Energy Services

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    Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done

    Those opposing two major Energy Transfer projects–Rover Pipeline and Mariner East 2–will not be happy with the good news coming from ET this week. The company issued its second quarter update and held a conference call yesterday. During the call we learned that Phase 1 of Rover, a $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, is “substantially complete” with Phase 1A expected to be done next week and online asap. Phase 1A stretches from Cadiz to Defiance, which is most of Ohio. Phase 1B is a short segment from Seneca to Cadiz, and once ET gets clearance from FERC to drill horizontally under Captina Creek, it will only take them about 40 days to complete Phase 1B. If ET can convince FERC to allow them to restart more horizontal directional drilling (HDD) work, Phase 2 will be done soon as well–and the entire project will be up and running by the end of the year. More good news for Rover: The temporary ban on HDD work for Rover in two West Virginia counties that began two weeks ago has now been lifted by the WV Dept. of Environmental Protection. As for ET’s Mariner East 2 (ME2) pipeline project that stretches across Pennsylvania, 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and covered up. As we reported yesterday and again today, ET subsidiary Sunoco Logistics Partners (building ME2) has brokered a deal with several radical environmental groups that will slow the project down some, but slow and done is better than no progress at all. Here’s an update on the good news about Rover and ME2…
    Read More “Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done”

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    Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win

    Yesterday MDN brought you the news that Sunoco Logistics Partners had cut a deal with the devil, meaning three radical Big Green groups, to slow down but eventually complete work on the Mariner East 2 natural gas liquids (NGL) pipeline project in Pennsylvania (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). The deal means Sunoco has to re-submit plans for underground horizontal direction drilling (HDD) in 47 locations to the PA Dept. of Environmental Protection (DEP) for review. The DEP will then get 21 days to review those re-worked plans. But the plan needed to be blessed by Environmental Hearing Board Judge Bernard Labuskes Jr. first. Yesterday Judge Labuskes gave the plan his stamp of approval. Now the three Big Green groups–Clean Air Council, Mountain Watershed Association, and Delaware Riverkeeper Network–are bragging about their victory. High-fiving each other and taking pot shots at the DEP and one of their own–Democrat Gov. Tom Wolf. Wolf is not “pure” enough for Big Green nutters. Only a complete shut-down of the project would be acceptable, which Wolf does not support. However, the Big Greeners are pragmatic. They’ll take half a loaf–in this case slowing the project down…
    Read More “Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win”

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    Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2

    Energy Transfer’s Sunoco Logisitics unit has struck a deal with the devil–the devil being the Philadelphia-based (and odoriferous) Clean Air Council, THE Delaware Riverkeeper and Mountain Watershed Association–that will ultimately lift the current ban on underground horizontal directional drilling (HDD) for the Mariner East 2 NGL pipeline project. The three Big Green groups (well funded by colluding leftist organizations) filed an appeal with the Pennsylvania Environmental Hearing Board to block all HDD work following several drilling mud leaks, one of them fouling a water aquifer in Chester County (see Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues). The Hearing Board judge agreed and stopped all HDD work, temporarily (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). However, earlier this week the judge allowed a partial lift of the ban (see PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations). Sunoco and the Big Green groups have now “settled.” The terms of the “settlement” call for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Landowners who live within 450 feet of a planned HDD site may request water well testing before, during and after Sunoco’s underground drilling activity. In return, the Big Green groups agreed to drop their appeal requesting no further HDD work. As deals with the devil go, perhaps this one isn’t so bad after all. However, we still question why the groups had standing to bring the action in the first place…
    Read More “Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2″

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    Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement

    Eastern Panhandle Expansion – click for larger version

    In April, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) has filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, scheduled to open in Fall 2017, and to provide gas to other local businesses and residents in the Tri-State area. Most of the proposed pipeline crosses through a tiny sliver of Washington County, Maryland. The main “issue” with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has radical anti-fossil fuelers in an uproar. As we pointed out in July, the project is in a fight for its life (see WV Fight Over Simple Expansion of Local Gas Delivery Pipeline). Lack of natural gas is strangling expansion in Jefferson County, WV. But that makes no difference to antis in Maryland who are kicking up a fuss and planning to stage a kayak protest in the Potomac. Below is an update on anti efforts to stop the project, and pro efforts to get it approved and built…
    Read More “Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement”

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    Patterson-UTI Rig Count Hits New High of 162 in July

    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 up Patterson’s rig count number in April and May (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 June, Patterson’s count went up by a single new rig in North America, to 160 (see Patterson-UTI Rig Count Hits New High of 160 in June). That was the 13th month in a row Patterson’s rig count has gone up–an astonishing run. The trend continued in July, with Patterson picking up another 2 active rigs for 162 in North America…
    Read More “Patterson-UTI Rig Count Hits New High of 162 in July”

