Articles Open space and environment
The NESE Pipeline and Compressor Station 206: What Franklin Has Done and What the Courts Decided
Transco's Northeast Supply Enhancement project needs a new gas compressor station in Franklin. The Council has opposed it since 2016. In 2026 a federal court let Transco condemn an access road across a farm whose development rights the township owns; the Council settled for $500,000 plus $100,000. The same day, the Third Circuit vacated NJDEP's water quality certificate for the project.
What it is
The Northeast Supply Enhancement project (NESE) is an expansion of the Transco interstate gas pipeline system, owned by Transcontinental Gas Pipe Line Company, LLC (Transco), a Williams company. In New Jersey it has three parts, as the Third Circuit describes them: “a new compressor station in Franklin Township,” an onshore pipeline segment called the Madison Loop, and the Raritan Bay Loop, a pipeline segment needing about six miles of offshore construction.
FERC’s 2025 order describes the Franklin facility, Compressor Station 206, as “a new 32,000 hp compressor station consisting of two 16,000 hp natural gas-fired, turbine-driven compressor units in Somerset County, New Jersey.” The township’s task-force page calls the site “Trap Rock Quarry.” Records give its location two ways:
| Location of the station site | Source |
|---|---|
| ”Transco-owned property identified as Block 5.02, Lot 25” | Settlement agreement, Res. #26-390 (September 8, 2026) |
| Block 5.02, Lots 20 and 23 | NJDEP’s NESE page |
Interstate gas pipelines are regulated by the federal government. The settlement agreement states that under the Natural Gas Act “FERC has exclusive regulatory jurisdiction over Transco with regard to the siting and construction of pipeline facilities,” and that “any state law or local ordinance purporting to regulate interstate natural gas pipeline facilities is preempted.” New Jersey still issues certain permits, including a Clean Water Act water quality certification and an air permit.
Franklin’s position
The Council has passed resolutions against the station and the project for a decade:
| Date | Action | Vote |
|---|---|---|
| September 2016 | Council resolution opposing a compressor station “on the Proposed Route 27 Location owned by Trap Rock” (date discrepancy below) | Unanimous, as recited in Res. #25-266 |
| February 14, 2017 | Council creates an ad hoc committee (task force) opposing the station; Board of Health resolution the same day | Board of Health unanimous |
| March 6 and 15, 2017 | Environmental Commission resolution; Council endorsement | Unanimous |
| May 9, 2023 | Res. #23-186 urges FERC to deny an extension of all NESE permits | 8-0. Ayes: Anbarasan, Francois, Kramer, Onyejiaka, Potosnak, Pruitt, Vassanella, Wright. Absent: Uddin |
| June 12, 2025 | Res. #25-266 opposes Compressor Station 206 “on all proposed locations in and around Franklin Township” and NESE “in its totality,” and urges FERC to deny reissuing the certificate | 8-0. Mover Potosnak, seconder Uddin. Ayes: Anbarasan, Francois, Kharazi, Kramer, Onyejiaka, Potosnak, Uddin, Vassanella. Absent: Wright |
The township’s resolutions page labels the 2016 Council resolution “9-13-16”; Res. #25-266 recites that it passed “on September 20, 2016.” The 2016 document itself was not checked.
The federal and state approvals
- 2019–2024. FERC first certified NESE on May 3, 2019. NJDEP denied Transco’s applications on June 5, 2019 (without prejudice) and again in May 2020. FERC vacated the certificate on June 10, 2024 after Transco let it expire, according to the district court.
- May 29, 2025. Transco petitioned FERC for “expedited reissuance” of the certificate.
- August 28, 2025. FERC reissued it (Docket Nos. CP17-101-007 and CP20-49-001), on condition that the project be completed “within three years of the date of” the order.
- November 7, 2025. NJDEP’s Division of Land Resource Protection approved the project’s freshwater and coastal wetlands, flood hazard area and waterfront development permits and its Water Quality Certificate, according to NJDEP’s NESE page.
