Energy Services

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    Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe

    No doubt being advised and funded by national Big Green groups, a group of backbencher local green groups (Little Green) have taken the first step in what will no doubt turn into a lawsuit to try and stop the Atlantic Coast Pipeline project from getting built. The Federal Energy Regulatory Commission (FERC) approved Atlantic Coast, a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). A group of 21 backbencher local green groups located in VA and NC filed a petition with FERC on Monday, asking the agency to “rehear” (reconsider) it’s approval of the project. Among the claims made by the backbenchers: “Federal regulators cut corners, ignored environmental injustice and climate destruction, and usurped state authority in approving construction,” according to NC Warn, one of the backbenchers. Of course all of this is political theater. Grandstanding. Showboating. They don’t really believe FERC will change it’s mind. What happens next is FERC will tell the backbenchers they’re full of beans and to go away, and then the backbenchers can legally file a lawsuit with the Federal Court of Appeals (preferably with the liberal DC Circuit). Filing a petition for a rehearing with FERC is Step #1. Federal lawsuit is Step #2. Below is news about the petition, a copy of the 40-page petition, and a press release from one of the backbencher groups…
    Read More “Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe”

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    Antero’s $275M WV Wastewater Recycling Facility Ready to Launch

    By our reckoning, Antero Resources’ $275 million wastewater recycling facility in Doddridge County, WV is either already operational, or will be within the next few days (sometime this week). In 2015 Antero hired Veolia Water Technologies Inc. to build a new shale wastewater recycling facility in Doddridge County (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The facility, called the Clearwater Facility, will process 60,000 barrels of wastewater per day, separating water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero also spent $20 million to build a landfill next to the plant for the salt (see Update on Antero’s $275M Wastewater Facility in WV). According to the Clarksburg Exponent-Telegram, an Antero official recently said the Clearwater Facility is set to open in “the first part of November.” If you consider the first 15 days of the month the first part of the month, that leaves two days for the facility to be up and running. Hence our speculation it either already is open, or will be this week…
    Read More “Antero’s $275M WV Wastewater Recycling Facility Ready to Launch”

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    Pittsburgh-based Water Provider for Shale Drillers Expanding

    HydroEdge Solutions is on the grow. The company designs and operates temporary water lines for Marcellus/Utica drillers. The company started in 2013 in Pittsburgh with three employees, and today they have 92 employees! HydroEdge is looking to add another 20 employees using $8 million of debt financing they just received from an unnamed “independent, third party lender.” That money breaks down as a $5 million one-year loan and a $3 million line of credit. Some of HydroEdge’s A-list customers include EQT, CNX/CONSOL, Rice Energy, Statoil, and EdgeMarc Energy. Impressive list. Here’s the lowdown on an up-and-coming service provider in the Marcellus/Utica, flush with cash and ready to hire…
    Read More “Pittsburgh-based Water Provider for Shale Drillers Expanding”

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

    Click for larger version of map

    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…
    Read More “Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio”

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    Indians & Hippies Couldn’t Stop Connecticut Expansion Pipeline

    In March 2016, the Federal Energy Regulatory Commission (FERC) approved Tennessee Gas Pipeline’s (TGP) Connecticut Expansion project (see FERC Approves TGP Connecticut Expansion Pipeline Project). The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72.1 million cubic feet per day of (mostly) Marcellus Shale gas to three utility companies in Connecticut. The $86 million project is in no way connected to TGP’s now-dead Northeast Energy Direct (NED) pipeline project. However, antis continued to pitch a fit and try to block the project. A local Indian tribe in Massachusetts threatened to sue, accusing FERC of violating the National Historic Preservation Act by not protecting “ceremonial stone landscapes” supposedly found along the path of the pipeline (see Indian Tribe Fights FERC Over Tiny Pipeline in Mass.). After that, a group of old hippies got themselves arrested in Massachusetts for blocking construction of a 2-mile section of the pipeline through a state forest (see Bunch of Old Hippies Arrested in Mass. for Blocking Pipeline Work). We postulated at the time that maybe if underground pipelines flowed marijuana instead of fossil fuels, they’d feel differently about them. At any rate, neither the Indians nor the hippies could stop it. Yesterday FERC gave Kinder Morgan’s Tennessee Gas Pipeline subsidiary permission to flip the switch and turn on the expanded pipeline…
    Read More “Indians & Hippies Couldn’t Stop Connecticut Expansion Pipeline”

