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Pursuant to Federal Rule of Appellate Procedure 18(a) and Local Rule 27(f),
two-year extension of the Natural Gas Act Section 7, 15 U.S.C. § 717f(c), Certificate
otherwise have expired on October 13, 2020. Extension Order, Ex. A. The second
along all portions of the pipeline route outside of a 25-mile “exclusion zone”
Order, Ex. B. The third allowed construction to resume in 17 miles of the “exclusion
zone,” nearly up to the border of the National Forest. Exclusion Zone Order, Ex. C.1
all but eight miles of the more than 300-mile route, with attendant harm to land,
Petitioners request that the Court act on this motion by February 22, 2021.
Mountain Valley represents that, aside from certain limited activities, construction
will not resume prior to that date. Petitioners, Mountain Valley, and FERC have
1
Petitioners intervened in the underlying proceedings and requested timely
rehearing pursuant to 15 U.S.C. § 717r(a). Exs. D, E. Those requests were denied
by operation of law. Exs. F, G. See 15 U.S.C. § 717r(a); Allegheny Def. Project v.
FERC, 964 F.3d 1 (D.C. Cir. 2020) (en banc). This Court has jurisdiction under 15
U.S.C. § 717r(b). FERC subsequently issued an Order addressing arguments made
in the rehearing requests for the Extension and Resume-Work Orders. Ex. H.
Petitioners sought stays of the orders in their rehearing requests, Ex. D at 62, Ex. E
at 6, which were not granted. See D.C. Cir. Rule 18(a)(1).
2
Because, as explained in greater detail below, Mountain Valley lacks
authorization to work in streams and wetlands pursuant to Clean Water Act
(“CWA”) Section 404, 33 U.S.C. § 1344, the orders do not authorize work within
waterbodies.
2
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INTRODUCTION
new 42-inch diameter gas pipeline across West Virginia and Virginia, requiring it to
cut a 125-foot-wide swath through the dense forests and highly erodible steep slopes
of the Appalachian Mountains. From the start of construction in 2018, the MVP has
been plagued by legal delays of Mountain Valley’s own making. Rushed permitting
processes led the Court of Appeals for the Fourth Circuit to vacate several of
Mountain Valley’s federal permits, leaving the ultimate route and configuration of
the pipeline uncertain. See Exclusion Zone Order, ¶¶3, 4. Seemingly endless
environmental violations have further slowed construction while fouling waters and
land along the pipeline’s route. All the while, the original justification for allowing
Mountain Valley to take private property by eminent domain—that the pipeline was
3
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along nearly the entire the pipeline path was arbitrary and capricious and contrary to
the Natural Gas Act and the National Environmental Policy Act (“NEPA”).
ARGUMENT
Whether to issue a stay pending review turns on “(1) whether the stay
applicant has made a strong showing that he is likely to succeed on the merits; (2)
whether the applicant will be irreparably injured absent a stay; (3) whether issuance
of the stay will substantially injure the other parties interested in the proceeding; and
(4) where the public interest lies.” Nken v. Holder, 556 U.S. 418, 434 (2009) (citation
(“APA”) arbitrary and capricious standard. Myersville Citizens for a Rural Cmty.,
Inc. v. FERC, 783 F.3d 1301, 1308 (D.C. Cir. 2015). Findings of fact, such as
conclusion.” Colo. Interstate Gas Co. v. FERC, 599 F.3d 698, 704 (D.C. Cir. 2010).
Moreover, “[t]he substantiality of evidence must take into account whatever in the
record fairly detracts from its weight.” Universal Camera Corp. v. NLRB, 340 U.S.
