Federal Court Blocks Key NJ Permit for NESE Gas Pipeline

A federal appeals court has vacated New Jersey's water-quality certification for Williams's Northeast Supply Enhancement (NESE) natural gas pipeline, halting a key approval needed for the project to proceed through the state's waters. The U.S. Third Circuit Court of Appeals remanded the matter to the New Jersey Department of Environmental Protection (NJDEP), finding that the agency's approval was arbitrary and failed to demonstrate compliance with state water quality standards. The ruling, issued on Tuesday, sided with environmental groups that had sued the NJDEP, arguing the certification was unjustifiably granted. These groups contend that the pipeline, planned to run from Pennsylvania through New Jersey to New York City, poses significant environmental risks. They cite concerns that dredging the Raritan Bay seabed for an underwater segment would stir up toxic contaminants like mercury and PCBs, harming marine habitats and human health. Additionally, opponents argue the project threatens wetlands and endangered species habitats with a proposed compressor station. Williams, the energy company behind the NESE project, stated it was reviewing the court's decision.