Energy Services

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    Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling

    Yesterday Energy Transfer Partners, the builder of the Rover Pipeline, once again asked the Federal Energy Regulatory Commission (FERC) if they could pretty-please-with-a-cherry-on-top resume horizontal directional drilling (HDD) in a couple of key locations in Ohio, so they can finish phase one of the pipeline somewhere close to on-time. Rover is a $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. It is a critical piece of sorely needed infrastructure for the Marcellus/Utica industry. As soon as ET received approval for the project in February, they began building it. But they hit a few snags along the way, including an “inadvertent return” (i.e. leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). A few weeks later ET asked FERC if they could begin drilling again in a few key locations (see Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill). But so far, nyet. Yesterday ET asked again, “respectfully,” to restart HDD drilling…
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    FERC Gives Dominion VA/MD/DC Pipeline Favorable Enviro Assessment

    In October 2016, Dominion announced a new pipeline project called Eastern Market Access Project (see Dominion Announces $145M Project to Expand Gas Supply to DC & MD). The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas (and its customers), and to deliver gas to a new gas-fired electric power plant being built in Maryland. A Dominion spokesman confirmed for MDN that the gas will come from either the Marcellus or Utica plays. Some good news to report: the Federal Energy Regulatory Commission (FERC) has issued a favorable environmental assessment (EA) for the project…
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    Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio

    Click map for larger version – Harpster & Lima in the center

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July. It’s not quite July, but the good news is that the pipeline is now online and delivering…
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    NG Advantage Meets with Virtual Pipe Neighbors in Broome County

    NG Advantage is making a concerted effort to dispel false rumors and misunderstanding on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. As MDN reported yesterday, two different groups have now filed lawsuits to stop work at the site, one by a local elementary school (more than a half mile away) and one by residents living nearby, including a local Catholic church parish (see Church Asks NY Court to Stop Broome County CNG Virtual Pipeline). Last night officials with NG held a meeting for area residents (with more meetings scheduled for tonight) to answer questions and get the truth out about the facility. Two items in particular were front and center: (1) There are no emissions from the compressor station–it is a series of compressors (4 initially, up to 12 in all) that are powered with electricity, not diesel. So there are zero emissions from the plant. NONE. (2) The plant will be quieter than the Interstate highway it sits next to. If you are walking in the nearby Port Dickinson park (as MDN editor Jim Willis sometimes does), you will continue to hear the highway which runs overhead–but you won’t hear the compressor station. Neither will neighbors like the Catholic church hear it. Here’s a summary of last night’s meeting…
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    Son of NED: Tennessee Gas Considers Another New England Pipeline

    Is Kinder Morgan’s NED pipeline project getting reincarnated?! You may recall that over a year ago, in April 2016, anti-fossil fuel nuts in Massachusetts and other northeastern states were orgasmic that Kinder Morgan announced the company had suspended (not necessarily canceled) any further spending/time/effort on the Tennessee Gas Pipeline expansion from NY through MA, otherwise known as the Northeast Energy Direct (NED) project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Now antis are nervous again. On May 23, Kinder Morgan launched a new open season (copy below) for increased capacity/delivery along the Tennessee Gas Pipeline (TGP) in New York, Massachusetts and New England. Kinder says while NED is truly dead, there’s still demand for more gas in New England they want to provide it. The company is (rightly) being cagey about how they will deliver that extra gas–if the market demand is there. Will it be a another pipeline, like NED? Will it be more compressor stations and pipeline “looping” along the existing route? Nobody knows yet. Sounds to us like this is shaping up to be Son of NED…
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    Church Asks NY Court to Stop Broome County CNG Virtual Pipeline

    NG Advantage is building a new compressor station to tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County, NY (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute the CNG to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project, and MDN can report (since we swung by the site) that bulldozers and backhoes are hard at work transforming the site, getting it ready to construct the compressor station. However, a local elementary school, more than half a mile away, decided to sue to try and stop the project (see NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe). Now, a local Catholic church’s parish center, St. Francis of Assisi, has joined several nearby residents to launch their own lawsuit/petition asking a local court to halt construction…
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    Lancaster Anti-Pipeliners Reach New Low with Fake Graveyard

    Just when you thought you’ve seen how low some anti-pipeline fanatics will go, they surprise you and go even lower. Antis set up a fake graveyard with a half dozen authentic, 19th century tombstones, right next to a pipeline right of way for the Williams Atlantic Sunrise Pipeline in Lancaster County, PA. Williams is hypersensitive to ensure they don’t violate any “Native American” or other kinds of historic sites. So when they came across the fake graveyard, they thought it was real and proceeded as such, spending time and money to plan a route for construction that would protect the fake site. And antis, with full knowledge, lied to Williams’ people (not telling them is the same as lying in our book). And laughed their considerable derrieres off the entire time, wondering when those poor dunderheads at Williams would figure it out. Now Williams may have the last laugh, because what the antis did is fraud and prosecutable. So-called local Native Americans (i.e. Indians) were in on the “joke.” And now those Indian activists have the gall to say if Williams didn’t recognize something as fake, how will they recognize real Indian artifacts that need protecting? We ask a different question: Who will ever believe these so-called Native American activists again–when they are self-professed liars?…
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    Indian Tribe Fights FERC Over Tiny Pipeline in Mass.

