Energy Services

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    FERC Frustrates Kentucky Radicals Seeking to Stop TGP Pipe Reversal

    What’s in the water in Kentucky? Seems to be a state full of anti-drilling, anti-pipeline nutters. Kentucky has been responsible for killing at least one pipeline, the Bluegrass Pipeline that would have flowed Marcellus/Utica NGLs (natural gas liquids) all the way to the Gulf Coast (see Bluegrass Pipeline Aborted Before It was Born – RIP). That project would have involved laying 200 miles of new pipeline through Kentucky, and wealthy horse farms would have none of it. Kinder Morgan is making a run at a similar project–but this time the pipeline is already in the ground. Kinder Morgan, as we previously reported, is working on a project to convert 964 miles of the Tennessee Gas Pipeline, part of which runs through Kentucky (KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). Kinder wants to reverse the flow of TGP, which currently sends natural gas from the Gulf Coast to the northeast, turning it around and sending natural gas liquids from the Marcellus/Utica to the Gulf Coast. The first step in the process was recently approved by the Federal Energy Regulatory Commission (see FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf). Antis in Kentucky have their bluegrass knickers in a twist over FERC’s action. They’ve filed a request for “rehearing” of FERC’s decision, which is the first step in a process that will end up in court. First the aggrieved party must request a rehearing. If FERC denies the request, the antis (using Big Green money) then file a lawsuit in federal Appeals Court to try and stop FERC from continuing to approve the project. Normally FERC has 30 days to decide on a rehearing, however, they have a little tactic they call a “tolling order” which allows them to extend the amount of time to make a rehearing decision–indefinitely. FERC has pulled out the tolling order card and played it with the TGP project–and that has the Kentucky nutters fuming…
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    Deep Well Services Introduces 5th Generation Snubbing Rig for M-U

    Deep Well Services (DWS) is a “snubbing” oilfield services company headquartered in Pennsylvania. DWS operates a special kind of drilling rig (snubber) that allows the company to drill existing wells already under pressure further out, inserting pipe into a working well, or retrieving pipe from a well, without shutting down the well. It’s called snubbing and it’s a specialized, delicate operation. DWS is one of a handful that performs the service in the Marcellus/Utica. DWS has just unveiled its newest state-of-the-art snubbing rig–a “fifth-generation” rig, built for the deeper, longer, and higher pressure wells Marcellus/Utica drillers are now drilling…
    Read More “Deep Well Services Introduces 5th Generation Snubbing Rig for M-U”

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    Crestwood Scores Big Victory in Seneca Lake LPG Storage Project

    This news is a bit dated, but still important. Crestwood Equity (used to be called Crestwood Midstream) won an important court victory in September regarding its plan to build an LPG (liquefied petroleum gas, or propane) storage facility in depleted salt caverns in New York. 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. Earlier this year Crestwood scaled back its plans, dropping natgas storage but keeping LPG storage (see Crestwood Drops Seneca Lake Natgas Storage Plan, Keeps LPG Plan). In September, a chief administrative law judge, part of the DEC, ruled against antis who are demanding ongoing, never-ending hearings about the project–a transparent tactic to continue the years-long delay in perpetuity. The judge said the DEC has all the evidence it needs to make a decision. Of course, the decision will get made by a radical anti who heads up the DEC–Basil Seggos (part of the National Resources Defense Council cabal that opposes all fossil fuel projects). So the project still has miles to go before it becomes reality. Perhaps insurmountable miles. But, let’s enjoy this major victory against antis, spun as a minor victory by profoundly biased “reporter” Tom Wilbur in the Binghamton Press & Sun-Bulletin…
    Read More “Crestwood Scores Big Victory in Seneca Lake LPG Storage Project”

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    FERC Clears TGP Orion Expansion to Begin Service to New England

    In October 2015, Kinder Morgan’s Tennessee Gas Pipeline (TGP) filed their official, full application with the Federal Energy Regulatory Commission (FERC) seeking approval for their Orion Project (see Tennessee Gas Pipeline Files PA Orion Project with FERC). The $109 million project consists of 13 miles of new “looping” pipeline in Pike and Wayne counties, Pennsylvania. The project will boost capacity on the TGP by another 135 million cubic feet per day (MMcf/d), allowing TGP to pump more yummy Marcellus Shale gas to Mid-Atlantic and New England states. FERC gave final approval for the project in February of this year (see TGP Orion Project in NEPA Gets Final Approval by FERC). In March, Big Green group THE Delaware Riverkeeper filed a lawsuit in the U.S. Court of Appeals for the Third District requesting the court overturn a Clean Water Act permit granted to the project by the U.S. Army Corps of Engineers. In August, the Third Circuit rejected Riverkeeper’s request in a humiliating defeat (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). According to the original plan, the TGP Orion upgrade will be complete and in-service by June 2018. December 2017 is certainly “by June 2018” and that’s a good thing, because Orion is now done and FERC has just given TGP the green light to start it up…
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    Lancaster Farmland Trust Settles Lawsuit Against Atlantic Sunrise

