Eastern Shore Natural Gas Company Supports Removal of Regulations Limiting Construction Activities Pending Rehearing

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) is considering a proposal to remove regulations that have caused uncertainty and delay in pipeline construction projects. Eastern Shore Natural Gas Company, a natural-gas company operating in Pennsylvania, Delaware, and Maryland, has submitted comments in support of this proposal. The company has experienced firsthand the impact of these regulations on its Worcester Resiliency Upgrade project, which required complex planning and coordination to transport and deliver liquefied natural gas storage tanks from South Korea to Maryland.

Key Takeaways:

  • Eastern Shore Natural Gas Company is a natural-gas company operating in Pennsylvania, Delaware, and Maryland.
  • The company supports the removal of Section 157.23 of FERC regulations, which has caused uncertainty and delay in pipeline construction projects.
  • The company's Worcester Resiliency Upgrade project required complex planning and coordination to transport and deliver liquefied natural gas storage tanks from South Korea to Maryland.
  • The uncertainty surrounding the application of Section 157.23 has led to serious, real-world impacts on deliveries and logistics.
  • The Commission has retained the discretion to apply more stringent requirements for the commencement of construction where the applicant has not acquired the necessary property interests.
  • Eastern Shore Natural Gas Company rarely exercises its eminent domain authority and supports the correct balance between project developer and landowner interests.

Statistics:

  • The Worcester Resiliency Upgrade project involves the construction of five low-profile horizontal storage tanks set adjacent to an existing industrial area.
  • The project will enable Eastern Shore to provide critical natural gas service to customers during the peak winter heating season.
  • The tanks were transported from South Korea to Maryland, involving months of planning and coordination with local, state, and federal agencies and stakeholders.
  • The movement of the tanks generated local interest, and Eastern Shore was in constant communication with local elected officials and stakeholders to communicate traffic closures and related logistics.

Sources:

  • Notice of Proposed Rulemaking, 191 FERC P 61,208 (2025)
  • Eastern Shore Natural Gas Co., 190 FERC P 61,033 (2025)
  • Petition for Rulemaking to Rescind Order No. 871, Docket No. RM25-9-000 at 9-10 (filed Apr. 14, 2025)
  • Exec. Order No. 14154, Unleashing American Energy, 90 Fed. Reg. 8353 (Jan. 20, 2025)
  • Exec. Order No. 14156, Declaring a National Energy Emergency, 90 Fed. Reg. 8433 (Jan. 20, 2025)