FERC Becomes Political as Seen in Rehearing Vote on NY Project
Has someone “gotten” to FERC Commissioners Cheryl LaFleur and Richard Glick–told them, “You vote against these pipeline projects or you don’t have a future in the Democrat Party”? That’s the thought we increasingly have as we watch the two sitting Democrats on FERC repeatedly vote against projects that in some cases they previously voted to approve. What makes someone like LaFleur flip and change her vote on something that two years ago she was 100% on board with? Something has to explain it! Two and a half years ago LaFleur, then a member of FERC, voted to approve Dominion Energy’s $165 million New Market Project, a project that expands Dominion’s transmission pipeline from western New York across the state to the Capital Region of the state, near Albany (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). The radical leftist group Otsego 2000 challenged the project, asking FERC to reconsider its approval, using mythical man-made global warming as a new criteria to reject the project. Last Friday the three Republicans FERC commissioners voted “no” to reconsider the New Market Project, but LaFleur and Chuck Schumer-appointed Richard Glick (both Dems) voted to reconsider, citing global warming concerns. Again, we wonder if someone has gotten to them. A sad day that FERC is longer a non-partisan group…
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Two Canadian provinces that share a border, Alberta and British Columbia (BC), are in the midst of a heated argument/conflict/civil war(?)–over a pipeline. We’ve not covered the conflict, until now. The short version is this: Alberta has a rich deposit of oil in what are called oil sands. In order to get more of the bountiful supply of oil to new markets, in Asia, Alberta needs a new pipeline. Kinder Morgan operates the Trans Mountain Pipeline system and previously proposed expanding Trans Mountain–from Alberta through British Columbia to the shore where the oil can be loaded on tankers and sailed to other continents. BC has blocked the new pipeline, and so now Alberta has passed a law that allows them to stop existing oil and gas flows into BC. If that happens, it will bring BC to its metaphorical knees from lack of energy sources. Yes, it’s getting nasty. The Canadian federal government is also involved, attempting to pressure BC to allow the pipeline. What does that have to do with the Marcellus/Utica? If we were to say “Constitution” or “Northern Access”–perhaps the light bulb will go off. You see, we have a parallel situation here in the states. New York State is blocking gas pipelines critical to PA (as supplier) and to the New England states (as demand centers). At some point, it’s not beyond the realm of possibility that PA will begin to turn off existing natgas flows into NY–and then what will we do? We New Yorkers would be royally screwed. Gov. Cuomo pay attention to our neighbors to the north. What’s happening up there is coming in your direction, if you don’t change course…
Let’s be right up front about how we feel about the innocent-sounding Trout Unlimited (TU). Four years ago the organization was outed as a radical, far-left environmentalist group–hellbent on opposing fossil fuels (see 
Disgusting and frustrating. That’s our reaction to a decision by the U.S. Fourth Circuit Court of Appeals that invalidates (vacates) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina. The Sierra Club, Defenders of Wildlife and Virginia Wilderness Committee (all radical left organizations) previously sued in federal court asking the court to stop work on ACP until the Federal Energy Regulatory Commission makes a decision on whether or not to “rehear” their decision to approve the project in the first place. In March, the court declined to stop work on ACP (see 
It was a big week for Sierra Clubbers. The radical environmental organization (that irrationally hates all fossil fuels, even fossil fuels they used to love, like natural gas) previously filed a lawsuit in the U.S. District Court of Appeals for D.C. asking the court to consider whether or not the Federal Energy Regulatory Commission (FERC) should have issued an approval for Mountain Valley Pipeline (MVP). MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–to move Marcellus/Utica gas south. No, the court did not rule FERC was out of order in its decision. Not yet, anyway. This gets in the weeds just a bit, so bear with us. The first step in the process of challenging a pipeline is to ask FERC to rehear their decision. If FERC refuses to rehear (reconsider) the decision, then whoever asked for the rehearing is free to file a lawsuit in the court system to challenge FERC’s decision to approve a project. FERC has 30 days to make a rehearing decision–unless they pull out the “tolling order” card and play it. A tolling order allows FERC more time to decide on rehearing–months, even a year. FERC played the tolling order card here and told the court, “We haven’t decided on rehearing yet, so you need to toss out the radical Sierra Club lawsuit challenging our decision to approve MVP” (MDN condensed version). This week the court said a very loud “NO” to FERC’s request. The court further told FERC to get off its duff and make the rehearing decision within 30 days. In the meantime, the Sierra Club of course wants MVP construction “paused indefinitely” while they continue to tie it up in legal knots. Don’t look for that to happen…
