Energy Services

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    Cove Point to Begin LNG Exports in October or November!

    Glory hallelujah! Dominion’s Cove Point LNG export facility along the shoreline of Maryland is on the cusp of starting LNG exports. According to one speaker at a Houston conference, Cove Point will begin shipping in November. Another speaker (from analytics firm Genscape) said they believe the facility will actually begin some shipments in October! In early 2012, MDN began covering the story of Dominion planning to build an LNG facility at a location where they currently operate an import facility, in Calvert County, MD (see Japan Negotiates to Buy Marcellus Gas). We covered the news over the years, from approvals from the Federal Energy Regulatory Commission and Maryland, to lawsuits from the nutty Sierra Club, to everything in between. Here we are 5 1/2 years later and it’s almost upon us–the day when Cove Point begins to ship LNG to Japan and India. Wow! Here’s the exciting news that the facility is gearing up now…
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    What is “Loss of Circulation” When Drilling Underground for Pipelines?

    “Loss of circulation” sounds like a terminal condition–and perhaps it is, in a human body. But that phrase applied to drilling underground to install pipelines holds a different meaning. Loss of circulation is the technical term used when drilling fluid migrates out of the hole being drilled, and into (eeks) groundwater. Thing is, drilling fluid used to drill for pipelines is non-toxic–the primary component being bentonite clay. Bentonite is the same thing used to make kitty litter, cosmetics and toothpaste. So a little bentonite clay escaping into a water supply is not a big deal–unless it’s a LOT of bentonite escaping. Then it can foul a water supply, at least until the clay settles and the water clears again. A former geologist working for the Texas Railroad Commission (the government body in charge of regulating oil and gas in Texas) has written a thoughtful column in the Harrisburg Patriot-News to talk about loss of circulation that has happened in several locations while drilling for the Mariner East 2 pipeline in PA. The former geologist knows a thing or two about drilling, about benonite, and about spilling a little mud here and there. He provides some much needed perspective on the issue–a counterbalance to the wild speculations and false claims made by anti-fossil fuelers…
    Read More “What is “Loss of Circulation” When Drilling Underground for Pipelines?”

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    PennEast Pipeline’s Sole Compressor Station Approved by PA Town

    PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…
    Read More “PennEast Pipeline’s Sole Compressor Station Approved by PA Town”

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    CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court

    NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, is about ready to begin construction–any time. NEXUS got final approval for the project from the Federal Energy Regulatory Commission (FERC) in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Last week one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The only cloud on the horizon are multiple lawsuits and regulatory requests filed by anti-fossil fuel groups, including CORN (Coalition to ReRoute Nexus, folks we call CORNballs), and the far-left Sierra Club. Both groups have launched lawsuits and regulatory actions against the pipeline. Those efforts, which increasingly are long-shots, continue. Here’s what CORN and the Sierra Club are doing now that Ohio EPA has given the project its blessing…
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    MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill

    MAX Environmental has operated the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958. One of the primary customers for the landfill over the past 10 years has been the Marcellus industry–dumping drill cuttings (leftover dirt and rock from drilling) at the landfill. Earlier this year, MAX sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount (see Pittsburgh-based MAX Environmental Purchased by Investment Firm). With the closing of the deal, MAX’s CEO/owner, William Spencer, rode off into the sunset and Bob Shawver was brought in as the new CEO. Shawver acknowledged it would have been “nuts” not to pursue business from the shale industry when it was going gangbusters, but Shawver said he would “retool” MAX–away from depending on the Marcellus industry. MAX will no longer be known and branded as a company in the oil and gas space. Shawver is rebranding the company, going after customers that are the region’s “traditional bread and butter”–manufacturing, industrial facilities and construction (see MAX Environmental Walks Away from Marcellus/Utica). Except reality has set in and plans have changed. MAX is applying for a permit to expand the Bulger facility by 21 acres, to continue doing what they are doing now. And what, you may ask, are they doing now? “Most of the residual waste MAX accepts now consists of drill cuttings from the Marcellus Shale industry.” Looks like MAX isn’t walking away from the Marcellus after all…
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    Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U

    Looks like begging works. 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. The original open season last year 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. 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 (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, the main one being the Canadian National Energy Board (NEB). In hearings before the NEB two weeks ago, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved (see Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U). Without it, western Canadian gas simply can’t compete with cheap, abundant Marcellus/Utica Shale gas flowing north. In somewhat dramatic terms, Canadian drillers claimed the “future of western Canada’s natural gas industry could depend on pipeline company TransCanada winning regulatory approval” of their lowball plan. The NEB bought it, and has just approved the lower rates…
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    First-Hand Account: Rover Pipe’s Negative Impact on One Ohio Farm

