Energy Services

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    Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed

    Yesterday morning shortly before 5 am, a 24-inch gathering pipeline in Beaver County, PA (about 30 miles from Pittsburgh) caught fire and exploded. Fortunately, nobody was hurt, although a nearby home, barn and two garages were leveled by fire from the blast. The pipeline went online just last week, on Sept. 3. It wasn’t even officially/commercially online–it was still in testing phase. The exploded pipeline is part of Energy Transfer’s 100-mile Revolution Pipeline system. The pipe gathers dry and wet gas from local wells and delivers it to a cryogenic separating plant in Washington County, PA. From there, the separated methane goes into the Burgettstown Lateral of the Rover Pipeline (Burgettstown began service on Sept. 1). Following the explosion around 30 homes within a half mile were evacuated, but returned later in the day. Some 1,500 people in the area were without power for part of the day after six high-tension electric lines were toppled, either by the blast or the ensuring fire. A full investigation is now under way, but early indications are a “ground slip” (i.e. landslide) was the cause. That area has been pounded day after day with torrential rain, saturating the ground and causing multiple landslides in the area. Philadelphia antis (on the other side of the state) have already piled on, rubbing their hands with glee, pointing out Energy Transfer is the same company as Sunoco Logistics Partners–the company building the Mariner East 2 pipeline project. Antis are using a freak accident  and tragedy in the hills outside Pittsburgh to try and stop ME2 in the flat country of Greater Philadelphia…
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    Lancaster Nuns Appeal Atlantic Sunrise Pipe Case to US Supreme Court

    The Sisters of the Corn (our name for the a group of nuns in Lancaster County, PA) are not giving up their wildly hypocritical lawsuit against Williams for building the Atlantic Sunrise Pipeline across their property. The good sisters are asking the U.S. Supreme Court to hear the case, claiming infringement of religious freedom. The nuns use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field owned by the nuns (leased to a local farmer) directly in the path of the pipeline, declaring the site a “chapel.” Hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a flimflam lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. In July, the Third District tossed the case too (see Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe). The only legal option left to the sisters is to pray for a miracle–that the U.S. Supreme Court will hear the case, and find in their favor…
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    Risberg Pipe from NW PA to NE OH Plans Construction in October

    Click for larger version

    RH energytrans, which plans to build a 60-mile, $86 million pipeline from Crawford County, PA through Erie County and into Ashtabula County, OH, says they expect to begin digging for the new pipeline soon. RH officials told North Kingsville officials (Ashtabula County) last week that “construction could begin soon.” How soon? Early October, provided they get a final OK from the Federal Energy Regulatory Commission (FERC). Last October MDN brought you details about the proposed Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be built in Pennsylvania and approximately 12 miles of new pipeline will be built in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. In late June, FERC issued a favorable environmental assessment for the project (see 60-Mile Pipeline from NW PA to NE OH Gets Favorable FERC Review). A favorable EA is the penultimate step before FERC gives a final OK. That final OK is due no later than Sept. 27. Clearly RH believes they will get a final OK within the next two weeks, and they’re communicating with communities, alerting them construction is about to begin…
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    Atlantic Sunrise Pipeline Delayed Another Week, Now Sept 17

    Today was the day that the $3 billion expansion of the Transco Pipeline in 10 northeastern Pennsylvania counties known as Atlantic Sunrise was supposed to up and running, following a slight delay from an August start (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). But unfortunately, there’s been a second delay. Williams signaled last Friday that there will be yet another delay, due to weather. The start date, according to a notification on the Williams electronic bulletin board (below) is that Atlantic Sunrise will now be operational on or by September 17th–a week from today. However, we’d like to make an observation. Hurricane Florence is said to be aiming for the coast of North Carolina/Virginia, and on its current track, the remnants of that storm may well affect northeastern PA this coming weekend. So don’t be disappointed if there’s a third delay in the startup of Atlantic Sunrise…
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    Problem at Majorsville Compressor Reduced Flow on Rover Pipe

