Energy Transfer Partners

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    Rover Pipeline Triples Volume of Gas Flowing, Prices Go Up

    Phase 1A of the Rover Pipeline has been online for less than a week (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). As we reported on Sept. 1st, Energy Transfer planned to initially flow around 211 million cubic feet per day (MMcf/d) of Utica/Marcellus natural gas. However, according to flow data from Genscape (as reported by Natural Gas Intelligence), within a few days the pipeline ramped up and began flowing over 600 MMcf/d–triple the initial volume. The result? The commodity price at the Dominion South trading point popped. Last Friday natural gas at Dominion South was selling for an average of $1.05 per million BTUs (MMBtu). On Tuesday, the price averaged $1.38/MMBtu–a 31% increase. Behold the power of a single, partially completed pipeline!…
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    Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio

    Click for larger version of map

    On August 18th, Energy Transfer sent a request to the Federal Energy Regulatory Commission (FERC) to begin flowing gas through a large portion of the Rover Pipeline project–called Phase 1A of the project–by August 31st (see Rover Pipe Ready to Flow! Seeks FERC Permission for Aug 31 Start). We’re happy to report the gas is now flowing through the mighty Rover, from Cadiz, OH, to Defiance, OH, which is across most of the state. This is a major milestone and victory. According to Natural Gas Intelligence (see this story), analysts estimate Phase 1A will flow up to 211 million cubic feet per day (MMcf/d) of natural gas. That’s 211 MMcf/d of Utica/Marcellus gas finding its way to new markets, which will no doubt have an impact on the price drillers get for their gas. When Phase 1B comes online later this year, that number zooms up to 1.35 billion cubic feet per day (Bcf/d). Eventually, when the full 713-mile project is online in 2018, some 3.25 Bcf/d will flow through it. Here’s the great news announcement that the first leg of this vital project is now flowing our gas through it…
    Read More “Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio”

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    Bloomberg Hit Piece Reveals Rover Enviro Record Better than Most

    A Bloomberg New Service article that is profoundly biased attempts to smear and denigrate the Rover Pipeline, claiming it is “wreaking environmental havoc” and that the project “has racked up more environmental violations than other major interstate natural gas pipelines built in the last two years.” There is no doubt Rover has had its problems, the most infamous being a 2 million gallon drilling mud spill in a wetland near the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, in their zeal to smear Rover, the Bloomberg smarties include a chart comparing Rover with other pipelines, showing the total number of “noncompliance incidents.” Rover, far and away, has the most total number of such incidents–104 to date. However, it’s also the longest pipeline in the comparison. The longer the pipeline, the more chance there is for problems to happen. Just like the longer a new road is, the more problems there will be when building it. When you run the numbers (as MDN has, see below), you find that when you look at how many “noncompliance incidents” there are per mile of pipeline installed, Rover has a better record than most of the others! Thank you Bloomberg for helping us understand just how much BETTER Rover is than many other pipeline projects…
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    FERC Issues Rover 8 Commandments to Restart Horizontal Drilling

    Rover is a $3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. While Phase 1A of the pipeline is essentially done and ready to begin service by the end of this month (see Rover Pipe Ready to Flow! Seeks FERC Permission for Aug 31 Start), other important parts of the pipeline are not done. If Rover wants the entire pipeline to be up and running by the end of the year, they must restart underground horizontal directional drilling (HDD) in various locations where it is now stopped. In Ohio, Rover experienced a series of mishaps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Rover believes sabotage may have been the cause (see ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks). Since April, FERC has blocked all new underground HDD for the Rover project. Rover has asked (begged, pleaded) FERC, several times, for permission to restart the HDD work–at least in a few select locations. In July FERC gave Rover an initial todo list to get back in its good graces, but still would not lift the ban on HDD (see Frustrated FERC Gives Rover Todo List, HDD Drilling Still Blocked). FERC has finally responded with a list of eight (big) things Rover must do before HDD drilling can restart. We call them FERC’s Eight Commandments…
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    Energy Transfer Sues Big Green Groups for Inciting Terrorism in ND

