Dose of reality for region's energy hub proponents

Boosters of an emerging movement to develop Philadelphia as an energy hub were cautioned Tuesday that they need to do more to sell a skeptical public.

Energy consultants told a gathering of the Greater Philadelphia Chamber of Commerce that public opposition may be the biggest obstacle to advancing the dream of a Delaware River industrial revival tied to the Marcellus Shale natural gas boom.

"This industry has not done a good job with public interface and informing the public about the nature of the projects coming through their communities," said Andrew S. Levine, the cochair of the environment and energy practice at the law firm of Stradley Ronon Stevens & Young L.L.P.

Julie Ross, a managing partner of Environmental Resources Management's Mid-Atlantic business unit in Philadelphia, told the group that "improper, inappropriate" handling of key constituencies can impede infrastructure projects.

"One thing we've found is that getting the social license to operate can be more challenging than getting the regulatory permits and approvals," she told about 100 business leaders at the Philadelphia Marriott Downtown.

U.S. Rep. Patrick Meehan (R., Pa.), a big supporter of energy development, counseled business leaders to regard the public process as an educational opportunity, not an impediment.

"I think we need to appreciate, there are those who very genuinely believe this is the wrong direction," he said. "They believe we ought to be looking at other alternative energy sources as the way to drive our economy. As a result, they are going to challenge things."

The chamber's Energy Action Team is planning a Dec. 5 conference to attract large industrial natural gas consumers to locate in Philadelphia. The aim is to organize a critical mass of customers to underwrite construction of a large pipeline to bring natural gas into Philadelphia. Current pipelines cannot meet new demand.

But new pipeline projects are triggering resistance. Opposition has slowed the Sunoco Logistics Partners' Mariner East project to transport natural gas liquids to Marcus Hook. And the proposed $1 billion [PennEast Pipeline to supply gas to Pennsylvania and New Jersey utilities inspired organized opposition before it submitted its first formal papers Oct. 9 with the Federal Energy Regulatory Commission.

Levine, the Stradley Ronon lawyer, urged business leaders to join forces with labor unions whose members would benefit from energy development.

"When was the last time there was a cordial relationship between labor and management in Philadelphia?" he asked. "This is our chance to take that type of dynamic and expand it and really grow our economy in a productive way."

215-854-2947 @maykuth