February 23, 2012

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Ms. Rosemary Chiavetta

Pennsylvania Public Utility Commission

Commonwealth Keystone Building

400 North Street, 2 n d Floor North

Harrisburg, PA 17120

RECEIVED MAR 6 2012

PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU

Re: Application of Peregrine Keystone Gas Pipeline LLC for Approval on a Non-exclusive Basis to

Begin to Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration,

and Transportation or Conveying Service by Pipeline to the Public in All Municipalities Located in

Greene and Fayette Counties and in East Bethlehem Township in Washington County,

Pennsylvania

Docket #A-3fl 10'220304

Dear Ms. Chiavetta:

Please find attached my filing for a Reply Brief in the above ref

of Service in the above mentioned case was served

Thank,yQuv .. ..

icec|,pfoceeding. Certificate

mail and first class mail.

Marigrace Butela

1601 West Crawford Avenue

Connellsville, PA 15425

Enclosures

c: Honorable Susan D. Colwell

Certificate of Service

INTRODUCTION

I, Marigrace Butela, file this Reply Brief in response to the Main Brief filed by Peregrine

Pipeline LLC as ordered by Susan D. Colwell, Administrative Law Judge on September 12,

2011, as Scheduled and Adopted in the Fourth Prehearing Order.

SUMMARY OF ARGUMENT

A. To deny and forever put to rest Peregrine's Proposed Ordering Paragraphs on Page 55 of

their Main Brief requesting that the Filed Protests of James E. Rosenberg, Veronica

Coptis and myself, Marigrace Butela to be dismissed and marked closed.

B. Health issues and sickness from obnoxious odors being emitted from natural gas

(Marcellus Shale) compressor stations and wells were told by several witnesses who

gave direct testimony at the public input hearing held on October 26, 2011, in

Uniontown, Pennsylvania. There are no air monitoring stations in the Peregrine's

proposed service territory of Fayette, Greene and Washington Counties. All 36

witnesses who testified at the Public Input Hearing including two Fayette County

Commissioners opposed Peregrine Pipeline, LLC's approval for a Certificate of Public

Convenience.

C. Peregrine does not meet the definition "to or for the public" within the meaning of the

Public Utility Code. 66 Pa. C.S.A. § 102.

D. The rapid increase of the Marcellus drilling without comprehensive and completed

health and environmental studies violates the Commonwealth of Pennsylvania's, Article

1, Section 27 of the Pennsylvania Constitution which states. The people have a right to

clean air, pure water, and to the preservation of the natural, scenic, historic and

esthetic values of the environment Pennsylvania's public natural resources are the

common property of all the people, including generations yet to come. As trustee of

these resources, the Commonwealth shall conserve and maintain them for the benefit

of all the people.

ARGUMENT

Peregrine's Main Brief Pg. 42 states they have not yet constructed facilities in Fayette

County. Direct Testimony given was related to operating compressors and natural gas

wells operated by other parties. Peregrine believes that the commitments it has made

concerning environmental compliance and compressors were responsive to the direct

testimony of Marigrace Butela.

1. Peregrine's compressor stations (engines, dehydrators, etc.), and their affiliate's well

drilling methods are no different than other companies that are presently located and

doing business in Fayette, Greene and Washington Counties. Health problems

associated with the drilling of the Marcellus Shale and other shale plays exist all over the

country, not just in Pennsylvania. Attached to my reply brief is a recent news article

entitled "Marcellus and Medic ine" which appeared in the Washington County

Newspaper, The Washington Observer-Reporter on Tuesday, February 21, front page

(see attached). The article provides information about a Southwest Pennsylvania

Environmental Health Office that recently opened and will address possible exposure

related to the natural gas drilling industry in the surrounding service proposed area. It

will offer medical evaluations as well as provide information and resources to those who

are impacted from natural gas activity such as compressor stations, well pads, and

impoundment ponds. Raina Rippel, project director stated in the article "rural public

health issues in Southwestern Pennsylvania were not being addressed", and, "it

became clear that the Marcellus and gas drilling was probably the biggest new public

health threat around." Even the EPA is in the process of investigating whether

Marcellus Shale drilling and compressor station operations in Peregrine's proposed

service area of Washington County, has caused environmental damage that violates

federal regulations. (Pittsburgh Post-Gazette.com, Monday February 13, 2012 entitled

"EPA probing Washington County Shale Operations, Federal agency looking for

violations in air, water, soil, by news reporter, Don Hopey, (copy attached). The

environmental concerns that Peregrine claims to have satisfied is unsatisfactory.

