DOWNINGTOWN, Pa. (KYW Newsradio) — The parent company behind the problem-plagued Mariner East pipelines, which carry natural gas liquids across 17 Pennsylvania counties, is facing criminal charges outlined in a 69-page grand jury report.
"These are criminal charges for breaking Pennsylvania law," Attorney General Josh Shapiro said Tuesday.
The 48 charges stem from a grand jury investigation filed against Energy Transfer, the parent company of Sunoco, for what Shapiro calls illegal behavior during the construction of the Mariner East 2 natural gas pipeline.
"In total, more than 80,000 gallons of drilling fluid was lost in tributaries, on the surface, in and around the lake, during the construction of one segment of the pipeline between 2017 and 2020," Shapiro said against the backdrop of Marsh Creek Lake in Downingtown.
Marsh Creek State Park was the site of an enormous wastewater spill in August 2020, which fouled wetlands, a stream and part of the 535-acre lake.
"It’s important to note, while we’re here in Chester County, this had a broad impact across our commonwealth," Shapiro said. Indeed, the grand jury report lists 22 industrial waste release sites in 11 counties.
In addition to the drilling fluid leaks, Shapiro says Energy Transfer is also accused of using unapproved additives in drilling fluid, contaminating local water supplies, "and one felony charge for willfully and consistently failing to report these releases to the Department of Environmental Protection."
KYW Newsradio has contacted Energy Transfer and the DEP for comment and is awaiting a response.
In a joint statement, Chester County commissioners said holding Energy Transfer accountable is long overdue.
“Energy Transfer has shown itself to be a poor corporate citizen in Chester County throughout the years-long Mariner East 2 pipeline construction period,” they wrote in part. “Now it is the Pennsylvania legislature’s turn to take action and enact stronger laws that will protect our citizens and environment.”
Delaware County District Attorney Jack Stollsteimer echoed similar sentiments. He called the charges a “critical first step in seeking justice for the thousands of Delco residents whose quality of life has been negatively impacted by the pipeline.”
Beyond fines, Shapiro declined to speculate on what specific penalties the company could face if found guilty. He said further action would be up to DEP and the administration of Gov. Tom Wolf.
Shapiro says filing criminal charges allows them to continue investigating, but he notes because it’s an ongoing investigation he can’t speculate on whether any individuals could be charged beyond the corporation.
The multibillion-dollar pipeline project has been the focus of criminal probes. At one point, a statewide investigating grand jury subpoenaed the company for documents relating to the inadvertent release of drilling fluids and effects on water supplies.
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Energy Transfer acknowledged in a recent earnings report that the attorney general has been looking at "alleged criminal misconduct involving the construction and related activities of the Mariner East pipelines." The company said it was cooperating but that "it intends to vigorously defend itself."
The August 2020 spill at Marsh Creek State Park was among a series of episodes that has plagued Mariner East since construction began in 2017, making it one of the most penalized projects in state history.
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The company has paid more than $16.4 million in fines for polluting waterways and drinking water wells, including a $12.6 million fine in 2018 that was one of the largest ever imposed by the state Department of Environmental Protection. State regulators have periodically shut down construction.
But environmental activists and homeowners who assert their water has been fouled say that fines and periodic shutdown orders have not forced Sunoco to clean up its act. They have been demanding revocation of Mariner East's permits.
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The Mariner East pipeline system transports propane, ethane and butane from the enormous Marcellus Shale and Utica Shale gas fields in western Pennsylvania to a refinery processing center and export terminal in Marcus Hook, outside Philadelphia.