ALBANY, N.Y. (AP) - New York's authority to block construction of a major natural gas pipeline by denying a key permit has been upheld by a federal court.
The U.S. Court of Appeals on Friday rejected the Constitution Pipeline company's argument that the state Department of Environmental Conservation was "arbitrary and capricious" in denying a water quality permit last year.
The Federal Energy Regulatory Commission approved the 124-mile pipeline from Pennsylvania's shale gas fields to eastern New York in 2014, conditioned on state permits. But New York regulators said the project failed to meet standards to protect streams, wetlands and other water resources.
The project had all its permits in Pennsylvania and had already cleared trees there in preparation for construction.
The pipeline company, Tulsa, Oklahoma-based Williams Cos., says it remains committed to the project.