December 6, 2021

By Jeanine Molloff

Part One – The looming pipeline shutdown heading into winter...

   On November 4, 2021, Spire sent an email to all customers threatening a possible gas pipeline shutdown which would result in massive outages for Missouri, and especially the population center of St. Louis. Spire is the fifth largest supplier of natural gas in the U.S. and the sole provider in Missouri. They enjoy a partially regulated monopoly, so we are captive customers. I began researching the subject and found that Spire conveniently omitted a relevant fact in the case, namely that Spire manufactured this disaster in the making. This is part one of my story. It includes an overview of this looming gas shutdown that could freeze out some 450,000 homes, how this situation was manufactured by Spire, and finally, the retaliatory police complaint made by Spire against this journalist.

The beginning....

   In 2016, Spire received FERC approval to construct and run a 65-mile stretch of gas line known as the STL Pipeline. Spire claimed they met all rigorous requirements cited by the Federal Emergency Regulatory Commission aka FERC.  In 2020, the Environmental Defense Fund (EDF), disagreed with Spire’s characterization of the STL Pipeline, questioned the approval process and filed suit in federal court. The EDF claimed that Spire failed to provide necessary documentation proving they met all requirements demanded by the federal Natural Gas Act. Essentially, the EDF asserted that FERC wrote Spire a blank check and disregarded the law.

 As it turns out, after reviewing the court documents, the D.C. Court of Appeals agreed with the EDF and revoked the STL Pipeline’s certificate this past June. Spire appealed to the Supreme Court who refused to hear the case. Now, FERC must do its job and demand Spire supply additional verifiable documentation proving their claims that the STL Pipeline is necessary, in addition to demanding a contingency plan that fulfills Natural Gas Act requirements, while ensuring continued heating gas supply to Missouri, and especially St. Louis. (https://www.edf.org/media/dc-circuit-court-strikes-down-unlawful-ferc-approval-natural-gas-pipeline)  (2021-06-21_EDFvFERC_SpirePipelineDecision.pdf) (https://www.cadc.uscourts.gov/internet/opinions.nsf/C24C2D94FF6D66F7852586FC00512C8C/$file/20-1016-1903252.pdf)   Spire has not met either condition.  They sent a threatening email to customers instead.

The first charge of ‘self-dealing’....

   Spire lost its operation certificate for the STL Pipeline amid charges of illegitimate business practices. The D.C. Circuit Court of Appeals decided that Spire was specifically guilty of self-dealing, when they created a ‘dummy’ corporation, (Spire Affiliates), in order to falsify ‘market need’ as required by the Natural Gas Act. Self-dealing refers to a corporation negotiating with itself but doing so under the rubric of a fake company—owned by that same corporation.  It’s the legal equivalent of one party serving as the judge, jury and executioner. The court also accused the FERC Commission of professional misconduct when reviewing Spire’s claims.

To quote from the court documents:

“On the merits, we agree with EDF that the Commission’s refusal to seriously engage with nonfrivolous arguments challenging the probative weight of the affiliated precedent agreement under the circumstances of this case did not evince reasoned and principled decision-making. In addition, we find that the Commission ignored record evidence of self-dealing and failed to seriously and thoroughly conduct the interest-balancing required by its own Certificate Policy Statement. Therefore, FERC’s Certificate Order and Order on Rehearing do not survive scrutiny under the applicable arbitrary and capricious standard of review.” See Minisink Residents for Env’t Pres. & Safety v. FERC (“Minisink”), 762 F.3d 97, 105-06 (D.C. Cir. 2014) 20-1016-1903252.pdf (uscourts.gov)

The court called out the fake company, Spire Affiliates and their claims.

“The Spire Affiliates’ Application alleges that, if the Spire STL Pipeline were required to shut down as a result of the D.C. Circuit’s mandate, Spire Missouri, a local distribution company (“LDC”) serving the St. Louis area, would be required “to curtail natural gas service during the upcoming winter heating season.”

Furthermore, the court established that the self-dealing was verified by affidavit from Spire Missouri President, Scott Carter.

