA tests done in September in Washington County are not related in any way to the on-going review of drinking water resources that is part of the National Study of Hydraulic Fracturing, which has selected a Washington County location as a case study.
• o n Hopey; Qtiopaygjuosl-oaiatle com ot 412-263.1983,
Firsl piibhshed mi Fiti i tsar/ 13.2012 al 12 09 am
http://www.post-gazette.com/pg/12044/1209896-503-0.stm 2/23/2012
BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION
Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Non Exclusive Basis to Begin to
Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation
or Conveying Service by Pipeline to the Public in All Municipalities Located in Greene and Fayette
Counties and in East Bethlehem Township in Washington County, Pennsylvania.
Docket No. A-2010-2200201
CERTIFICATE OF SERVICE
I hereby acknowledge that I have on this day of Thursday, February 23, 2012, served a true copy of the
Reply Brief foregoing document of Marigrace Butela, upon the parties listed below, in accordance with
the requirements of 1.54 (relating to service by a party) Via E-Mail & First Class U.S. Mai l .
ALLISON C KASTER ESQUIRE
CARRIE B WRIGHT ESQUIRE
PA PUBLIC UTILITY COMMISSION
BUREAU OF INVESTIGATION AND ENFORCEMENT
PO BOX 3265
HARRISBURG PA 17105-3265
carwrifihtfaJstate.pa.us
AUDREY J DALY ESQUIRE
ELIZABETH WITMER ESQUIRE
SAULEWING LLP
2 NORTH SECOND ST
HARRISBURG PA 17111
JAMES A MULLINS ESQUIRE
OFFICE OF CONSUMER ADVOCATE
FORUM PLACE 5 FLOOR
555 WALNUT ST
HARRISBURG PA 17101
o
> CO
c :
JAMES O'TOOLE JR ESQUIRE
BACHANAN INGERSOLL & ROONEY PC
TWO LIBERTY PLACE
50 S 1 6 T H ST STE 3200
PHILADELPHIA PA 19102-2555
BRIAN J CLARK ESQUIRE
ALAN M SELTZER ESQUIRE
BUCHANAN INGERSOLL & ROONEY PC
213 MARKET STREET 3 R D FLOOR
HARRISBURG PA 17101
KURT LKR1EGER ESQUIRE
STEPTOE & JOHNSON PLLC
CHASE TOWER-EIGHTH FLOOR
707 VIRGINIA STREET E
CHARLESTON WV 25326-1588
BRIAN J KNIPE ESQUIRE
BUCHANAN INGERSOLL & ROONEY PC
17 N SECOND STREET 1 5 T H FLOOR
HARRISBURG PA 17101-1503
BRIAN J PULITO ESQUIRE
STEPTOE & JOHNSON PLLC
201 CHESTNUT STREET STE 200
MEADVILLE PA 16335
brian.pulito@steptoej'ohnson.com
DANIEL P DELANEY ESQUIRE
K & L GATES
17 N SECOND STREET 1 8 T H FLOOR
HARRISBURG PA 17101-1507
JEFFREY A FRANKLIN ESQUIRE
BUCHANAN INGERSOLL & ROONEY PC
1150 BERKSHIRE BLVD STE 210
WYOMISSING PA 19610
EVELYN A HOVANEC
680 COOLSPRING STREET
HOPWOOD PA 15445
THEODORE J GALLAGHER ESQUIRE
COLUMBIA GAS OF PA
121 CHAMPION WAY STE 100
CANONSBURG PA 15317
JAMES E ROSENBERG
555 DAVIDSON ROAD
GRINDSTONE PA 15442
HONORABLE SUSAN D COLWELL
PO BOX 3265
HARRISBURG PA 17105-3265
VERONICA COPTIS
3 N SILVER STREET
MOUNT PLEASANT PA 15666
Marigrace Butefa 1601 West Crawjbrcf Ave Zanntftsvilk PA 15425
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ROSEMARY CHIAVETTA PA PUBLIC UTILITY COMMISSION COMMONWEALTH KEYSTONE BLDG 400 NORTH STREET 2 N D FLOOR NORTH. HARRISBURG PA 17120
i H j n n . I m i U . f i l m / l . H l U M n H l M , ! n l i h i J i J i i i
CERTIFIEDMAIL
Marigrace ButeCa 1601 West Crawjord Ave Coniie(feviC(ePAl5425
7011 35QD DDD1 0005 1101
itutil l .-ii\J "—*• ' • • j • , - . ^v0' ' ̂
MS ROSEMARY CHIAVETTA PA PUBLIC UTILITY OOMMISSION OOMMONWEALTH KEYSTONE BLDG 400 N STREET 2ND FLOOR NORTH HARRISBURG PA 17120
DNITEOST&TeS POSTAL iER VICS
1000
UNITED STATSS
posT/it. service
I0OO
17120
1
17120
U.S. POSTAGE p a i n
CONNELLSVILLE.Pfl.
Mnn 36 . "12 AMOUNT
$0.85 00037983-10
U.S. POSTAGE D O T H
CONNELLSVILLE. Pfl 1 , J - 1 £ , J ^
MAR 06• 1 £ AMOUNT
$5.30; 00037983-10
RECEIVED MAR 6 201Z
PA PUBLIC UTILITY COMMISSION SECRETARY'S 3URLAU
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