Maryland Facing its Very Own 'Keystone Pipeline' Decisions: Cove Point & Western Maryland Fracking The Keystone XL natural gas pipeline from Canada remains stuck in regulatory limbo.  The Obama Administration's failure to approve it is projected to cost 20,000 direct jobs and another 118,000 indirect jobs.

 Two major energy projects are also stuck in a similar limbo in Maryland: shale-gas production in Western Maryland and the Cove Point natural gas export facility.  Maryland's next governor will determine how quickly these two job-creating economic development projects can move forward.

 Continued delay in blocking shale-gas drilling permits in the Marcellus Shale formations found in Washington, Allegany and Garrett counties inflicts significant job losses and economic harm on the state.  According to a 2011 Penn State study, that state's Marcellus Shale producers generated an estimated $12.8 billion in economic activity in 2011 and were on track for $14.5 billion in 2012. The extra income translates to almost $2.6 billion in additional state and local tax revenue in those years.

Employment in that sector expanded from 60,000 in 2009 to 156,000 jobs by 2011.  Yet Maryland remains on the sidelines even as structural deficits plague the state.

Beginning in 2011, Gov. Martin O'Malley blocked Marcellus Shale natural gas production from hydraulic fracturing, commonly referred to as fracking, ordering at least a three-year moratorium while a state advisory committee "studied" the issue.  Maryland's study comes even though 30 states and the U.S. Environmental Protection Agency (EPA) have all either deemed fracking, on balance, to be safe or have not identified significant environmental threats caused by it. The O'Malley position is, in effect, that the EPA cannot be trusted on the issue, so Maryland needs its own review.

In 2010 Congress directed the EPA to report on fracking. Originally, the research was expected to be completed in 2014. However, last year EPA officials delayed the study's completion until 2016.

One would expect, or at least hope, that after so many years of study that if the EPA had any solid scientific evidence to question fracking, it would have reported it already.  Unfortunately, rather than risk offending environmentalists, the EPA delayed indefinitely reaching a conclusion.

Continued delay shields them and opponents from their having to substantiate their objections with hard data.

Maryland's other "Keystone" decision involves a proposal by Dominion Resources for a $3.8 billion investment to add natural gas liquefaction and export capacity to its Cove Point facility.  

The existence of a Liquefied Natural Gas (LNG) facility is old news to Maryland.  Cove Point was certified in 1972 for the purpose of importing Algerian LNG.  The current proposal simply allows a change in direction, from gas import to export, reflecting North American gas production growth. It is currently under review by the Maryland Public Service Commission.

Cove Point's economic benefits to the state would be dramatic. Building it would be one of the largest capital projects ever in Maryland, producing an estimated 3,000 construction jobs during the three-year period. Calvert County is to receive an additional $45 million a year on average in additional tax revenues in just the first five years after the project is in operation. The entire export project can be built entirely within the existing footprint of the current facility.  By itself, Cove Point could facilitate a $7 billion reduction in the nation's trade deficit.

After federal Energy Department approval, The Washington Post, hardly an opponent of environmentalism, editorialized in support that:  "The bottom line, according to a recent study commissioned by the Energy Department, is that allowing natural gas exports would result in net benefits to the country in every scenario analysts considered."

Yet, Cove Point has attracted opposition from the same quarters in the state, including Takoma Park's Heather Mizeur.  Both of her Democratic opponents for governor will not take a stand on the issue. Lt. Gov. Anthony Brown, for his part, said, he "would not oppose the conversion of this facility if the environmental concerns that have been raised can be mitigated appropriately."

While Maryland "considers" whether to approve Cove Point, the state's project is just one of a number of U.S. potential natural gas export facilities. In fact, five are under consideration just in Louisiana and Texas.  While the existence of the current import LNG facility makes Cove Point especially attractive, should Maryland drag its feet and other projects move more quickly, it could lose out to other states.

As Maryland makes its two "Keystone" choices, elected officials should make choices based on real science and energy economics instead of bowing to ideological adversaries opposed to any and all investment in fossil fuels. Thousands of high paying jobs and Maryland's already anti-business reputation are at stake.

Mark Uncapher is an attorney living in Bethesda Maryland. He can be reached at Mark@uncapher.net or followed on twitter @Mark_Uncapher