Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio

We have some progress to report, and a pair of public hearings coming up, for a pipeline project proposed to run from Meadville, PA area (Crawford County) and extend in a northwest direction to Ashtabula County, OH. Three weeks ago MDN brought you details about the proposed Risberg Line Project, to be built by RH energytrans (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 installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. The new news that we’ve learned is that two school districts in Ohio where the pipeline will traverse have agreed to reduce the amount of property tax the pipeline would need to make by 75% over a 15-year period. That’s a huge vote of confidence. We also learn that around 100 Erie and Ashtabula county property owners have already signed easements to allow the pipeline across their property. While no pipeline project anywhere in the northeast has a smooth ride, this one certainly seems to be sailing right along. Perhaps the first test of whether or not anti-fossil fuel nutters will begin to oppose it will come at a pair of public hearings for the project–one on Dec. 5 in Conneaut, OH, and the other Dec. 6 in Edinboro, PA…
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An organic farmer in Lancaster County, PA is accusing Williams and their Atlantic Sunrise Pipeline project of violating the conditions they agreed to. What kinds of violations? “Heavy equipment was stored on the property.” Ooooookay. Uh, we don’t think they dig pipeline trenches with hand shovels any more. What about his horrific violation: “Nonorganic bags of mulch have continued to be stored on the property.” Have you ever seen a bag of “organic” mulch at Lowes or Home Depot? No, neither have we. Here’s another one: “For weeks, trucks traveled between the organic farm and a neighboring nonorganic property.” Apparently the organic farmer doesn’t like his neighbor. We suppose he’s afraid the tires will pick up some non-organic dirt (whatever that is) and track it onto his property. Does he drive a car? Does he visit “nonorganic” locations around the county? You see the hypocrisy. Here’s one we really liked: “Soil from an adjacent nonorganic property blew onto the organic farm.” What the heck is that? Now Williams is supposed to control the wind?? The last person we know of who walked Mom Earth and was able to control the wind was J.C. (Mark 4:39). And perhaps worst of all, a complete tragedy: “Signs warning construction workers of an organic farm were not posted.” You get the drift. This is all nonsense–either minor violations or outright fabrications. Williams pushed back and said so. Just one more anti, grumbling and grabbing a headline…
TransCanada Corporation, headquartered in Calgary, Alberta, released their third quarter 2017 update yesterday. On July 1, 2016, TransCanada completed its buyout of Columbia Pipeline, a $10 billion deal (see
Yesterday was quite a roller coaster ride for Williams with regard to a work stoppage in building the $3 billion Atlantic Sunrise Pipeline. It was just two days ago that the Federal Court of Appeals for the District of Columbia issued an emergency stop work order for Atlantic Sunrise, idling some 2,500 workers in PA and costing the company $8 million a day in downtime (see
Energy Transfer’s top brass delivered some bad news and some good news on yesterday’s analyst phone call to discuss third quarter 2017 performance. Two projects vital to the Marcellus/Utica are being built by ET–Mariner East 2 (ME2) and Rover Pipeline. The bad news is that ME2, a natural gas liquids (NGL) pipeline project that stretches from eastern Ohio across the state of PA to the Marcus Hook refinery near Philadelphia, will be delayed an extra nine months. ME2 has a new in-service target date of “second quarter 2018.” Progress on ME2 is not as fast as it could be primarily due to an ongoing onslaught of lawsuits by Big Green organizations, coupled with delays from the PA Dept. of Environmental Protection. The good news for ME2 is that by Dec. 31st, 99% of the pipeline will be in the ground and buried. The news for Rover is all good. Rover is a $3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Rover had been dogged by problems with horizontal directional drilling (HDD), but those problems are now behind it. Yes, head of the Ohio EPA, Craig Butler, continues his Captain Ahab routine to try and stop the project (see
When we notice municipal referendums and ballot measures related to blocking shale drilling and pipelines, we always highlight them. Such a ballot measure appeared on the ballot in Bowling Green (Wood County), OH on Tuesday. We honestly were not aware of it prior to reading an article in the Toledo Blade. The ballot measure called for a ban on pipelines that flow natural gas and other fossil fuels over city-owned property. It’s aim is to prevent NEXUS Pipeline from building nearby. Antis got enough signatures for this glittering jewel to appear on the November ballot. And how did the good people of Bowling Green vote? They saw right through this one–voting it DOWN by a huge margin: 61%-39%. That’s a blowout, politically. But you know antis. Nothing, including the truth, will ever change their minds. The Bowling Green ballot measure was the work of out-of-towners–the Community Environmental Legal Defense Fund (CELDF)–about whom we’ve written plenty (
