Spectra Energy Watch

FERC is Rubber Stamp for Pipeline Companies, Says PA Legislator

How’s this for straight talk from a Pennsylvania state legislator:

• The current system of siting natural gas pipelines is broken.
• The Federal Energy Regulatory Commission (FERC) is a rubber stamp for the pipeline companies.
• Property owners are paying the price.

This is the view of Representative Curt Schroder (R – East Brandywine), who is now doing something about it. He has introduced legislation with the support of seven cosponsors (Democrats and Republicans) “that will provide regional control over the placement of natural gas pipelines in communities across Pennsylvania,” according to a press release issued by Representative Schroder’s office.

Here is the full quote from that statement:

“The current system of siting natural gas pipelines is broken,” said Schroder.  ”The Federal Energy Regulatory Commission has been acting as a rubber stamp for the pipeline companies and property owners are paying the price.  Their land is being devoured by easements, and natural resources are being threatened.  Homeowners are left to plead their cases to an unresponsive federal bureaucracy in Washington, D.C.  FERC is not cognizant of the needs of our communities and is unresponsive to our residents.”

Schroder’s Pennsylvania House Bill 1817 seeks to establish an “Interstate Compact” among neighboring states which would “have the power to govern the siting of interstate natural gas pipelines within their area, replacing the Federal Energy Regulatory Commission (FERC) which presently has exclusive authority when it comes to siting.”  [Emphasis added.]

According to the text of the House Bill, the proposed “Mid-Atlantic Area Natural Gas Compact Act” would comprise eight states plus the District of Columbia. Eligible parties are: Delaware, Maryland, New Jersey, New York, Ohio, Pennsylvania, Virginia, West Virginia and the District of Columbia.

In addition, states next to any of those states could eventually be added.

Co-sponsors of Mid-Atlantic Area Natural Gas Compact Act

The seven co-sponsors in the Pennsylvania House of Representatives are: Tom C. Creighton (R – Lancaster County); Gordon Denlinger (R – Lancaster County); Seth M. Grove (R – York County); William C. Kortz II (D – Allegheny County); Barbara McIlvaine Smith (D – Chester County); Duane Milne (R – Chester County); and Thomas P. Murt (R – Montgomery and Philadelphia Counties).

Pennsylvania is the site of much natural gas activity in the form of wells, storage fields and pipelines. Storage fields and pipelines usually mean the threat of eminent domain and the seizure of private property rights isn’t far behind.

For example, property owners in Chester County, PA, are fighting a pipeline project pushed by Williams Transco. In York County, property owners are fighting a pipeline project pushed by Texas Eastern, which is owned by Houston-based Spectra Energy. See the blog post on what is happening in York County at this link: http://www.spectraenergywatch.com/blog/?p=293

Conversation with Representative Curt Schroder

In a telephone conversation with Mr. Schroder, he explained that House Bill 1817 is now in the Consumer Affairs Committee of the Pennsylvania House, chaired by Joseph Preston, Jr. (D – Allegheny County) and Robert W. Godshall (R – Montgomery County)

Chairman Preston, Jr. has the sole authority to determine which bills are brought up for a vote in the committee, according to Schroder. He added that Chairman Preston has agreed to hold a hearing on the bill, though a date has not yet been set.

Should the bill pass the committee, it will go to the entire house for a vote. Then it goes to the Senate for a similar process.

The main opposition to this legislation will come from energy companies that will fight any change in the status quo, according to Schroder. They like the cozy relationship they have with FERC and they will oppose this vigorously.

Opportunity for Property Owners

Here is an opportunity for property owners across the state to make their views known on this important legislation. They should do two things:

1) Call, write or e-mail Chairs Joseph Preston and Robert Godshall and tell them you are interested in this legislation because it will help protect the rights of Pennsylvania property owners and help level the playing field with the energy companies.  (Refer to their contact information below.)

2) Call, write or e-mail YOUR Pennsylvania representative and ask them to support House Bill 1817 – and even consider signing on as a co-sponsor.

In the meantime, Here is the link to the press release on House Bill 1817:

http://www.curtschroder.com/?sectionid=19&sectiontree=19&itemid=338

Here is a pdf file of the bill:     PA HB 1817

And here is contact info for Chairs Preston and Godshall:

Hon. Joseph Preston Jr.

332A Irvis Office Building

PO Box 202024

Harrisburg, PA 17120-2024

(717) 783-1017

Fax: (717) 787-7520

Home page: http://www.pahouse.com/preston/

Hon. Robert W. Godshall

150 Main Capitol Building

PO Box 202053

Harrisburg, PA 17120-2053

(717) 783-6428

Fax: (717) 787-7424

E-mail: rgodshal@pahousegop.com

Salute to Someone Who Helped Start This Website

Charles W. Rubendall II has served for some time as outside counsel for Spectra Energy in central Pennsylvania.  He works for Keefer Wood Allen & Rahal, a law firm in Harrisburg.

Mr. Rubendall is the author of a huff-and-puff letter to landowners in May 2008 in which he suggested that landowners were not represented by an attorney — despite his knowledge to the contrary.

At the end of the letter (which, ironically, copied the landowners’ attorney) the Spectra Energy lawyer threw down a demand:   “… we expect your counsel to be active and responsive on your behalf so that we can proceed with negotiations in lieu of legal action.”

I marvelled as I read this piece of minor league writing.  Translating the Spectra Speech, Mr. Rubendall and Spectra Energy were really telling all the property owners who received this letter:  Listen up, bumpkins, we dictate terms because we have the power of eminent domain.  You accept what we offer and tell us you’re happy.  Got it!?