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    Lancaster Organic Farmer Rails Against Atlantic Sunrise Pipeline

    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…
    Read More “Lancaster Organic Farmer Rails Against Atlantic Sunrise Pipeline”

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    TransCanada 3Q17: Plethora of Pipeline Updates for Marcellus/Utica

    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 TransCanada and Columbia Pipeline Tie the Knot Today). Columbia had/has a plethora of pipeline projects in the northeast, projects very important to the future of our region and flowing gas through it and out of it. We recently told you that one of those projects, Rayne XPress, was cleared to begin service and is now up and running (see FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service). We also told you that another project that works hand-in-glove with Rayne, called Leach XPress, is also supposed to be online this month. However, it’s been delayed. We learned from yesterday’s 3Q17 update that the new plan is to have Leach online in “early January 2018.” In addition to updates on Rayne and Leach from the 3Q17 update, we have news about Gibraltar Midstream, WB XPress, Mountaineer XPress, Gulf XPress and several other projects that impact our region…
    Read More “TransCanada 3Q17: Plethora of Pipeline Updates for Marcellus/Utica”

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    Court Lifts Atlantic Sunrise Stop Work Order – 2,500 Back to Work

    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 DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work and Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work). The stop work order was in response to a lawsuit filed by the Sierra Club, Lancaster Against Pipelines and several other radical Big Green groups. Williams, the builder of the pipeline, filed a “Motion for Clarification” to ask the court what the order means, stop only the work on the pipeline in Pennsylvania? Or does the stop work order include other states too, where new gas supplies are already flowing? In their motion, Williams also asked the court to make the Sierra Club and the other radical groups to collectively post an $8 million per day bond–to cover Williams’ expenses if/when the radicals lose their case. After all, their actions are costing Williams $8M a day. Early yesterday the court responded to Williams’ motion with an answer: Stop work only applies in PA, and no, the court won’t make the radicals post an $8M/day bond. Bummer. That was the low point of the day. But then came a second response from the court in the late afternoon: The court said (our words), “The emergency stop work order is over, you can go back to work, and after reviewing the petition from the nutjobs, we’ve found they don’t have a case. Case dismissed.” That was the high point of the day. And so today, Thursday, Nov. 9, some 2,500 PA workers are back on the job laying pipe–including laying pipe through a cornfield in Lancaster County owned by a group of misguided nuns (who have sued to stop it). The nuns’ property will be the very first location to see the new pipeline installed and buried…
    Read More “Court Lifts Atlantic Sunrise Stop Work Order – 2,500 Back to Work”

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    Energy Transfer 3Q17: ME2 Startup Slips, Rover Complete in 1Q18

    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 OH EPA Director Manipulates Atty General to Sue Rover Pipeline). So far he’s been unsuccessful. At any rate, construction in Ohio and elsewhere is full speed ahead. On yesterday’s call ET CFO Tom Long said Rover Phase 1 (both A and B) will be done by Dec. 31st. That’s very good. Long said the company is “very confident” Phase 2 of Rover will be online no later than March 31, 2018. Also very good. Below we’ve grabbed excerpts of yesterday’s analyst call to share, covering both ME2 and Rover…
    Read More “Energy Transfer 3Q17: ME2 Startup Slips, Rover Complete in 1Q18”

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    Anti-NEXUS Referendum in Bowling Green, OH Defeated by Huge Margin

    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 (see our CELDF stories here). CELDF, based in Pennsylvania, targets towns with sufficiently large pockets of nutters who will sign on to their garbage. As they usually have to do, the CELDF needed to ramrod the Bowling Green ballot measure through a lengthy legal process, eventually getting permission from the Ohio Supreme Court before it could appear on the November ballot. How did the nutters take such a humiliating defeat? CELDF-hired lawyer Terry Lodge (from Toledo), pledged to bring the ballot measure back again and again in future, wasting taxpayers’ money…
    Read More “Anti-NEXUS Referendum in Bowling Green, OH Defeated by Huge Margin”

