West Virginia environmental authorities have issued a water quality certification for the proposed Mountain Valley Pipeline, which would carry natural gas down the center of West Virginia for 195 miles.
The certification required by the Federal Clean Water Act concerns impact on West Virginia waters.
The Department of Environmental Protection says project impacts will require the builder to purchase credits to be used to improve streams and wetlands around the state.
At public hearings, many residents cited the project's construction jobs while others noted environmental harm.
The pipeline would extend from north-central West Virginia to Virginia and 108 miles through that state.
EQT Corp. says the estimated $3.5 billion project would transport "abundant" natural gas from the Marcellus and Utica shale formations.
It still needs other state and federal permits.