Rover Pipeline Says Part of Phase 1 Will be Delayed Nearly a Month
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. The Federal Energy Regulatory Commission (FERC), charged with overseeing interstate pipeline projects, granted final approval for the project in early February (see ET Rover Pipeline Gets Final Approval by FERC). Since then, the company has aggressively moved forward with construction. Energy Transfer has maintained, from the beginning, it will complete Phase 1 of the project in “July 2017” (usually quoted by Rover ET officials as July 1st), and the rest of the pipeline will be done in “November 2017” (Nov. 1st). Phase 1 will build the pipeline as far west as Defiance, OH. Phase 2 finishes the pipeline–all the way to the Dawn Hub in Canada. Some say the company has moved too quickly, resulting in accidents (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Rover has put new procedures in place to prevent more accidents like the 2 million gallon drilling mud spill, asking FERC for permission to drill underground in two locations key to completing Phase 1 (see Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill). Yesterday MDN brought you the news that FERC denied permission to begin new underground horizontal drilling (see FERC Responds to Rover Request to Begin Drilling in 2 Locations: NO). So that begs the question: Can Rover keep to its schedule? ET officials are now modifying the date for completion of Phase 1…
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It was full speed ahead for Energy Transfer’s Rover Pipeline construction project in Ohio–until a series of drilling mud spills hit, including one that dumped some 2 million gallons of bentonite mud into a wetland near the Tuscarawas River in Stark County, OH (see
Radical environmental groups are seeking to stop the Energy Transfer Rover Pipeline project by using recent violations as leverage. The FreshWater Accountability Project, begun in Ohio after the Muskingum Watershed Conservancy District signed agreements to sell water to the shale industry, along with Michigan Residents Against the ET Rover Pipeline, filed a complaint with the Federal Energy Regulatory Commission (FERC) on Wednesday asking the federal agency to stop all construction on Rover. The request will almost certainly go nowhere–but Rover’s own actions have opened the door to this action. We understand that accidents happen when drilling horizontally underground for pipelines and that sometimes you get an “inadvertent return” (leak) of drilling mud slipping up to the surface. But it’s tough to explain away a 2 million gallon leak (see
More trouble for Energy Transfer and the Rover Pipeline project as the company is working against a tight deadline to get the $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that traverses Ohio up and running this year. It appears as if the Ohio Environmental Protection Agency (OEPA) is hellbent on picking a fight with the project. Perhaps some of OEPA’s criticisms are justified–perhaps some are not. We’ll give you the “lay of the land” (pun intended) as we see it. Early on Rover appeared to rush too much, resulting in numerous drilling mud spills in locations where Rover was drilling underground to avoid creeks and rivers and other structures. One of those spills dumped 2 million gallons of drilling mud (i.e. bentonite) in a wetland next to the Tuscarawas River (see
While reviewing documents filed with the Federal Energy Regulatory Commission (FERC) for the Energy Transfer Rover pipeline project, we came across a letter filed by ET yesterday. The letter (full copy below) addresses the recent “inadvertent return” (i.e. major leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see
We’re not sure we have the full, 100% story, but we have enough of it to have some righteous anger. In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places (see
Early last week MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see
As MDN began reporting last week, Energy Transfer’s Rover Pipeline, a $4 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, has quickly become a soap opera. MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see
You can’t see we didn’t warn Rover Pipeline. In our story yesterday about the Ohio EPA’s frustration with Rover over regular spills of drilling mud (and other violations), we pointed out that the OEPA’s language is “Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that” (see 
Last week Energy Transfer Partners (ETP), the main operating division of Energy Transfer Equity (ETE), released its first quarter 2017 financial and operating update. ETP is the company that built the Dakota Access Pipeline, which was finally completed after Obama was ejected from office–and is right now building the Rover Pipeline. Another division of ETE was, until last month, Sunoco Logistics Partners. In April Sunoco LP was merged into ETP (see
As construction of the Mariner East 2 NGL (natural gas liquids) pipeline project heats up, thousands of Pennsylvanians are going back to work. Sunoco Logistics Partners (now called Energy Transfer Partners) said it would take some 8,000 workers to build the twin pipelines called Mariner East 2–from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. When Sunoco LP signed a deal to hire union workers for the pipeline, the deal stipulates half of the hires are local–from within PA. Sunoco has lived up to its word, as evidenced by the testimony of the Operating Engineer’s Union (Harrisburg) who has already seen 50 of its members hired to work on the project. What about the other half, the “foreigners” who come from other states? They’re brought in because of required specialized skills. But even the out-of-staters are welcomed–they’re adding big bucks to the local economy…
Looks like Middletown Township, in Delaware County, PA (Philadelphia suburb), has finally faced reality that the Mariner East 2 Pipeline is coming through town. To be fair, town council came to that conclusion last September when they voted to grant easements to Sunoco Logistics Partners to build Mariner East 2 across four parcels of public land (see
As of today, the nameplate on the door that says “Sunoco Logistics Partners” is getting changed to “Energy Transfer Partners” (ETP). On paper (and for investors) Sunoco LP & ETP have been different companies, but functionally both companies have co-existed under the Energy Transfer Equity (ETE) umbrella for years–essentially as different divisions of the same company. Sunoco LP is (currently) best known for its Mariner East pipeline projects–along with the Marcus Hook refinery/terminal. ETP is (currently) best known for the recently completed Dakota Access Pipeline. Sunoco LP’s headquarters will move from Newtown Square, PA to combine with ETP’s HQ in Dallas, TX. For investors, Sunoco LP will stop trading at close of business today and become part of the ETP ticker symbol as of Monday. Shareholders for both companies approved the paper merger on Wednesday…