Peregrine states that the Commission does not have jurisdiction to address

environmental matters as they refer to PECO Energy Company v. Township of Upper

Dublin, 922 A.2d 996,102 (Pa. Commonwealth Ct. 2007)

2. House Bill 344 that was signed by Executive on December 22, 2011 and was approved

by the Governor is an Act providing for gas and hazardous liquids pipelines and for

powers and duties of the Pennsylvania Public Utility Commission; and imposing civil

penalties. This covers all natural gas gathering pipeline companies doing business in

Pennsylvania.

Peregrine maintain they qualify as a public utility under Section 102 of the Public

Utility Code. Peregrine's Main Brief provides an analysis of the applicable statutes and

case law demonstrating that they qualify as a public utility.

3. " [A" public use is not confined to privileged individuals, but is open to the indefinite

public " and "it is this indefinite or unrestricted quality that gives it its public character."

Drexelbrook 436, Canip Wohelo, Inc. v. Novitiate of St. Isaac Jogues, 36 Pa. P.U.C. 377

(1958).

Peregrine does not satisfy the definition of public utility within the meaning of the

Public Utility Code. 66 Pa. C.S.A. §102.

4. A Certificate of Public Convenience is not necessary or proper for the service as all

natural gas gathering companies doing business in Fayette, Greene and Washington

Counties are presently conducting business without a Certificate of Public Convenience.

A Certificate of Public Convenience is not necessary or proper for accommodation as all

natural gas gathering companies operating in Fayette, Greene and Washington Counties

have contractual agreements with customers and potential customers without a CPC.

A Certificate of Public Convenience is not necessary or proper for the convenience as

eminent domain would be the convenience. However, all natural gas gathering

companies serving Fayette, Greene and Washington Counties have entered or will enter

into contractual agreements satisfying the need for convenience with a CPC.

A Certificate of Public Convenience is not necessary or proper for the Safety to the

Public as HB344 addresses this issue as stated above.

The service proposed by Peregrine is not "to or for the public" within the meaning of

the Public Utility Code. 66 Pa. C.S.A. § 102.

5. Peregrine has demonstrated in their direct testimony PKGP Statement No. 1, Line 4A

that they are actually a single end user and therefore do not meet the required

definition as concluded in Bethehem Steel Corp vs. Pennsylvania Public Utility

Commission, 713 A.2d 1110, 552 Pa. 134, Sup. 1998.

Peregrine states in its Main Brief, Pg. 11 "A map of Peregrine's initial proposed

gathering and transportation systems is attached to PKGP Statement No. 1 as Exhibit "A."

6. The map presented in this case and to the public by the applicant does not mark or

indicate where the proposed gathering lines are to be located in Fayette County. This,

in my opinion, is of a deceitful nature in itself and does not adequately give the public a

clear and accurate description of where the proposed pipeline may go, therefore,

limiting the public's knowledge. This limited knowledge infringes upon the public's right

to have an input on the approval of the applicant's application for a Certificate of Public

Convenience.

IV. CONCLUSION

Peregrine does not meet the definition of "to or for the public" within the meaning of the Public

Utility Code. 66 Pa .C.S.A. §102. A Certificate of Public Convenience is not needed for Peregrine

to provide service to its customers and future potential customers. All natural gas gatheprlg

companies operating in Fayette, Greene and Washington C o u n t i ^ a r e presentlypp^rating

without a CPC. Therefore, I, Marigrace Butela, do hereby pray^nd humbjy^sk that Susan D.

Colwell, Administrative Law Judge will recommend, and t h ^ t o m m j ^ o n approve, to deny

Peregrine's Application for a Certificate

roached ndition at Ruby

•lice said Derek I, of Washington, hg south when he ' fell asleep. His okee rolled over es before coming ie left lane in the in overpass, d Aberaethy had D render assis-the three were jump over the he overpass to ; hit by the truck, lid the three fell ;tety 40 to 50 feet nd.

also was listed in idition late Mon-

md Abernethy ;duled at Ruby For clinicals.