    Rover system map – click for larger version

    Near the end of August, the Federal Energy Regulatory Commission (FERC) gave Energy Transfer Partners permission to start up both the Burgettstown and Majorsville Laterals, beginning Sept. 1 (see FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start). The Majorsville lateral is a “feeder pipeline” that connects supplies of natural gas produced in West Virginia (and western PA) to the main trunk of the Rover Pipeline. Rover is a super highway flowing Utica (and Marcellus) gas to the Midwest and Canada. But without smaller laterals (feeders) flowing gas into the main trunk of Rover, there’s no gas to sell to anyone. Majorsville did, indeed, start up on or about Sept. 1st, but part (or all) of the Majorsville lateral went down a few days later, last Thursday, because a piece of equipment in the Majorsville compressor station needed “maintenance.” According to ET, such maintenance is “part of the normal startup” for a compressor station. Whatever the issue/problem was, it was quickly fixed and by Friday (a day later) the full Majorsville lateral was back up and running…
    Read More “Problem at Majorsville Compressor Reduced Flow on Rover Pipe”

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    Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built

    RINO (Republican In Name Only) Pennsylvania House of Representatives member Chris Quinn, from the Philadelphia area, introduced House Resolution 1034 last Wednesday. The resolution instructs the PA Dept. of Environmental Protection (DEP) and the PA Public Utility Commission (PUC) to prepare a “comprehensive risk assessment of the Mariner East 2 [ME2] Pipeline.” Even though ME2 is 99% built and will soon go online. The resolution, which if passed doesn’t have any practical effect since it’s not a law, is actually an exercise in political derrière covering. What if the DEP and PUC performed such a risk assessment, and what if the report they issued found there are some risks associated with ME2 (as there are will any/all pipeline projects, roads, electric lines, stepping outside your door, etc.)? What then? The pipeline isn’t going away. It’s still going to be used, now that it’s built. Such is how the game is played by political swamp dwellers. Quinn also says he’s about to introduce House Bill (HB) 2609 requiring the state Attorney General to draft a landowner “bill of rights”–issued to landowners who may be subject to eminent domain for pipelines. Can’t wait to see what that bill says…
    Read More “Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built”

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    Weird: NC Republicans Target Dem Gov for Supporting M-U Pipeline

    It doesn’t typically happen this way, which makes us feel like we’re Alice that’s just fallen through the looking glass. Normally (not always) Republicans support fracking and pipelines and fossil fuels in general, and Democrats (increasingly) do not. But in North Carolina, the roles are reversed. Republicans in the NC legislature have launched an investigation into Democrat Gov. Roy Cooper over his support of Dominion Energy’s Atlantic Coast Pipeline project. The lawmakers claim a $57.8 million discretionary fund set up by Cooper was, in fact, a “pay to play” slush fund, funded by ACP partners (including Dominion) to help them obtain a permit from the NC Department of Environmental Quality. The allegation is that Cooper got the companies to commit to giving the state $57.8 million, and a day later voila, they had their permit. Quid pro quo. Cooper says the money will be used to repair so-called environmental damage from constructing the pipeline. Republicans say it stinks to high heaven and he needs to “let go” of the money. Seems to us like this is just the latest skirmish in a long-running war between the two sides, and the Atlantic Coast Pipeline project is collateral damage, caught in the middle…
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    2 New Protesters Take to Trees in Va. to Stop Mountain Valley Pipe

    Tree sitters protest the Mountain Valley Natural Gas Pipeline, Sept. 5, 2018 (Photo courtesy Lauren Bowman)

    We thought we had seen the last of Big Green protesters with names like “Ink,” “Sprout,” “Red,” “Nutty,” “Fern” and “Decard” illegally sitting in the tops of trees (or on poles) in Virginia as a tactic to prevent Mountain Valley Pipeline (MVP) from cutting trees along the path of the pipeline. Nope. We have two more: “Lauren” and “Nettle.” Two youngsters (early 20s) have built themselves a make-shift tree house in Montgomery County, VA.–in the path of trees that are due to be cut down for MVP. Draping a banner that says, “No Prisons, No Pipelines” (whatever that means), the two nutjobs say they pick and choose which laws they want to obey. Which is called anarchy. But that’s their philosophy. They don’t agree with the law that says EQT Midstream has the right to build MVP, so they’re illegally attempting to stop it. As near as we can tell, they’ll have a long wait. Due to federal laws protecting bats and other so-called endangered species, MVP can’t cut those trees until November. At least that’s our understanding. At any rate, we now have two more protesters who will need to be starved or otherwise forced out the trees. When that finally happens (as it will), the police need to send a bill for their services to the protesters, not MVP…
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    Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court

