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Energy CEO Says Fracking Build-out in New York Not Over, Wants Regulators to ‘Lay Down and Approve Every Pipeline’

Energy CEO Says Fracking Build-out in New York Not Over, Wants Regulators to ‘Lay Down and Approve Every Pipeline’

Crestwood natural gas compressor sign in Seneca Lake, New York

At a pipeline industry conference in Pittsburgh on January 31, Robert G. Phillips, CEO and President of Crestwood Equity Partners, offered an unusually candid perspective on pipelines, fracking, environmental regulations, and how industry plans to fight back against public opposition and permitting problems.

This past May, Crestwood announced that it was halting plans for a natural gas storage facility in the Finger Lakes region of New York following a three-year civil disobedience campaign by grassroots activists and environmentalists who feared contamination of Seneca Lake, which supplies drinking water to roughly 100,000 New Yorkers. But as Phillips told the conference, the company isn’t backing off for good.

“Now, this is hand-to-hand combat in this region,” Phillips told the crowd of oil and gas company representatives at the pipeline conference, dubbed Marcellus Midstream 2018.

“We have to be ninja-like,” Phillips said, in recommendation to his industry colleagues. “The owners and the contractors have to work together not just to get it done on-budget, on-time, but to get it done quietly, softly, as least-disruptively as possible.”

Crestwood certainly encountered a different type of disruption in New York. There, over 400 people, including Ithaca College scholar Sandra Steingraber, local business owners, and religious leaders, were arrested for trespass or disorderly conduct outside Crestwood’s Gallery 2 Expansion project, where the company still hopes to store up to 2.1 million barrels of liquid fossil fuels in salt caverns under Seneca Lake, according to the grassroots campaign We Are Seneca Lake.

Crestwood Equity Partners, a master limited partnership which merged with Inergy in 2013, currently uses truck and rail to transport propane and other liquid fossil fuels, but, Phillips explained, the company would rather be able to ship by pipeline. Some of the company’s plans in New York state, however, hit strong public opposition.

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