    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 72,100 dekatherms 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 continue to pitch a fit and try to block the project. Can you imagine? They don’t want a single new inch of pipeline anywhere, for any reason. They are, in a word, insane. The latest tactic is to invoke the Indian gods to try and stop it. A local Indian tribe in Massachusetts has filed paperwork with FERC accusing the agency of violating the National Historic Preservation Act by not protecting “ceremonial stone landscapes” supposedly found along the path of the pipeline. If FERC refuses to “re-hear” their decision to allow the project, the Indians say they’ll sue in court…
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    DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay

    An Appeals Court decision issued Friday has (in our opinion) HUGE ramifications for New York State and the Dept. of Environmental Conservation (DEC) that has been corrupted by political influence from Gov. Andrew Cuomo. It also has ramifications in other states with overactive environmental agencies too. It is hard for us to overstate how important we think this decision is. The NY DEC has been corrupted and politicized by one of the most corrupt governors New York has ever had: Andrew Cuomo. The Cuomo DEC has unilaterally decided not to issue 401 water crossing permits for several federally-authorized pipeline projects, including Williams’ Constitution Pipeline, NFG’s Northern Access Pipeline, and a teeny tiny 9-mile pipeline Millennium wants to build from their main pipeline to an under-construction natgas-fired electric plant in Orange County, NY, called the Valley Lateral Project. Millennium took the bull by the horns early on, when it was apparent the DEC was following the same pattern of delay and then deny, suing the DEC (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). On Friday, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the lawsuit by Millennium, which at first blush may seem like a blow. But it was the reasoning and opinion of the judges in dismissing the case that may change everything in New York. The judges said there is no case because if, as Millennium says, the DEC is denying the water permits, FERC itself has the power to jump back in and simply override NY DEC and issue the permits. This is a BOMBSHELL decision. That is, it’s a bombshell if FERC (with a soon-to-be-in-place quorum) exercises its constitutional authority…
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    VA Sec Natural Resources Tells Dominion to Back Off re AC Pipeline

    A lot of communication (letters, phone calls, meetings) fly back and forth between a midstream (pipeline) company and regulatory agencies when an application is filed for a project. Particularly a project like the Dominion’s Atlantic Coast Pipeline, $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Companies like Dominion send letters, make phone calls and meet with federal and state regulators, attempting to anticipate and answer questions and concerns. It’s a natural part of the process. So we found it interesting, indeed strange, that the Virginia Secretary of Natural Resources, Molly Ward, sent a letter to Dominion back in April (just now coming to light) in which she tells Dominion to back off and that people in the agencies that work for her “will not base their decisions on requests or suggestions from an applicant.” The Roanoke Times, “reporting” on the letter, opens their article with this sentence: “Attempts by Dominion Energy to sway regulators in the Atlantic Coast Pipeline permitting process prompted a top official under Gov. Terry McAuliffe to notify the utility that state agencies would not heed those efforts.” So now, when a company attempts to provide information, perhaps anticipating issues and concerns for regulators, and reaches out to contact them proactively, that’s called an attempt at “swaying” and is somehow nefarious and underhanded. Should Dominion contact regulators to ask them to NOT approve the project? Ridiculous! Of course Dominion is going to try and convince regulators that the project is worthy/sound/needed/safe/etc. That’s their job! Why would Ward not want her people to hear directly from Dominion? Her people hear plenty from the other side, anti-fossil fuel nutters opposed to the project…
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    Canadian Regulators Line Up to Support TransCanada Lowball Plan

    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. In October, TransCanada launched an open season to lock up customers for the new, lower-priced option. The open season 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. The original deal required a 10-year term with a long-term tolling rate between C$0.75/GJ to C$0.82/GJ. In February, the advertised deal was for a 10-year term and a simplified single rate of C$0.77/GJ (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). 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, not only from the National Energy Board but also provincial agencies as well. Those agencies are now falling into line and giving their blessing, which has to happen by November 1st…
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    Radical Enviro Groups Ask FERC for Full Investigation of ET Rover

