Background
The Southgate Project is a proposed extension of the Mountain Valley Pipeline. Petitioners sought a stay of a water quality certification issued by the North Carolina Department of Environmental Quality for the project. The certification was issued after a hearing officer recommended approval, noting that the project would comply with water quality standards. Petitioners argued the agency failed to account for the pipeline developer’s history of violations and failed to include specific conditions recommended by the hearing officer.
The court’s reasoning
The court applied the traditional four-factor test for stays pending review. While the final three factors tilted modestly in favor of the petitioners, the court concluded that the petitioners did not carry their burden to demonstrate a strong showing of likelihood of success on the merits. Regarding the compliance prediction, the court found the agency’s decision rational because the prior violations occurred in different states under different standards and involved a larger project. Regarding the conditions, the court found that the certification incorporated the project plans by reference, satisfying the requirement for enforceable conditions.
Federal courts do not grant the extraordinary remedy of a stay pending review absent a strong showing that the movant is likely to succeed on the merits.
Sierra Club; Appalachian Voices; 7 Directions of Service v. North Carolina Department of Environmental Quality; D. Reid Wilson, No. 26-1044 (4th Cir. June 11, 2026)
What it means going forward
The water quality certification for the Southgate Project remains in effect, allowing the pipeline developer to proceed with construction activities in North Carolina pending the full merits review of the petition.