FERC landowner protection rule seen delaying gas projects

Jun. 10, 2020 2:19 PM ETEnergy Select Sector SPDR ETF (XLE), VDE, OIH, BGR, ERX, FENY, ERY, DIG, FIF, IYE, DUG, CRAKXLE, VDE, OIH, BGR, ERX, FENY, ERY, DIG, FIF, IYE, DUG, CRAKBy: Carl Surran, SA News Editor3 Comments
  • The U.S. government has adopted rules to protect landowners affected by natural gas pipeline or plant development by forbidding construction until the Federal Energy Regulatory Commission acts on requests for rehearing of any decisions for a permit.
  • The rule, issued late yesterday, says even if a project has all other certifications and permissions to begin construction, it must wait until FERC acts on rehearing requests.
  • Previously when landowners and other stakeholders awaited FERC decisions on rehearing requests, the commission allowed energy companies to use federal eminent domain proceedings to access land and start construction.
  • Analysts at Height Capital Markets say they expect the new rule "will prevent new projects from starting construction for several months while FERC addresses the issues in rehearing requests," according to Reuters.
  • ETFs: XLE, VDE, OIH, BGR, ERX, FENY, ERY, DIG, FIF, IYE, DUG, CRAK
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