474, 488 (1951). FERC’s compliance with NEPA is also subject to review under the
APA’s arbitrary and capricious standard. Sierra Club v. FERC, 867 F.3d 1357, 1367-
4
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68 (D.C. Cir. 2017). The Court “shall hold unlawful and set aside agency action,
decision is arbitrary and capricious where the agency “entirely failed to consider an
important aspect of the problem, [or] offered an explanation for its decision that runs
counter to the evidence before the agency.” Del. Riverkeeper Network v. FERC, 753
project is needed and will serve the public interest does not end with its initial
approval of the project. See Algonquin Gas Transmission, LLC, 170 FERC ¶
developed in a manner that is consistent with the public interest.” Id., ¶3 (Glick,
Comm’r, dissenting). These deadlines help ensure that FERC’s public interest
Pipeline Co., 165 FERC ¶ 61,081, at ¶9 (2018). Where projects are long-delayed,
5
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“ensure that the facts, analysis, and rationale regarding a particular proposal [have]
not grow[n] stale.” Iroquois Gas Transmission Sys., L.P., 104 FERC ¶ 61,307, at
¶14 (2003); see also Constitution, 165 FERC ¶ 61,081, at ¶¶16, 17.
request, Ex. I at 7-35, and their Rehearing Request, Ex. D at 12-36, the facts and
rationale supporting FERC’s 2017 finding of market need for the project have not
cubic feet per day (Bcf/d) of gas “to five contracted shippers via a pooling point at
Transco Station 165.” EIS 1-8, Ex. J. See also Certificate, ¶¶41-42, Ex. K. In its
application, Mountain Valley asserted that the additional 2 Bcf/d of capacity was
markets, specifically citing the conversion from coal to gas by electric utilities in
Valley claimed its pipeline was necessary to “alleviate constraints” on natural gas
6
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pipeline’s capacity—with the five “anchor shippers” to find market demand for the
surrounding the pipeline. The market conditions underpinning FERC’s finding that
the MVP was required by the public convenience and necessity no longer exist.
Gas demand and gas production in the relevant markets are declining, leading EQT
to conclude that it no longer wants or needs the MVP’s capacity due to the current
The most directly-accessible market for the gas to be carried by the MVP is
the Southeastern U.S., particularly Virginia and North Carolina, which contain the
terminus of the MVP as well as the terminus of Mountain Valley’s planned MVP
Southgate extension. Transportation of the MVP’s gas to any other region would
require additional transmission contracts with added costs. To the extent that the
demand for energy in this region was increasing in 2017, that is no longer the case.
The U.S. Energy Information Administration (“EIA”) recently projected that total
demand for natural gas in the South Atlantic will decline from 2022 to 2031 and
7
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will not return to 2022 levels until 2045. Rehearing Request at 15 (citing EIA,
Annual Energy Outlook 2020). Major electric utilities in the region, including
Dominion Energy and Duke Energy, have revised downward their demand
forecasts, a trend that will only accelerate in light of Virginia and North Carolina’s
new clean energy policies. See Rehearing Request at 16-18 (Virginia’s utility
overstated ... with high growth expectations despite generally flat actual results
each year”); id. at 17 (Dominion admitting that “significant build-out of natural gas
generation facilities is not currently viable” due in part to the Virginia Clean
Economy Act of 2020); id. at 22-23 (explaining that Duke subsidiaries have
consistently lowered their load forecasts each year and that demand is expected to
continue to decline in light of North Carolina’s recent clean energy legislation and
Duke Energy’s corporate-wide carbon reduction goals). See also Br. Amicus
for natural gas in Virginia and North Carolina … do not withstand scrutiny”). The
same is true for the region encompassing New York, Pennsylvania, and New
8
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MVP and contracts for a small portion of the MVP’s capacity. Certificate, ¶10.
McAvoy explained ConEd’s desire to sell its ownership stake in MVP and other
gas pipelines: “We made those investments five to seven years ago, and at that
time we—and frankly many others—viewed natural gas as having a fairly large
role in the transition to the clean energy economy. That view has largely changed,
and natural gas, while it can provide emissions reductions, is no longer ... part of
policies” as part of its original Certificate determination such that they need not be
considered further. Extension Order, ¶19. But FERC, of course, could not have
natural gas, because that evidence did not exist in 2017. FERC’s dismissal of this
thus arbitrary and capricious. And FERC’s statement that “it is speculative to
consider how a state will decide to manage its electric-power fuel sources in the
future,” id., does not excuse its failure to grapple with the immediate and concrete
ways in which the original projected demand for gas that Mountain Valley asserted
9
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precedent agreements for the entirety of the project’s capacity.” Extension Order,
¶18.3 Those contracts no longer provide reliable evidence of the market need for
the MVP, however, given the unequivocal statements of the pipeline’s major
EQT, which is the largest gas producer in the Appalachian Basin and holds a
large majority of the MVP’s precedent agreements, recently disclaimed any need
for the MVP. On a July 27, 2020, investor call, EQT explained that currently there
exists a “pretty big gap between capacity and supply in the [Appalachian] basin.”