Just before the holidays, thousands of workers who were working on the Atlantic Sunrise Pipeline project have been escorted to the unemployment office–courtesy the odious Sierra Club. Yesterday we brought you the sad news that the Sierra Club’s lawsuit has stopped work on the $3 billion pipeline project (see
Over the past six months we’ve run a steady string of stories about Mountaineer NGL Storage and its proposed underground NGL (mostly ethane) storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (
The International (non-U.S.) Baker Hughes rig count for October 2017 was 951, up 20 from the 931 counted in September 2017, and up 31 from the 920 counted in October 2016. The U.S. rig count for October 2017 was 922, down 18 from the 940 counted in September 2017, but up 378 from the 544 counted in October 2016. Notice that we have almost as many rigs operating in the U.S. as the entire rest of the world (minus Canada). Canada’s rig count has improved a lot since earlier this year. However, Canada’s October rig count drooped a bit–204 in October (down 4 from September) but up 48 from October 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig and ran an average of 32 rigs during October, versus Ohio running 29 rigs and West Virginia running 15 rigs, the same as September…
The arrogance of Big Green was on full display yesterday as they rushed to stop the Atlantic Sunrise Pipeline project project and silence lawfully permitted work. In response to a lawsuit filed by the worst of the worst (the Sierra Club) on Oct. 30th, a liberal court in the District of Columbia yesterday slapped the Atlantic Sunrise project with an emergency stop work order–for the entire project. Work had already begun to lay pipe on the property of Catholic nuns in Lancaster County, PA. The nuns call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn (
Last week midstream powerhouse Williams issued their third quarter 2017 update. CEO Alan Armstrong said this about the Transco Pipeline–a key pipeline in the Marcellus/Utica region: “So far in 2017, we’ve placed four of our ‘Big 5’ Transco expansion projects into service including Gulf Trace, Hillabee Phase 1, Dalton Expansion and New York Bay Expansion with the fifth of the ‘Big 5’ expansions – the Virginia Southside II project – expected to be placed in service during fourth-quarter 2017. The incremental capacity from the fully-contracted Transco expansion projects going in service so far this year reflects a 25 percent increase in Transco’s design capacity.” All five of those projects to one degree or another flow Marcellus/Utica Shale gas. Williams is in a multi-year program to reverse the flow of the Transco. Traditionally it has flowed gas from the Gulf to the northeast. The pipeline is in the process of getting turned around, to flow our gas southward, some of it all the way to the Gulf Coast. With respect to the Atlantic Sunrise project–a part of the Transco system–Armstrong reminded listeners on the analyst phone call that some of that project is already up and running: “And on Atlantic Sunrise, we started construction and have already placed a portion of Atlantic Sunrise into early service on September 1 of this year, providing about 400,000 dekatherms a day of firm transportation service on Transco’s existing mainline facilities, and of course that serve delivery points as far south as Choctaw County, Alabama. So we’re really excited to be starting to see the Transco system turn around and be able to deliver volumes to the south. And I can tell you, that’s very much needed as we’re seeing a lot of demand growth occur in the southeast on our system.” As for the stalled Constitution Pipeline in New York State, Armstrong said to “stay tuned” and that there is “plenty of fight left in this dog.” Armstrong sounded encouraged about the prospects of the Constitution. Below is the full 3Q17 update complete with financials, excerpts from the analyst phone call of interest for MDN readers, and the newest slide deck…
As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see
The director of the Ohio Environmental Protection Agency (EPA), Craig Butler, continues to go off the rails with a major grudge against Rover Pipeline (see
We find this story amusing. A group of left-leaning Catholic nuns in Lancaster County, PA, whipped up by radical environmentalists with ties to Big Green organizations, got it into their heads to try and block a very-safe natural gas pipeline from crossing their property–the Atlantic Sunrise Pipeline being built by Williams. The Sisters call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn, because they put a couple of wooden park benches in a cornfield on their property (leased to a local farmer), christening it a “chapel” and claiming because the pipeline would run through the middle of their so-called chapel, building a pipeline is a violation of freedom of religion. In September a federal judge tossed the lawsuit (see
Last week National Fuel Gas Company, headquartered in Western New York State with drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its fourth quarter (everyone else’s third quarter) 2017 update. In the accompanying analyst phone call, CEO Ronald Tanski blamed the delay of the Northern Access Pipeline project (delayed by the NY Dept. of Environmental Conservation) for lower earnings than the company would have otherwise realized. Thanks, business UNfriendly NY! You may recall in July NFG filed a lawsuit against the DEC for arbitrarily rejecting the project (see