    It’s about time our side litigated back! Energy Transfer, the company that built the Dakota Access Pipeline, filed a lawsuit yesterday against rabid, radical “green” organizations including Greenpeace, Earth First! and others, for manufacturing and disseminating “materially false and misleading information about Energy Transfer and the Dakota Access Pipeline (DAPL) for the purpose of fraudulently inducing donations, interfering with pipeline construction activities and damaging Energy Transfer’s critical business and financial relationships.” Because of Greenpeace and other Big Green groups, DAPL was delayed, people were hurt during protests, violent acts were committed, property was damaged and the environment that the protesters profess to love was also damaged. It was a coordinated and organized attack against Energy Transfer, so the federal lawsuit is suing using federal and state racketeering statutes. Energy Transfer says Greenpeace led an organized effort to put eco-terrorists on the ground among regular protesters. Finally! Someone willing to call out these jerks and take the fight back to them! You may wonder why we cover this story here on MDN. Energy Transfer is also building the Rover and Mariner East 2 pipeline projects here in the Marcellus/Utica region. Both projects are vigorously opposed by Big Green groups with paid protesters. This lawsuit puts other Big Green groups on notice–your days of smearing and lying and agitating are over…
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    Using FOIA, Antis Discover 2 Minor Infractions by Rover in WV

    Anti-fossil fuel activists attempting to stop the unstoppable Rover Pipeline are doing their best to smear and prejudice people against the project. Rover has had its share of problems. We’ve chronicled those problems–like leaking 2 million gallons of drilling mud in Ohio when performing underground horizontal directional drilling (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The company also had problems with water filling up trenches dug for the pipeline when severe rain hit (see OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K). Rover also had problems in West Virginia. The WV Dept. of Environmental Protection to stop work in two of four counties after storm water runoff/erosion issues there (see WV DEP Orders Rover to Stop Pipe Construction in 2 of 4 Counties). The stop work order was lifted after a few weeks. Antis, using the Freedom of Information Act, have “discovered” that Rover was cited for similar issues in two other counties. However, WVDEP and Rover worked it out and resolved those issues…
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    Rover Pipe Ready to Flow! Seeks FERC Permission for Aug 31 Start

    Click for larger version of Rover map

    While the Rover Pipeline remains in regulatory limbo with some of its construction, the vast majority of the pipeline as it snakes across Ohio is already done, or will be within the next few days. On Friday, Rover made an official request with the Federal Energy Regulatory Commission (FERC) to begin flowing natural gas through Phase 1A of the pipeline by August 31st. Phase 1A is three primary areas in Ohio: (1) the Cadiz Lateral, which is 3.5 miles of 30-inch diameter natural gas pipeline in Harrison County; (2) Supply Connector Line A, which is 18.6 miles of single, 42-inch diameter natural gas pipeline from the Cadiz tie-in in Harrison County extending north to Mainline Compressor Station 1 and the interconnection with Mainline A in Carroll County; and (3) Mainline A, which is the bulk of the new pipeline through OH–190.9 miles of single, 42-inch diameter natural gas pipeline originating at the Mainline Compressor Station 1 in Carroll County and terminating at the Defiance Compressor Station in Defiance County. In addition, Rover asked that the Panhandle-Rover Interconnect be turned on a few days ahead of the 31st so the gas will be ready to flow through the new Rover pipeline. This is (a) great news, and (b) something of a miracle, given the stiff headwinds Rover has faced with the Ohio EPA and FERC over several construction problems in recent months…
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    Energy Transfer Floats 54M New Units, Looks to Raise $1 Billion

    Energy Transfer Partners (part of Energy Transfer Equity) is the company that built the Dakota Access Pipeline (now flowing, thankfully). They are also the pipeline company building both the Rover Pipeline in Ohio and Michigan, and the Mariner East 2 natural gas liquids pipeline from eastern Ohio across Pennsylvania to the Philadelphia area. Big company, big projects. ETP recently sold off 32% of the Rover project to Blackstone for $1.57 billion (see Energy Transfer Sells 32% Ownership in Rover Pipe to Blackstone). It takes a LOT of money to build these pipeline projects. Sometimes companies like ETP borrow via issuing debt (“notes”). More often they sell equity–or ownership. Earlier this week ETP announced is offering a new round of units (think shares of stock). No doubt the money will be used to help fund projects including Rover and ME2. ETP is offering 54 million units hoping to get $18.65 per unit–or a cool $1 billion…
    Read More “Energy Transfer Floats 54M New Units, Looks to Raise $1 Billion”

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    Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done