“Spire STL and Spire Missouri (collectively, the “Spire Affiliates”) are affiliates under common ownership and the Application, while filed by Spire STL, contains substantial operational details regarding Spire Missouri and includes an affidavit by the President of Spire Missouri, Scott Carter (“Carter Affidavit”).” 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf

The second charge, how Spire cut St. Louis off from additional pipelines....by ‘retiring assets’...

   In addition to the court’s finding of self-dealing on Spire’s part, there was another central issue. According to the EDF filing, Spire isolated the St. Louis region by cutting off access to five other pipelines which previously serviced the area. These now defunct pipelines were referred to as ‘retired assets’ by Spire.  Four of the lines were shut down, while the one remaining line left in service was rerouted to feed directly into the STL Pipeline as the only path to reach the St. Louis area. Other parts of Missouri’s distribution system were also isolated from alternative sources of gas such as methane, which is used to supplement supply during peak times to keep the system running. 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf 20-1016-1903252.pdf (uscourts.gov)

   So, Spire was telling a partial truth. Shutting down the STL Pipeline will cut off gas supply to St. Louis, but Spire also omitted the central fact that the planned isolation of St. Louis was manufactured—by Spire.

EDF stated in the court documents.

“To the extent an emergency exists, it is of the Spire Affiliates’ own making. When the Spire STL Pipeline came online, Spire Missouri’s distribution system became isolated in part from other sources of gas supply and Spire Missouri retired assets that supported reliable service during peak usage.” 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf

EDF explained that energy utilities like Spire are required to keep contingency plans which maintain existing pipelines and other necessary equipment as a ‘plan B’, in case of malfunction. To quote from the legal brief.

"This is contrary to reasonable utility practice to preserve direct interconnections with existing pipelines in order to ensure continued access to more supply options.” 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf

EDF cited the FERC Commission’s own Certificate Policy Statement which clearly states the need for such contingency plans in order to protect the public. EDF also pointed out that Spire’s actions have made St. Louis dependent on a single pipeline, with again, no contingency plans, in direct opposition to the law’s requirements. If the STL Pipeline were shut down by court order, or malfunctioned, the St. Louis region would be cut off from natural gas access.

Here is the quote.

“In fact, the Commission’s Certificate Policy Statement explicitly mentions new interconnections as a potential public benefit.4 The Spire Affiliates claimed that the Spire STL Pipeline was providing more diverse supply options to the region, but in fact its actions have rendered the St. Louis region DEPENDENT, in the immediate term, predominantly on a single pipeline that has been deemed unlawful in court.” 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf

EDF also protested the idea that Spire has been allowed to profit from not only endangering the St. Louis region but profiteering from this illegitimate scheme.

 “As EDF explains herein, the Spire Affiliates cannot be permitted to reap financial benefits as a result of any temporary emergency authorization.” 2021-08-05_CP17-40-007_EDF_Motion_and_Protest.pdf

EDF supported these accusations in more detail within another court filing regarding those ‘retired assets.’

“As of 2016, five natural gas pipelines served the St. Louis region. At that time, a majority of Spire Missouri’s natural gas supply was provided via pipelines owned and operated by Enable Mississippi River Transmission, LLC (“Enable MRT”). It is undisputed that, prior to Spire STL’s application in this case, Spire Missouri had declined to subscribe to proposals for new natural gas pipelines in the region, stating that the proposed new pipelines did not make operational and economic sense for its customers"20-1016-1903252.pdf (uscourts.gov)

Even the embattled Missouri Public Service Commission took issue with the Spire STL application.

“Several parties either protested or conditionally protested Spire STL’s application, including the Missouri Public Service Commission (the “Missouri Commission”) – a state body that regulates natural gas shippers – and Enable MRT. In its conditional protest, the Missouri Commission expressed skepticism as to the “need for the project,” J.A. 143, while also urging FERC to undertake a particularly thorough review of the impact the project might have on customers of existing pipelines given that “the St. Louis market is static and there is no demonstrated need . . . for . . . new capacity,” see J.A. 152.” 20-1016-1903252.pdf (uscourts.gov)

The D.C. Circuit Court....and the SCOTUS...denied Spire...