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ee from his coach, ; Gabe Pritz in the iturday atCalifor-

nsider teen

jabe Pritz in the Cal U. spokes-

ristine Kindl. attorney Gene Vit-meone on his staff sed the case with • •n h u t U o U n H T T Q f

Mutticuttural Communrty Center, in East Wash­ington Mon­day as part oflMAACP's first festival for Black His­tory Month. To see video online, visit www.ob-server-re-porter.com.

JIM MCNUTT / OBSERVE R-REPORIER

New McMurray office responds as industry breeds health concerns BY CHRISTIE CAMPBIILL, Staff writer cimsce1m@observe1-reporter.c0m

A public health office "to addhpss pos­sible exposure related to the natural gas drilling industry is opening in Mc­Murray.

Southwest Pennsylvania Environ­mental Health Project has announced the opening of the office in Suite 5,4198 Washington Road.

Through the office, people can schedule medical evaluations and re­ceive additional health information arid resources.

Raina Rippel, project director, said rural public health issues in Southwest-em Pennsylvania were not being ad­dressed.

"We met with a couple residents in Washington County, and it became" clear that the Marcellus and gas drilling was probably the biggest new public health threat around," she said.

iKwww.env^nmental! \ I*he'aiAproject̂ org. |

Despite gas! drilling in.- other .parts of the country, she believes this response by

the nonprofit SWPA-EHP may be the first of its kind.

The gas industry differs vehemently with Rippel's assessment of risks stem­ming from drilling. It has claimed con­sistently that its drilling methods are safe, falTwithintregulatory guidelines and pose no health threats.

.The McMurray office includes a nurse practitioner, outreach coordi­nator and part-time managing direc­tor. They will work with environ­mental health specialists in New England.

A person's initial visit includes an in­take and health assessment and a de-

Wa ste water a key issue in N.Y. tracking debate..PA(JE'A2 ,'

termination of whether their health care needs are being met.

"We've created a very targeted piece toward those who are impacted who are,within a gas industry type activity -well pads, impoundment ponds or compressor stations," explained Rip-,petf

• Rippel said the primary objective is to provide an immediate response to public health concerns, not a research or epidemiological study. Recommen­dations may include ways a person can limit his or her exposure, she said.

Additional information is available at www.environmentalhealthproject org.

Dozens express concern over drive for secession irnm Rmcmrnlrl rlictrirt

EPA probing Washington County shale operations Page 1 of 2

post-qazette.coM

EPA probing Washington County shale operations Federal agency looking for violations in air, water, soil Monday. Fabruary i3, 2012 By Don Hopey, Pittsburgh Post-Gazelle

The U.S. Erivironmental Protection Agency is investigating whether specific Marcellus Shale drilling and compressor station operations in Washington County have caused environmental damage that violates federal regulations.

The federal "multi-media" investigation of air, water and hazardous materials impacts, which the EPA has not previously acknowledged, began in late September when on-site testing was done and is the initial stage of a possible enforcement action or actions.

"In Washington County, EPA has conducted inspections at active industrial operations including well pads and compressor stations," Terri White, an EPA spokeswoman at the agency's Philadelphia regional office, said in an email response to questions last week.

"The EPA is assessing the findings of our air, water and hazardous waste investigations in Washington County," said Bonnie Smith, another EPA spokeswoman in Philadelphia, who noted that the agency will not disclose the names of the facility or facilities where testing has been done until the investigation is complete, and that's expected to take "several more months."

Washington County, just south of Pittsburgh, is a hotbed of Marcellus Shale gas development in , southwestern Pennsylvania and has more wells and compressor stations, which pump natural gas through pipelines, than any other county in the region.

n A website for ongoing coverage, resources,

According to the latest accounting on the state Department of Environmental Protection's Oil & Gas comments and more

Reporting website, there are almost 700 drilled Marcellus Shale gas wells in Washington County, and - Follow theposi-Gazeiie-s . , . , c . . „ , , 0 0 •' coverage of Ihe Marcellus

as of the middle of last year 278 of those were producing. Shaieon jwiiter at laoipahnePQ.

