A Crestwood Subsidiary’s Attorney Acknowledges Issues with Salt Caverns Under Seneca Lake

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May 232018
 

FOR IMMEDIATE RELEASE: Monday, May 21, 2018

Contact: Kenneth Londono, kenneth.londono@berlinrosen.com, 646-335-0420

Joseph Campbell, muchado2@gmail.com, 607-769-4639

BREAKING: A Crestwood Subsidiary’s Attorney Acknowledges Issues with Salt Caverns Under Seneca Lake

 Gas Free Seneca and Earthjustice Call for Cuomo to Reject Crestwood’s Dangerous Gas Storage Plan

 Crestwood Proposes to Store Millions of Gallons of Propane Gas In Caverns That Need Additional Testing

 

SENECA LAKE, NY – The following statements by Gas Free Seneca and Earthjustice are in response to a letter to the Department of Environmental Conservation by Crestwood’s subsidiary, FLLPG’s attorney Kevin Bernstein that called for additional testing of the unlined salt caverns under Seneca Lake.

Gas Free Seneca Statement

 “The gas storage project has kept families and businesses in the region in limbo for nearly 8 years while a DEC judge reviewed independent expert reports submitted during an Issues Conference.” said Joseph Campbell, President of Gas Free Seneca. “The judge decreed that all of those reports should be entered into the record, making it possible for DEC Commissioner Seggos to deny permits for the project, based on the numerous unanswered questions and risks the project poses to public safety and to air and water quality, not to mention the threat to the robust Finger Lakes economy and the character of our community.  This new information suggests what we knew all along, that the caverns are not stable and the gas could migrate if stored there.  It is inconceivable to us why Governor Cuomo would not work with his DEC Commissioner, Basil Seggos, to deny the permits in light of this development.”

“For years, we’ve been saying that the unlined ​caverns under Seneca Lake can’t safely hold the LPG that Crestwood wants to store there,” said Yvonne Taylor, Vice President of Gas Free Seneca.  “Now Crestwood’s subsidiary, FLLPG’s attorney is saying there are issues with the caverns that require more testing.  This is one more critical ​reason for Governor Cuomo to reject this dangerous proposal now​.”

Earthjustice Statement

“The applicant’s attorneys have not fully disclosed the conditions that prompted the sudden need for additional testing,” said Deborah Goldberg, an attorney with Earthjustice.  “All well studies and other data that are not in the official record should be released for independent third-party review, including all sonar studies completed since 2013, so that Finger Lakes residents can be sure their concerns about cavern integrity are receiving serious, unbiased evaluation.”

Earthjustice additionally issued a letter on behalf of Gas Free Seneca in response to Bernstein letter, you can view the letter in full, here.

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Crestwood, a Texas-based corporation, is proposing a plan to store dangerous, explosive liquefied petroleum gases in abandoned salt caverns under the shores of Seneca Lake. Over 450 Seneca Lake property owners, 500 local and regional businesses on the GFS and FLXWBC coalitions and 32 municipalities representing 1.2 million New Yorkers oppose the proposal.

 

Kenneth Londono

  1. 646.335.0420
  2. 917.574.8756

kenneth.londono@berlinrosen.com

berlinrosen

New York • Washington D.C. • Los Angeles

berlinrosen.com

@berlinrosen

Senators Schumer, Gillibrand Send Second Letter to Federal Energy Regulatory Commission (FERC) Regarding Gas Storage on Seneca Lake

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Sep 012016
 

FOR IMMEDIATE RELEASE
Senators Schumer, Gillibrand Send Second Letter to Federal Energy Regulatory Commission (FERC) Regarding Gas Storage on Seneca Lake

Urge FERC to Carefully Consider Gas Free Seneca’s Appeal

September 1, 2016, Watkins Glen, NY

US Senators Charles Schumer and Kirsten Gillibrand co-signed a second letter to FERC /…/Schumer-Gillibrand-08.30.2016-Le… in support of their constituents’ unresolved concerns regarding natural gas storage expansion and FERC’s recent approval of a two year extension for that build-out.