EQT Corp Q2 2020 Earnings Call Transcript, July 27, 2020 (“Transcript”) at 25,
Ex. F to SEIS Motion, Ex. N. The gap is not, however, between excess production
and limited takeaway capacity leading to the “constraints on ... production” that
FERC described in its EIS. EIS at 1-8. Rather, there is currently a 3 Bcf/d surplus
3
This Court upheld FERC’s original reliance on the precedent agreements to find a
market demand for the project based on the record before the agency at that time.
Appalachian Voices v. FERC, No. 17-1271, 2019 WL 847199 (D.C. Cir. Feb. 19,
2019) (unpublished).
10
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declining future production from the basin, this capacity surplus is not going away.
Transcript at 25.
significantly lower cost than the on MVP, EQT is seeking to “lay off,” i.e., sell, its
capacity contracts to save money and increase returns for shareholders. Transcript
at 7 (“[O]ur ability to sell down some or all of our MVP capacity … continues to
present the biggest potential for long-term cost reduction improvement ….”); id. at
9-11 (describing cost savings to company that could be achieved by laying off all
MVP contracts).4 To Petitioners’ knowledge, EQT has yet to find any takers for its
capacity commitments, six months after signaling its desire to offload them.
4
EQT does not see any threat of future production increases in the basin leading to
Mountain Valley’s alleged capacity constraints. Id. at 25.
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undermine FERC’s ongoing reliance on its previous conclusion that “the contracts
entered into by the shippers are the best evidence that additional gas will be needed
in the markets that the MVP … [is] intended to serve.” See Certificate, ¶41.
stated only that “commenters provided no evidence demonstrating that any shipper
response fails to meaningfully grapple with the fact that there is simply no longer
any need for the MVP’s capacity, three years after Certificate issuance. FERC’s
nonetheless represent sufficient evidence of market need to find that the Project
Extension Order arbitrary and capricious. Motor Vehicle Mfrs. Ass’n of U.S., Inc. v.
State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 52 (1983).
2019 after the U.S. Court of Appeals for the Fourth Circuit stayed Mountain
12
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stop-work order outside of the 25-mile “exclusion zone,” despite the fact that, at
the time, Mountain Valley lacked necessary permits from the U.S. Forest Service
and Bureau of Land Management to cross the Jefferson National Forest and other
federal land, such that the ultimate pipeline route was still subject to change.
Resume-Work Order, ¶22; Sierra Club v. U.S. Forest Serv., 897 F.3d 582, 592 (4th
Cir.), reh’g granted in part, 739 F. App'x 185 (4th Cir. 2018).
seventeen of the exclusion zone’s 25 miles, nearly up to the border of the National
Forest. Exclusion Zone Order, ¶14. This despite the fact that the MVP’s ultimate
route remained uncertain due to the Forest Service’s ongoing permitting process
and the Fourth Circuit’s December 1, 2020, order staying Mountain Valley’s
stream and wetland crossing permits. See Sierra Club v. Army Corps of Eng’rs,
5
Mountain Valley has since stated that it will abandon its twice-rejected attempt to
utilize the streamlined Nationwide Permit 12 and will instead begin the lengthy
individual permitting process for its numerous crossings. January 26, 2021 Letter
from T. Normane to MVP Service List 2, Ex. L.