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    New Life for Constitution Pipe – Williams Asks White House for Help

    In April 2016 the New York Dept. of Environmental Conservation (DEC) caved to corrupt political pressure from Andrew Cuomo and denied the Williams Constitution Pipeline a necessary federal 401 stream crossing permit, blocking the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). At that moment, the DEC stepped off a cliff. It’s been a long, slow process, but we’ve watched them fall ever since. And now, they will soon hit the bottom. They were dead (metaphorically) the moment they issued their denial. It was a foregone conclusion that their illegal action would not stand–that the DEC would eventually be overruled and their role in permitting such projects would be stripped away. But you have to remember those were heady days for the left, when Cuomo was full of himself and the future seemed certain that the hapless Hillary would win the White House and further corrupt federal agencies like the Federal Energy Regulatory Commission (FERC), the agency that oversees projects like the Constitution. But the unthinkable happened. Hillary lost (thank God!). And now Cuomo and his corrupted DEC have no backstop at the federal level. Last week on a conference call to discuss second quarter earnings, Williams CEO Alan Armstrong responded to a question about the long-stalled Constitution Pipeline. He said Williams is working with The White House to get the Constitution project back on track. Reading between the lines, Williams is asking The White House to ask FERC to overrule the NY DEC and grant the stream crossing permits for the project. Armstrong now says he believes it will get built, and will be up and running, sometime in the second quarter of 2019…
    Read More “New Life for Constitution Pipe – Williams Asks White House for Help”

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    NFG 2Q17: NY Pipeline Holdup Causes Shift to More Utica Drilling

    Last week National Fuel Gas Company, headquartered in Western New York State with drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its third quarter (everyone else’s second quarter) 2017 update. NFG produced 567 million cubic feet per day (MMcf/d) of natural gas last quarter, a 6% increase over the same quarter a year ago. NFG realized an average price of $2.94 per thousand cubic feet (Mcf), up $0.08 per Mcf from the prior year. Compare that with Antero’s hedged average of $3.41/Mcf (see today’s story about Antero 2Q17). NFG CEO Ronald Tanski had some interesting remarks with respect to the company’s stalled Northern Access Pipeline project. As you may recall, the Andrew Cuomo New York Dept. of Environmental Conservation (DEC) is blocking Northern Access, like they blocked the Constitution Pipeline and a tiny spur project for the Millennium. Because NFG’s Northern Access project is stalled, they are shifting their budget and drilling further west, to do Utica drilling in locations where there is already pipeline infrastructure. So this is yet another case of the NY screwing up Marcellus drilling PA that would otherwise be happening. Landowners in PA can thank NY Gov. Cuomo for screwing them over. Tanski also mentioned the court case for Northern Access, and that FERC (Federal Energy Regulatory Commission) may step in and overrule the NY DEC, as is now being considered in the Constitution Pipeline case (see today’s lead story). Here’s the update from NFG…
    Read More “NFG 2Q17: NY Pipeline Holdup Causes Shift to More Utica Drilling”

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    PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout

    For those of us who have long supported the Williams Atlantic Sunrise Pipeline project, it seems like it has taken FOREVER for the Pennsylvania Dept. of Environmental Protection (DEP) to issue final water and air permits for the pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project, most of which will get built in northeast Pennsylvania. In an attempt to get the DEP moving, Williams co-hosted an event a few weeks ago in Wyoming County to pressure the DEP into granting final permits (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). Perhaps the event helped. On the very same day as the event, the DEP announced a supplemental 30-day public comment period to begin on July 22. During this time, the DEP will hold one final public hearing–for feedback on an Air Quality Plan Approval for construction activities related to Atlantic Sunrise. That final public hearing will be held on Monday, August 14, in Lancaster. The anti-pipeline group Lancaster Against Pipelines (organized by some of the same people who illegally protested against the Dakota Access Pipeline in North Dakota), are planning a mass temper tantrum at the hearing. They will stage a “walkout” at the meeting. Adults behaving like spoiled rotten children. We’ve come to expect it from them. MDN encourages pro-pipeliners (i.e. adults) to show up in large numbers so that when the 10-15 antis walk out, nobody will even notice…
    Read More “PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout”

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    NEXUS Pipeline to FERC: Please Approve Project – NOW