Gas Free Seneca filed an appeal of FERC’s decision /…/2016-06-15-Gas-Free-Seneca-Petit… in June, stating that the Commission did not consider critical safety concerns related to the project, as well as new information on safety that was not available when the certificate issued, arguing that the extension of time was not justified and the Commission should not permit Arlington to proceed until these issues are addressed. (FERC’s reasoning for granting the extension was that there was no appointed state geologist to issue the underground storage permit, which prompted further questions regarding the validity of the permit issued for Crestwood’s other proposed project on the same site to store 88.2 Million gallons of propane in the salt caverns.)

In their letter, the Senators echoed the sentiments of Gas Free Seneca, stressing that “New concerns have been raised and the conclusions in the Quantitative Risk Analysis have been questioned for being true and independent results. Considering this appeal should give pause to this project and allow for much needed clarity and impartial risk analysis for the caverns in question. This would help the Finger Lakes community get answers to their concerns while also allowing new safety information learned from current events involving underground gas storage like the four month leak at Aliso Canyon, to be addressed as well. We strongly urge FERC to give this appeal full consideration and allow these concerned citizens the opportunity to make their voices heard.”

With the recent contamination of drinking water in Flint Michigan and Hoosick Falls, NY, the Senators also urged FERC to consider the potential risk to Seneca Lake’s water, a 4.2 Trillion gallon body of fresh water: “Arlington’s project is located in salt caverns adjacent to Seneca Lake, the largest glacial lake of New York’s Finger Lakes region. One very important factor to consider is that Seneca Lake provides clean drinking water for 100,000 residents living in the area, and is relied on for recreational opportunities in one of the most highly-trafficked tourist destinations in upstate New York. We continue to hear well-argued concerns about the economic effects this project could have on the region, including the burgeoning Finger Lakes wine industry, which has become a major driver of the region’s economy and tourism.”

They also enumerated the many concerns the public has raised about the project, writing “These include the adverse impacts this project could have on public health, safety, the environment and quality of life currently enjoyed by many in this area. In addition, the federal government is considering new regulations to address the safety of natural gas storage that, if applied to this facility, could have substantial impact on a variety of constituent concerns and the way this facility would operate. We are also aware that many of our constituent groups including Gas Free Seneca, Finger Lakes Wine Business Coalition, Seneca Lake Pure Waters Association, and many surrounding town and counties have come together to file an appeal to FERC halting this project until the serious environmental and safety issues they have raised are properly addressed. We ask that you give this appeal appropriate and thorough consideration.”

“We are extremely grateful to Senators Schumer and Gillibrand for listening to their constituents and lending their support”, stated Joseph Campbell, President of Gas Free Seneca. “We know that FERC has come under great scrutiny for rubber-stamping all gas related projects, so we hope that hearing from our Senators will encourage FERC to carefully consider our appeal,” he added.

Groups Condemn Schuyler County Legislature for Premature Resolution Supporting Gas Storage

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Aug 082016
 

Contact:

Joseph Campbell, Gas Free Seneca 607- 769-4639 muchado2@gmail.com

Will Ouweleen, Finger Lakes Wine Business Coalition (FLXWBC) 585-734-7324 info@FLXWBC.com

Mary Anne Kowalski, Seneca Lake Pure Waters Association (SLPWA) (315)-759-3761 maryannekowalski@gmail.com

 

For Immediate Release

August 8, 2016 Watkins Glen, NY

Groups Condemn Schuyler County Legislature for Premature Resolution Supporting Gas Storage

Gas Free Seneca, FLXWBC and SLPWA Urge County, Crestwood and DEC to Complete Legal Procedures

At their regularly scheduled meeting Monday, August 8th, the Schuyler County Legislature plans to vote and pass a resolution reaffirming support of the proposed Crestwood Equity Partner’s subsidiary Finger Lakes LPG’s gas storage project on the west side of Seneca Lake in Reading, NY.

The resolution /wp-content/uploads/2016/08/SC-Resolution-Reaffirm-LPG-08.02.2016-1.pdf  states that the “Schuyler County Legislature… has sought modifications to the original scope of the project” which would include: the elimination of butane storage, elimination of rail transport and related infrastructure, elimination of the truck depot and truck transport, elimination of the brine pond on the lake side of Route 14, and provision of resources to monitor and improve Seneca Lake water quality.

According to Gas Free Seneca, FLXWBC and SLPWA private negotiations between Crestwood and the Schuyler County Legislature are not enforceable and the groups urge Crestwood to submit a formal amendment of its application so that the changed terms can be memorialized in binding permit conditions subject to review and comment.

