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Constitution Pipeline Still Waiting on “Biggie” Court Decision

Last week MDN brought you the news that a federal judge had dismissed a case brought by the Constitution Pipeline against the New York Dept. of Environmental Conservation (DEC) over the issue of denying water crossing permits for the project (see Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC). What we have since come to understand is that this was one of two lawsuits filed by the Constitution against the NY DEC. In fact, it was the lesser of the two lawsuits. The “biggie” lawsuit is still not yet decided. That decision will come from the U.S. Court of Appeals for the Second Circuit–and is due to arrive within the next two months. The fate of the project hangs in the balance. Lawyers for the Constitution are confident that the court will find the DEC’s denial of permits is capricious and politically motivated, and will strip the DEC of its role in the project. If that happens, it is the equivalent of a 10.0 earthquake. The DEC will no longer play a role in federally regulated pipeline projects. Perhaps if the DEC wants to maintain a role in such projects, they ought to move forward and issue those permits now (i.e. “settle out of court”), before the ruling comes down…
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Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton

Schlumberger is the world’s largest oilfield services (OFS) company. Weatherford International is the world’s fourth largest OFS company. They both have operations in the Marcellus/Utica region. We’ve posted a number of stories about Weatherford’s financial troubles–and seemingly inevitable march toward bankruptcy (see our stories here). However, Weatherford may have just gotten a reprieve from its much larger competitor. On Friday, Schlumberger and Weatherford announced they have formed a joint venture called OneStim, “to deliver completions products and services for the development of unconventional resource plays in the United States and Canada land markets. The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.” Hmmm. Interesting. Here’s why. The world’s second largest OFS company is Halliburton. However, Halliburton is the world’s largest fracking company. The media is universally claiming the Schlumberg/Weatherford jv is squarely aimed at overtaking Halliburton to become the world’s largest fracking service. Can they do it? Another interesting observation: Earlier this month Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton left to become the CEO of Weatherford (see Halliburton CFO Leaves to Become Weatherford CEO). We don’t think it’s a coincidence that Weatherford is now making a play to best its larger rival Halliburton, leveraging McCollum’s knowledge of how Halliburton became king of fracking. Two thoughts on the Sclumberger/Weatherford hook-up: (1) it keeps Weatherford out of bankruptcy by infusing $535 million of cash, (2) We think it may be the prelude to a full-out sale of Weatherford to Schlumberger down the road…
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Radical Green Groups File Fed Court Case to Stop Atlantic Sunrise

Radical green agitating groups, including the Sierra Club, Lancaster Against Pipelines, Lebanon Pipeline Awareness, Allegheny Defense Project, Clean Air Council, Concerned Citizens of Lebanon County, and Heartwood, have filed a lawsuit in the liberal U.S. Court of Appeals for the District of Columbia in an attempt to block construction of the $3 billion Atlantic Sunrise Pipeline project in Pennsylvania. Instead of waiting for the Federal Energy Regulatory Commission (FERC) to consider a so-called re-hearing of their decision to authorize Atlantic Sunrise, a group of radical green organizations are jumping the queue and going directly to court, demanding that a judge stop construction until a quorum is in effect at FERC. Yes, it’s all complicated. We’ll break it down for you. What you need to know up front is that more Big Green money is behind the lawsuit to stop Atlantic Sunrise…
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Judge Warns Atlantic Sunrise Protesters – Feds are Comin’ for Ya

As MDN previously reported, anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County–are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). Namely, they say they will use “civil” disobedience to protest and block workers from engaging in construction work on the pipeline. Yeah, just like their “peaceful” protests in North Dakota (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). On Friday, a federal judge warned these “peaceful” protesters that if they attempt any of their shenanigans in Lancaster County–if they block access–they will be hauled off to jail by the U.S. Marshals Service. Grab your popcorn and head to Amish County, this could get interesting…
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Halliburton Rehires 2K, Says “Animal Spirits are Back” in US Land

In a “hasty” and “rare” operations call last Friday, Halliburton, the world’s second largest oilfield services (OFS) company, offered up some interesting comments. The call was apparently an attempt to blunt the coming news that the company will likely miss analyst’s expectations for profit/loss and dividends, due to rising costs and weak demand in international markets. Top brass at Halliburton wisely know that “he who gets there with the bad news first, wins.” However, the call was wide-ranging and included some good news: After trimming 35,000 jobs over the past couple of years, Halli is adding back 2,000 jobs. That’s better than a sharp stick in the eye. CEO Dave Lesar also had this rather bizarre statement on the call, in his ebullience over the drilling comeback in North America: “This diverse and exciting market has created a surge of activity and supports my thesis that the animal spirits are back in U.S. land.” OoooKay. We’ll go with it. Animal spirits. Here’s the news coming from last week’s hasty Halliburton homily…
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Anti-Pipeline Jihadists Pressure FERC re Atlantic Bridge Project