    In May 2016, three Big Green groups–THE Delaware Riverkeeper, Lancaster Against Pipelines and the Sierra Club (fueled by money from the William Penn Foundation and Heinz Endowments)–conspired and sued the Pennsylvania Dept. of Environmental Protection (DEP) saying the DEP erred in granting federal Clean Water Act “401” stream crossing permits for Williams’ Atlantic Sunrise Pipeline project (see Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project). It took nearly two and a half years, but yesterday the U.S. Court of Appeals for the Third Circuit finally rejected the lawsuit. Although the lawsuit was frivolous and a long-shot to begin with, we’re glad to see it resolved. It’s never good to have these lawsuits hanging out there–especially since startup of Atlantic Sunrise is coming any day now, which will be the ultimate victory over these nutters (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). Riverkeeper’s Maya van Rossum, who fancies herself the sole protector of the Delaware River, threw a snit fit…
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    NJ Towns Win Delay for Phase 2 of Garden State Expansion Pipe

    You win some, you lose some. Today we brought you the news that THE Delaware Riverkeeper and other radical groups lost their case opposing the Atlantic Sunrise Pipeline project (see Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court). However, the same court, the U.S. Court of Appeals for the Third Circuit, went the other way on a different Williams project. Last August two New Jersey towns sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project (see FERC Fights NJ Town Effort to Decertify Garden State Expansion). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline.” Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the Third Circuit to overturn FERC’s previous decision to allow the project. They also asked that permits issued by the New Jersey Dept. of Environmental Protection (NJDEP) be revoked. Yesterday the court ruled that NJDEP erred by issuing permits for the project. However, the court ruled that the towns’ challenges to FERC’s order allowing the project lack merit (and were dismissed). So, a partial victory–but still more delays because of the ruling re NJDEP…
    Read More “NJ Towns Win Delay for Phase 2 of Garden State Expansion Pipe”

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    Rover Pipe Asks FERC to Start Up Final 2 Laterals, for Antero

    We finally come down to the final two lateral pipelines for Rover. The Federal Energy Regulatory Commission (FERC) played a game of hardball with Energy Transfer (ET) over the Rover Pipeline. For months FERC refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals). The reason? ET had not, according to FERC, lived up to its word on restoration work. Things like smoothing over the dirt and replanting grass/other vegetation over top of the buried pipeline. In early August ET assured FERC it would have the majority of restoration work done on two key laterals–the Burgettstown Lateral in southwestern PA, and the Majorsville Lateral in the northern panhandle of WV–by the end of August. FERC made ET sweat. Finally, near the end of August, FERC gave ET permission to start up both the Burgettstown and Majorsville Laterals on Sept. 1 (see FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start). That leaves just two final laterals, the CGT (Columbia Gas Transmission) and Sherwood Laterals, still not online. On Friday ET asked FERC to approve the startup for those two laterals, along with a compressor station and two meter stations associated with them. The driller with the most at stake in the startup of these two final laterals is Antero Resources…
    Read More “Rover Pipe Asks FERC to Start Up Final 2 Laterals, for Antero”

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    EQT People: Who Stays with Mom & Who Goes with Dad After Co Split

    It’s an amicable divorce, the split of EQT into upstream (drilling) and midstream (pipelines). But it’s still a divorce, and the parents have to decide which kids will go or stay with which company. The “kids” in this case are the top managers, the executives. And we have the list. After EQT announced its plan to buy/merge in Rice Energy last year, the company got pushback from a couple of so-called activist investors (i.e. corporate raiders). One raider, Jana Partners, tried its best to stop the EQT/Rice deal outright (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Jana slithered away after the merger happened. However, a second raider, D.E. Shaw, supported the merger but lobbied hard that once the merger is complete, the company should split itself into two companies: upstream (drilling) and midstream (pipelines). Shaw’s pressure made EQT tap dance to their tune (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). True to their word, once Rice was merged in, EQT then added a couple of new board members and set about exploring how to separate the company into two companies. The theory is that by separating, each company can focus on what it does best (drilling or pipelines), meaning each separately will have a higher valuation/stock price than the two combined. That is, “the sum of the parts” is worth more than the whole. In February the company decided it will, indeed, split (see EQT Pulls Trigger to Split Company in Two: Drilling & Pipelines). Yesterday EQT released the list of which top execs will go, and which will stay, with upstream and midstream…
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    How MarkWest Gets Marcellus/Utica NGLs to Market