13
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Order, and as the Fourth Circuit has confirmed in a case involving a substantively
interpretation—“of that condition is that, to the extent MVP lacks federal permits,
it should not be allowed to begin any construction along the pipeline, including by
recommencing construction that was halted due to court order.” Exclusion Zone
Interior, 899 F.3d 260, 284 n.11 (Aug. 6, 2018) (explaining that an order vacating
existence of valid authorizations from [the other federal agencies]. Absent such
necessity.”).
purposes. At the time of these orders, the U.S. Forest Service still “need[ed] to re-
14
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evaluate the feasibility and practicality of having routes that are not on [National
Forest Service] lands.” 85 Fed. Reg. 45863, 45864 (July 30, 2020). Likewise, the
Army Corps of Engineers’ still must determine, among other things, whether less
minimize adverse project impacts,” including “reductions in scope and size” of the
project); see also id. §§ 230.5(j), 230.10(a), (d). Allowing construction to proceed
Stop Work Order (Aug. 3, 2018), Ex. M (justifying its previous stop-work order by
explaining that FERC “cannot predict when these agencies may act or whether
nonsensical …. If the public interest requires a pipeline to have its ducks in a row
when it first begins construction, [there is] no reason why it is not equally
important to require the pipeline to meet the same condition every time it
15
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undue pressure on its sister agencies to approve FERC’s chosen route. See N.
Cheyenne Tribe v. Hodel, 851 F.2d 1152, 1157 (9th Cir. 1988) (“Bureaucratic
Marsh, 872 F.2d 497, 504 (1st Cir.1989) (taking account of “the psychology of
“deeply rooted human psychological instinct not to tear down projects once they
are built”). FERC cannot predetermine the outcome of the Forest Service and
the pipeline so that the “completed segments would stand like gun barrels pointing
into the heartland” of the National Forest lands. Maryland Conservation Council v.
Gilchrist, 808 F.2d 1039, 1042 (4th Cir. 1986) (internal citation and quotation
omitted). FERC’s authorization to construct the MVP up to the edge of stream and
wetland crossings in the absence of CWA Section 404 permits likewise improperly
prejudices the Army Corps and the states, who may impose additional conditions
U.S.C. § 1341.
16
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C.F.R. § 1502.9(d)(1)(ii). See also Price Rd. Neighborhood Ass’n, Inc. v. U.S.
Dep’t of Transp., 113 F.3d 1505, 1509 (9th Cir. 1997) (citation omitted) (NEPA
This duty persists as long as there is “remaining government action [that] would be
to weigh the benefits of the project versus the detrimental effects on the
environment.” Marsh v. Oregon Natural Res. Council, 490 U.S. 360, 371 (1989).
2017 EIS “raises new concerns of sufficient gravity” such that FERC was required
to supplement its EIS. See State of Wis. v. Weinberger, 745 F.2d 412, 418 (7th Cir.
1984).
17
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erosion and sedimentation. When the Fourth Circuit invalidated Mountain Valley’s
initial authorization to cross the National Forest, it held that “the Forest Service
[FERC’s] EIS,” due largely to the fact that the Service’s concerns that the EIS
adequately resolved. Sierra Club, 897 F.3d at 592-96. The Service proved
predicted.
including for violations of state water quality standards for turbidity. Ex. D to SEIS
Mountain Valley Pipeline, LLC, No. CL18006874-00 (Va. Cir. Ct. Dec. 7, 2018),
18
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Ex. E to SEIS Motion; see also See VADEQ Press Release, Attorney General
Herring and DEQ File Lawsuit Over Repeated Environmental Violations During
reports to FERC). FERC’s claim that these failures represent only “slightly
different outcomes than those projected in the 2017 final EIS” that are “not
simply not supported by the record. Rather, the overwhelming evidence of the
picture of the environmental impact of the proposed project from what was
F.3d 437, 443 (4th Cir. 1996). FERC’s failure to prepare a supplemental EIS thus
violated NEPA and rendered its orders arbitrary and capricious. See State Farm,
6
https://www.oag.state.va.us/media-center/news-releases/1341-december-7-2018-
herring-and-deq-file-suit-over-environmental-violations-during-construction-of-
mountain-valley-pipeline
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463 U.S. at 43; Ohio Valley Envtl. Coal. v. Hurst, 604 F. Supp. 2d 860, 901
(S.D.W. Va. 2009) (rejecting agency’s conclusion that aquatic impacts would not
Supp. 2d 1, 24 (D.D.C. 2009) (citing Fund for Animals v. Norton, 281 F. Supp. 2d
209, 221 (D.D.C. 2003)). “Environmental injury, by its nature, can seldom be
duration, i.e., irreparable.” Amoco Prod. v. Village of Gambell, 480 U.S. 531, 545
(1987).