In a response to him that same month, I advised him:

“As you know, most folks are like mirrors – they reflect the way they are treated.  It is true that many of the Bedford folks live in a rural setting rather than the sophisticated, urban setting of Harrisburg.  But these are smart folks and you underestimate them at the peril of your client’s interest.  I am certain that Steckman Ridge, LP has placed much confidence in your ability to see this project to a successful conclusion rather than muck it up with poorly considered theatrics.”

What is noteworthy about his letter is that it was part of the tipping point for establishing this website and the unprecedented level of resistance among Bedford County property owners opposed to Spectra Energy’s seizure of our property rights.

Mr. Rubendall, who is more than a half century in age, prefers the youthful sounding nickname Chip or Chipper.  On one hand Chip is a diminutive of Charles.  On the other hand, such a nickname could also come from “chip off the old block” or perhaps “chip on his shoulder.”

According to his bio, Mr. Rubendall is a Yale University graduate who appears to show disdain for Pennsylvania juries.  He filed an injunction asking Federal Judge Kim R. Gibson to forbid Bedford County property owners from presenting various economic loss arguments as they sought just compensation because the jury would be “confused, misled and distracted … and waste time.”  (This is an excerpt of the actual wording presented to the judge.)

Presumably, there is no point in Spectra Energy’s Yale-educated contract lawyer wasting his time talking to Pennsylvania jurors — or to landowners — about economic loss issues that reduce or eliminate just compensation for the seizure of private property rights.

In practice, Attorney Rubendall and his client Spectra Energy believe that landowners are entitled to just compensation in theory — as long as they don’t actually try to achieve it.

At the end of the day, the good news is that Mr. Rubendall and his client Spectra Energy got what he wished for – an “active and responsive” set of landowners.  That, in turn, has led to a network of contacts in several states who are fighting to protect property rights at many different levels.

For that, we salute Mr. Rubendall and Spectra Energy.  Perhaps Mr. Rubendall and the firm he works for should consider providing a rebate to his client since he cost the company more in the long run.  And the meter is still running.

Spectra Energy = Invasive Species
Attacks Environment & Property Values

In York County, Pennsylvania, Texas Eastern – a pipeline company owned by Spectra Energy – is pursuing a proposed natural gas pipeline project that will connect with Steckman Ridge.  If my arithmetic is correct, Spectra Energy will add 36.1 miles of new pipeline (36- and 30-inch diameter); and replace 25.9 miles of existing 24-inch pipeline with larger 36-inch diameter pipe.

Part of this pipeline threatens to destroy portions of what is known as the Canopy Woodland Corridor in Hellam Township.  That is in addition to private property invasion.  And of course, it didn’t take Spectra long to veer off the existing utility right-of-way.

You can follow it on the Federal Energy Regulatory Commission (FERC) website under the project name of TEMAX and TIME III (Docket number CP09-68).  In the meantime, here is the link to a project summary on Spectra Energy’s website: http://www.spectraenergy.com/what_we_do/temax_timeiii

Spectra Energy describes this as a “growth project” – the growth of an invasive species where property rights are concerned.

Property owners in York County are getting energized.  You can tell that they are fast learners as one property owner said, they already “have a good sense of the Spectra ‘charm’ and … they do not trust them or believe anything they say.”

For property owners everywhere who deal with energy companies – whether for pipelines, underground storage fields or drilling, here are four watch outs in terms of behavior:

1) Beware of the ‘charm offensive’ — Energy company representatives – Spectra Energy, for example – go out of their way to be polite, up to a point.  In fact, they substitute good manners for fair treatment of property owners.

2) Beware of ‘divide & conquer’ – Energy companies prefer to isolate and separate property owners; and they always prefer to deal privately with government entities (whether at the township or the state level).

3) Compare offers and & check your wallet — Government entities almost always get a better deal than private property owners.  This is the quiet secret of the energy industry.  Make sure any deals with government are in the public domain.  For more information, refer to our blog on the “Landowner Bill of Rights.”  (See section 1 a, b, and c).  Here is the link: http://www.spectraenergywatch.com/blog/?p=287

4) Do not depend on the ‘kindness of strangers’ — Stay involved, informed and active.  You are your own best advocate for your property rights.  Join with other property owners to raise your voice and demand a level playing field.

Reporter Carl Lindquist of The York Dispatch published a clear and comprehensive article on the current state of the pipeline and its impact on property owners.  Here is a pdf file of the article:  pipeline-york-dispatch6-22-09

In his news report, Lindquist said that some 270 properties “could be affected.”

Among them are Susie Buchmyer’s family.  Their home sits on two acres of mostly wooded land.  The underground gas pipeline – approximately 3 feet in diameter – not only threatens a wide swath of mature trees, but also their septic system and driveway.

By the way, we’re talking about a 50-feet-wide cut for the right of way.  That is wider than the minimum width of two lanes on an interstate.  And once that property is seized and the pipeline is buried, there will be restrictions on how property owners can use that stretch of their own property:  No re-planting of trees, no building.  But they will still have the privilege of paying taxes on property they are restricted from using.

Property owner Susie Buchmyer is quoted in the article as saying:

“I think I have to speak loudly enough to let them (the company) know I’m a force to be reckoned with,” she said.  “I want to get them as (least) invasive as I can on my property. … I’m going to battle them the best I can in whatever way I can,” she said.

Separately, she told this blogger, “Spectra Energy is an invasive species similar to gypsy moths.  How ironic that I had my trees sprayed three weeks ago in order to protect them from this blight and, under the power of eminent domain, Spectra Energy would have the right to destroy them.”

Currently, Spectra Energy is tip toeing around the threat of eminent domain or “taking” the property rights of landowners; but FERC spokeswoman Tamara Young-Allen acknowledges that “the use of eminent domain is common” for natural gas pipelines, according to the article.

Just ask property owners who have dealt with Spectra Energy elsewhere.