    Lancaster Farmland Trust, a leftist group that seeks to stop all development of land in and around Lancaster County, PA, sued a farmer and Atlantic Sunrise Pipeline after the Lancaster farmer signed an easement on a piddly 1.5 acres of land. The Trust claimed according to the terms of the deed the landowner didn’t have the right to sign the easement (see Atlantic Sunrise Files 13 Eminent Domain Cases in 4 Counties). The previous owners of the property “donated a conservation easement to the trust that specifically stated various man-made activities, and specifically listing pipelines, could not be built on the property.” We think that’s particularly sleazy (and should be illegal)–forever saddling future owners of the property with restrictions. No matter–it’s frequently done, and a lesson to landowners to beware, DON’T buy properties with such restrictions. If enough people refused to buy such properties, property owners would quit doing it because their property is no longer salable. But we digress. Transco Pipeline (of which Atlantic Sunrise is a part) tried to get the case tossed, but a Lancaster County judge refused. So Transco terminated the easement with the property owner, then turned around and filed a eminent domain lawsuit against the property owner and the Trust, which got the Trust’s attention. They’ve just settled the case, fearing (knowing) a judge would rule against them anyway. In the end, it seems to have come down to the Trust wanting money. They got $12,470 for the easement plus another $25,000 to cover their legal fees. The actual landowner got (as near as we can tell), nothing…
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    Marcellus/Utica Gas Soon Heading to Canadian Capital of Ottawa

    Iroquois Gas Transmission System is a natural gas pipeline that brings gas from eastern Canada to the New York City area. It is owned by TransCanada Corporation, Dominion Resources, KeySpan Corporation, New Jersey Resources Corporation, and Energy East Corporation. There have been plans, for years, to connect the Constitution Pipeline to the Iroquois and flow Marcellus/Utica gas to Canada by converting Iroquois to be bidirectional. As we all know, the Constitution has been stalled since 2014 because of the corrupt State of New York blocking it. There’s still hope that Constitution will get built. In October they asked the Federal Energy Regulatory Commission to override the New York and allow the project to proceed (see Constitution Pipeline Asks FERC to Override NY DEC). Iroquois is no longer waiting on the Constitution. They’ve pushed forward and recently Canada’s National Energy Board (NEB) voted to approve changing the Iroquois on their side of the border to be bidirectional, allowing Marcellus/Utica gas to begin flowing into Ontario–eventually all the way to the capital city of Ottawa by hitching a ride on TransCanada’s pipeline network. How cool is that? Marcellus/Utica gas supplying the capital of Canada. A report by the Ontario Energy Board says Marcellus/Utica gas is projected to supply up to 74% of Ontario’s natgas demand!…
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    FERC Says Emails Prove Rover Lied About Demolishing This Old House

    In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. Their action in demolishing the house landed Rover in hot water with the Federal Energy Regulatory Commission (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). FERC said Rover should have reported their decision to demolish the house. Rover had to pay a “fine” of $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). FERC issued a “Staff Notice of Alleged Violations” related to this old house in July of this year (see Rover Still in Hot Water w/FERC Over Demolishing This Old House). The notice says Rover “did not fully and forthrightly disclose all relevant information.” FERC also said, “Rover falsely promised it would avoid adverse effects to a historic resource that it was simultaneously working to purchase and destroy.” Because of the house demolition, FERC refused, and continues to refuse, to issue a blanket authorization for routine construction. In a FERC communication from last week, FERC says they have a smoking gun–copies of emails that prove Rover bought this old house with the intention of demolishing it right from the beginning…
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    NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe

    North Carolina has a Democrat governor. The state Dept. of Environmental Quality (DEQ) is an executive branch agency. So it’s no surprise to learn that the DEQ has turned antagonistic toward Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. In October the DEQ rejected the plan submitted by Dominion for the pipeline project, claiming the erosion and sediment control plan is not up to snuff (see NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?). Since that time Dominion has been back and forth with the DEQ. On Wednesday the DEQ sent Dominion a fourth round of questions. Dominion has 30 days to respond, and the DEQ another 60 days after that to respond to the response. Bingo, another 90 days gone, just like that. What this appears to be is “death by a thousand cuts,” or in this case, “death by a thousand questions”…
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    NJ Radical Organization Sues FERC in Bid to Stop PennEast Pipeline

    PennEast Pipeline is a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The pipeline is an important conduit to move gas from the prolific gas fields of northeastern PA to markets in southeast PA and New Jersey. From the beginning of the project there have been a collection of so-called environmental organizations opposing it–including THE Delaware Riverkeeper, NJ Sierra Club, and the NJ Conservation Foundation. All radical groups, far far out of the mainstream. They also share something else besides an irrational hatred of fossil fuels–they’re part of a conspiracy to defeat PennEast funded by the William Penn Foundation. William Penn funds the aforementioned groups, as well as buying their own “media” in news outlets by funding StateImpact Pennsylvania and a news site called NJ Spotlight. William Penn sits in the background, pretending to be apart and aloof (to protect their IRS non-profit status) while pulling the strings and directing the opposition. Why the IRS turns a blind eye, we can’t say. At any rate, William Penn pulled another string this week–prompting their serfs at the NJ Conservation Foundation to file a lawsuit against the Federal Energy Regulatory Commission (FERC). The cockamamie claim is that IF FERC approves PennEast, the pipeline will then be able to invoke eminent domain to allow it to enter properties and complete route mapping for the pipeline. Right now some hardened antis who live along the route refuse to allow PennEast to step one foot on their property. So NJ Conservation Foundation has filed a lawsuit (copy below) to prevent FERC from issuing a final certificate for PennEast because PennEast will then gain the right of eminent domain. The lawsuit claims PennEast using eminent domain to build the pipeline would be an improper “taking” of private property under the Constitution. The only problem (for the William Penn-backed NJ Conservation Foundation) is that no “taking” has actually happened until FERC approves the project. That is, the lawsuit anticipates a harm that hasn’t happened. We expect that little fact will not escape the judge’s notice and that the lawsuit will be tossed in short order…
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    Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling

    On Monday MDN brought you the news that Captain Ahab, er, a, Ohio EPA director Craig Butler, had demanded Rover Pipeline stop all horizontal directional drilling (HDD) work now under way in the state because another (tiny, 200 gallon) drilling mud spill happened on November 16th (see Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop). Butler sent a letter to Rover and has also sent it to the Federal Energy Regulatory Commission (FERC) in yet another attempt to get FERC to halt work on the Rover project. Yesterday Rover thumbed its nose at Butler and instead asked FERC for permission to not only continue all current HDD work, but to begin new HDD work at several more locations in Ohio. Moby-Dick strikes back. Take that, Captain Ahab!…
    Read More “Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling”

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    TransCanada Says FERC Approval for Mountaineer XPress May Slip

    In July 2017, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for both the Mountaineer XPress and Gulf XPress projects (see FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes). Both projects are part of Columbia Pipeline Group (now owned by TransCanada), expansions of the Columbia Pipeline system. A favorable EIS means it’s a foregone conclusion that FERC will issue a certificate for the project to proceed–at some point. Mountaineer XPress includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia. Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. So far FERC has not given these two important Marcellus/Utica projects the final go-ahead. During TransCanada’s annual investor day webcast yesterday, Stan Chapman, president of TransCanada’s US natural gas pipelines business told investors (and the public) that although they had hoped for FERC approval by the end of this year, it’s now likely the approval will “slip into January”…
    Read More “TransCanada Says FERC Approval for Mountaineer XPress May Slip”

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    ME2 Construction Plan Near Philly Changed, Antis Still Not Happy

    Why are we not surprised that antis are NEVER happy. EVER. Sunoco Logistics Partners has, after experiencing problems using underground horizontal direction drilling (HDD) at a couple of locations near Philadelphia while building the Mariner East 2 NGL pipeline, decided to abandon HDD and instead switch to another method to get the pipeline installed. Even with the change in methodology, antis are still fussing and moaning. The only outcome that will make them “happy” is for Sunoco to abandon building the pipeline, which isn’t going to happen. Even if Sunoco did quit building ME2, we doubt the antis would really be happy. Have you ever noticed they’re perpetual sourpusses?…
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    Michelle Hook: NatGas Missionary in Hostile Territory (New York)