    In late January, Federal Energy Regulatory Commission member Norman Bay announced he was quitting, in a huff, because President Trump has elevating another commission member to be chairperson (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). That announcement set off a flurry of activity. After Bay left, there would no longer be a quorum of voting members to approve projects. On his way out the door, Bay and the other two commission members approved a list of major Marcellus/Utica projects. But time was limited and there was one project left standing in the FERC game of musical chairs (see In FERC’s Game of Musical Chairs, NEXUS Pipeline Left Standing). 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. Originally the project was due to be up and running this year, but in July NEXUS officials admitted that ain’t gonna happen (see NEXUS Pipeline Startup Slips to 2018 Due to Quorumless FERC). In addition to lack of a voting quorum at FERC, NEXUS faces legal action by a small group of antis (see CORNballs Accuse FERC of Illegally Approving NEXUS Pipeline in OH). However, now that FERC does have a quorum, NEXUS is wasting no time. They want to be first in line for an approval. Last Friday NEXUS sent FERC a letter “respectfully” requesting “immediate issuance” of the certificate so they can begin construction NOW…
    Read More “NEXUS Pipeline to FERC: Please Approve Project – NOW”

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    OH Landowner Vents Frustration with Rover Work on His Land

    Below is a story of an Ohio landowner who “worked to get good easements and good language” in the contract he signed with Rover Pipeline. But, according to the landowner, once construction began, “everyone seemed to forget” what they promised in the contract. And so landowner Roger Meggyesy has been vigilant to point out violations to third-party pipeline inspectors who report on Rover’s activities to the Federal Energy Regulatory Commission (FERC). As Meggyesy rhetorically asks, “Why do we have to come and fight after the fact?” It is disheartening to read these kinds of accounts. This guy did everything right, got it all in writing–and yet it’s still an uphill fight. We bring you this story because it’s important to air the problems along with highlighting the good stuff when it comes to these big pipeline projects…
    Read More “OH Landowner Vents Frustration with Rover Work on His Land”

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    ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks

    Rover Pipeline is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling mud (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a wetland next to the river. As we pointed out at the time, “Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter.” The Ohio Environmental Protection Agency (OEPA) investigated the spill, following an “anonymous tip” and found the presence of diesel fuel in the spilled mud. Diesel fuel IS toxic–and its presence is not a good thing. OEPA’s testing found “very very low levels” of diesel fuel, whatever that means. Even very very low amounts are not good–and in fact are illegal. Since that time Energy Transfer has tried to figure out why there is diesel in the drilling mud–because they sure didn’t order it, and they firmly believe their drilling contractor did not add it to the mud. So how did it get there? On Friday Energy Transfer offered two theories–either an accident spilled diesel into the mud, or it was intentionally placed there by antis, as an act of sabotage. We do find it interesting that OEPA Director Craig Butler, who has been combative against Energy Transfer and the Rover project, claims an anonymous source tipped him to the presence of the mud. Was the anonymous source a whistle blower who worked for the contractor and claimed this is a routine practice? Did OEPA find diesel in unused drilling mud? Have they found the presence of diesel at ANY other locations where HDD is being used? We certainly had the thought fly through our brains, for only a moment, “What if an anti deliberately put diesel in the mud?” when this story first broke several months ago. But we immediately dismissed the idea. Not even antis would stoop so low as to poison Mother Earth to advance their cause. Or would they?…
    Read More “ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks”

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    PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations

    On July 25th, a Pennsylvania state environmental judge issued an order blocking all underground horizontal directional drilling (HDD) work being done across the state to install the Mariner East 2 (ME2) pipeline (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). The order stopped drilling at some 55 different locations where ME2 must drill underground–say under a stream or roadway. The order was in response to an appeal by radical Big Green groups, including the anti-fossil fuel Clean Air Council (of Philly), THE Delaware Riverkeeper (Maya van Rossum), and Mountain Watershed Association (see Antis’ Fake Outrage at ME2 Construction “Spills,” Demand Stop Work). As we said at the time, although temporary, the two-week pause is troublesome and problematic because Big Green groups have convinced a DEP judge to hear a case that ultimately aims to stop the ME2 project. The somewhat good news is that last Thursday the same judge lifted the HDD drilling ban for 16 of 55 locations. Bear in mind digging trenches for the pipeline (over 90% of the work being done) continues and is not subject to the judge’s order. The odoriferous Clean Air Council (CAC) is the primary group doing the suing. In an interesting development, mainstream news is reporting Sunoco Logistics Partners (building the pipeline) is in “settlement negotiations” with CAC. Settling what, we don’t know. We’re not even sure why the CAC has standing to bring a lawsuit against the project in the first place…
    Read More “PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations”

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    Court Clears Path for Atlantic Sunrise Pipe to Begin Work in PA

