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THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg

Today is the day that (some of) Maya’s minions will show up at a meeting of the Delaware River Basin Commission to attempt to bully DRBC staff during the public comments period. As we’ve been reporting (from a well-placed mole on the DRBC email list) Maya has been issuing orders to her minions–people who apparently aren’t bright enough to form their own thoughts about matters like the PennEast Pipeline (see Mind-Numbed Antis Need Maya’s Instructions re DRBC Mar 15 Mtg). Maya has written out a treatise of objections to PennEast, to be read WORD FOR WORD by the minions–or else. We now have the script that Maya’s mind-numbed robots will read from (see it below). We also have her last-minute instructions to the dolts doing the reading…
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Baker Hughes Introduces New “Adaptive” Drill Bit

TerrAdapt™ adaptive drill bit

Baker Hughes has just officially released a new drill bit that they hope will become the new standard in drill bits–the TerrAdapt “adaptive” drill bit. Baker Hughes says they’ve made “dumb” drill bits “smart” by packing intelligence into them. This drill bit can respond to conditions in real time, automatically, to prevent “stick-slip” issues which cause bits to rapidly speed up or slow down. The bit self-adjusts its depth-of-cut (DOC) control elements to automatically adapt its aggressiveness to changing rock types. Pretty cool stuff. The long and the short of it is that this bit means less problems and more uptime spent drilling/chewing away, meaning it will take less time to get the hole drilled…
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TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up

TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. In October, TransCanada launched an open season to lock up customers for the new, lower-priced option. The open season was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. The original deal required a 10-year term with a long-term tolling rate between C$0.75/GJ to C$0.82/GJ. In February, the advertised deal was for a 10-year term and a simplified single rate of C$0.77/GJ (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked…
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Spectra Energy Buys PSE&G’s Stake in PennEast Pipeline

That was fast. Last Friday MDN reported that New Jersey’s largest utility, Public Service Enterprise Group (PSE&G), is shopping its ownership stake in the $1 billion PennEast Pipeline project (see PennEast Pipeline Investor Looks to Sell its 10% Ownership Share). PSE&G owns a 10% stake in the project primarily because it will be one of the biggest customers for the pipeline when (not if) it gets built. PSE&G wants to sell its share not because it has lost confidence in the project, but because of a change in corporate strategy. The bigwigs running PSE&G want to put their money into more power generating plants, rather than the pipelines that feed those plants. Fair enough. Yesterday Spectra Energy (now a part of Enbridge), another investor/partner in PennEast, said it will buy out PSE&G’s share. Spectra currently owns a 10% stake in the project, as does PSE&G, so it will double its ownership share…
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Report by Philly Antis Proves Mariner East 2 Pipeline is Safe

A group of anti-fossil fuel nutters from the Philadelphia suburb of Middletown, PA (Delaware County) spent good money to buy themselves a report from an “independent” consultant that they say proves the Mariner East 2 Pipeline is too dangerous to build through their township. We don’t know how much the Middletown Coalition for Community Safety blew on the study, but we do know that Middletown Township is blowing $45,000 of taxpayer’s hard-earned money for a similar study (see Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study). The Middletown Coalition was antsy, they didn’t want to wait for the town study to be completed, and they couldn’t risk a truly independent study finding the pipeline will be safe. So the Coalition moved ahead, no doubt using money from Big Green organizations to produce a report titled “Hazard Calculations for the Mariner East II Pipeline” (full copy below). The Coalition asked Quest Consultants, an Oklahoma-based firm, to evaluate what would happen IF a bunch of unlikely events were to happen. The report concludes: “IF the pipe were to rupture in Middletown Township, and IF the pipeline were operating at 1,500 psi while transporting ethane, and IF the release were oriented near to horizontal in the direction of the wind, and IF there are few obstructions to vapor cloud dispersion, and IF the weather conditions were 5 mph winds and stable atmosphere, the flammable vapor cloud could extend up to 1,800 feet from the pipeline.” The huge, gaping omission, the question the report does not address, is this: How likely is it that any or all of those things would actually happen? Our answer: near zero percent. In other words, the report just released by the Middletown Coalition proves that ME2 is safe!…
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CONE Midstream 2016 – Profits Up, Volumes Up, Looking Good

CONE Midstream, a joint venture between CONSOL Energy and Noble Energy (CO from CONSOL and NE from Noble Energy) was formed in summer 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). CONE Midstream has been a small but stellar performer in the midstream (pipeline) sector. Although it’s been almost a month since they released their fourth quarter and full year 2016 update, we thought it important to highlight the latest from CONE. Once again, as with previous quarterly (and annual) updates, CONE continues to impress. For all of 2016, CONE made a $96 million profit, up from making $71 million in 2015. They report flowing an average of 933 million cubic feet per day (MMcf/d) of gas through the system in 4Q16, up from an average of 760 MMcf/d in 4Q15. Below is the February update, along with the latest PowerPoint slide deck, the company’s 10-K filing with the SEC, and excerpts from their 2016 earnings call…
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Has the Clock Run Out for NEXUS Pipeline?