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    Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work

    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 DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work). Companies building closely-vetted and highly regulated projects like Atlantic Sunrise project are jobs creators. The Sierra Club is a jobs destroyer. We asked Williams how many workers have been idled because of the work stoppage from the “temporary” order from the court. Williams spokesman Chris Stockton replied: “The exact number is 2,500.” He also said this: “It is costing about $8 million per day in idle construction costs.” The Clubbers’ frivolous lawsuit is causing real pain and real suffering for thousands of workers…and their families…and their children. Williams issued a press release yesterday to say they have filed a “Motion for Clarification” to determine what the emergency stop work order affects–just construction work in PA? Or the work they’ve already done (and are doing) outside of PA, which would stop new quantities of Marcellus gas already flowing south? Williams says they expect the court will conduct their review “expeditiously” and end this charade (our word) very soon. Antis rejoiced in the news of the stop work order, including one of the “leaders” of the airheaded opposition, who sounded like an 80s Valley Girl when she said: “I can’t believe it, like, does this mean they can’t continue with construction? Like, seriously?” Meanwhile, like some 2,500 people are like tragically out of work–including like 370 in Schuylkill County alone. Merry Christmas from the Sierra Club and from a small group of radicals called Lancaster Against Pipelines…
    Read More “Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work”

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    Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH

    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 (see our Mountaineer NGL Storage stories here). We’ve learned that the Colorado company behind the project plans to spend up to $500 million to build it, that 20 drillers have expressed interest in contracting with the facility to store ethane, and that both the nearby potential PTT Global cracker plant and the under-construction Shell cracker plant are both interested in connections to the facility. We’ve also learned there is a holdup with some of the necessary permits for the project before construction can begin–a situation that has delayed construction until mid-next year. This morning we ran across yet another update. This one goes into more detail about the permit situation, explaining where the holdup is happening (with the Ohio Dept. of Natural Resources’ chief Rick Simmers). The update also introduces us to a new spokesman for the project, a local who will be the project’s feet on the street, meaning we’ll likely hear a lot more about the project in the coming weeks and months…
    Read More “Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH”

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    Baker Hughes Oct Rig Count – US Slides by 18, PA Drops 1 Rig

    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…
    Read More “Baker Hughes Oct Rig Count – US Slides by 18, PA Drops 1 Rig”

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    DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work

    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 (you can read why here). The Sisters have allowed themselves to be used to oppose the Atlantic Sunrise project by a radical professor from Lancaster County, Mark Clatterbuck, someone who engaged in the North Dakota Access Pipeline protests (protests that turned violent). Clatterbuck enlisted the help of his Big Green buddies in the Sierra Club to try and litigate to stop the federally and legally approved project last week (see Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction). Yesterday we told you that Williams, the builder, was building at the site of the Sisters first because of the involvement of Clattberbuck and Big Green interference–get the hard part done first (see First Atlantic Sunrise Pipe Gets Buried on Nun Property). We were grinning that pipeline on the Sisters’ property would be the first to be laid and buried in the ground, likely done this week. Today the grin is wiped off our face, we must confess. It’s so sad to see egregious abuses of our legal system like this. We expect the stop work order for the project will be temporary–perhaps a few weeks. But one never knows. The DC Circuit Court of Appeals is looking at the question of whether the Federal Energy Regulatory Commission was correct in approving the project in the first place last February…
    Read More “DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work”

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    Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution

    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…
    Read More “Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution”

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    Patterson-UTI Rig Count Slips Another 3 in October to 158

    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 Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket Patterson’s rig count number in April and May much higher (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With SSE now fully absorbed into Patterson, the rig count number settled down. In September Patterson’s rig count slipped by 1–the first loss since June 2016 (see Patterson-UTI Rig Count Count Slips by 1 Rig to 161 in Sept). The latest numbers are out for October, and the count retreated another three, to 158…
    Read More “Patterson-UTI Rig Count Slips Another 3 in October to 158”