Petitioners’ members own land, recreate, and live near the path of the pipeline and
have interests in land and water resources that would be harmed by construction.7
7
The declarations demonstrating irreparable harm also establish Petitioners’
standing.
20
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Mountain, VA. She has already seen significant deforestation, sedimentation, and
clearing and grading activities, including to her spring box. Ex. O, ¶¶3, 5, 8-12.
Before-and-after photos attached to her declaration show how the project has
buried the stream near her home in silt. Id. She is particularly concerned because
the streams she has seen filled with sediment flow downstream to habitat for the
“exclusion zone.” Although the area has yet to experience heavy construction, he
has nonetheless seen mud slides, heavy sediment deposits into streams, and drained
wetlands. Ex. P, ¶¶4, 7-8. He worries that the scenes of devastation he has seen in
nearby areas of the pipeline corridor where more construction has occurred will
soon be replicated in his backyard. Id., ¶10-11. He also fears an explosion if the
pipeline is put into service. He passes through the MVP’s blast zone daily and is
aware that numerous new pipelines have recently failed with catastrophic results.
Id., ¶15. See also Declaration of David Serriff, ¶¶11-16 (describing impacts to
21
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karst terrain).
a stay would pose only minimal or temporary injury to FERC and Mountain
Valley. Although FERC has interests in defending its orders, “the effect of an
Coal. v. U.S. Army Corps of Eng’rs, 528 F.Supp.2d 625, 632 (S.D.W.Va. 2007).
Though Mountain Valley may experience some minor costs associated with
delay, that “economic loss does not, in and of itself, constitute irreparable harm.”
Wisconsin Gas Co. v. F.E.R.C., 758 F.2d 669, 674 (D.C. Cir. 1985). Moreover, any
harm Mountain Valley would suffer is self-inflicted, a result of its choice to charge
authorizations. See Davis v. Mineta, 302 F.3d 1104, 1116 (10th Cir. 2002).
generally favors the grant of injunctive relief. See Amoco, 480 U.S. at 545; Nat’l
Wildlife Fed'n v. Burford, 676 F. Supp. 271, 279 (D.D.C. 1985), aff’d, 835 F.2d
305 (D.C. Cir. 1987) (“While granting the preliminary injunction would
inconvenience defendants …, denying the motion could ruin some of the country's
22
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great environmental resources—and not just for now but for generations to
come.”). Ensuring Congressional mandates are carried out is always in the public
interest. See, e.g., Johnson v. U.S.D.A., 734 F.2d 774, 788 (11th Cir. 1984); Brady,
Here pipeline construction impacts to forests, streams, and wetlands, and the
resulting loss of ecological services they provide, constitute injury to the public
making, and contravene the Natural Gas Act’s mandate that FERC guard the public
On the other side of the scale, falling demand for natural gas and the
lower cost than the MVP, supra at 5-12, undermines any claim that the pipeline’s
CONCLUSION
For the foregoing reasons, Petitioners respectfully request the Court stay all
of environmental protections.
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Respectfully submitted,
Elizabeth F. Benson
Sierra Club
2101 Webster Street, Ste. 1300
Oakland, California 94612
(415) 977-5723
elly.benson@sierraclub.org
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CERTIFICATE OF COMPLIANCE
Pursuant to Fed. R. App. P. 32(g) and Circuit Rule 32(e), I certify that this
I further certify that this document complies with the typeface requirements
of FRAP 32(a)(5) and the type-style requirements of FRAP 32(a)(6) because this
document has been prepared with a proportionally spaced typeface using Microsoft
Word 2017 in 14-point font size and Times New Roman type style.
25
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Certificate of Service
I hereby certify that on January 29, 2021, I electronically filed the foregoing
Petitioners’ Emergency Motion for Stay Pending Appeal with the Clerk of the
Court by using the appellate CM/ECF System and served copies of the foregoing
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Pursuant to FRAP 26.1 and D.C. Cir. Rule 26.1 Petitioner Save Monroe
projects that threaten the healthy and prosperous future of Monroe County, West
Virginia.
All other Petitioners have previously filed their Rule 26.1 disclosures in