FERC Issues Favorable Final EIS for PennEast Pipeline Project
On Friday the Federal Energy Regulatory Commission (FERC) finally, after delaying a decision three times adding an extra eight months, issued a final Environmental Impact Statement (EIS) for the PennEast Pipeline project. We should add, it was a favorable EIS. While FERC found (as they always do) that there would be “some adverse environmental impacts” from the project, those impacts “would be reduced to less than significant levels” with PennEast’s proposed construction plans. This is a major milestone and all but assures the project will now go forward and will be built and go into service sometime in 2018. What potential roadblocks remain? For one, PennEast will need water crossing permits from New Jersey, which they filed for last week (see PennEast Files for Water Crossing Permits in NJ – Antis All Atwitter). Although there are a number of kook antis in NJ opposed to the project, Gov. Chris Christie is still in charge and the state Department of Environmental Protection is an executive branch agency. That is, they’ll approve the project. The only remaining wildcard is the recalcitrant Delaware River Basin Commission. The DRBC has proven itself to be politically motivated (leaning far left) and no friend of the oil and gas industry. Could the DRBC stop PennEast? Doubt it, but they might be able to slow it down. Below we have the good news about FERC’s approval, a copy of that approval (485 pages!), and some of the predictable anti-drilling claptrap responding to the approval…
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On Feb. 3, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see
The Baker Hughes rig count in the U.S. continued to rocket skyward in March. In January the average number of U.S. rigs was 683. In February, the count zoomed to 744, up 61 rigs in just a month. And in March, the U.S. rig count zoomed to 789, up another 45 rigs in a month. Each active rig translates into hundreds of jobs, both directly working at the rig and indirectly in services delivered to the rig and its workers. It also means more landowners will soon have royalty payments heading in their direction. When rigs are active, life is good. What about rig counts in the Marcellus/Utica? Disappointingly our region’s rig count lost a rig in March. PA lost two rigs, OH gained a rig, and WV stayed even. What does it all mean? It means that this zooming up in rig counts is happening in other locations–primarily in the Permian Basin in Texas. That is, oil rigs rushing to take advantage of an increase crude prices to a sustained $50+/barrel. While we’re happy the rig count is up, we’re not happy more it is not happening in the northeast. But honestly, without pipelines to take away an increase in production, can you blame our drillers? Once there is more takeaway capacity, you’ll see rig counts begin to climb again in our neck of the woods…
In January 2016, Kinder Morgan committed to building the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada (see
There’s some good news and, depending on your perspective, bad news when it comes to severance tax collections from natural gas (and coal) in West Virginia. According to West Virginia Department of Revenue in a report released last week, severance tax collections on oil, gas and coal in the Mountain State exceeded revenue projections by $13 million for the first nine months of the current 2017 fiscal year. The surplus reverses the trend from the previous year when WV lost severance tax money due to the drop in the price of oil and gas. Severance tax revenue, as we’ve pointed out before, floats up and down with the commodity price of oil and gas, unlike impact fee revenues which are much less tied to commodity prices (and one reason why PA drilling flourishes). So WV is seeing higher severance tax revenue–that’s the good news. The “bad” news is that Gov. Jim Justice and the WV Senate plan to cut the severance tax–putting the state back in the position of doing more with less…
School officials at a school district in Delaware County, PA (Philadelphia suburb) were, understandably, concerned about plans that would bring the Mariner East 2 pipeline “near” the school. What happens if, in the extremely unlikely event, the pipeline leaks? Or explodes? What kind of measure are in place to protect the kiddies? Sunoco Logistics personnel (builder of the ME2 project) along with emergency first responders met with Middletown school officials on March 31 in a private meeting–because emergency plans are confidential. Coming out of that meeting, the school district superintendent said he was “extraordinarily satisfied” with the plans and that they kids are safe with ME2 being located nearby. You don’t hear that often, because the media doesn’t typically report it…
Even though a companion story today reveals that a local school district in Middletown Township, PA (near Philadelphia) is completely satisfied that the Mariner East 2 pipeline is safe (see Delco School “Extraordinarily Satisfied” with ME2 Pipeline Safety), there are still a few hardened anti-fossil fuelers in Middletown who refuse to consider reason. They are keeping up a losing battle against ME2. Their latest approach is to pressure (i.e. bully) town officials to unilaterally reject the pipeline through their jurisdiction based on town zoning codes about setbacks–the distance from the pipeline to surrounding structures. Like two other towns with similar codes (Thornbury and West Goshen), the antis in Middletown are threatening to (surpise!) sue if the town doesn’t do what they (the antis) selfishly demand by rejecting the pipeline…
Nuclear power plants, which are heavily regulated, can no longer compete in the free and open market–so they’ve decided to seek new laws to protect their revenue stream. That is, they hope to use laws to do what they can’t do in the free marketplace–force electric ratepayers to fund their more expensive source of electricity, and erect barriers for natural gas-fired electric plants (i.e. “re-regulation” of the electric industry). It’s sleazy and disgusting, but it’s happening. The nuke lobby has been successful in places where there’s corruption–like New York and Illinois. Now the nuke lobby is trying it in Ohio and Pennsylvania. Will they fall next?…
Last July we were introduced to the concept of a “wide economic moat” (see
As MDN has previously chronicled, on September 22, 2016 the rogue U.S. Fish and Wildlife Service (USFWS) published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the Endangered Species Act (ESA). The rusty patched bumble bee is found in the Midwest and eastern parts of the U.S. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers (see
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.