Jones

Jones

LUMBERTON — Robeson County suffered a big economic blow with the cancellation of the Atlantic Coast Pipeline project, the county’s Economic Development Office director said Monday.

“This is a tremendous economic development and financial loss for Robeson County,” Channing Jones said.

The developers of the proposed 600-mile pipeline, which would have carried fracked natural gas from West Virginia through Virginia and North Carolina and end near Pembroke, announced Sunday they were putting a stop to the project. They cited ongoing delays and increasing cost uncertainty.

What is certain is that Eastern North Carolina and Robeson County lost needed jobs and revenue, Jones said. the project was expected to generate about $680 million in revenue for Eastern North Carolina during a construction phase of between 18 and 24 months. About 4,000 construction jobs were expected to be created, more than 460 in Robeson County alone. More than 900 long-term jobs were projected in Robeson County as a result of manufacturing and business development sparked by having a reliable and ready supply of natural gas.

Robeson County leaders were projecting about $900,000 a year in property tax revenue from the completed pipeline, Jones said. And although there were no firm numbers, fire departments that would have served the areas along the pipeline’s route through Robeson County stood to receive more money so the departments could get the equipment and training needed to respond to any problems that may have developed along the pipeline.

Infrastructure projects such as the ACP have the potential to drive economic development, Jones said. In the case of the pipeline it would have meant a growth in industries and businesses that rely on natural gas. And with this growth would have come jobs.

“After two devastating hurricanes and, most recently, a pandemic, the short-term construction jobs and the long-term permanent manufacturing jobs were greatly needed,” Jones said.

Pipeline opponents were to quick to respond to the cancellation. Among them was the Rev. Mac Legerton, interim director of NC Climate Solutions Coalition and co-director of Robeson County Cooperative for Sustainable Development.

Legerton speculated in a statement that pipeline partners Duke Energy and Dominion Energy canceled the project because they didn’t want to risk a denial of their request to the Federal Energy Regulatory Commission for a two-year extension for the ACP.

“Environmental organizations are not to blame for the failure of the ACP project,” Legerton said. “The ACP was an unnecessary and irresponsible, economic and environmental boondoggle from the very beginning.”

The economic vitality and future job growth in North Carolina is in renewable energy, he said.

“If anyone still had questions about whether or not the era of fracked gas was over, this should answer them. Today is a historic victory for clean water, the climate, public health, and our communities,” said Michael Brune, Sierra Club executive director. “Duke and Dominion did not decide to cancel the Atlantic Coast Pipeline — the people and frontline organizations that led this fight for years forced them into walking away.”

Brune called the cancellation a victory for the health and well-being of communities along the project’s route.

“Jubilation!” said Jim Warren, NC WARN executive director. “We hope the cancellation of the Atlantic Coast fracked gas pipeline will soon be followed by a move by both of these corporations to stop building gas-fired generation, and to begin replacing all existing coal and gas-fired power with the cheaper, more reliable approach: renewables matched with storage and energy-saving and balancing programs.”

Duke and Dominion leaders say the decision to cancel was sparked by recent developments that created an “an unacceptable layer of uncertainty and anticipated delays for ACP,” despite the recent 7-2 ruling by the U.S. Supreme Court that vindicated the ACP project and decisions by permitting agencies.

“Specifically, the decision of the United States District Court for the District of Montana overturning long-standing federal permit authority for waterbody and wetland crossings (Nationwide Permit 12), followed by a Ninth Circuit ruling on May 28 indicating an appeal is not likely to be successful, are new and serious challenges,” a joint statement from Duke and Dominion reads in part. “The potential for a Supreme Court stay of the district court’s injunction would not ultimately change the judicial venue for appeal nor decrease the uncertainty associated with an eventual ruling. The Montana district court decision is also likely to prompt similar challenges in other Circuits related to permits issued under the nationwide program including for ACP.”

Also a series of legal challenges caused significant project cost increases and delays, according to the energy companies. As a result, the cost of the project has increased to $8 billion from the original estimate of $4.5 to $5 billion.

Thomas F. Farrell, II, Dominion Energy chairman, president, and chief executive officer; and Lynn J. Good, Duke Energy chairman, president, and chief executive officer, said in a joint statement, “We regret that we will be unable to complete the Atlantic Coast Pipeline. For almost six years we have worked diligently and invested billions of dollars to complete the project and deliver the much-needed infrastructure to our customers and communities. Throughout we have engaged extensively with and incorporated feedback from local communities, labor and industrial leaders, government and permitting agencies, environmental interests and social justice organizations. We express sincere appreciation for the tireless efforts and important contributions made by all who were involved in this essential project.”

Reach T.C. Hunter via email at [email protected] or by calling 910-816-1974.