Federal judge to hold another site visit at pipeline project

U.S. District Court for the NMI designated Judge David O. Carter will visit the Commonwealth Utilities Corp.’s controversial pipeline project site on Saipan on Jan. 24.

Carter said the Engineering Environmental Management Company (EEMC) will only accompany him during the visit.

Gilbane Federal is a California-based full service construction company that was appointed by the federal court to serve as EEMC and tasked to expeditiously complete some stalled CUC projects.

Carter also set a status conference on Jan. 25 at 9am regarding progress on the pipeline project and the Tank 102 project.

The judge said all parties and the EEMC shall be present in the courtroom. He requested the presence of a representative from Swift Harper Archaeological Resource Consulting.

The EEMC was ordered to file on Jan. 21 a status report addressing progress on the pipeline project.

CUC was ordered to file on Jan. 21 a status report addressing progress on the Tank 102 project.

Upon the conclusion of the status conference, Carter will hold a meeting with the parties on grant funding and related issues.

On Jan. 26, Carter, accompanied by all parties and the EEMC, will also conduct a site visit of the Tank 102 project.

Last month, Carter warned CUC that any type of CUC “boycott” or other failure to comply with court orders is unacceptable and will result in the immediate initiation of contempt proceedings.

Carter issued the warning in his order denying CUC’s motion for the court to hold a status conference in the $4.6 million CUC pipeline project.

In its request for a status conference, CUC estimated that under the management of Gilbane Federal more than $8.8 million will be spent for the construction of the new pipeline before it is finally completed.

Carter disclosed that he learned that CUC’s management’s “joint consensus position” is to “boycott” CUC’s pipeline project.

The judge said he learned about the “boycott” consensus after being presented with email correspondence between the parties in the case likely not intended for the court’s eyes.

Carter said any actions designed to thwart or obstruct Gilbane Federal from completing the pipeline are contrary to the court’s orders.

Carter said he is deeply concerned CUC intends to take such impermissible action.

Carter reminded CUC in the strongest terms that a “boycott” or any other tactics that delay and obstruct pipeline construction and the EEMC are what drive up—and already have driven up—the cost of the project.

The oil pipeline project is an 8-inch aboveground receiving pipeline that delivers diesel fuel from the Mobil Oil Marianas facility to CUC Power Plants 1 and 2 in Lower Base. The U.S. Environmental Protection Agency had stated that until the pipeline is properly repaired or replaced, it poses a threat to the adjacent ocean.

Tank 102 project involves a 500,000-gallon diesel fuel tank that will replace Tank 010, which has been found to be a source of pollution and is non-repairable.