NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution
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 Northern Access Pipeline Court Case Further Threatens NY DEC). On the analyst call, Tanski said the case, filed in the Second Circuit Court of Appeals (in NY), will hold oral arguments on Nov. 16th. Tanski also said it’s “anyone’s guess” when NFG will get an answer about the project–either from the lawsuit or the Federal Energy Regulatory Commission (FERC). On the drilling front, Seneca Resources produced 40.4 billion cubic feet equivalent (Bcfe) last quarter, up a tiny 1% from the same quarter a year ago. After hedging, Seneca got $2.91 per thousand cubic feet (Mcf) for their gas–not too shabby. Below is the full update for NFG for last quarter (remember they also have a huge utility business, in addition to drilling and pipelines), along with excerpts from the analyst call and the latest slide deck…
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In January of this year, the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see 
Exciting! We have a brand new pipeline project to tell you about–located in the Greater Philadelphia area. Although the project is new, the pipeline is old–already in the ground. Talen Energy, birthed in June 2015 from a combination between PPL Energy Supply and certain assets of Riverstone Holdings, is one of the largest competitive energy and power generation companies in North America. Talen’s core business is building and operating electric generating power plants. One of the assets Talen inherited in the merger is an 84-mile pipeline called the Interstate Energy Company which runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Talen announced yesterday they’ve sold the Interstate Energy Company (the pipeline) to Adelphia Gateway, a subsidiary of New Jersey Resources, for $189 million. The northern 34 miles of the pipeline was converted to flow natural gas back in 1996. The southern 50 miles currently flows oil, but Adelphia (NJ Resources) announced yesterday they will convert the oil portion of the pipeline to instead flow natural gas. The bottom line is that a wide swath of Greater Philly is about to get a new source of clean-burning, abundant fracked PA natural gas…
The odious Sierra Club is at it again. Using what appears to be endless supplies of money from people like the Rockefellers, the Sierra Club, along with a mishmash of other radical environmental groups, filed an emergency motion in federal court on Monday, asking the court to stop any further work on the Atlantic Sunrise Pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Williams, the company building/owning the project, broke ground in September (see 
The Pennsylvania Dept. of Environmental Protection (DEP) continues its quest to put Mariner East 2 (ME2) Pipeline construction under a microscope. Two days ago MDN told you that the DEP had issued a Notice of Violation (NOV) for ME2 work in Lebanon County, PA, for spilling LESS THAN 1 gallon of non-toxic drilling mud (see 
Hold on or you might get whiplash. In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see 
UGI is a major utility company in Pennsylvania, providing natural gas and electric service to 700,000 Pennsylvania residents across the state. UGI, via its Energy Services subsidiary, operates natural gas storage facilities, compressor stations, LNG plants and local pipeline gathering systems. UGI operates several gathering systems in northeastern PA. Yesterday the company announced is has purchased an existing gathering system from Rockdale Marcellus for an undisclosed sum. The Rockdale gathering system consists of 60 miles of gathering lines–along with dehydration and compression facilities–located in Tioga, Lycoming and Bradford counties in northeast PA. The system was purchased, on paper, by UGI subsidiary Texas Creek, so the gathering system has been rebranded UGI Texas Creek. MDN has a map of the new system below…
In August 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express. The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline (see 
Let the battle begin! 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 
We chalk this one up as outrageous. The Pennsylvania Dept. of Environmental Protection (DEP) has just shut down further drilling for the Mariner East 2 Pipeline project at Snitz Creek in Lebanon County, PA–because of a “less than one gallon” spill of non-toxic drilling mud. Drilling mud is composed of bentonite–the same clay compound used in kitty litter, toothpaste and cosmetics. A spill of less than a gallon is NOTHING. It’s not even worth reporting. Yet Sunoco Logistics, the company drilling, was honest and reported the “inadvertent return” as it is called. And because Sunoco previously had another small spill at the same location, the DEP, bowing to pressure from radical environmental groups, has halted any further horizontal directional drilling (HDD) work at the Snitz Creek location. This is bizarre, but perhaps not unexpected. It all stems to a deal Sunoco made with the devil…
NEXUS Pipeline has had to use the unpreferred last option and has taken landowners of 42 properties to court using eminent domain in order to secure easements so they can lay pipeline through those properties. 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. NEXUS received 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 
Our heart stopped when we saw news from Crestwood Equity (used to be called Crestwood Midstream) yesterday that the company has sold its US Salt business on the shore of Seneca Lake near Watkins Glen to Kissner Group for $225 million. We thought, “Oh no! Crestwood has finally thrown in the towel on their Seneca Lake Propane Storage project!” But alas, our fears were unfounded. Background: In 2009 Inergy filed a request to convert a depleted salt cavern along the shore of Seneca Lake (in Schuyler County, NY, near Watkins Glen) into a propane/natural gas storage facility. Inergy was later bought by and merged into Crestwood Midstream, and Crestwood Midstream later renamed itself Crestwood Equity Partners. The New York Dept. of Environmental Conservation (DEC) has been sitting on its hands from the beginning, refusing to grant the necessary permits to allow the facility to open. Sound familiar? Same old delay and later deny strategy from our corrupt governor, Andrew Cuomo. As recently as May of this year, Crestwood remained committed to building the storage facility in depleted salt caverns originally drilled by US Salt, which is owned by Crestwood (see 
FTS International, is the largest private (not publicly traded stock) well completion company in North America. In 2015 FTS fracked EQT’s ginormous Scotts Run 591340 dry Utica well in Greene County, PA producing an initial production (IP) of 72.9 million cubic feet of natural gas per day (see 
The Federal Energy Regulatory Commission (FERC) has just escalated a much-needed war with the CORRUPT, Andrew Cuomo-directed Dept. of Environmental Conservation (DEC) in New York. We won’t recount the entire history, but the DEC had arbitrarily, after more than one year of review, ruled against issuing a federal water crossing permit for a tiny 7.8 mile pipeline Millennium needs to build from its main pipeline to an electric generating plant under construction in Orange County. The power plant is due to be completed in early 2018–and needs a fuel supply. In a monumental decision, FERC overruled NY DEC in September (see 
A cabal of three, rabid, radical so-called environmental groups are once again trying to obstruct the legally-permitted Mariner East 2 (ME2) natural gas liquids pipeline project in Pennsylvania. Clean Air Council, THE Delaware Riverkeeper and the Mountain Watershed Association filed a motion with the PA Environmental Hearing Board, a special court set up to hear appeals of decisions made by the Dept. of Environmental Protection, to revoke permits previously issued by the DEP for the ME2 project–WITHOUT holding a trial. The groups are attempting to rush through a decision to block work on the pipeline by claiming there are “facts” in the case “not in dispute” and that the judge can simply take the reigns of justice into his own hands and rule by fiat. The heart of their case is that DEP granted federal water crossing permits for ME2 for “exceptional value” swamps, er, a, wetlands–and ya know, that just ain’t right. Even the attorney for the odious (and odoriferous) Clean Air Council says the judge won’t rule on the motion for at least two months–which is about the time the pipeline will be done anyway. So we’re not quite sure what these rabid groups hope to accomplish with their latest stunt. Perhaps it’s yet another fundraiser? The holidays are fast approaching…