Although the DEP does not track compressor stations by county or region, there are at least 11 in Washington County, seven of those owned by Mark West-Liberty Midstream & Resources LLC.

Water use and contamination has been a concern as deep gas drilling has rapidly expanded in Pennsylvania.

And emission of air pollutants by compressor stations -- including nitrogen oxides, sulfur dioxide, volatile organic compounds, airborne particulates and carbon monoxide -- are measured in hundreds of tons per year and have the potential to adversely affect the state's air quality.

"Washington County was chosen for multi-media inspections because there is a significant amount of oil and natural gas development occurring there," said Ms. Smith. "While natural gas operators employ various safeguards to minimize the risks inherent to the industry, legitimate concerns have emerged regarding potential environmental impacts."

Although the EPA informed the state of the federal probe, Katy Gresh, a DEP spokeswoman, declined to comment on it or say if the department is participating in it.

Such "multi'media" federal investigations, which assess air, water and land impacts of various operations, are not common in Pennsylvania or other states that enforce their own environmental laws. But they are a long-standing part of the EPA "tool box," Ms. Smith said.

According to the EPA program web page, multi-media investigations can target single facilities, multiple facilities owned by a single company, or geographically based environmental problems in a given area or industry.

The comprehensive enforcement approach was used in 2002 to address emissions problems nationwide from the polyvinyl chloride manufacturing industry.

In Pennsylvania, an EPA multi-media investigation in 2006 of the pharmaceutical manufacturer Merck & Co. in Northumberland and Montgomery counties, found company discharges violated the federal Clean Air Act and Clean Water Act, and resulted in a $1.5 million civil penalty paid last year to settle the charges.

http://www.post-gazette.com/pg/12044/1209896-503-0.stm 2/23/2012

EPA probing Washington County shale operations Page 2 of 2

The EPA also has the legal authority to step in to supplement state enforcement, much as it did in Dimock, Susquehanna County, last month, where it is supplying replacement water and testing well water supplies in 60 homes where residents say Marcellus Shale gas drilling has contaminated their water supplies. That testing is not a "multi-media" investigation because it's focused only on water problems, but it is similar due to the federal involvement.

The EPA decided to conduct the Dimock tests after receiving water quality complaints from Dimock residents, and after the DEP allowed Cabot Oil & Gas Corp. to stop supplying replacement water.

Rep. Jesse White, D-Cecil, who has been critical of the new Marcellus legislation approved by the Legislature last week and embraced by the Corbett administration, said he was unaware of the on-going federal investigation. He welcomed it because of what he termed "lackluster" regulation by the DEP.

"There are several areas in the county where there are potential problems that might attract the EPA," Mr. White said. "DEP's regulatory efforts should be motivated by facts, not politics. The EPA isn't snooping around here for nothing."

Range Resources, which owns the vast majority of the wells in Washington County, and MarkWest Energy Partners, which owns most of the compressor stations, could not be reached for comment.

Ms. Smith said the EPA tests done in September in Washington County are not related in any way to the on-going review of drinking water resources that is part of the National Study of Hydraulic Fracturing, which has selected a Washington County location as a case study.

• o n Hopey; Qtiopaygjuosl-oaiatle com ot 412-263.1983,

Firsl piibhshed mi Fiti i tsar/ 13.2012 al 12 09 am

http://www.post-gazette.com/pg/12044/1209896-503-0.stm 2/23/2012

BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

Application of Peregrine Keystone Gas Pipeline, LLC for Approval on a Non Exclusive Basis to Begin to

Offer, Render, Furnish, or Supply Natural Gas Gathering, Compression, Dehydration, and Transportation

or Conveying Service by Pipeline to the Public in All Municipalities Located in Greene and Fayette

Counties and in East Bethlehem Township in Washington County, Pennsylvania.

Docket No. A-2010-2200201

CERTIFICATE OF SERVICE

I hereby acknowledge that I have on this day of Thursday, February 23, 2012, served a true copy of the

Reply Brief foregoing document of Marigrace Butela, upon the parties listed below, in accordance with

the requirements of 1.54 (relating to service by a party) Via E-Mail & First Class U.S. Mai l .