    Those opposing two major Energy Transfer projects–Rover Pipeline and Mariner East 2–will not be happy with the good news coming from ET this week. The company issued its second quarter update and held a conference call yesterday. During the call we learned that Phase 1 of Rover, a $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, is “substantially complete” with Phase 1A expected to be done next week and online asap. Phase 1A stretches from Cadiz to Defiance, which is most of Ohio. Phase 1B is a short segment from Seneca to Cadiz, and once ET gets clearance from FERC to drill horizontally under Captina Creek, it will only take them about 40 days to complete Phase 1B. If ET can convince FERC to allow them to restart more horizontal directional drilling (HDD) work, Phase 2 will be done soon as well–and the entire project will be up and running by the end of the year. More good news for Rover: The temporary ban on HDD work for Rover in two West Virginia counties that began two weeks ago has now been lifted by the WV Dept. of Environmental Protection. As for ET’s Mariner East 2 (ME2) pipeline project that stretches across Pennsylvania, 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and covered up. As we reported yesterday and again today, ET subsidiary Sunoco Logistics Partners (building ME2) has brokered a deal with several radical environmental groups that will slow the project down some, but slow and done is better than no progress at all. Here’s an update on the good news about Rover and ME2…
    Read More “Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done”

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    OH Landowner Vents Frustration with Rover Work on His Land

    Below is a story of an Ohio landowner who “worked to get good easements and good language” in the contract he signed with Rover Pipeline. But, according to the landowner, once construction began, “everyone seemed to forget” what they promised in the contract. And so landowner Roger Meggyesy has been vigilant to point out violations to third-party pipeline inspectors who report on Rover’s activities to the Federal Energy Regulatory Commission (FERC). As Meggyesy rhetorically asks, “Why do we have to come and fight after the fact?” It is disheartening to read these kinds of accounts. This guy did everything right, got it all in writing–and yet it’s still an uphill fight. We bring you this story because it’s important to air the problems along with highlighting the good stuff when it comes to these big pipeline projects…
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    ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks

    Rover Pipeline is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling mud (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a wetland next to the river. As we pointed out at the time, “Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter.” The Ohio Environmental Protection Agency (OEPA) investigated the spill, following an “anonymous tip” and found the presence of diesel fuel in the spilled mud. Diesel fuel IS toxic–and its presence is not a good thing. OEPA’s testing found “very very low levels” of diesel fuel, whatever that means. Even very very low amounts are not good–and in fact are illegal. Since that time Energy Transfer has tried to figure out why there is diesel in the drilling mud–because they sure didn’t order it, and they firmly believe their drilling contractor did not add it to the mud. So how did it get there? On Friday Energy Transfer offered two theories–either an accident spilled diesel into the mud, or it was intentionally placed there by antis, as an act of sabotage. We do find it interesting that OEPA Director Craig Butler, who has been combative against Energy Transfer and the Rover project, claims an anonymous source tipped him to the presence of the mud. Was the anonymous source a whistle blower who worked for the contractor and claimed this is a routine practice? Did OEPA find diesel in unused drilling mud? Have they found the presence of diesel at ANY other locations where HDD is being used? We certainly had the thought fly through our brains, for only a moment, “What if an anti deliberately put diesel in the mud?” when this story first broke several months ago. But we immediately dismissed the idea. Not even antis would stoop so low as to poison Mother Earth to advance their cause. Or would they?…
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    Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’

    Rover is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a swamp (i.e. “wetland”) next to the river. The Ohio Environmental Protection Agency (OEPA) investigated the spill (following a tip) and claimed to find the presence of diesel fuel in the spilled mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). OEPA reported their findings to FERC and FERC launched an investigation into the Tuscarawas spill. FERC hired engineering firm J.D. Hair & Associates to review what went wrong. The Hair report is in. The reviewers can’t say with any confidence whether or not Rover (Energy Transfer) and the contractor doing the underground horizontal direction drilling (HDD) at Tuscarawas, Pretec Directional Drilling, followed project requirements. Why? Because of “very limited” documentation. That is, poor record-keeping. The 425-page report (full copy below) does offer some theories as to why Pretec’s HDD drilling leaked: Pretec encountered “sticky clay” while drilling, so they doubled the amount of drilling mud to clean the cutter. The extra pressure forced the mud out of cracks in the ground–and resulted in a 2 million gallon spill…
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    ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company

