Energy Services

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    PA Appeals Court Rules ME2 Pipe NOT Under Local Zoning

    The entire panel of judges sitting on Pennsylvania’s Commonwealth Court, an appeals court in PA, ruled yesterday that zoning regulations in a local municipality–in this case Middletown (Delaware County)–do NOT supersede the state Public Utility Commission when it comes to regulating Sunoco Logistics Partners Mariner East 2 (ME2) NGL pipeline. In May 2017, six anti-pipeline residents living near where the ME2 pipeline will pass asked the Middletown town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. The town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped-up, agitated and funded by Big Green groups filed a lawsuit against ME2, to force it to conform with Middletown’s ordinance (see 6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe). The lawsuit was filed in the the Delaware County Court of Common Pleas. The judge dismissed the case in June, so the antis, again funded by Big Green groups, appealed the case to the next higher court, Commonwealth Court. An “en banc” panel (meaning all of the judges) heard the case, indicating its high importance. The en banc panel ruled yesterday, against the Middletown residents…
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    Fed Court Dismisses Anti Lawsuit to Stop Atlantic Coast Pipeline

    Earlier this month MDN reported that the Southern Environmental Law Center and Appalachian Mountain Advocates, on behalf of a mishmash of second tier radical groups, filed a “hail Mary” request with the federal Fourth Circuit Court of Appeals to stop construction of Dominion Energy’s Atlantic Coast Pipeline until a lawsuit sitting before the Fourth Circuit questioning the validity of the permits granted for the project is played out (see Big Green Makes Desperate Attempt to Stop Atlantic Coast Pipe). Last week the Fourth Circuit responded by denying the request to stop ACP. Why? Because the Federal Energy Regulatory Commission (FERC) has not yet decided on whether or not to rehear their decision on ACP, which Big Green previously requested. FERC has used a “tolling order” to give themselves more time to consider whether or not they were wrong in approving the ACP project. The Fourth Circuit doesn’t have jurisdiction until FERC makes a decision on rehearing. In the meantime, construction on ACP continues…
    Read More “Fed Court Dismisses Anti Lawsuit to Stop Atlantic Coast Pipeline”

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    Williams Northeast Supply Enhancement Pipe Gets Favorable DEIS

    In March 2017 (one year ago), Williams filed a full, official application for the Northeast Supply Enhancement project (see Williams Files with FERC to Expand Transco Pipeline to NYC, NE). The project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. While the project is sure to encounter issues with the New York State Dept. of Environmental Conservation (much of the Raritan Bay pipeline is located in New York territorial waters), the good news is that the Federal Energy Regulatory Commission has just issued a favorable draft environment impact statement (DEIS). A favorable DEIS almost always means the project will receive a final approval from FERC…
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    NG Advantage Looks Beyond Fenton, NY to Build Virtual Pipeline

    In a sad postscript, it appears that NG Advantage, which had once hoped to establish a virtual pipeline operation (compressing natural gas from the Millennium Pipeline) in the Town of Fenton (suburb of Binghamton), has finally given up on building the project in Fenton and is instead looking elsewhere. At least that’s our impression based on a couple of sources. We have no confirmation nor comment from NG–so this is purely our own speculation. However, a local television station in Binghamton recently noticed that NG is loading pipes onto a trailer, moving them out of the former construction site. The Town of Fenton Zoning Board of Appeals (ZBA) ruled in February that the facility does not qualify as an allowed use under existing zoning regulations (see NG Advantage Loses Zoning Vote for Virtual Pipe Near Binghamton). The Fenton Town Board is in no mood to overrule the ZBA decision, according to Suervisor Dave Hamlin. Case closed–unless NG plans to sue the town to recover costs, or try to force the issue of building the plant–which we don’t see happening. At any rate, MDN has heard scuttlebutt around the virtual water cooler that NG is looking at several other locations–in and out of Broome County. It would be a tremendous loss for Broome if NG locates outside the Greater Binghamton area. Meanwhile, MDN continues to spot XNG trucks (from a virtual pipeline in Susquehanna County, PA) passing through the Vestal, NY area–through densely populated centers–each and every day. They are the very same kind of trucks NG had proposed to use in Fenton. Yet not a peep about the XNG trucks that pass through our community…
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    Lancaster Nuns Continue to Agitate Against Already-Installed Pipeline