Is there still a market need for the NEXUS Pipeline project? That is the $2 billion question. Last December, the Federal Energy Regulatory Commission issued a positive final Environmental Impact Statement (see FERC Approves NEXUS Pipeline, Project on Track for 2017). The remaining obstacle for NEXUS is to obtain a certificate of public convenience and necessity from FERC, to begin construction. NEXUS had hoped to have that approval in hand on Feb. 3rd, when FERC issued a flurry of such certificates. However, NEXUS didn’t get one (see In FERC’s Game of Musical Chairs, NEXUS Pipeline Left Standing). Here’s the facts. The main competitor to NEXUS, Energy Transfer’s Rover Pipeline, DID get a certificate from FERC and is now under construction (see FERC Green Lights Rover Pipeline Construction). In addition, TransCanada is trying, hard, to entice western Canadian drillers to ship their gas east to Ontario in order to undercut both Rover and (if it gets built) NEXUS (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). While Rover’s pipeline capacity is 95% sold, only 59% of the NEXUS project is sold. So when a full FERC quorum is once again in place and willing to consider NEXUS, the question becomes, is the need still there?…
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Mind-Numbed Antis Need Maya’s Instructions re DRBC Mar 15 Mtg

The Delaware River Basin Commission (DRBC), charged with overseeing potential impacts on the Delaware River and the various tributaries that feed it, has stepped outside of its legal bounds with plans to review the PennEast Pipeline, part of which will run through the Delaware River Basin area. In 2014 the DRBC tried to tell PennEast and its sponsors that the pipeline will need their approval before it can be built (see DRBC Tells PennEast They Need DRBC (Not Just FERC) Approval). There’s just one teeny tiny problem with the DRBC’s plan. It’s called the U.S. Constitution. PennEast is permitted solely by the Federal Energy Regulatory Commission (FERC), not any other agency including the quasi-governmental DRBC. No matter, the DRBC is plowing ahead with its plan and will hold a public hearing this Wednesday, March 15. We previously shared with you the secret marching orders from anti-pipeline Nazis called THE Delaware Riverkeeper (see THE Delaware Riverkeeper Plans to Pack DRBC Hearing to Oppose PennEast). Our insider has sent us two more communications from Riverkeeper to the apparently mind-numbed robots they call supporters. The first email went out last Wednesday with instructions for the protesters who will attend the meeting. Riverkeeper is providing comments for them to read at the hearing. All of it 100% scripted. The follow-up email on Friday had to re-instruct the faithful. Apparently there was confusion and Riverkeeper had to tell them, once again, that they are to read from what THE Delaware Riverkeeper herself (Maya van Rossum) has written. Listen up stupids: you read what Maya wrote–you don’t depart from the script–or you risk her considerable wrath. Apparently Riverkeeper’s protesting followers are not bright enough to form their own arguments against PennEast…
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PennEast Pipeline Investor Looks to Sell its 10% Ownership Share

New Jersey’s largest utility, Public Service Enterprise Group (PSE&G), is shopping its ownership stake in the $1 billion PennEast Pipeline project. Which may sound bad, but isn’t. Is PSE&G losing confidence in the project? Not happy with progress (or lack thereof)? Afraid it won’t ever get built? No, no and no. According to a company spokesman, the $10 billion PSE&G wants to focus on power projects, not pipelines. A little background and context is helpful. PennEast is largely being driven by Pennsylvania-based UGI, a natural gas and electric utility serving 700,000 customers in 45 counties in Pennsylvania and one county in Maryland. UGI is managing the project, and has the largest ownership stake. Other investors/owners of the project include PSE&G, which has only invested $11 million and owns a 10% stake; NJR Pipeline Company, a subsidiary of New Jersey Resources, an NJ utility; SJI Midstream, a direct subsidiary of South Jersey Industries; Southern Company Gas, a wholly owned subsidiary of Atlanta-based Southern Company, a midstreamer; and Spectra Energy, now a part of Enbridge, yet another pipeline company. Even though PSE&G wants to sell its share of the project for financial reasons, it will remain one of the customers for the PennEast Pipeline when (not if) it gets built…
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Antis Attempt to Stop Atlantic Sunrise Pipe by Attacking FERC Order

Sometimes this regulatory stuff gives us a headache. Like today. A common practice by anti-fossil fuel nutters when opposing a pipeline project at the Federal Energy Regulatory Commission (FERC) is to request a “re-hearing” on a decision FERC has made to authorize a project. It’s just standard operating procedure. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order”–which grants FERC more time to consider whether or not a full re-hearing is justified. During the time of the tolling order (which can last up to six months), work on a pipeline continues. Sometimes the work even gets completed! Which of course drives the antis bonkers. Antis claim FERC uses tolling orders to avoid lawsuits. You see, antis can’t take their frivolous cases to a court until FERC has officially denied a re-hearing request. So by using a tolling order, FERC can drag out the process of deciding to deny a re-hearing, avoiding the inevitable frivolous lawsuit that comes with it, and work on important projects gets done. This is how things must operate in our litigious society that tolerates the antics of anti-fossil fuelers (with seemingly bottomless pockets of money to litigate every project). New wrinkle: When FERC Commissioner Norman “cry baby” Bay resigned in a huff effective Feb. 3, it left FERC without enough Commissioners (without a quorum) to vote on tolling orders, re-hearing requests, etc. So on Feb. 3, before Bay left, the existing three Commissioners delegated their authority over re-hearings and tolling orders to FERC staffers–until a new Commissioner is appointed and sworn in. Antis against Atlantic Sunrise are using the delegated tolling order issue against FERC in their attempt to stop commencement of construction on Williams’ Atlantic Sunrise Pipeline project, claiming they are being deprived of their “due process”…
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West Goshen’s Last Stand to Stop Mariner East 2 Pipeline