    Last Friday MDN told you about two Democrat backbenchers trying to make trouble for Energy Transfer (via Rover Pipeline), as well as make trouble for the Federal Energy Regulatory Commission (see Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC). Sen. Maria Cantwell (from Washington State) and Congressman Frank Pallone (from New Jersey) are using recent problems with the construction of the $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, to target Energy Transfer and FERC. To be sure, Rover has had its issues–with drilling mud spills, water in trenches and knocking down a dilapidated old house that was on a list of historic sites. In a surprising (and frankly, stupid) move, Energy Transfer’s CEO Kelcy Warren wrote a letter responding to lightweights Cantwell and Pallone. He calls a FERC investigation of his company (which is part of what Cantwell and Pallone are demanding), based on problems with Rover, to be “unprecedented” and “extrajudicial.” Warren is right, of course. But he’s not the one who should be making the case. It makes Energy Transfer seem defensive. In the case of backbenchers Cantwell and Pallone, best just to ignore them…
    Read More “ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company”

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    Energy Transfer Sells 32% Ownership in Rover Pipe to Blackstone

    In a surprise move, Energy Transfer Partners has sold what amounts to be 32.44% of the ownership of the still uncompleted Rover Pipeline to Blackstone, a private equity and so-called alternative equity firm based in New York City. In fact, Blackstone is the largest alternative equity firm (investing in things other than stocks/bonds/cash) in the world. Blackstone is paying ET $1.57 billion in a somewhat complicated transaction. There are multiple companies, on paper, involved. ET has a subsidiary (on paper) called HoldCo which owns 65% of the Rover project. Blackstone (and its subsidiary Blackstone Energy Partners) is buying 49.9% of HoldCo. When you do the math, it works out to be a 32.44% stake in the Rover Pipeline venture. Rover, as we have covered, is the $3.7 billion, 711-mile pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The project is facing setbacks and delays in both Ohio and West Virginia due to various accidents and spills. Phase 1 of the project–from Cadiz, OH to Defiance, OH–was supposed to be online by yesterday. That has now slipped to “late summer” (see Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer”). The ET/Blackstone deal will close by the end of this year, presumably when the pipeline is up and running…
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    Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC

    Sen. Maria Cantwell and Rep. Frank Pallone

    A United State Senator from Washington State (left coast) and a Congressman from New Jersey, both of them liberal Democrats, have sent a letter to the Federal Energy Regulatory Commission (FERC) over “troubling reports” regarding Energy Transfer Partners and the Rover Pipeline project. Sen. Maria Cantwell (D-WA) is a ranking member of Senate Energy and Natural Resources Committee. She looks like a kindergarten teacher. Rep. Frank Pallone (D-NJ) is the ranking member of the House Energy and Commerce Committee. He looks like an extra on The Sopranos. In their roles on their respective committees they are asking FERC to conduct a wide-ranging investigation of ET and Rover–even though the pipeline doesn’t traverse a square inch of either Washington State or New Jersey. They begin by regurgitating old news about ET knocking down a dilapidated “historic” house, and move on to leaks of drilling mud. All of it old news. All of it currently being handled/reviewed/remedied. They go on from there to ask FERC to investigate *all* ET projects. While one could say this dynamic duo have an “interest” in the Rover project because of their role on the energy committees to which they belong, it’s a stretch. This is more swamp politics–a couple of obscure backbenchers trying to raise their profile with their own constituents. They don’t care a scintilla about the people in Ohio (or West Virginia) that may or may not have been impacted by the Rover project. The real purpose of the letter is to cast doubt on FERC itself. Near the end of the letter, they ask a series of questions, including a question for how many applications has FERC received over the past 17 years, and how many they have denied. It’s a setup by two backbenchers to try and question the authority (and competency) of FERC. We say let them eat white noise. Refuse to even acknowledge the letter…
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    Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues

    MDN previously reported about problems experienced in Chester County, PA (suburb of Philadelphia) with underground horizontal directional drilling (HDD) by Sunoco Logistics Partners for its Mariner East 2 Pipeline project (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). Sunoco accepted the blame for fouling a dozen private water wells in West Whiteland Township with drilling mud. The short-term fix was to provide hotel rooms from some of the families most affected–and to provide bottled water for all of them. Sunoco didn’t waste any time with a long-term fix. Sunoco worked on a deal to extend a municipal water pipeline to some 30 homes in the area (see Sunoco Extending Public Water to Homes Affected by ME2 Drilling). The long-term fix is going to cost plenty. How much? Sunoco proposes to pay to connect each homeowner, plus $60,000 to cover the cost of water bills over the next 20 years. If homeowners want to stay on their private water wells instead of hooking up to municipal water, Sunoco will pay them $11,000. Some of the homeowners are pleased with the offer, others are greedy and want more…
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