    Atlantic Sunrise route – click for larger version

    Williams and their Atlantic Sunrise Pipeline project are just a few properties away from having easements for all of the properties they need in Pennsylvania, thanks to a judge in the U.S. Middle District of PA and his decision yesterday. Judge Matthew Brann gave Transco Pipeline (the pipeline getting extended with the Atlantic Sunrise project) access to seven hold-out properties in Lebanon, Northumberland, Columbia and Luzerne counties. There are still a couple of holdouts left in Lancaster and Columbia counties, cases which are in a different court. Staking of workspace boundaries will begin in 10 days, on August 14th. Construction, things like clearing and grading the right-of-way, will begin in mid-September. Obviously Williams believes the state DEP is about to grant stream crossing permits for the project, which they still need. The good news is that the courts are backing Atlantic Sunrise, and work on the pipeline will begin in days…
    Read More “Court Clears Path for Atlantic Sunrise Pipe to Begin Work in PA”

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    NY DEC Holds Sham “Hearing” for Power Plant Pipeline

    New York’s corrupted Dept. of Environmental Conservation (DEC) is running scared. For 19 months the DEC has intentionally delayed granting a tiny, 9-mile spur Millennium Pipeline wants to build in Orange County, NY the necessary federal 401 stream crossing permit it needs. Millennium took the DEC to federal court, but the court refused to get involved, telling Millennium if the DEC is delaying, the Federal Energy Regulatory Commission (FERC) can jump in and override the DEC (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). So that’s what Millennium did. They asked FERC to grant the stream crossing permits themselves (see Showdown: Millennium Asks FERC for Permission to Ignore NY DEC). Sensing they are now in a death spiral and will lose control over not only the Millennium project, but also other projects like the Constitution Pipeline and Northern Access projects the DEC has been blocking, the DEC responded and asked FERC to wait until August 30th before granting the certificate–so the DEC could grant it (or not) themselves (see Corrupt NY DEC Fires Back at Millennium, Claims Deadline is Aug 30). So the DEC held a public hearing Wednesday night. A sham. Kabuki theater. It was the DEC going through the motions before they get off their rear-ends and grant the certificate they could have granted more than a year ago. The public hearing in Wawayanda, NY did not disappoint, with insane anti-fossil fuelers parading before the microphones and cameras, predicting the end of the world if this 9-mile pipeline to feed a gas-fired power plant gets built…
    Read More “NY DEC Holds Sham “Hearing” for Power Plant Pipeline”

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    GreenHunter Lawsuit Against Former Employees Dismissed

    In November 2015 MDN reported on a lawsuit filed by GreenHunter Resources (filed in October 2015) against two former GreenHunter employees and a competitor (see GreenHunter Sues 2 Former VPs + OH Competitor for Conspiracy). The lawsuit alleged that John Jack, former vice president of Appalachia operations for GreenHunter, and Noble “Rick” Zickefoose, former vice president and operations manager at GreenHunter left the company and subsequently shared privileged company secrets with Dean Grose, CEO of Comtech Industries and a principle with Water Energy Services (both companies competitors of GreenHunter). At the time we said it appeared GreenHunter had a strong case. We also said: “Of course there’s always two sides in these cases–so we must ‘presume innocence’ until the court finds otherwise.” Prescient words. From the beginning, all three defendants strongly maintained their innocence. Rick Zickefoose contacted MDN to let us know he has worked tirelessly to clear his good name. Rick told MDN, “I have been employed in the oil and gas industry of the Appalachian basin for more than 37 years. In the industry your reputation is everything.” He, and the other defendants, fought hard. In June their efforts were rewarded when the case was dismissed, “with prejudice” (meaning “permanently”). Rick and the other defendants are now cleared, their names and good reputations restored…
    Read More “GreenHunter Lawsuit Against Former Employees Dismissed”

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    Dominion: Cove Point LNG 95% Complete, Online in 4Q17

    Dominion Energy released its second quarter 2017 update and held a conference call yesterday to discuss those results. Dominion is a huge producer and transporter of energy with its fingers in a lot pies. Dominion produces 26,200 megawatts of electricity, owns 15,000 miles of natural gas transmission, gathering and storage pipelines, and owns 6,600 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems with 1 trillion cubic feet of storage capacity. They also are a local utility company, serving more than 6 million customers. Yeah, big company, big deal. However, our interest in Dominion is fairly narrow: They are building an LNG (liquefied natural gas) export facility along the shoreline of Maryland. The Cove Point LNG facility will export 1.8 billion cubic feet per day (Bcf/d) of Marcellus/Utica Shale gas–to India and Japan. On yesterday’s call, Dominion CEO Tom Farrell said Cove Point is “95% done” and “remains on-time and on-budget” to begin operations by the end of this year. That’s great news! The other thing we closely watch with Dominion is the $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. With respect to ACP, Farrell said they’ve already purchased 84% of the materials needed for the project and that it remains “on-track to start construction later this year.” Farrell said the pipeline should be done in the “second half of 2019.” More good news! Here’s the latest from energy giant Dominion Energy…
    Read More “Dominion: Cove Point LNG 95% Complete, Online in 4Q17”