Wednesday, May 18, 2016

Report: Pipeline Costs Would Be Huge

Costs could be $130 million a year after construction.
An important new study by Key-Long Economics (here) has turned the assumption that the Mountain-Valley Gas Pipeline would be a financial boon to the region has turned those assumptions on their ear. The eight counties in the region could bear a cost of $8 billion to $8.9 billion, according to the study.

The press release follows:

"That includes between $65.1 and $135.5 million in the short term as construction strips forest and other productive land bear, and as private property values take a hit due to the dangers and inconvenience of living near the MVP route.  It also includes $119.1 to $130.8 million each and every year after construction due to permanent changes in land cover, lost property tax revenues, and dampened economic growth in key sectors.

"A coalition of community groups and organizations from the eight counties (Greenbrier, Monroe and Summers in West Virginia, and Giles, Craig, Montgomery, Roanoke and Franklin in Virginia) commissioned the independent research to ensure that the Federal Energy Regulatory Commission (FERC) would have more comprehensive and robust estimates of economic effects that are typically discounted or ignored in pipeline approval processes.
  
"Central findings of the Key-Log Economics report are that:

     " One-time costs (lost property value and lost ecosystem service value during construction) would total in the range of $65.1 to $135.5 million.
     "Annual costs (costs that recur year after year) would range from $119.1 to $130.8 million.
     "Present discounted value of all future annual costs (discounted at 1.5%): $7.9 to $8.7 billion.
     " One-time costs plus the discounted value of all future annual costs: $8.0 to $8.9 billion.
     "Purported financial benefits to local governments are based on exaggerated MVP economic benefits claims.
     "The need for the Mountain Valley Pipeline is not supported by economic benefits for impacted communities."

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