The D.C. Circuit Court denied Spire’s petition for rehearing. Spire then made an appeal to the U.S. Supreme Court in October, but the SCOTUS refused to hear the case. (https://www.edf.org/media/spire-takes-pipeline-order-highest-court-despite-ferc-process-ensure-reliable-winter-service)( 'An unprecedented mess': DC Circuit rejects FERC approval of existing Spire gas pipeline | Utility Dive) Spire needed an extension of their certificate.

The 90-day FERC extension—and that vile email...

   The FERC Commission granted Spire a 90-day temporary emergency certificate dated 09/14/21. The extension was granted presumably so gas service could continue for St. Louis until December 13th, while Spire reworked their plans to include the legally required contingency plan, that would incorporate other methods of gas delivery. Spire failed to prepare any such contingency plan to date. Instead, on November 4, 2021, Spire Missouri President, Scott Carter sent an email filled with public relations platitudes, in addition to the threat of heating gas shutoffs in an area known for periodic arctic temperatures. The email explained that the STL Pipeline was built to’ supply the area with natural gas, but …"while the STL Pipeline continues to operate today, it is now in jeopardy.” Carter’s email blamed the situation on a “New York-based environmentalist group.” (Spire email to customers 11/04/21)

The email continued to state that the STL Pipeline received approval from “the government agency that regulates interstate pipelines.” This approval for construction and operation was obtained, “after a two-year, rigorous regulatory review.” (Spire email to customers 11/04/21) Notice how Spire omitted the name of that government agency, making it more difficult to verify their claims.

   The email also stated that Spire’s CEO Suzanne Sitherwood and their Chief Legal Counsel traveled to D.C. to lobby on our behalf and reassure the community that they’ve done everything possible they could to ensure continued gas supply during the winter—adding that...”there are no guarantees that it (the STL Pipeline) will operate beyond December 13.” For an additional flourish, the ‘no guarantees’ part of the statement was set in boldface print. (Spire email to customers 11/04/21)

   Under a section titled: “Where things stand today”, the email issued an additional ominous threat, that though the STL Pipeline is functioning now per temporary extension through December 13, this extension will “only take us halfway through Missouri’s coldest months.” (Spire email to customers 11/04/21)

EDF called Spire out for fear-based communication....

   EDF responded to this thinly disguised, libelous email by sending a letter to the FERC Commission, reiterating the same claims they made in multiple court filings. In that letter dated 11/10/21, to the FERC Commission, EDF Lead Counsel Natalie Karas made clear that they never advocated cutting off natural gas service to St. Louis, as Spire Missouri President Scott Carter implied. To quote from the letter: 

“As EDF has made abundantly clear, a temporary emergency certificate to permit Spire STL pipeline’s operation during the 2021-2022 winter season is appropriate TO ENSURE THAT THERE IS NO DISRUPTION TO NATURAL GAS SERVICE IN ST. LOUIS. Any such certificate should contain the conditions EDF has proposed in this proceeding to protect Spire Missouri’s captive ratepayers, as well as communities and landowners along the pipeline route, without curtailing service to St. Louis residents and businesses.4 EDF’s proposed conditions are necessary to ensure ratepayers are protected from self-dealing and will not limit gas service to ratepayers”.5 EDF-Letter-to-FERC.pdf (EDF Calls on FERC to Put an End to Spire’s Fear-Based Communication | Environmental Defense Fund)

   In a legitimate corporate world, Spire would appear to have only two options, either win another FERC extension by proving actual ‘market need,’ or reopen the ‘retired assets’ (aka the closed pipelines), reroute those pipelines to their original tracks and reclaim the methane supply. Spire chose the ethically reprehensible option 3--namely to scapegoat the EDF and frighten the public with the specter of gas ‘outages’ and ‘shutoffs’ in the middle of a frigid midwestern winter. Spire seemed to be playing a game of public relations ‘chicken’, as they attempted to extort a new permit with zero accountability to FERC or the courts.  The message Spire sent was clear; either give them a blank check permit once again—or folks in St. Louis will freeze this winter.  (Spire email to customers 11/04/21)

   Corporate media made no mention that this looming disaster was Spire’s own making. There was no mention of those ‘retired assets.’ The media focused on the ‘need’ for the STL Pipeline, basically acting as public affairs officers for Spire. At this point, corporate media made Spire look like our savior against that pesky “environmentalist” group. I questioned this scenario, so I contacted Spire’s public affairs department.