    Not everyone on the “pro” side of the pipeline issue is happy with Rover Pipeline and the work they’ve done in Ohio. You know that MDN is supportive of the Rover project. You also know that MDN believes Craig Butler, director of the Ohio EPA, is way out of line with his campaign to fine Rover $2.3 million. However, Rover is not lily white in their handling of building the pipeline across Ohio. They’ve made mistakes. And they’ve made some enemies of the people who should be their biggest supporters–farmers whose land they cross. MDN editor Jim Willis recently spoke with one of those farmers, from the Definance, OH area. Ben Polasek owns a farm that has been in the family for four generations. He plants wheat, corn, and soybeans on his Ohio land. Polasek says he is a strong supporter of the energy industry–and of pipelines. However, he says, “Rover has not shown any respect for the landowners of this project.” Polasek says Rover made promises–like being able to access fields he needs to plant–only to see those promises broken. He also believes Rover didn’t properly plan for the heavy rains that caused his property to become a mud pit in areas where Rover was working. With pictures (below) and an impassioned letter to the Federal Energy Regulatory Commission (also below), Polasek is asking FERC to hold Rover responsible for the damage done to his, and other farmer’s, property…
    Read More “First-Hand Account: Rover Pipe’s Negative Impact on One Ohio Farm”

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    Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe

    From the day the first backhoe began digging in Ohio, it has appeared that Ohio EPA director Craig Butler has had a grudge against Rover Pipeline. We’re not saying Rover hasn’t had its fair share of environmental transgressions that need to be monitored and rectified. But Butler has been on a one-man mission to punish Energy Transfer, the builder, demanding (without legal authority) insanely high “fines” from ET Rover. At first it was $400,000. Then $900,000. Now Butler says ET owes the state $2.3 million! Butler is trying to draw in Ohio’s Attorney General into the confusion in order to shake down Energy Transfer and make them pay. Yesterday Butler held a conference call with the media (MDN wasn’t notified/invited) where he made wild allegations. What seems to have precipitated Butler’s media bender is a decision by the Federal Energy Regulatory Commission (FERC) on Monday to allow ET to resume horizontal directional drilling (HDD) in most Ohio locations, after banning it for several months (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). On yesterday’s call Butler said, “I’m not overly happy that they’re [FERC] allowing them [Energy Transfer] to restart operations while we [Craig Butler, Ohio EPA] have outstanding issues.” Butler has issues all right. Butler is kind of drunk on his own power. It’s time for someone (maybe the AG?) to investigate Butler and find out if he’s colluding with Big Green groups. Is the OEPA short on money in its budget? Where does the revenue from such fines go? And on what statutory authority can OEPA levy a fine on a FEDERAL project? Inquiring minds want to know…
    Read More “Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe”

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    Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover

    At a staged media event yesterday, Ohio EPA director Craig Butler had no end of insults for Energy Transfer and their Rover Pipeline project, making wild claims that the company now owes the state $2.3 million in fines (see today’s companion story). However, at the same media event, Butler had faint praise for another project–NEXUS Pipeline. The OEPA issued a federal water permit for the project on Tuesday. NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. The project is co-owned by DTE Energy of Detroit and Spectra Energy (now part of Canadian company Enbridge). NEXUS got final approval from the Federal Energy Regulatory Commission in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). At yesterday’s media circus, Butler said he and his agency have learned from their “mistakes” with Rover, and that NEXUS’ application includes much more detailed plans. Although OEPA likes the NEXUS paperwork, the agency is requiring more “contingency and storm water planning” from NEXUS as a condition of the permit…
    Read More “Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover”

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    New MarkWest Processing Plant Approved by Smith Twp in SWPA

    Smith Township, Washington, PA

    In August MarkWest Energy (now part of MPLX) briefed Smith Township (Washington County, PA) officials on plans to build a new natural gas processing plant (see Update on MarkWest Processing Plant Proposal for Smith Twp). The project was first introduced last fall, but then went quiet until May of this year. MarkWest plans to initially building one cryogenic plant and one de-ethanizer at what it calls the Harmon Creek Complex. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at complex. Smith officials understandably had questions and wanted certain things in writing before they would consider issuing a “conditional use” permit for the project. Apparently the questions got answered. On Monday, Smith supervisors voted 3-0 to approve the project. However, the backhoes are not firing up just yet. Before the project can get built, the PA Dept. of Environmental Protection must issue an air permit (GP-5) for the project. Anti fossil fuelers were not happy with Smith’s approval, claiming MarkWest has been hiding the full scope of the project…
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    PennEast Pipe Files Water Permit Request with USACE, Antis Erupt

    Click map for larger version

    Last week PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, filed a request with the U.S. Army Corps of Engineers for water crossing permits (full copy below). PennEast has faced a series of legal challenges–in particular from virulent Big Green groups THE Delaware Riverkeeper (Maya van Rossum) and the New Jersey Sierra Club (Jeff Tittel). Somehow Big Green groups seem to have been able to exert undue influence over the New Jersey Dept. of Environmental Protection, which rejected granting water permits in June (see NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?). However, PennEast continues to make progress. In April the Federal Energy Regulatory Commission (FERC) issued a favorable, final environmental impact statement for the project, which is typically a prelude to issuing a final go-ahead (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Earlier this year, in February, the Pennsylvania Dept. of Environmental Protection issued a water permit for the project, which is being challenged in court by Big Green groups (see PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP). PennEast acknowledges the Army Corps will still need information from other government agencies before it grants a water permit–but that’s OK. PennEast is simply getting its ducks in row by filing now, which has antis like van Rossum and Tittel in a dither…
    Read More “PennEast Pipe Files Water Permit Request with USACE, Antis Erupt”

