Spire STL pipeline loses appeal to avoid closure

Market: Natural gas
07/09/21

An appeals court has affirmed its decision to throw out a certificate allowing the $220mn Spire STL natural gas pipeline to operate, despite industry warnings that a court-ordered closure will threaten customers in Missouri.

The US Court of Appeals for the DC Circuit today denied a request from the owner of the 65-mile (105km) pipeline to reconsider its 22 June decision throwing out the pipeline's certificate. The action today will start a seven-day clock for the ruling to formally take effect, unless there is intervention by the US Federal Energy Regulatory Commission (FERC) or the courts.

US utility Spire, which owns the pipeline, said it was disappointed with decision. Having to shut down the 386mn cf/d (11mn m³/d) pipeline could result in outages of natural gas and risks to health and property, the utility said. It estimates up to 400,000 home and businesses could lose gas service this winter if the pipeline is forced to close prematurely, based on extreme cold weather planning scenarios.

"Taking the STL Pipeline out of service will have significant implications for the health and safety, property and economic prosperity of the St Louis region," the company said.

The court's decision today will increase pressure on FERC to decide soon whether the pipeline should be allowed to continue operating this winter. In July, Spire asked FERC to issue an "emergency certificate" that would allow Spire STL to remain open while the agency decides how to respond to the court's concerns with how it approved the project in 2018.

FERC has requested more data on the emergency request, and Spire said it will respond today with data that shows the need for the pipeline. But some groups have opposed the request, arguing that FERC cannot ignore the court's decision to throw out the pipeline's authorization. Spire STL has failed to offer data showing "its mess cannot be fixed in a timely manner," the environmental group the Sierra Club said in a regulatory filing yesterday.

Another option could be for Spire to seek an additional delay in the court ruling formally taking effect, or to seek intervention by the US Supreme Court. Spire did not immediately respond to a request for comment on whether it plans to further appeal the DC Circuit's decision.

By Chris Knight

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