PART 2—Police harassment and the series of events leading to Spire’s complaint against me....

   On November 5, 2021, I called Spire Media, which is listed in their corporate directory. This is public information available to anyone who can read. (This detail is pertinent as I wouldn’t want Spire to file another police complaint against me. They might try to claim that I accessed some type of ‘proprietary’ information, which this is not). A woman named Raegan Johnson answered and explained that she was the Public Communications Manager. I asked for the Public Affairs Head and Ms. Johnson most graciously gave me the name of the Public Communications Director, Jason Merrill. In the media Jason Merrill has been identified as a Spire ‘spokesman,’ without any clarification regarding his role in the corporate structure. Ms. Johnson also offered me Jason Merrill’s email address. I thanked her and hung up.

   I then sent an email containing multiple questions to Jason Merrill. I specifically asked about any contingency plans in the making, should the extension expire without another plan. I never received a response from Merrill.

   On November 7th, 2021, I ran my first episode of the Spire story on Progressive News Network, found at Blogtalkradio. Here is the link to the show. Progressive News Network with Jeanine Molloff 11/07 by Progressive News Network | Politics Progressive (blogtalkradio.com)  That episode focused on Spire’s failure or refusal to prepare a contingency plan.  (Note: Since then, I have done a second show on this subject which delves deeper into the issue of Spire’s ‘retired assets.’ You can find it at this link. EJR with Jeanine Molloff - How Spire is attempting to extort $ over a pipeline. 11/11 by Progressive News Network | Politics Progressive (blogtalkradio.com) The timeline here is significant. The next day, I was interrogated by three detectives, regarding a complaint--filed by Spire.

  On November 8th, 2021, I made one phone call to Spire Media. I’m not sure who answered, but it sounded like Raegan Johnson. I asked if I could speak with Jason Merrill or leave a message. The woman at the other end of the phone took the message. I wanted to know if Mr. Merrill was going to answer my questions—or at least give a negative response. I just wanted to get Merrill on the record refusing to answer.  Nothing else. That was in the morning. I went about my day as usual, including taking my dog for her daily car ride. When I pulled into my driveway that same afternoon, I was confronted by three detectives from the St. Louis Metropolitan Police Department’s ‘Intelligence’ Unit. They cornered me as they stood forming a semicircle at the end of my driveway. They wanted to ‘talk’ to me, but never offered their names or badge numbers. I waited for them to speak as I helped my geriatric dog out of the car.

  They received a complaint against me but refused to reveal any details. They were wearing bullet-proof vests, hands on hips very near their guns which were in plain sight for the entire neighborhood to see. One of the detectives came closer. I asked him to put on a mask as I have a chronic lung disorder. He complied.

This detective then said in a menacing tone, his hand even closer to the holstered gun, “You made a phone call.”

I remained silent.

He added, “To Spire.”

Again, I remained silent.

The detective then clearly stated, “We need to understand your intent.”

I maintained my silence.

“There was a complaint.”

I asked who filed the complaint.

“Spire.”

The detectives never gave any facts or direct accusations, which meant this was a ‘fishing expedition’ engineered to intimidate and harass. I told them that I was a journalist investigating Spire’s very public threats of natural gas shutoffs if the STL Pipeline is shut down. I added that my ‘intent’ was to obtain a response from spokesman Jason Merrill regarding my questions, nothing else.

I asked who filed the complaint. As a citizen, I have a right to face my accusers.

 This time the detective was silent.

I asked when the police report would be available.  I added that the report would identify those responsible for filing what is clearly--a false police report.