“Crestwood’s secret proposals to change the project are effective admissions that we were right about the original proposal all along:  it’s not safe, it threatens the Watkins Glen State Park, it’s too noisy and ugly, and it’s generally inconsistent with the character and brand of the Seneca Lake communities,” said Joseph Campbell, President of Gas Free Seneca. “If Crestwood wishes to make these welcomed changes, it should submit a formal amendment of its application, and the DEC should revise the draft SEIS and the draft permit conditions so that the public can understand the full project impacts and so that Crestwood has enforceable obligations to implement the changes it describes in the amended application. Anything short of that is nothing but smoke and mirrors.   We can’t hold Crestwood accountable for pledges that it won’t make formally under the law,” he added.

The adopted resolution states that the issuance by the DEC of a draft storage permit in 2014 is one reason the legislature supports the project.  “What the legislature fails to comprehend is that in an ongoing legal process with a DEC appointed Administrative Law Judge (ALJ), the validity of that storage permit is being called into question as we speak”, said Mary Anne Kowalski of SLPWA.  DEC cannot issue the permit without state geologist approval, but as SLPWA recently learned and disclosed, there has been no official appointment of a state geologist since 2010.  A supposed approval from 2013 appears to have been unauthorized, and the ALJ  has acknowledged that lack of authorized approval is grounds for denial of the permit. “The legislature should not take action until the ongoing judicial process is complete”, said Kowalski.

The ALJ is also in the process of considering a multitude of highly technical information presented by independent experts from across the country.  There are additional issues, such as cavern integrity and a potential spike in the salinity level of Seneca Lake, which Crestwood is not addressing in their recent offerings.   “If any action is to be considered by the county, it should be that the Schuyler County Legislature revoke its original endorsement of the project and reconsider a revised resolution contingent upon completion of the process before the ALJ and revision of the permit conditions to ensure that the changes are permanent and binding.  Supporting a project based on nothing more than FLLPG’s say-so, before the ALJ issues a decision and without enforceable permit conditions, violates the legislature’s fiduciary duties to the people they represent,” added Campbell.

The groups maintain that the legislature has also failed to consider that if Crestwood makes the proposed changes, they will likely sue to  have their property tax assessment reduced (as they have in the past, resulting in a $7 million reduction in assessed value), providing  even less revenue to the county.  The changes would also greatly reduce the number of jobs created by the project.  And yet, the risk of cavern collapse, fire, explosion, pollution, negative impact on climate change, and a spike in the salinity of our drinking water all remain.  “So we are still being asked to accept the risks inherent in gas storage and transport, but with even less benefit to the county”, said Campbell

Crestwood and DEC also should inform the ALJ that Crestwood is materially changing the project and urge him not to issue any decision about an adjudicatory hearing until the amended application, revised DSEIS, and revised permit conditions are filed officially and made available for public comment.

Further, the groups argue that the statement in the resolution, “the Project, if approved will ensure a redundant supply of propane for local businesses and residents, helping to meet our current and future energy needs,” is categorically false.  In a Transportation Allocation Letter /wp-content/uploads/2015/05/Transportation-Allocation-Highlighted.pdf  Crestwood has represented to the ALJ that all of the propane will be sent via pipeline to Selkirk, NY where it is destined for New England and potentially further export.  The elimination of the truck depot further cements that fact.

According to Crestwood’s own statistics there is no need for additional storage in the Finger Lakes:

3 Facilities already exist within a 60 mile radius of Watkins Glen, NY that store 3.5 million barrels of propane, enough to heat 600,000 homes. In New York, only 225,000 homes rely on propane for heat. 100% of the propane stored at this facility will leave by pipeline and go to a supply terminal in Selkirk, NY that serves New England and the Mid-Atlantic states.

The groups point to Schuyler County Legislative Chair Dennis Fagan’s quote: “During the past two winters, which were quite severe, the Enterprise facility was able to meet the propane needs of the region.” (Odessa File  Nov. 19, 2015) as further evidence that there is no need for more storage.

“The bottom line is that the Finger Lakes Region does not need to be the sacrifice zone for gas industry export, it will not significantly benefit the region, we are being asked to accept all of the risk with none of the reward, and Crestwood must work within the guidelines of the legal process rather than make unenforceable behind-the-scenes overtures to people who might exert influence on local governments”, said Will Ouweleen, Secretary of the FLXWBC.