ST. LOUIS — Federal energy regulators on Thursday cleared a controversial natural gas pipeline here to continue operating, negating a court ruling that threw its future into doubt.
The Federal Energy Regulatory Commission's 5-0 decision likely ends years of uncertainty over the Spire STL Pipeline. It also follows a rancorous public debate last winter, after ÃÛÑ¿´«Ã½ gas utility Spire warned customers that closure could disrupt service.
Spire celebrated the decision on Thursday, saying it proved the necessity of the pipeline, which runs north from the ÃÛÑ¿´«Ã½ area into Illinois.Â
“We had always believed, once FERC was able to conduct a comprehensive review of the record evidence, that FERC would ultimately find a critical need to keep this important infrastructure in service,†Scott Smith, president of the Spire STL Pipeline, said in a statement.
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The Environmental Defense Fund, which spearheaded the legal fight against the pipeline, said FERC once again oversaw a flawed review process. Affected landowners and Spire ratepayers “were shut out from commenting or offering evidence about Spire’s most recent claims despite requests to do so,†the group said in a statement.
It has vowed to challenge the decision.
The utility pitched the 65-mile line in 2016, got it approved by FERC in 2018, and had it running by November 2019. The Environmental Defense Fund sued in January 2020, arguing Spire had not demonstrated a need for the line, amid flat gas demand in the region and a lack of interest from other gas providers.
In the summer of 2021 a federal court agreed, unanimously revoking FERC’s approval. The court instructed the federal commission, which originally approved the project in a divisive 3-2 vote, to reassess the pipeline and address the legal flaws that marred FERC’s “ostrich-like†decision, the court said.Â
But last November, after a series of legal maneuvers failed to reverse the court’s decision, Spire sent a letter to 650,000 regional customers.
“We want to keep you informed and prepared for potential natural gas disruptions — and outages — this winter if the pipeline is not kept in service,†the letter said.
The message outraged elected officials, critics and customers. Even FERC and state regulators weighed in.
Still, FERC issued temporary permits for the pipeline to continue to operate.
FERC issued a formal order approving the pipeline later Thursday.
But comments made at Thursday’s public meeting of the agency revealed that some at FERC still think the project’s initial approval was deeply flawed.
“In my opinion, it shows how not to do things — how the commission should not be proceeding,†said Chairman Richard Glick.
“I think there is a need for this project — now,†Glick said, adding that Spire has since disengaged with other gas suppliers, since the project’s completion. “But again, it’s a model for what not to do."
Some critics echoed that sentiment.
“Once FERC approves the pipeline and allows a pipeline to be built, it is very difficult to dismantle that decision in a way that would not harm innocent consumers,†said Gillian Giannetti, a lawyer for the Natural Resources Defense Council. “The Spire case remains the textbook example of why FERC needs to quickly and robustly reform how it evaluates pipeline applications.â€
A virtual press conference was held by critics of Spire's messaging to customers about the Spire STL pipeline. The email warned of potential natural gas outages this winter. A legal expert and political leaders from ÃÛÑ¿´«Ã½ weighed in on the topic.
