MIDDLETOWN, N.J. (CBSNewYork/AP) — New Jersey regulators have denied permits for a pipeline expansion project.

The Northeast Supply Enhancement Project would expand the Transcontinental gas pipeline that extends from Texas to the northeast coast.

The proposed underwater 23-mile pipeline would carry natural gas from Pennsylvania to New York, traveling under the Raritan Bay in New Jersey.

New York state regulators rejected the proposal in May.

Both New York and New Jersey regulators cited environmental and water quality concerns.

Web Extra: Read the New Jersey DEP’s letter explaining their decision (.pdf)

The New Jersey Department of Environmental Protection rejected the permits without prejudice, meaning the Oklahoma-based energy company Williams can reapply.

Williams Companies says it will re-adjust plans and re-apply.

Proponents say bringing more natural gas into the area is desperately needed and would lower energy bills, while environmentalists say it will damage Raritan Bay by stirring up tons of contaminated particles now resting on the bottom and covered by sand.

(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)