Click for larger version

In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Spectra Energy’s Atlantic Bridge project (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity on the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. Anti-fossil fuel jihadists like Food & Water Watch and the two U.S. Senators from Massachusetts, Elizabeth “Pocahontas” Warren and Ed “inside trader” Markey are doing their best to stop the FERC-approved project (see Mass. Senators Ask FERC to Reverse Atlantic Bridge Certification). The newest attack comes from Food & Water Watch, attempting to pressure/bully FERC into stopping construction until a “re-hearing” request is decided. Groups that don’t like a FERC decision can file for a re-hearing. FERC has X many days to consider the request until it is automatically denied. Once a re-hearing request is denied by FERC, enviro-jihadists can then file a lawsuit in court to try and make their case–but not before the re-hearing is denied. Since FERC does not currently have a quorum of three Commissioners to decide a re-hearing request (after Norman “cry baby” Bay left in a huff), FWW and others are demanding FERC put the brakes on Atlantic Bridge construction projects…
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Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs

Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). Unfortunately, this week Enbridge announced they are axing around 1,000 jobs (6% of the workforce), to “address the overlap” and optimize “synergies” in the newly-combined company. Most of the 1,000 jobs being axed are from the Spectra workforce in the Houston area. We wonder how many top managers were “overlap” and “synergy optimized?” Yeah, likely none…
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PennEast Celebrates Lawsuit Dismissal, Takes Swipe @ Riverkeeper

As we reported yesterday, a federal judge dismissed a lawsuit filed a year ago by THE Delaware Riverkeeper against the Federal Energy Regulatory Commission (see Fed Judge Dismisses Dela. Riverkeeper Lawsuit Against FERC). The lawsuit aimed to shut down the entire agency by defunding it (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down). The lawsuit claimed FERC can’t objectively make decisions about projects like the Penn East Pipeline (running from the Wilkes-Barre area to New Jersey) because FERC derives some of its operating revenue from the projects it either approves or does not approve. In other words, Delaware Riverkeeper tried to shut down a national agency because they object to a single pipeline project. Liberal U.S. District Justice Tanya Chutkan found Riverkeeper’s arguments lacking, to say the least. It took a day, but PennEast released their own statement about Riverkeeper’s lawsuit going down in flames. It is an interesting response from PennEast and continues a trend in what we’ve previously noticed: PennEast has (finally) taken the gloves off and is pushing back hard against enviro-jihadists like Riverkeeper…
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Judge Grants Atlantic Sunrise Pipe Access to Schuylkill Property

Ryan Regec owns 78 acres in Schuylkill County, PA (eastern part of the state). He plans to subdivide the property into smaller properties and sell the building lots–but the Atlantic Sunrise Pipeline is coming through a portion of the property, and Mr. Regec says that means he can’t subdivide and sell it the way he planned. Regec has, in the past, allowed surveyors from Atlantic Sunrise on his property–but recently has refused. Atlantic Sunrise (i.e. Williams) took him to court to force access to complete their surveys, and Williams just won. A judge for the U.S. Middle District Court in PA issued an order allowing Atlantic Sunrise access. A spokesman for the pipeline says the pipeline will only cut through a small portion of Mr. Regec’s 78 acres. Regec claims his subdivision plans will be destroyed. Who’s right?…
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Court Says was OK for ETE to Scuttle $33B Williams Takeover Deal

Last year an elaborate midstream drama unfolded before our very eyes. Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Then the bottom dropped out of the price of natural gas and drillers scaled back drilling and consequently midstream (i.e. pipeline) companies like ETE and Williams got pinched. And ETE got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Williams said “not so fast, you wanted us, you’ll be taking us” and consequently sued ETE to force the merger to happen (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). However, in the end, the merger never happened (see Dead as a Doornail: ETE Terminates Merger with Williams). Since breaking the agreement, Williams and ETE have been in court battling over lots of things, including a $1.5 billion breakup fee. Earlier this week an appeals court ruled ETE was within its rights to break the deal. What does that mean about paying Williams a breakup fee?…
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Eco-Terrorists Burn Holes in Dakota Access Pipeline in 2 States

Dakota Access Pipeline “peaceful” protesters

Eco-terrorists are responsible for using a blowtorch to burn holes in two different above-ground valve sites for the newly completed Dakota Access Pipeline. One of the sites was in North Dakota. The other in Iowa. It was a criminal act of terrorism meant to cause an oil spill or worse. It is the kind of thing we have (unfortunately) come to expect from twisted, evil eco-jihadists in their screwed-up mission to rid the planet of fossil fuels. Here’s what we could find out about these terrorist acts…
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Williams Launches PA Media Campaign to Promote Atlantic Sunrise

