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N.Y. Deals Critical Blow to $1 Billion Shale Gas Pipeline

  • Williams plans to quickly resubmit application to regulator
  • Environmental agency says project would endanger water quality
Cyclists pass sections of pipeline at the halted construction site for the South Stream gas project in Sajkas, Serbia, on Sunday, June 15, 2014. Russia's Foreign Minister Sergei Lavrov arrives in Serbia today for a 2-day visit.
Photographer: Oliver Bunic/Bloomberg
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New York denied a key permit for a $1 billion Williams Cos. shale gas pipeline, dealing a critical blow to a project that would shuttle fuel to customers in New York City and Long Island.

The New York State Department of Environmental Conservation said Wednesday that the pipeline would result in water quality violations, including those caused by kicking up hazardous metals and disturbing seabed habitats. The denial was “without prejudice,” meaning the company can reapply. Williams said in a separate statement that the DEC had raised “a minor technical issue” with the application, which it will resubmit quickly.