It appears a decision by the Federal Energy Regulatory Commission (FERC) earlier this year that strips away the main advantages of the tax-advantaged master limited partnerships (MLP) structure is causing the MLP to go the way of the dodo bird. Because of the Trump tax cut, in March FERC reversed a previous policy and will no longer allowed MLP interstate oil and gas pipelines to include an income tax allowance in their cost-of-service rates (see 
In April MDN told you that the New York Dept. of Environment Conservation (DEC) had rejected a modest pipeline expansion proposal by Williams’ Transco Pipeline subsidiary (see 
Good news. The main part of the Atlantic Sunrise Pipeline project–where it runs through Lancaster County, PA–is almost finished. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. The most opposition to the pipeline has happened in Lancaster County. Right now 90% of the pipeline has been welded in Lancaster County and sits above ground. By the end of July, all of it will be done and buried in the ground. It won’t be long after that that the entire 198 miles will begin to flow northeast PA Marcellus gas…
On Tuesday, the Federal Energy Regulatory Commission (FERC) granted Williams’ Transco Pipeline permission to reverse the flow along part of the pipeline to begin sending more Marcellus gas south. The order allows Transco to start up modified compressor stations in Maryland, Virginia and North Carolina, and to begin flowing an extra 150 million cubic feet per day (MMcf/d) of yummy Marcellus gas southward. Most of the time when we report on Atlantic Sunrise, we talk about the greenfield (brand new pipeline) being installed in 10 Pennsylvania counties. What’s often overlooked are other aspects of the project, like this one, that will kit out the Transco to flow 1.7 billion cubic feet per day of Marcellus gas to the south and to the Gulf Coast. The greenfield portion of the pipeline is due to be completed sometime soon–by “mid-2018.” This latest order allowing the startup of bidirectional flow along certain portions is an important part of the project…
THE Delaware Riverkeeper, Maya van Rossum, issued a letter/petition to THE Delaware River Basin Commission (DRBC) back in February–which escaped our notice at the time. The petition demands that the DRBC “man up” and exercise complete and total authority over the PennEast Pipeline project–and stop it cold by prohibiting tree clearing. Riverkeeper maintains that if tree clearing is allowed to begin, it will negatively impact water supplies in the Delaware River Basin–therefore it’s within the DRBC’s purview, in fact responsibility, to take hold of the situation and stop it. This is just one of a many-pronged attack by Riverkeeper to try and stop PennEast, a 120-mile pipeline that will run from near Wilkes-Barre, PA to near Trenton, NJ. The planned route passes through Luzerne, Carbon, Northampton, and Bucks counties in PA, and through Mercer and Hunterdon counties in NJ. The pipeline is needed to move PA’s abundant Marcellus gas to markets in NJ. Last week we told you about Riverkeeper’s latest lawsuits to stop PennEast (see 
The average worker who works for producers (i.e. drillers) in the Pennsylvania Marcellus makes among the highest average salaries of any industry in the state. Looking at six of the state’s top Marcellus drillers, the average worker made $113,610 last year! That’s an average taken from workers at CNX Resources, Range Resources, Chesapeake Energy, Southwestern Energy, EQT and Cabot Oil & Gas. We hasten to add not “all workers” but “average” or “median” workers–meaning there are people who make below that number and people who make well above that number. It also means the majority of Marcellus workers in those companies made at least $100,000 per year. Those working for oilfield services (OFS) companies like Halliburton, Baker Hughes and others didn’t fare quite as well, making an average of $52,000-$80,000 per year. Still, hey, it ain’t bad money! Here’s a look at the average wage for top Marcellus drillers and the OFS companies that serve them…
On Friday, the Federal Energy Regulatory Commission (FERC) issued Dominion Energy permission to begin construction of the actual pipeline for the Atlantic Coast Pipeline (ACP) project–in West Virginia. ACP is a (now) $6.5 billion project, up from a projected $5 billion due to delays from regulatory agencies and frivolous lawsuits filed by Big Green groups, that will run from WV through Virginia and into North Carolina–almost to the border with South Carolina. Until now FERC had allowed prep work, like tree cutting. But now actual pipeline construction can begin, which is a momentous occasion, worthy of celebration!…