8-KOther Events

WILLIAMS COMPANIES, INC. 8-K Report, Corporate Update (Aug 21, 2017)

Filed August 21, 2017For Securities:WMB

Summary

Williams Companies, Inc. (WMB) filed an 8-K on August 21, 2017, to report on a court decision regarding the Constitution Pipeline. The United States Court of Appeals for the Second Circuit denied Constitution Pipeline Company, LLC's petition to review the New York State Department of Environmental Conservation's decision to deny certification under Section 401 of the Clean Water Act. This decision is a setback for the Constitution Pipeline project, which is a joint venture involving Williams. Despite this legal development, Williams maintains its target for the Constitution Pipeline to be in-service as early as the first half of 2019. This timeline remains contingent on receiving a Notice to Proceed from the Federal Energy Regulatory Commission. Investors should monitor future regulatory and legal developments impacting the project's permitting status and in-service date.

Key Highlights

  • 1The Second Circuit Court of Appeals denied Constitution Pipeline's petition to review the NYDEC's denial of Section 401 Clean Water Act certification.
  • 2The court ruled it lacked jurisdiction over the challenge regarding the timeliness of the NYDEC's decision, suggesting the DC Circuit court may have jurisdiction.
  • 3Williams Companies continues to target an in-service date for the Constitution Pipeline project as early as the first half of 2019.
  • 4The project's in-service date is dependent on receiving a timely Notice to Proceed from the Federal Energy Regulatory Commission (FERC).
  • 5The filing clarifies the legal status of the Constitution Pipeline's certification challenges.
  • 6Williams Partners L.P. is also involved in this matter, with its General Partner signing the filing.

Frequently Asked Questions

The Second Circuit denied Constitution Pipeline's petition to overturn the New York State Department of Environmental Conservation's refusal to grant Clean Water Act Section 401 certification. While this is a negative development for the project, the court also noted jurisdictional issues concerning the timing of the NYDEC's decision, which could potentially be addressed in another court.

Williams Companies still targets an in-service date as early as the first half of 2019. However, this timeline is conditional on receiving a Notice to Proceed from FERC, and this legal challenge could impact the timing of that approval.

Section 401 of the Clean Water Act requires federal agencies to obtain certification from the relevant state or tribal agency that a federally licensed or permitted activity will comply with applicable water quality standards before issuing the license or permit. In this case, the NYDEC's denial of certification is a key hurdle for the Constitution Pipeline.

The Federal Energy Regulatory Commission (FERC) is responsible for authorizing interstate natural gas pipelines. Williams needs a Notice to Proceed from FERC to move forward with the Constitution Pipeline project, and this legal decision could affect FERC's decision-making process or timeline.