    The Adorers of the Blood of Christ, a group of nuns in Lancaster County, PA, simply can’t stay away from sacrificing Christ on the alter of politics. The Sisters didn’t want the Atlantic Sunrise Pipeline project passing through their property. They own several buildings (one of them an old folks home heated with natural gas) on the very same property. The pipeline was due to run through a nearby field owned by the Sisters that they lease to a local farmer who grows corn on it. The Sisters took up with radical anti-fossil fuelers from Lancaster Against Pipelines to protest the project, putting a few wooden park benches and a flower tressle in the middle of the corn field, calling it a “chapel” (see Catholic Nuns Use Radicals to Build Chapel in Path of PA Pipeline), which is why we refer to them as Sisters of the Corn. They’ve tried a couple of different lawsuits, trying to spin the pipeline crossing their property as a religious freedom issue (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). Fast forward to Palm Sunday. The pipeline is now in the ground and covered up, and the farmer can plant his corn over top of it this spring. Yet the Sisters held a political protest service on Palm Sunday at the site of the pipeline. How enormously sad to sully the name of Christ in that way…
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    FERC Rejects Riverkeeper Request to Stop Millennium Eastern Upgrade

    In August 2016, Millennium Pipeline, which stretches from Corning, NY to just outside New York City, filed an application for what it calls its Eastern System Upgrade (see Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County. In something of a miracle, the NY Dept. of Environmental Conservation granted permits for the project (see NY DEC Grants Permit for Millennium Pipe Eastern System Upgrade). Predictably, THE Delaware Riverkeeper, hater of all things fossil fuel, moved for a “stay” to block construction and filed a request for rehearing with FERC, and at the same time filed a lawsuit against the DEC’s water permit approval (see Frenemies: Millennium & NY DEC Fight Riverkeeper on Pipeline Upgrade). FERC has just rejected Riverkeeper’s request for a stay (but not the rehearing)…
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    WV Judge Refuses to Eject Tree Sitters Blocking Pipeline Work

    If the so-called “tree sitters” in Jefferson National Forest who are trying to block tree cutting for the Mountain Valley Pipeline (MVP) get themselves hurt, Monroe County Circuit Court Judge Robert Irons will be the one to blame. Well actually, the protesters can blame themselves (they’re idiots), but Irons is certainly complicit. On Tuesday Judge Irons refused to grant MVP a court order to remove the radical protesters. Apparently they are 7 feet outside of the right of way zone for tree felling. Have you ever cut a big tree down? Trees don’t care if they fall 7 feet this way or 7 feet that way when they fall. MVP wants to ensure the protesters don’t get hurt, and wants them gone before they cut trees near them. But because the radicals technically, according to the judge, are not in the actual right of way, they can stay up the trees where they’ve been for the past 25+ days. There are two suspended tree houses (platforms), held in the trees with ropes. Up to seven people have been living in the two magic tree houses, eating, breathing and defecating up in the trees (harming the environment they profess to be protecting). MVP technically has a deadline of March 31 to fell trees along the path of the pipeline. We suspect MVP has a Plan B for this segment where the loons have perched themselves up a tree. We predict sitting up a tree will get old sooner or later–and MVP can wait them out…
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    PA Senate Pipeline Hearing Turns into Bash ME2 Pipe; Antis Act Up

    Two Pennsylvania Senate committees–the Environmental Resources and Energy and the Consumer Protection and Professional Licensure committees–held a joint hearing on Tuesday supposedly on the topic of “pipeline safety”–but instead the hearing turned into a bash Sunoco Logisitcs and the Mariner East 2 (ME2) Pipeline hearing. A variety of witnesses testified. Unfortunately, State Sen. Gene Yaw (RINO from Lycoming County), chairman of the Environmental Resources and Energy Committee, didn’t invite Sunoco to testify, so it was a one-way bash fest. Sunoco was not allowed to respond. Thanks Gene. It wasn’t a court hearing, so we can’t call it a kangaroo court. Perhaps we can call it a kangaroo Senate hearing? While the discourse in the hearing was mostly civil (although it was nonstop bashing of Sunoco), a group of rabble rousers nearby was not. A group of 10-15 (depending on the news source) marched on Gov. Tom Wolf’s office. They were there to serve Wolf with a mock “Notice of Probable Violation and Summons,” which the malcontents say requires Wolf to appear in Chester County before families impacted by construction of ME2. The small mob was met with locked doors and Capitol Police who turned them away…
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    Philly Suburbanites Launch Class Action Lawsuit Against ME2 Pipe

