Rover Pipeline $40M FERC Fine Could be an Episode of “Dallas”
The ongoing tiff between the Federal Energy Regulatory Commission (FERC) and Energy Transfer (ET) over a drilling mud spill in Ohio back in 2017 (five years ago!) has become a steamy, cheesy plotline for an episode of the TV series Dallas. We’re talking about the original Dallas series from the 1980s with Larry Hagman and storylines of “who’s jumping into bed with whom.” FERC is faulting ET for creating a company culture of drill and build fast that led to a contract worker adding diesel fuel to a stuck drill bit in an effort to work it free, fining the company a staggering $40 million for the presence of diesel in a drilling mud spill. ET says the diesel situation was the result of a rogue contract worker (a foreman) under pressure and distracted by rumors of another foreman sleeping with the wife of one of his workers. No, we’re not kidding. You can’t make this stuff up.
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In what one industry watcher calls an “abrupt about-face,” yesterday all five Federal Energy Regulatory Commission (FERC) commissioners voted to pull back onerous new regulations to use global warming considerations when approving pipelines. Three Democrat FERC commissioners voted to adopt the new guidelines just one month ago (see
The Iroquois Gas Transmission pipeline project called the Enhancement by Compression (ExC) increases horsepower at three compression stations–two in New York and one in Connecticut–by an extra 125 MMcf/d, flowing more Marcellus/Utica gas into New York City and New England (see 
Pennsylvania is the second-largest producer of natural gas in the country. A new poll from Pittsburgh Works Together, a coalition of business and labor groups in Western PA, says Pennsylvanians want to keep PA at the top of the natural gas heap. A poll conducted of 600 PA voters in February finds 73% strongly or somewhat supported the idea that Pennsylvania should ensure that natural gas remains a part of the state’s energy use. That is an overwhelming majority of PA citizens who think natural gas (and natural gas drilling) should continue in the Keystone State.
While yesterday’s news that the Federal Energy Regulatory Commission (FERC), under the thumb of the Biden administration, has made a major about-face with respect to using global warming factors when evaluating pipeline projects (at least for now) is good, there is much more than can and should happen. On Wednesday four of the largest trade groups representing natural gas–the Interstate Natural Gas Association of America, the Natural Gas Supply Association, the American Gas Association, and the Independent Petroleum Association of America–sent a letter to President Biden requesting that he push his various agencies (like FERC) to go ahead and approve more LNG export plants and more pipelines.
NATIONAL: US weekly LNG exports up by one; US energy cos. ready to defend pipelines from Russian cyberthreats; Manchin restarts talks with other Democrats on climate, social spending bill; INTERNATIONAL: Here’s what may happen if Russian oil and gas stops flowing into the EU.