- November 13, 2025. NJDEP held a virtual public hearing on the Compressor Station 206 air permit. The Council minutes give two start times: “4:30 p.m. to 9:30 p.m.” (Linda Powell, October 14, 2025) and “between 5:30 p.m. and 9:30 p.m.” (Mr. Potosnak, October 28, 2025).
- January 12, 2026. NJDEP’s Division of Air Quality approved the Compressor Station 206 air pollution control preconstruction permit and certificate to operate, according to NJDEP’s NESE page.
The condemnation of the farm access road
The land. To reach the station site, Transco needs a permanent access road and temporary workspace across the Higgins Property, Block 5.02, Lot 26.01, owned by Clifford G. Higgins, Jr. and Julie Higgins. Under a deed of easement dated October 2, 2017, the Higginses conveyed the farm’s non-agricultural development rights to the township. The settlement agreement states that because the township owns those rights, “the only way for Transco to obtain the required easement rights within the Deed of Easement area on the Higgins Property was through condemnation.” The case is captioned Transcontinental Gas Pipe Line Co., LLC v. 1.451 Acres of Permanent Easement and 0.460 Acres of Temporary Easement in the Township of Franklin.
The offers and the court. The district court opinion (Judge Zahid N. Quraishi) records these steps:
| Date | Step |
|---|---|
| August 29, 2025 | Transco offers the township $37,700 for the access road and temporary workspace easements |
| September 23, 2025 | Revised offer of $39,900, after a revised appraisal that expanded the road easement for stormwater controls and reduced the workspace |
| January 2, 2026 | Transco files the condemnation action, No. 3:26-cv-00018 |
| February 9, 2026 | The township files its opposition |
| February 17, 2026 | Oral argument |
| February 20, 2026 | The court grants condemnation and immediate possession |
The township argued that the Natural Gas Act required Transco to follow New Jersey’s rule of bona fide negotiation before condemning; the court called the argument “without merit.” On the deposit, the court wrote that “beyond asserting that the proffered $39,900 is inadequate, the Township has articulated no specific value it believes would be acceptable,” and ordered Transco to deposit $60,000 as security. It added: “No final determination has been made regarding the amount of just compensation to which the Township is entitled.”
Closed sessions. The Council discussed the matter in executive session on January 13, 2026 (Res. #26-036, 9-0), March 24, 2026 (“Williams Transco Litigation Update,” Res. #26-151, 8-0, Wright absent) and August 11, 2026 (“Warehouse and Williams Transco Litigation,” Res. #26-353, 8-0, Vassanella absent).
The settlement. On September 8, 2026 the Council adopted Res. #26-390, voted separately: 9-0, mover Anbarasan, seconder Francois. Ayes: Anbarasan, Francois, Kharazi, Kramer, Onyejiaka, Uddin, Singh, Vassanella, Wright. The attached agreement provides that:
- Transco pays $500,000 “for the permanent access road easement and temporary easements within the Deed of Easement on the Higgins Property”;
- Transco funds, “through its foundation, a Community Benefit to be chosen by the Township in the amount of $100,000”;
- payment is due within 30 days of signing, and a consent judgment is to be filed once it is received;
- the Mayor is authorized to sign.
The resolution does not say how the township will use the $500,000 or which program the $100,000 will fund. Whether the agreement has been signed and paid is not in the record found.
The figures side by side. The records give these amounts:
| Figure | Amount | Source |
|---|---|---|
| Transco’s first offer | $37,700 (August 29, 2025) | District court opinion |
| Transco’s revised offer | $39,900 (September 23, 2025) | District court opinion |
| Transco’s “initial settlement offer” | $30,000 | Settlement agreement, section 2 |
| Security the court ordered deposited | $60,000 | District court opinion |
| Settlement | $500,000 for the easements, plus $100,000 through Transco’s foundation | Res. #26-390 |
TAPinto reported on September 9, 2026 that Township Attorney Louis N. Rainone told the Council: “This value is just short of 20 times what they offered.” The minutes do not record the remark. TAPinto also reported that the attorney said Transco owns the easement as a result of the federal action and that “the only issue here is … how much money they paid,” and that Mayor Phil Kramer proposed a 30-day deadline for signing.
