## Facts

- Millennium Pipeline Co. applied to the Federal Energy Regulatory Commission (FERC) for a certificate of public convenience and necessity to construct and operate a natural gas compressor station in the Town of Minisink, New York, and related facilities allowing bidirectional flow on part of its interstate pipeline.
- FERC initiated NEPA review through an Environmental Assessment (EA), conducted public outreach, and received hundreds of public comments, including extensive local opposition.
- Petitioners proposed an alternative site (“Wagoner alternative”) in a more industrial area; it would have required replacing roughly seven miles of existing pipeline, including work involving a river crossing.
- The EA compared the Minisink site and the Wagoner alternative across environmental and other impacts, and considered mitigation measures for the proposed station.
- FERC issued a Finding of No Significant Impact (FONSI), concluded an Environmental Impact Statement (EIS) was unnecessary, and granted the certificate in July 2012.
- FERC found the project would increase capacity, reliability, and operational flexibility for high-demand markets; adverse local impacts would be mitigated; and existing customers would not subsidize the project.
- Petitioners sought rehearing; FERC denied rehearing while providing additional explanation.
- Petitioners filed for judicial review, challenging FERC’s site selection, NEPA compliance, certificate balancing under the Natural Gas Act, and aspects of FERC’s procedure.

## Issues

1. Whether FERC acted arbitrarily or capriciously under the APA and NEPA by approving the Minisink site and rejecting the Wagoner alternative.
2. Whether FERC reasonably determined, under the Natural Gas Act, that the project’s public benefits outweighed adverse effects on landowners and the surrounding community.
3. Whether FERC’s environmental review and procedural handling (including notice and responsiveness to comments) satisfied NEPA and applicable procedural requirements.

## Decision

- The D.C. Circuit denied the petitions for review and upheld FERC’s certificate order and rehearing denial.
- The court held FERC took the required “hard look” at environmental impacts, reasonably assessed alternatives, and adequately explained why it preferred the Minisink site.
- The court upheld FERC’s EA and FONSI, concluding the record supported FERC’s determination that the project, with mitigation, would not significantly affect the human environment.
- The court found substantial evidence supported FERC’s Natural Gas Act balancing of public benefits against adverse community and landowner impacts.
- The court rejected procedural challenges, finding petitioners did not show legally significant deficiencies or prejudice.

## Legal Principles

- Under the Administrative Procedure Act, a court upholds agency action unless it is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law; technical and predictive judgments receive substantial deference when adequately explained and supported by substantial evidence.
- NEPA requires an agency to take a “hard look” at environmental consequences and provide a reasoned explanation for choosing among alternatives; NEPA does not require selection of the alternative preferred by local opponents.
- An EA may support a FONSI when the agency reasonably concludes, based on analysis and mitigation, that the action will not significantly affect the quality of the human environment; disagreement about impact weighting does not by itself establish NEPA error.
- In issuing a certificate under the Natural Gas Act, FERC must weigh demonstrated public benefits against adverse effects on landowners and surrounding communities; courts uphold that balance if supported by substantial evidence and reasoned explanation.
- Procedural challenges to agency decisionmaking generally require a showing that any asserted irregularity mattered to the outcome (prejudice).

## Conclusion

The D.C. Circuit upheld FERC’s approval of Millennium’s Minisink compressor station, concluding that FERC reasonably evaluated the Wagoner alternative, permissibly issued an EA and FONSI under NEPA, and adequately supported its Natural Gas Act determination that system-wide benefits outweighed localized adverse impacts.


Minisink Residents for Env’t Pres. & Safety v. FERC, 762 F.3d 97 (D.C. Cir. 2014)