There are a few last, desperate gasps at attempting to stop Sunoco Logistics Partners’ Mariner East 2 natural gas liquids (NGL) pipeline from being built. The pipeline is currently under construction (see Mariner East 2 Pipeline Constructions Begins Across PA). Even though trees are getting cut and pipeline is being laid, that doesn’t stop libs in places like West Goshen Township (Chester County, near Philadelphia) from attempting to deny Sunoco a zoning permit for a valve on the pipeline. Sunoco has politely, but firmly, told West Goshen the pipeline doesn’t need a permit from the town to install a valve because it’s a state-permitted project. In other words, go pound sand. Sunoco plans to move forward, at the appropriate time, with installation and wants assurances from West Goshen the town won’t send in a local cop to stop them. It could get messy…
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Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval

On Feb. 3, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC has now given permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), must issue stream crossing permits. Sound familiar? The DEC faced a similar task with the FERC-approved Constitution Pipeline and ultimately, under political pressure from Gov. Andrew Cuomo, made the decision to refuse granting Williams the permits it needs to build the Constitution. Williams sued and sometime this spring NY will almost certainly lose the case (see Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution). With the approval arriving, the DEC decided maybe it was time to begin conducting circus public hearings about the project (see Battle Begins to Get NY DEC to Approve Northern Access Project). But NFG is in no mood to screw around with the Cuomo DEC, so they’ve asked FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project. Specifically, NFG wants FERC to rule that the DEC has NO role in reviewing the Northern Access 2016 project. Wouldn’t that be sweet?…
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Baker Hughes Feb Rig Counts Rockets Skyward, Recovery Continues

The Baker Hughes rig count in the U.S. continued to be on fire in February. Whoops! Poor choice of words. The rig count continued its rocket ride. In January the average number of U.S. rigs was 683. In February, the count zoomed to 744, up 61 rigs in just a month. Each active rig translates into hundreds of jobs, both directly working at the rig and indirectly in services delivered to the rig and its workers. It also means more landowners will soon have royalty payments heading in their direction. When rigs are active, life is good. What about rig counts in the Marcellus/Utica? Total rig count went up another 3 rigs. Two of the rigs were added in WV (now 10), and one in PA (now 34). OH’s rig count remained the same (20 rigs) in February as January. Just 3 added rigs out of 61 means other shale plays (primarily the Permian and other oil plays) are where most of the rig action is happening. Here’s the full set of numbers, along with a pretty MDN chart showing the last 12 months of rig counts in the Marcellus/Utica…
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Standing Rock Wannabes in Lancaster Threatened with $1K/Day Fines

Barn illegally hosting encampment

Two days ago MDN brought you the news that anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). What is that playbook? Establish a protest “camp” where hundreds or thousands of “protesters” (i.e. paid activists) can assemble to “fight” the pipeline. When you get a bunch of lazy hippies together, you need some logistics–a place to stash food, water, toilet paper, condoms (whoops, did we say that out loud?). You also need a meeting hall. The antis in Lancaster found a sympathetic local landowner who is loaning them his barn–as a place to store things and for meetings. The problem is, the barn isn’t zoned as an “encampment” and meeting hall, and the local municipality is threatening to slap the property owner with a $1,000 per day fine if the illegal protest meetings being held in the barn aren’t stopped. Now. The antis, who see evil methane monsters behind every tree, claim “Somebody’s out to get us, we don’t know who”…
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Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits

The Federal Energy Regulatory Commission (FERC) approved Atlantic Sunrise in early February (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Even though the project is approved, that’s not the end of the story. Regulatory work still remains, including approvals from the Pennsylvania Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. Construction of Atlantic Sunrise is scheduled to begin later this year, pending the receipt of these regulatory approvals. Williams is gently pressuring the DEP to hurry it up. Fortunately for Williams, the PA DEP is not like the corrupt New York Dept. of Environmental Conservation (DEC). In NY, the DEC caved to political pressure from Gov. Cuomo and denied Williams stream-crossing permits (a matter now in court, see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). In PA, the DEP will no doubt do its job and grant the permits. The problem is, they’re taking waaaaaaay too long to do it…
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Rover Pipeline Challenges FERC re Demolishing “Historic” House

On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $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 (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). 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. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s why FERC didn’t issue a blanket certificate for construction of Rover. So ET and Rover have now filed for a rehearing, claiming FERC erred in not granting the blanket certificate…
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