    Sunoco Logistics Partners (aka Energy Transfer Parnters) has had its challenges in constructing the twin Mariner East 2 (ME2) pipelines across Pennsylvania. Earlier this month MDN told you that underground horizontal directional drilling (HDD) work in Chester County had led to a third sinkhole developing in that area (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). For most of its length, ME2 is being built right next to ME1 (Mariner East 1), a liquids pipeline originally built in 1931. The third sinkhole in Chester County exposed a portion of ME1, leading to the state Public Utility Commission temporarily shutting down ME1 (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Now added to Sunoco’s complications, two residents living near the sinkholes in Chester County have filed a class action lawsuit against Sunoco, saying the company was negligent for using a drilling technique (HDD) not suitable for the geology in the area…
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    Virginia Governor Moves to Bypass FERC in Regulating Pipe Projects

    Virginia Governor Ralph Northam

    Not until a few years ago when the corrupt Andrew Cuomo decided to block federally approved pipeline projects like the Constitution, and then Northern Access, did the issue of states rights verses the rights of the federal government come into sharp focus with respect to pipeline projects. At its core, it is an age-old issue. During the founding of our country the early leaders wrestled with how much control a federal government should have. We have a Bill of Rights (and a Constitution) specifically to LIMIT how much control the federal government exercises over the individual states. We support a very limited federal government. However, the founders recognized there will be times when the interests and “rights” of states clash with the federal government, and with other states. How to break a tie when deciding competing interests? Perhaps not in their wildest dreams would the founders have foreseen things like interstate highways, high tension electric lines, and yes, natural gas pipelines. Through the years our country has innovated a system based on the original founders’ vision, using agencies like the Federal Energy Regulatory Commission to oversee the permitting and permissioning of infrastructure projects like pipelines. What happens if several states want and need gas from a pipeline, but a single state stands in the way and blocks it, denying the citizens of other states the benefit of that gas? That’s why FERC was created–to referee such “wisdom of Solomon” situations. New York plunged us down the slippery slope of overturning long-established law with their lawless action in blocking FERC-permitted pipelines. Other states noticed and are now trying it themselves (like Massachusetts). The latest state to take a stab at assuming powers it doesn’t legally possess is Virginia, under a Democrat governor who plans to pass legislation that can willy nilly stop construction of federally approved pipelines like Dominion’s Atlantic Coast Pipeline…
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    Praying Against the Mountain Valley Pipeline in Virginia

    When was the last time you read a news story about 50 people gathering to pray…*against* an infrastructure project? Ever see or read a news story about people gathered to pray against a new highway being built? What about people who pray against construction of a new bridge? Or maybe those who pray against a new high-tension electric line coming through the area? We’ve never heard of or read any of those kinds of stories. Ever. So why does Virginia Public Radio feel compelled to publish a story about 50 people gathering to pray against the Mountain Valley Pipeline? What about the 5,000 people who live in the same area who are just fine with the pipeline? Do you think they might deserve a story too?…
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    Massachusetts Blocking Atlantic Bridge Pipeline from Completion

    In January 2017 the Federal Energy Regulatory Commission (FERC) granted final approval for the $452 million Atlantic Bridge expansion project (see FERC Approves Atlantic Bridge Project for New England/Canada). The Spectra Energy/Enbridge project beefs up capacity along the Algonquin Pipeline, along with more capacity for Spectra Energy’s Maritimes & Northeast Pipeline, to carry more Marcellus/Utica gas into New England and (eventually) all the way to Nova Scotia, Canada. Much of the project is now done–except in Massachusetts where a critical compressor station planned for Weymouth is stalled. The delay is causing hardships in both Maine and in Canada, due to declining offshore gas supplies. Maine needs the gas for electric generating plants. Actually, Massachusetts itself needs the gas as much as Maine–but the obtuse idiots that pretend to run the state are resisting the project because it flows an evil fossil fuel. The Massachusetts Dept. of Environmental Protection (DEP) technically has until January 2019 to complete a health impact assessment (HIA) and make a decision on whether or not to issue an air quality permit. By all appearances the DEP is taking its sweet time. If the permit is granted by DEP, Weymouth then has until June 2019 to complete an appeals process. Meanwhile, folks across the border in Maine will begin to experience rolling blackouts if they can’t find a new source of natural gas…
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    ME2 Drilling at 2 Locations Near Altoona Shut Down for Leaks