ALLISON C KASTER ESQUIRE

CARRIE B WRIGHT ESQUIRE

PA PUBLIC UTILITY COMMISSION

BUREAU OF INVESTIGATION AND ENFORCEMENT

PO BOX 3265

HARRISBURG PA 17105-3265

ak3ster@state.pa.us

carwrifihtfaJstate.pa.us

AUDREY J DALY ESQUIRE

ELIZABETH WITMER ESQUIRE

SAULEWING LLP

2 NORTH SECOND ST

HARRISBURG PA 17111

adalv@saul.com

ewitmer@saul.com

JAMES A MULLINS ESQUIRE

OFFICE OF CONSUMER ADVOCATE

FORUM PLACE 5 FLOOR

555 WALNUT ST

HARRISBURG PA 17101

imullins@paoca.org

o

> CO

c :

JAMES O'TOOLE JR ESQUIRE

BACHANAN INGERSOLL & ROONEY PC

TWO LIBERTY PLACE

50 S 1 6 T H ST STE 3200

PHILADELPHIA PA 19102-2555

iames.otoole@bipc.com

BRIAN J CLARK ESQUIRE

ALAN M SELTZER ESQUIRE

BUCHANAN INGERSOLL & ROONEY PC

213 MARKET STREET 3 R D FLOOR

HARRISBURG PA 17101

brian.clark@bipc.com

alan.seltzer@bipc.com

KURT LKR1EGER ESQUIRE

STEPTOE & JOHNSON PLLC

CHASE TOWER-EIGHTH FLOOR

707 VIRGINIA STREET E

CHARLESTON WV 25326-1588

kurt.krieger@steptoejohnson.com

BRIAN J KNIPE ESQUIRE

BUCHANAN INGERSOLL & ROONEY PC

17 N SECOND STREET 1 5 T H FLOOR

HARRISBURG PA 17101-1503

Brian.knipe@bipc.com

BRIAN J PULITO ESQUIRE

STEPTOE & JOHNSON PLLC

201 CHESTNUT STREET STE 200

MEADVILLE PA 16335

brian.pulito@steptoej'ohnson.com

DANIEL P DELANEY ESQUIRE

K & L GATES

17 N SECOND STREET 1 8 T H FLOOR

HARRISBURG PA 17101-1507

Dan.delanev@klgates.com

JEFFREY A FRANKLIN ESQUIRE

BUCHANAN INGERSOLL & ROONEY PC

1150 BERKSHIRE BLVD STE 210

WYOMISSING PA 19610

Jeffrev.frariklin@bipc.com

EVELYN A HOVANEC

680 COOLSPRING STREET

HOPWOOD PA 15445

Evelvn.hovanec@verizQn.net

THEODORE J GALLAGHER ESQUIRE

COLUMBIA GAS OF PA

121 CHAMPION WAY STE 100

CANONSBURG PA 15317

tiEallagher@nisource.com

JAMES E ROSENBERG

555 DAVIDSON ROAD

GRINDSTONE PA 15442

ir@amanue.com

HONORABLE SUSAN D COLWELL

PO BOX 3265

HARRISBURG PA 17105-3265

scolwell@state.pa.us

VERONICA COPTIS

3 N SILVER STREET

MOUNT PLEASANT PA 15666

veronica@mtwatershed.com

Marigrace Butefa 1601 West Crawjbrcf Ave Zanntftsvilk PA 15425

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ROSEMARY CHIAVETTA PA PUBLIC UTILITY COMMISSION COMMONWEALTH KEYSTONE BLDG 400 NORTH STREET 2 N D FLOOR NORTH. HARRISBURG PA 17120

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MS ROSEMARY CHIAVETTA PA PUBLIC UTILITY OOMMISSION OOMMONWEALTH KEYSTONE BLDG 400 N STREET 2ND FLOOR NORTH HARRISBURG PA 17120

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RECEIVED MAR 6 201Z

PA PUBLIC UTILITY COMMISSION SECRETARY'S 3URLAU

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