The company planning to construct a pipeline to deliver natural gas from the Marcellus Shale gas fields in New England says it plans to appeal the New York State Department of Environmental Conservation’s decision to deny a water quality permit for the pipe that would slice through parts of the Southern Tier and Central New York.

The project had already been approved in Pennsylvania and work on the pipeline started last fall and the early spring in the Keystone State.

The New York DEC says the proposal for the 124 mile long pipe failed to address the standards for protecting hundreds of streams, wetland and other water resources, so the required water permit was denied.

The Federal Government approved the construction, but that was contingent on New York State approving the water quality permit.