    We live in a different world here in New York State–MDN’s beloved, lifelong home state. We suppose it’s like living in East Germany just after The Wall was built. Our wall is not physical but political. Even so, it’s just as real. Our state has become something of a socialist/Communist dictatorship. Our Constitutional property rights have been stripped away. Some private companies are actively opposed and frustrated by our governor, who then turns around and doles out taxpayer money to other private companies who are his cronies. We have no shale drilling, and no prospect of it until Cuomo is voted out of office. He’s even taken to stopping pipelines. Fortunately some pipelines, like the Millennium, were built before Cuomo caught the green fever. However, if you try to expand existing pipelines, say by running a 7.8 mile spur to an electric power generating plant that’s almost built, Cuomo will try and stop you. He’s like a hostile war lord in a third-world country. A tinpot dictator. Operating a pipeline in such a climate is not easy. It brings to mind stories of missionaries who put their own lives at risk to travel to hostile lands to bring religion to the heathen–whoops, to the indigenous population. One such pipeline missionary operating in New York is Michelle Hook, director of public relations for the Millennium Pipeline Company. How does Michelle do it, without going crazy?…
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    Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction

    Who says you can’t buy a court decision–at least a temporary one? Back in May MDN told you about the antis running the City of Green, Ohio hellbent on stopping the NEXUS Pipeline, all of it (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Green’s high-priced lawyers filed their lawsuit in the 6th U.S. Circuit Court of Appeals, requesting an emergency stay blocking construction. Late last week a three-judge panel voted 2-1 in favor of Green’s request for an emergency stay, which temporarily blocks further construction of an 8-mile segment of the NEXUS Pipeline in the vicinity of Green (but not anywhere else). The judges believe Green’s lawsuit is likely to prevail in court–hence stop any construction for now around Green. The big problem, from our limited legal understanding, is that the underlying lawsuit filed by Green challenges the Ohio EPA’s decision to grant water crossing permits for the ENTIRE 257-mile pipeline through Ohio. If Green prevails in that case, construction on the entire pipeline (as it passes through Ohio) is stopped–not just an 8-mile segment around the pipeline-phobic Green…
    Read More “Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction”

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    Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop

    In September MDN told you about Craig Butler, director of the Ohio Environmental Protection Agency (OEPA), that Bulter had gone off the rails on a power trip, claiming OEPA has the power to regulate the federally regulated Rover Pipeline project (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Butler is fining Rover for a string of some major, mostly minor drilling mud spills related to underground horizontal directional drilling (HDD). Earlier this month Butler fleeced the Ohio Attorney General into suing Rover (see OH EPA Director Manipulates Atty General to Sue Rover Pipeline). Like Captain Ahab obsessed with Moby-Dick, Butler continues his quest to stop Rover. Butler’s latest attempt is to “request” (i.e. demand) Rover stop all HDD work now under way because another drilling mud spill happened on November 16th. The latest spill (called an “inadvertent return”) was 200 gallons and ended up in the Black Fork Mohican River in Ashland County. For new MDN readers: drilling mud is bentonite clay–the same stuff used to make kitty litter, toothpaste and cosmetics. It’s nontoxic and perfect safe for the environment–unless there’s a lot of it, and then it can smother critters like salamanders and fish. But honestly, 200 gallons of it is NOTHING. Butler sent a letter to Rover and has also sent it to the Federal Energy Regulatory Commission (FERC) in yet another attempt to get FERC to halt all Rover HDD work…
    Read More “Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop”

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    Basin Energy Buys/Merges in Marcellus-Utica Co. Katko

    Basin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. In September 2015, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions (see WV Roustabout Company Sells Itself to Another WV Company). Since that time Basin has been busy. In January of this year, Basin closed on acquiring Appalachian Production Services (APS), a company focused on focused on providing services for producers in the Marcellus and Utica Shale. A few weeks ago Basin did it again, closing a deal to acquire Katko, LTD. Katko is focused on providing well hook up services, maintenance of midstream and production assets and specialty welding services in OH, PA and WV. The the owner and founder of Katko, John Bettem, will join Basin’s board of directors. Terms of the private deal were not disclosed. Basin Energy has come out of nowhere in a few short years to become an important oilfield services player in the Marcellus/Utica…
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