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    Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic

    Rich, snobbish homeowners in an “upscale” Philadelphia suburb development are asking an appeals court to stop Sunoco Logistics from building the Mariner East 2 pipeline through the edge of their high-priced development because, they claim, the digging is disturbing the dirt (which is what digging does) and disturbing the dirt is causing lead and arsenic to become dislodged. The lead and arsenic are supposedly in the dirt as a result of pesticides used when the land was an apple orchard. The claim is flat out BS–Barbara Streisand. The Andover Homeowners Association in Thornbury Township (Delaware County) is the same group that a few weeks ago acted like five year-olds by intentionally stepping over a painted line put there to protect them from a ME2 construction zone (see Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site). Spoiled rotten children grow up to be spoiled rotten adults. Here’s the latest tactic to stop a pipeline from the gentry class–just because they don’t like how digging a pipeline makes their development look to the neighbors…
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    Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA

    As MDN reported yesterday, construction work on two compressor stations part of the Williams $3 billion Atlantic Sunrise Pipeline project began last Friday, the same day the Federal Energy Regulatory Commission (FERC) gave the project permission to begin construction (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Next up will be digging to lay the pipeline itself. The Lebanon Daily News reports residents in Lebanon County can count on seeing activity there “any day now.” The article names the five townships where the pipeline will cross, and says first up will be staging of equipment, then tree clearing, and finally (perhaps in mid-to-late October) the pipeline itself will get laid in the ground. A few antis in Lebanon have been quite vocal against the project over the past couple of years (see Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All). Interestingly, over the past year or so Lebanon antis have been mum. Will we see any nutjobs chain themselves to bulldozers in Lebanon County? We doubt it, but you never know. Depends on whether or not out-of-town Big Green groups send troublemakers into the area. Here’s the list of five towns fortunate enough to see the Atlantic Sunrise, along with the list of four contractors hired to build the pipeline…
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    Rover Pipeline: Growing the Pie, or Stealing Slices from Others?

    Rover Pipeline–$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–starting flowing natural gas through a portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. But where does that gas come from? Have a bunch of drillers suddenly flipped a switch and turned on new wells to fill that capacity? Well, to some degree that has happened. There is certainly new gas finding its way through Rover–but most of the gas flowing through Rover comes at the expense of flowing through other pipelines. Several other pipelines in the region are giving up some of their gas according to the experts at BTU Analytics. Which pipelines? Most of the gas flowing through Rover likely comes from gas that would have flowed through the Texas Eastern Transmission Company (TETCO) pipeline, says BTU Analytics. In addition, REX (Rockies Express Pipeline) and Dominion Pipeline have also lost some business to Rover. Here’s how Rover has changed the supply/demand landscape over the past three weeks…
    Read More “Rover Pipeline: Growing the Pie, or Stealing Slices from Others?”

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    Hey Broome County: Enviros Love NG Advantage’s Virtual Pipeline

    As we reported in August, a Broome County, NY judge ruled that the Town of Fenton (Binghamton area) Planning Board did not take a hard enough look at environmental and traffic issues related to their approval of NG Advantage’s plan to construct a facility in the town to compress and load natural gas onto tractor trailers for delivery to regional customers who desperately need the gas–what is called a “virtual pipeline” (see Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again). The judge’s ruling delays the project for months, at least. NG must now resubmit the project for approval by the Fenton Planning Board. Before doing that, NG must first conduct a full environmental impact study and an aquifer study. Even with environmental studies, don’t expect the locals, who appear to have very closed minds, to accept the outcome (see 2nd Approval for Virtual Pipeline in Broome County Not Assured). Some (many?) of the locals have been unduly influenced by charlatans who swoop into town and talk about “bomb trucks” and other nonsense, and then leave town once the locals are hot and bothered and agitated. These out-of-towners are professional agitators–paid by Big Green to do what they do. In a bid to counter the lies and smears pedaled by these people, NG is spreading the news that REAL environmentally-conscious people support NG’s virtual pipeline operations. For example, a dairy farm cooperative in Vermont and a sustainable lettuce and caviar farm in eastern New York are both NG customers and sing the praises of clean-burning, sustainable natural gas deliveries to their operations. Yes, those who actually care about the environment support NG Advantage and virtual pipelines…
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    Select Energy, Rockwater Energy Merger Delayed 2 Months

    Rockwater Energy Solutions is a “leading provider of comprehensive water management solutions to the North American unconventional oil and gas industry” and the only company that provides complementary chemistry products and expertise in connection with its water solutions. Rockwater operates in the Marcellus/Utica region, among other shale plays. Select Energy Services is a billion dollar oilfield services company with three main divisions: water services, rentals, and wellsite completions. They operate in every major shale play in the country, including the Marcellus/Utica. In July the two companies announced they are merging in an all stock swap deal (see Select Energy, Rockwater Merge to Create Huge Shale Water Provider). They originally thought the merger would be completed by Nov. 1st, however, the date has now been pushed back to Dec. 31st…
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