The Third Circuit ruling
Two petitions challenged NJDEP’s Water Quality Certification: Natural Resources Defense Council v. NJDEP (No. 26-1252) and a petition by NY/NJ Baykeeper, Princeton Manor Homeowners Association, Central Jersey Safe Energy Coalition, Food & Water Watch, New Jersey League of Conservation Voters Education Fund and Sierra Club (No. 26-1253). Transco intervened. Franklin was not a party. The court (Judges Krause, Freeman and Roth) heard argument on July 8, 2026 and ruled on September 8, 2026, in a precedential opinion: “we will grant the petitions, vacate the Water Quality Certification, and remand for further proceedings.”
The court’s reasons concern the Raritan Bay dredging. Among them, the certification “requires monitoring only for turbidity,” and NJDEP “was required to connect its chosen method to the pollutants and criteria that drove its water quality concerns. Its failure to do so was arbitrary and capricious.” On remand, the court wrote, “NJDEP remains free to supplement its explanation, require additional submissions or analyses, issue a new or revised certification, or reach a different result.”
What officials and residents have said
- January 13, 2026. As the minutes record it, Carol Kuhn, Linda Powell and Robert Scarapene “raised concerns about NJDEP approvals for air and water permits related to the NESE Project,” citing “health risks, environmental harms, dredging toxic sediments in Raritan Bay, and constructing a compressor station in Franklin Township,” and asked for “township assistance in identifying local ordinances/zoning that could affect or slow construction.” Township Attorney Rainone “stated the township continues to explore legal avenues. He emphasized constraints due to preemption and limited municipal authority.”
- September 8, 2026. Linda Powell “Opposed the NESE pipeline and compressor station, citing the Third Circuit Court’s vacation of the water quality certification,” and “Supported Resolution 26-390 regarding settlement funds.” Mr. Singh “Congratulated the task force and residents for their 12-year effort to oppose the NESE compressor station,” calling the vacatur “a significant victory.” Mayor Kramer reported attending the swearing-in of former Councilman Ed Potosnak as DEP Commissioner and “his discussion with the Governor regarding the NESE pipeline.” Mr. Potosnak moved Res. #23-186 and Res. #25-266 while on the Council.
- October 13, 2026. Linda Powell provided sample letters on a data center and the NESE project and “Urged Council to write to Governor Sherill regarding the NJDEP certificate.” Ms. Uddin “Thanked residents for information on the NESE project.”
The September 8 agenda also listed an executive session on “Litigation (Williams Transco)” (Res. #26-391); the minutes do not record it.
Not part of NESE. Ordinance 4495-26 (February 2026), an easement at Castleton Park, is for a Sunoco Pipeline valve, not for Transco.
What is not known
- Whether the settlement has been signed and paid, and whether the consent judgment has been filed.
- What the $100,000 Community Benefit Program will fund, and how the $500,000 will be used.
- What NJDEP will do on remand, and when; whether any party has sought rehearing.
- Whether the January 12, 2026 air permit has been appealed.
- What “pending litigation with Township as to the construction of CS 206,” mentioned in the settlement recitals, remains.
What residents can do
- Speak at the Council. Public Discussion is open at every regular meeting; the next are November 10, November 24 and December 8, 2026, 7:00 p.m., Municipal Complex, 475 DeMott Lane.
- Follow NJDEP. Notices and comment periods on the remand will appear on NJDEP’s NESE page.
- Read the record. The settlement agreement is printed in the September 8, 2026 minutes; the court rulings are linked above; FERC’s docket is CP17-101 in eLibrary.
- Contact the township. The task force page lists the township’s resolutions.