Appeals court rules against Commerce Department in pipeline case
The 2nd U.S. Circuit Court of Appeals in New York upheld a lower court decision that sent the Islander East proposal back to the federal Commerce Department, Connecticut Attorney General Richard Blumenthal said.
U.S. District Judge Stefan R. Underhill in Bridgeport ruled last summer that the Commerce Department did not provide sufficient justification in 2004 when it overturned state environmental officials' rejection of the project. Underhill ordered the agency to reconsider its decision.
Islander East, a joint venture of Spectra Energy and KeySpan Energy, appealed Underhill's decision.
Blumenthal says the new court ruling is a major setback for the project. The state says the project would harm Long Island Sound.
"Islander East is back to square one again," he said.
Gov. Rell also praised the court decision.
"From the beginning, we have stated that this pipeline route is ill-advised. Although we recognize the critical need for natural gas in our region, we cannot allow that need to outweigh the irrevocable environmental damage a poorly planned pipeline could produce," Rell said.
The 50-mile pipeline would run from Branford to Yaphank, N.Y., and supply natural gas to Connecticut, New York City and Long Island.
John Sheridan, a spokesman for Islander East, says developers are now waiting to see what the Commerce Department will do.
"They need the gas up here in the Northeast, and we're going to continue to move forward," Sheridan said.
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