The detective said there wouldn’t be a report.

When I asked why, I was told that there was no crime here, so no report.

Though the detectives didn’t physically abuse or otherwise manhandle me, this confrontation did constitute police harassment of an independent journalist.  I’m aware that compared to other journalists, you could say I received ‘kid glove’ treatment. In fact, the officers were very polite—as they violated my 1st Amendment rights. I wasn’t body slammed into a soft drink dispenser or pushed to the pavement with a knee on my neck. And I wasn’t tased to the point of near death, as journalists were during Ferguson, but this visit represented an illegitimate threat to my freedom. The detectives then left. It was clear that this confrontation was intended to intimidate and silence me. It didn’t work.

In Conclusion, Spire must obey the law....

   By now, one thing is clear.  Spire broke the law charged with regulating fossil fuel pipelines, namely the Natural Gas Act.  Spire’s determination to defy the law and expect a rubber stamp from FERC only proves the salacious contempt they hold for ‘rule of law’. The documentation in the actual court briefs proved that Spire lied. It was a lie of omission, but that’s a lie, nonetheless. No one in the corporate media mentioned how these ‘retired assets’ rendered us dependent on the single STL Pipeline which is in legal jeopardy. Spire has been attempting to extort once again, a blank check for their pipeline, and willing to let us freeze, in order to achieve their goal. These facts filed in federal court were ignored by the corporate media—and the politicians.

    The Spire executives and Board of Directors who authorized this Ponzi scheme, must be held civilly and criminally liable for their actions. This entire situation would be laughable if it didn’t represent the criminality of a political system controlled by ‘corporate capture.’

   To add more insult, Newsweek honored Spire, under the leadership of CEO Suzanne Sitherwood. Newsweek dubbed Spire as one of “America’s Most Responsible Companies.” This dubious honor placed Spire in the top 400 ‘responsible’ companies from 14 U.S. industries. This ‘honor’ was based on …"their commitment to the environment, social issues, and corporate governance.” https://electricenergyonline.com/article/energy/category/oil-gas/89/873683/spire-named-one-of-america-s-most-responsible-companies-by-newsweek.html )

Newsweek directly quoted CEO Suzanne Sitherwood.

“A few years ago, we set out to reimagine what it means to be an energy company one that exists to do the very best for people, communities and the planet. We’re honored that this commitment has named us among America’s 400 most responsible companies.”  https://electricenergyonline.com/article/energy/category/oil-gas/89/873683/spire-named-one-of-america-s-most-responsible-companies-by-newsweek.html )

Now, hold that image of a ‘responsible’ corporation, in your mind for a few moments and try to suppress the incredible need to laugh hysterically. Corporate America has been exposed as routinely criminally negligent and abusive, both domestically and globally, and yet, the ‘honor’ could still be viewed as true, since the bar for corporate ‘responsibility’ has been set so low, that even Donald Trump could look like a choir boy.

Compare Newsweek’s pronouncement to the hard truths for Missouri consumers, evidenced by the Spire email, which included the threat of heating gas cutoff. Compare Newsweek’s pronouncement to the evidence presented in multiple court briefs which prove that Spire rendered St. Louis 100% dependent on a single pipeline, with no contingency plan.

Add to that the fact that Spire filed a false police complaint against this independent journalist because I made a phone call and asked relevant questions, which were too close to the truth, namely that Spire never had any sort of contingency plan should the STL Pipeline fail. We now have the picture of a corrupt corporate structure, not one that should be honored by Newsweek.

In short, Newsweek needs to rescind the award they afforded Spire, or admit they’re not much better than FOX. And Spire deserves to ‘enjoy’ a full criminal investigation—not an independent journalist who asked the ‘wrong’ question.

Note: The AP just reported that Spire received a last-minute reprieve. The FERC Commission granted another temporary certificate for an undetermined length of time as they determine the future of the STL Pipeline. Spire's St. Louis area pipeline can keep operating for now (msn.com) 

Both Spire and the AP omitted the issue of 'retired assets' which cut off St. Louis from any other pipelines. 

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