Williams is in the years-long (and almost impossible) process of building the Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. On Feb. 3, 2017, the Federal Energy Regulatory Commission (FERC) gave its final approval for the project (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). From FERC’s perspective, Atlantic Sunrise can start the bulldozers any time–except the Pennsylvania Dept. of Environmental Protection (DEP) has not yet granted some necessary permits. As we reported earlier this month, Williams is keeping up the gentle pressure (see Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits). That pressure continues. Williams has just launched an “expanded” media campaign, complete with on-air commercials, which aim to “educate the community about these benefits and the importance of designing, constructing and operating critical natural gas infrastructure projects in Pennsylvania.” The new media effort is also meant to ratchet up the pressure on the DEP another notch…
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NJ’s Lib Dem Senators Bash PennEast Pipe Over Arsenic “Concerns”

New Jersey’s reliably lefty Democrat U.S. Senators, Cory Booker and Robert Menendez, played to their fringe, unhinged base of eco-nut supporters by sending a letter to the Federal Energy Regulatory Commission claiming the PennEast Pipeline project, due to run through a small portion of NJ, “may” cause problems with arsenic–as in releasing the toxic substance into drinking water supplies from digging trenches and erosion. It is a flat out, bogus, BS claim–and they know it. But they were put up to the letter-writing task by some of their Big Green donors, including ReThink Energy NJ and New Jersey Conservation Foundation. It’s nothing new that campaign contributions (i.e. bribes) buy you access. PennEast has responded that the issue has already been addressed in their application with FERC–there is a plan to monitor and protect against any potential disturbance of the ground that would cause arsenic levels to increase. That’s what responsible adults do. They respond in an adult-like, responsible manner. Unlike the other side…
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FERC Green Lights Construction of Dominion Project in Upstate NY

In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The antis were unsuccessful. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a REAL miracle happened. The corrupt New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Barbara Lifton, an eco-left Democrat from Ithaca who serves in the New York Assembly, recently tried to stop the project from proceeding by sending letters to both FERC and the DEC, hoping she could (ab)use her position to pressure one or the other (or both) to delay the project, which is the antis’ first step in killing a project (see NY State Legislator Tries to Derail Dominion New Market Project). We’re delighted to report she failed. Last Friday FERC sent a letter to Dominion to let them know, now more than three years after filing, they can start the bulldozers and begin construction. In Communist NY! Who woulda thunk?!…
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MDN Exclusive: 2016 Ohio Wastewater Disposal Market Report

We are super excited to bring you an exclusive report that has just been released by MDN subscriber Andrew Kilgore. The report is titled “2016 Ohio Wastewater Disposal Market Report” (full copy below) and it details the wastewater injection well industry in Ohio. Andrew has spent most of his career working in the Appalachian Basin. He is an alumnus of BlueJack Energy (see Wastewater Co. BlueJack Energy Launches with $100M Investment), EnLink Midstream, and co-founder of UM Resources. Andrew authored the report and offered to let MDN be the first media outlet to release it. We thank him! The report finds that in 2016 the total amount of wastewater disposed of in Ohio was 29.4 million barrels–almost 2 million fewer barrels disposed of compared to 2015. The majority of the decline was from wastewater from out-of-state slowing down (i.e. from Pennsylvania and West Virginia). The report outlines a number of reasons for the decline in wastewater volume disposed in OH, with the primary reason being less drilling due to the low commodity price of natural gas. A few quick facts from the report: Washington County, OH saw the most volume of wastewater disposed. Buckeye Brine processed the most wastewater volume. Here’s the full report…
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OFS Mammoth Buys Sand Co. to Ensure Steady Supply for Fracking

Oilfield services company (OFS) Mammoth Energy Services, headquartered in Oklahoma City, OK, operates in both the Utica Shale and Permian Basin. Mammoth offers services like “completion and production services, natural sand proppant services, contract land and directional drilling services and remote accommodation services.” Mammoth is a baby company, formed in 2014, but growing rapidly. The company booked $243 million in revenue for the 12 months ended June 30, 2016 (see Mammoth Energy 3Q16: “Intense Fracs” in Utica Shale). OFS companies like Mammoth do a lot of fracking. Lately there has been talk and concern that there won’t be enough frack sand to meet all of the increasing demand (see Go Pound Sand, Please! Proppant Shortage on the Way?). Mammoth wants to reassure its customers that it will have plenty of sand for fracking–so it just went out and bought its own sand mine! Yesterday Mammoth announced it has cut a deal to buy Taylor Frac, which owns a 0.7 million ton per year sand mine and processing plant. In addition, Mammoth cut a deal to buy Stingray Energy Services and Stingray Cementing, which offer services in fresh water transfer, equipment rental, re-fueling and cementing, primarily in the Marcellus/Utica region. Here’s the lowdown on the baby Mammoth that’s growing up rapidly…
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