    The Marcellus and Utica Shale layers in Southwestern Pennsylvania, northern West Virginia and eastern Ohio produce a boatload of NGLs–natural gas liquids. One company had the foresight to plan a strategy to separate, transport and sell those NGLs. That company was MarkWest Energy, now known as MPLX following a purchase by/merger into Marathon Petroleum. MarkWest’s plan is firing on all cylinders. The experts at RBN Energy have analyzed MarkWest’s initial strategy, now largely complete, and their long-term strategy, still in the works, to give us a great snapshot of how NGLs are moving from our region to Midwestern and Canadian markets…
    Read More “How MarkWest Gets Marcellus/Utica NGLs to Market”

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    Dominion Takes Out $3B Loan for Cove Point Facility

    This another one of those high finance thangs we don’t fully understand. Dominion Energy spent $4 billion to build their Cove Point LNG export facility in Lusby, Maryland. Somehow and somewhere they got money to build it–investors perhaps, or maybe Dominion had some cash tucked away under the corporate mattress. Dominion wants to get some of that debt off its books, so it has just structured a three-year loan with 20 lenders for $3 billion, reducing the company’s “parent level debt”–as opposed to child or subsidiary level debt. What it all means, if we’re understanding it correctly, is that Dominion is moving debt from the parent company’s balance sheet to the Cove Point subsidiary company’s balance sheet. Prior to this, Cove Point “owed” the money to Dominion itself (all in the family), and now, instead, the Cove Point subsidiary will owe that money to lenders directly. That’s our take. Hopefully it won’t take long for Cove Point to pay off the debt…
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    Schlumberger Donates $14M in Software to Youngstown State Univ

    Houston-based Schlumberger (pronounced Shlum-Bur-Zhay) is the world’s largest oilfield services company. They’re the company a majority of exploration and production companies (drillers) call when they want a new well drilled. The #2 company on speed dial for drilling new wells is Halliburton, and they’re not even close in size to #1 Schlumberger. Here in the U.S., the #3 company on speed dial for drilling is Baker Hughes, still (for now) owned by GE. We mention all that because most folks recognize the names Halliburton and Baker Hughes, yet are often not familiar with the hard-to-pronounce Schlumberger. Even so, Schlumberger has a big presence in the Marcellus/Utica region. In a gesture of “giving back,” the company has just made a VERY generous grant of $14 million of its own proprietary software used for modeling and assessing risk associated with drilling new wells, to Youngstown State University. Most major E&Ps use Schlumberger’s software, even if they don’t use Schlumberger itself to do the actual drilling. While at first glance the gift of software may seem self-serving, it’s not. This gift means that students will be trained on the latest and greatest software that they will need to know, coming right out of college. It helps the kids gain a valuable skill, making them more employable once they hit the workforce…
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    MVP 2nd Big Win This Wk – 4th Circuit Lifts Stay of Water Permit

    As we reported yesterday, EQT Midstream’s Mountain Valley Pipeline (MVP) got some excellent news–that the Federal Energy Regulatory Commission had lifted a stop-work order on the project (see FERC Lifts Mountain Valley Pipe Stop-Work Order, Rehiring). However, two clouds remain over the project, both created by the Fourth District U.S. Circuit Court of Appeals in response to lawsuits from the Sierra Club. One of those clouds is from the Fourth Circuit overturning permits issued by the U.S. Forest Service and Bureau of Land Management that allows MVP to cross 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see Court Cancels Permits for Mountain Valley Pipe on Fed Land). EQT is working on resolving the issue so that USFS and BLM can reissue permits that will pass muster with the court. The other cloud appeared when the Sierra Club convinced the Fourth Circuit to suspend a permit issued by the U.S. Army Corps of Engineers that allows MVP to construct the pipeline across streams and rivers in the West Virginia. The Clubbers got the court to suspend stream and river crossings based on a technicality–that MVP could not, in the case of four river crossings, get the work done within the 72 hour period stipulated by the permit. Therefore the court suspended work at all 591 stream/river crossings the pipeline traverses in WV (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). In early July, the Army Corps reworked and reinstated the permit as it applies to the four river crossings in question (see Army Corps Engrs Reinstates MVP Permits for 4 WV River Crossings). The good news is that the Fourth Circuit has granted a motion by the Army Corps to reinstate its permits for all stream/river crossings for MVP. Sunlight is breaking through!…
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