Judge has ‘deep concerns’ over delays in CUC projects

Carter

According to a minute order filed in federal court yesterday, Carter pointed out that the pipeline construction has, at most, only preliminarily started.

The pipeline is an eight-inch aboveground receiving conduit that delivers diesel from the Mobil oil facility to CUC Power Plants 1 and 2 in Lower Base. EPA had stated that until the pipeline is properly repaired or replaced, it poses a threat to U.S. waters.

The pipeline project was initiated in 2010 at a cost of $1.8 million. Due to numerous problems that contributed to the project’s delay, the cost ballooned to $6 million this year.

Carter said the July 17, 2014, report submitted by the U.S. Department of Justice, as counsel for the U.S. Environmental Protection Agency, indicates that no actionable deadlines can be set because progress is dependent on approval from the Commonwealth Public Utilities Commission.

The judge expressed his “deep concerns” about the delays after he received a joint stipulation between CUC and the U.S. government.

In that stipulation, U.S. Department of Justice Environmental Enforcement Section senior attorney Bradley R. O’Brien stated, among other things, that the U.S. government may soon seek an in-person hearing as it continues to lack confidence that CUC will meet the court ordered deadlines for the construction of the pipeline, fuel tank, and other projects.

O’Brien said it is their position that CUC did not begin the pipeline construction on or before July 14, 2014. He believes that the preliminary activities described by CUC in its report do not constitute commencement of the pipeline construction as directed by the court.

On the Tank 102 Project, O’Brien said the U.S. is concerned that CUC has not made sufficient progress.

The tank 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.

But in CUC’s report, CUC counsel James S. Sirok reported that both the oil pipeline and Tank 102 projects have been moving forward and that the utilities agency continues to take all steps necessary to accomplish these projects.

Carter denied CUC’s request to convert the in-person hearing into a video conference, which was originally set for July 28, 2014.

Carter said in order to ensure that all parties have a full and fair opportunity to present their positions on how the projects should proceed, in light of numerous delays, the court will continue the in-person status conference from July 28, 2014, to July 29, 2014, at 7:30am.

The judge ordered the U.S. government and CUC to each send only two representatives to the Ronald Reagan Federal Building and United States Courthouse in Santa Ana, California.

Carter said to the extent their input may be necessary, other staff should be available to connect via teleconference.

Carter said if it is deemed necessary or expedient, the court will hold the next in-person hearing on Saipan, in order to conserve resources and ensure that the people of the CNMI have an opportunity to be heard.

The federal court signed the stipulated orders for CUC in 2009, setting the requirements and deadlines for the utilities agency to meet. The orders represent an agreement between the CNMI and the U.S. Environmental Protection Agency on how CUC will come into compliance with the requirements of the Clean Air Act and the Safe Drinking Water Act.