    In early March MDN reported that Sunoco Logistics’ underground horizontal drilling (HDD) work on its massive Mariner East 2 NGL pipeline near Philadelphia had resulted in several sinkholes developing (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). Yesterday we reported the Pennsylvania Dept. of Environmental Protection (DEP) had stopped ME2 HDD work in Lebanon County following a 50 gallon drilling mud leak (see ME2 Construction in Lebanon County Stopped for 50 Gal Mud Spill). And now, more trouble for ME2 HDD work. This time Sunoco’s work at two different locations in Blair County (Altoona area) has resulted in the DEP shutting down further HDD work at both sites. In one case, around 200 gallons of drilling mud leaked out where it wasn’t supposed to (called an “inadvertent return”)–into a wetland. In the other case, a drill pit overflowed and leaked diluted drilling fluid into the Frankstown Branch of the Juniata River. Here’s the latest in Sunoco’s series of unfortunate events…
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    Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap

    “Hey Jim, what’s happening with Cove Point LNG? Didn’t you say a ship was on the way to pick up the very first cargo of Marcellus molecules?” Great question. Cove Point did see its first cargo set sail in early March (see Cove Point Ships First LNG Cargo – But Not M-U Gas). However, that first cargo was imported gas (from Nigeria) used to test the facility as part of the commissioning process. The plant chilled the Nigerian gas and loaded it onto a waiting LNG tanker and the tanker left. So yes, the plant works, but the first batch wasn’t M-U molecules, so in our book it doesn’t really count. We also told you that a second LNG tanker, called Methane Spirit, was on the way to Cove Point and would be the first ship to load and distribute M-U molecules to distant shores. Orders have changed. Methane Spirit is no longer en route to Cove Point. However, a BP-chartered ship by the name of Patris is on the way to Cove Point. Meanwhile, those who keep an eye on these things say there is currently very little feed gas (i.e. Marcellus gas) flowing into the Cove Point facility. Meaning what? Meaning it looks like the original rumor from January that Cove Point won’t be up and running, shipping Marcellus gas until April, was correct (see Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April). The Patris is not due to dock at Cove Point until April 9th. Meanwhile, as India gets ready for its first contracted shipment of LNG from Cove Point, the country no longer wants it! They want to swap their Cove Point shipments with someone else. We explain it below…
    Read More “Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap”

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    CIG Logistics Buys Sand Transload Terminal in WV from US Silica

    CIG Logistics is a company in the business of moving sand used in fracking from point A to point B. CIG owns and operates a series of transloading terminals, along with trucks to deliver sand to well sites. A transloading terminal is a place where sand arrives via one form of transportation, say on a rail car, and leaves via another form of transportation, like a truck. U.S. Silica is the country’s largest sand producer. U.S. Silica also owns some of its own transloading terminals. CIG announced yesterday it has cut a deal to buy three U.S. Silica transloading facilities–two in Texas and one in the Marcellus, in Marshall County, West Virginia. CIG claims that with this deal they have become the “preferred transload provider to U.S. Silica” in the Permian Basin and Eagle Ford in Texas, and the Marcellus Shale via the facility in WV. Terms of the deal were not disclosed…
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    FERC Rejects Blue Racer Midstream Plan to Change NGL Pipe Rates

    We have to confess this story is a bit complex to understand. We will take a stab at making the complex understandable. Blue Racer Midstream has a subsidiary called Blue Racer NGL Pipelines LLC. The subsidiary operates the G-150 pipeline system, which provides batched propane and butane service. G-150 currently, located in West Virginia, connects a Natrium, WV processing plant to the TE Products Pipeline Co. (TEPPCO). The G-150 pipeline will also have a connection to the Mariner East 2 Pipeline when it goes into service, theoretically in June of this year. Currently the G-150 is flowing about 6,300 barrels per day of product through it–only 20% of its capacity. When the connection with ME2 is up and running, Blue Racer says it can handle 30,000 bbl/d through the G-150. However, Blue Racer itself signed up for most of the capacity (27,000 bbl/d). Blue Racer recently asked the Federal Energy Regulatory Commission (FERC) to allow it to have two different rate structures–a lower rate for “committed” shippers (Blue Racer itself with its 27,000 bbl/d) and a higher rate for uncommitted shippers. FERC rejected the request pointing out that existing shippers with contracts–namely Chesapeake Energy–would be left out in the cold in favor of Blue Racer moving its own volumes at lower prices. Yes, it’s complicated. Bottom line, Blue Racer can’t do what it wants and has to go back to the drawing board…
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