    Here is a short list of radical environmental groups that are despicable and loathsome in every sense of the word: Sierra Club, Center for Biological Diversity, Earthworks, Freshwater Accountability Project, Friends for Environmental Justice, Indigenous Environmental Network, Indigenous Iowa, Keep Wayne WILD, Louisiana Bucket Brigade, Ohio River Citizens’ Alliance, and Oil Change International. They have dedicated themselves to stopping work on, and ultimately blocking, Energy Transfer’s (ET) $3.7 billion, 711-mile Marcellus/Utica Rover natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The problem, however, is that ET has given these groups an open door to pedal their anti-fossil fuel nonsense. Indeed, ET has given them an open door to block further progress on building Rover. How? By rushing construction that has led to a string of accidents and incidents, alienating the thin-skinned Ohio Environmental Protection Agency (OEPA) and a number of landowners. One of the accidents, perhaps the most prominent accident that’s been the focus for much of the radical’s efforts, was a 2 million gallon spill of drilling mud into a wetland near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). After receiving a tip, the OEPA tested some of the recovered drilling mud and claim they found diesel fuel mixed in (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That finding led the Federal Energy Regulatory Commission (FERC) to launch an investigation. On Wednesday, the radical groups we list above sent a five-page letter to FERC requesting a “formal and full investigation” of the entire Rover project. In other words, shut it all down and give Rover a detailed anal exam. Every day the Rover Pipeline goes over its projected online date, the company loses $10 million. If FERC agrees to the nutters’ request, well, let’s just say it’s not good news for ET…
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    Braskem Says Future Investment in Marcus Hook Still Possible

    Nearly five years ago, in July 2012, then-PA Gov. Tom Corbett announced that some of the Sunoco Marcus Hook Refinery assets had been purchased by Braskem America (see Marcellus to the Rescue: Marcus Hook Refinery to Reopen). Braskem, a division of Brazilian company Odebrecht, uses the Marcus Hook facility to manufacture polypropylene plastics. The facility gets some of (most of?) its raw materials (i.e. ethane) from the Marcellus Shale. Interestingly, Braskem’s US operations are headquartered in Philadelphia. When it came time to invest $675 million to build a new polypropylene plant–Braskem chose Texas as the site, not Marcus Hook in their own back yard. Which is a huge disappointment. Why the Texas Gulf Coast? Because of “a ready supply of raw material from nearby petrochemical operations.” But that may not be the end of the story. Braskem CEO Mark Nikolich said just because they chose Texas for this project, doesn’t mean they still don’t love Marcus Hook just as much–and it doesn’t rule out expanding the Philly plant in the future. Just as soon as there’s more ethane available (hello Mariner East 2!)…
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    Duke, Piedmont Ask FERC to Extend Atlantic Coast Pipe Contract

    It takes a lot longer these days to get a big pipeline approved than it used to. In April 2014, Dominion promoted an open season for what would later become the $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. By September 2014, Dominion said they had enough commitment to move forward with the project (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). Little did Duke Energy and Piedmont Natural Gas (now owned by Duke) know that in signing up for the project, it still wouldn’t be built more than three years later. True fact: It only took 410 days to build the Empire State Building, from the first shovel of dirt moved to opening the doors on the completed building. Some 102 stories high, tallest building in the world for decades. Nowadays it takes half a decade just to get a pipeline approved! This is nuts, folks. At any rate, Duke Energy and Piedmont have just filed a request with the Federal Energy Regulatory Commission (FERC) to extend the contracts they signed to use Atlantic Coast because as of June 30, 2017, those contracts expire if the pipeline isn’t built. Duke is interested in seeing the pipeline get built, so they can use it…
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    Lying Letter from Anti Mayors in NJ Seeks to Stop PennEast Pipe

    A total of 31 anti-drilling, leftist (almost all Democrat) mayors, council members and county freeholders (not freeloaders, but freeholders) from a dozen New Jersey townships begged and pleaded with the NJ Department of Environmental Protection to kill the PennEast Pipeline project. The antis sent a letter to DEP Commissioner Robert Martin claiming PennEast will have “unacceptable” impacts in their towns if it gets built. We wonder, will they find it “unacceptable” to have their gas and electric turned off, because of lack of natural gas coming in via pipeline? It is yet another list of, frankly, nobodies who are desperately attempting to grab a headline from a sympathetic anti reporter (which they did, NJ.com), to try and create the impression that masses of people are against the project. Fortunately, it will fail…
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    Rover Pipe Settles with OH Historical Group, Pays Additional $1.5M

    Rover Pipeline (i.e. Energy Transfer) has settled an ongoing dispute with the Ohio State Historic Preservation Office (a PRIVATE organization) to pay them $1.5 million in what MDN views as shakedown money. Which is far less than the “asking” price of $1.5 million PER YEAR over the next five years ($7.5 million total). The payment comes after Rover paid the same organization $2.3 million for knocking down a dilapidated old house that was under consideration to be added to the National Register of Historic Places. In addition to the $2.3 million paid for This Old House, the Ohio State Historic Preservation Office said they had worked out a deal with Rover to pay the organization $1.5 million as compensation for something they haven’t even done yet but presumably will do–disturbing other “historic sites” as the pipeline cuts across the state. Apparently the history buffs felt the agreement was for $1.5 million per year over the next five years. Rover said (in so many words), “in your dreams.” No way. So the matter was referred to the Federal Energy Regulatory Commission (FERC) for dispute resolution. Before FERC could render a decision, the history buffs settled with Rover for a one-time additional payment of $1.5 million (a $1.5M bird in the hand is worth more than a $7.5M bird in the bush). Here’s the background for this shakedown, and a copy of the signed agreement stipulating a one-time payment of $1.5 million to the PRIVATE Ohio State Historic Preservation Office…
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