Cost to people, communities and environment could run into billions along entire route, based on four-county study
MONTEREY, Va. – Five groups concerned about the short-term and permanent impacts upon their communities caused by the proposed construction of the Atlantic Coast Pipeline (ACP) have released an independent study revealing that just four counties in Virginia would likely experience billions of dollars of loss and damage should the ACP be built. The report was commissioned by the ACP Highlanders for Responsible Development, Augusta County Alliance, Friends of Nelson, Friends of Buckingham, and Yogaville Environmental Solutions. The exhaustive in-depth study was conducted by Key-Log Economics, a research economics firm based in Charlottesville, Va.
A news release from Allegheny-Blue Ridge Alliance about the study stated, “Dominion says that it would cost approximately $5 billion to build its 594-mile high pressure natural gas transmission line through West Virginia, Virginia, and North Carolina. That number pales in comparison to the costs and economic impacts of the pipeline that will be incurred across just a four-county area of western and central Virginia. …”
The statement continued, “The eye-opening analysis found that up to $141 million in lost property value and services, such as water and air quality, would occur across the four-county study area just during construction. Further, the pipeline will depress area economies, contribute to job loss, reduce quality of life, and lower personal incomes in perpetuity to the tune of up to $109 million annually.”
Those estimates are conservative, notes Spencer Phillips, founder of Key-Log Economics. “Putting the stream of costs into present value terms and adding the one-time costs, the total estimated cost of the ACP in Highland, Augusta, Nelson, and Buckingham Counties is between $6.9 and $7.9 billion,” he said.
Lewis Freeman, Chair of the Allegheny Blue Ridge Alliance and President of Highlanders for Responsible Development, added, “In Highland County annual costs to the local economy are estimated to be $7 million or higher, much larger than the projected benefits that would come to the county, including tax revenues paid by the pipeline. Adverse impacts on property values, which have already been negatively affected by the prospect of the project, will be significant. Also negatively impacted will be travel and tourism, which account for one-fifth of the county’s employment.”
For Augusta County, through which Dominion proposes to run more than 50 miles of the pipeline route, the negative impacts to people’s lives and property is enormous, according to the report. Total property value lost would be approximately $44.5 million, resulting in an annual reduction to the county coffers in excess of $209,061. “Those figures, while conservative and not inclusive of the new route through the Deerfield Valley, are based on loss of subdivision and development potential, loss of property value and property marketability because of proximity to the pipeline, damage to water resources, and a reduction in agricultural production to name just some of the factors that went into the calculation,” noted Nancy Sorrells, Chair of the Augusta County Alliance.
The Atlantic Coast Pipeline would cost Nelson County up to $43 million dollars per year, with additional one-time costs of up to $41 million according to the report. Individuals and businesses would lose up to $25 million in property value outright, while annual losses would include $18 million in recreation tourism dollars and $1.2 million in personal income. The annual loss to the county government would be $526,000 in tax revenue and $144,000 in property tax revenue, far exceeding the local annual tax payment promised by ACP, LLC.
The communities in Buckingham County, the eastern-most county in the study, are faced with the double whammy of the massive pipeline and a gigantic compressor station that will be in operation 24/7. According to the study, the ACP would cost Buckingham as much as $20.8 million in one-time costs and annual losses of as much as $7.1 million.
“I would encourage every Buckingham resident to become familiar with Key-Log’s findings,” noted Chad Oba, Chair of Friends of Buckingham. “This report uncovers previously undisclosed costs of Dominion’s mega-industrial project for our county. No one wants to live near a toxin-belching compressor station nor a 42-inch pipeline, both of which bring many health hazards, and threaten Virginians’ property rights.” As to the purported tax revenue promised by Dominion to the county, she added, “No amount of tax revenue can buy off citizens who are sincere about protecting their community and their beautiful surroundings.”
The pipeline impact study was spearheaded by local citizens groups and property owners who were frustrated at the inaccurate information being distributed by Dominion in regard to the purported benefits of the ACP. Not only were those “benefits,” such as large numbers of jobs during and after pipeline construction and promised tax payments to the counties, generally understood to be greatly inflated, they were also not balanced with information on what the negative effects of the pipeline could be in these central and western Virginia communities.
“It has fallen on us to analyze the costs to our communities should this pipeline come to pass,” said Ernie Reed of Friends of Nelson, the lead group that commissioned the study. “This report demonstrates not only how economically dangerous the pipeline is but how our four counties would bear a huge share of the costs of this project at the hands of Dominion. Further, while the use of the pipeline is measured in years, the costs to the region are forever.”
The study and recent alternate route proposed by Dominion
The statement added, “The recently announced re-routing of the ACP through the southern portion of Highland County, into Bath County, and back through Augusta County was announced after the Key-Log study was completed. While the re-routing would reduce to some extent the economic impact on Highland, the negative economic impact resulting from the re-routing into northern Bath County would increase the total impact on the immediate region due to the higher property values of affected property and businesses in Bath. Further, the additional dozen or so miles added to the Augusta County route will only serve to increase the final economic impact to that community.” It noted, “The uniqueness of the counties in the study mean that the specific impacts within each area vary. However, the underlying result, as pointed out in the study, is that the four counties will be deeply impacted in a very negative way.”
Regarding the proposed alternative route, The Recorder, a weekly newspaper based in Highland and Bath counties, noted that Dominion had originally rejected the alternative route. In this weeks’ edition, published today, the newspaper reported that Dominion rejected the route it is now proposing because, “Crossing this terrain with a 42-inch-diameter pipeline while attempting to minimize or avoid traversing steep side slopes would result in multiple, steeply graded, up-and-down approaches to ridge tops that would in many instances require heavy equipment winching on both sides of the ridge from single or multiple staging areas on the ridge top … Because of the narrowness and remoteness of the ridge tops, most of these areas would require the construction of a graded winching platform on top of the ridge, and depending on the slope, could require construction of an access road along the ridge to access the winch platform for delivery of construction equipment and pipe sections. Access to the remote areas crossed by the three southern alternative routes would be difficult due to the lack of existing nearby roads … which could require the construction of new roads into these areas. Slope restoration and stabilization would also be difficult to achieve in many of the steep areas crossed.”
This is the first independent study done on the ACP. However, when one considers that this study covers only a small portion of the proposed route, it seems rather clear that Dominion is proposing a project that will accomplish only two things – provide additional dividends to its shareholders and destroy all that is dear to the people of Appalachia.
© Michael M. Barrick, 2016
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