Energy Services

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    Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade

    The City of Green, Ohio, located in Summit County (south of Akron, north of Canton) seems to have no problems with spending boatloads of taxpayer money on anti-pipeline efforts. A few weeks ago Green City Council voted to give $10,000 to the anti-pipeline CORN–Coalition to Reroute Nexus. We call the group CORNballs and have written extensively about their supposed desire to just see the NEXUS pipeline routed around them, pretending to be NIMBYs (see our CORN stories here). In reality, CORN wants the pipeline stopped, period. Anti-fossil fuel nuttery. But $10K for the CORNballs is small potatoes for Green–almost a distraction. The city has just “upped the ante” by voting to spend $100,000 to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” Since when was it legal for a city like Green to squander taxpayers’ money on cockamamie anti-fossil fuel lawsuits against legal American businesses that build energy infrastructure? Will someone please investigate Green council members and their ties to Big Green groups (no pun intended)? Smells to us like somebody is getting paid off somewhere…
    Read More “Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade”

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    Patterson-UTI Huge Increase in Monthly Rig Count – SSE Factored?

    As we do every month (and have for two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in the Marcellus/Utica. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of April. In March, Patterson’s rig count jumped up by 10, to an average of 88 active rigs operating in the U.S. That has been the biggest single monthly increase since they began adding rigs again last June–until April. Last month the Patterson rig count rocketed to 115, up an amazing 27 rigs in a single month. What in the world happened? We have an answer…
    Read More “Patterson-UTI Huge Increase in Monthly Rig Count – SSE Factored?”

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    Dominion Faces Hostile Crowd in Ithaca re New Market Project

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a real miracle happened. The corrupt New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Needless to say, anti-fossil fuel freaks are freaked out that the project is now a reality. The lone compressor station that will get an upgrade (not being built from scratch) is located near Ithaca, NY, home of some of the nuttiest of the nutjobs. On Monday night, Dominion personnel donned their armor and held a public meeting to answer questions by a crowd that was, by all accounts, hostile… Read More “Dominion Faces Hostile Crowd in Ithaca re New Market Project”

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    High Stakes Game of Chicken Between Westinghouse & Mariner East 2

    Westinghouse Electric tried “an ambitious new approach to building nuclear power plants” by building sections of the plants in one location before sending them to the construction site for assembly. They tried the process with two nuke plants–one in Georgia and the other in South Carolina. The process they “innovated” failed and took the company down–into bankruptcy. What does that have to do with the Mariner East 2 (ME2) Pipeline project? Westinghouse Electric is headquartered just outside of Pittsburgh and owns a fair amount of land. Mariner East 2 intends to cross a portion of that land. Sunoco Logistics Partners, builder of ME2, attempted to negotiate a payment for an easement to cross Westinghouse’s land–but Westinghouse wanted more than ME2 offered. So ME2 filed paperwork to use eminent domain and “condemn” the Westinghouse property. In other words, let a judge decide how much is fair. Westinghouse joined the chorus that “ME2 isn’t really a public utility”–sounding no different than the Sierra Club and others who oppose the project. That strategy went nowhere, so Westinghouse eventually came back to the bargaining table and this time, worked out a deal–to sell some of their land to ME2. Now Westinghouse is asking the bankruptcy judge in charge of their case to approve the land sale, ahead of the judge’s decision on other matters to do with the bankruptcy. Here’s an account of the high stakes of “chicken” between Westinghouse and ME2…
    Read More “High Stakes Game of Chicken Between Westinghouse & Mariner East 2”

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    Sunoco LP Hiring 50% Local to Build Mariner East 2 Pipeline

    As construction of the Mariner East 2 NGL (natural gas liquids) pipeline project heats up, thousands of Pennsylvanians are going back to work. Sunoco Logistics Partners (now called Energy Transfer Partners) said it would take some 8,000 workers to build the twin pipelines called Mariner East 2–from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. When Sunoco LP signed a deal to hire union workers for the pipeline, the deal stipulates half of the hires are local–from within PA. Sunoco has lived up to its word, as evidenced by the testimony of the Operating Engineer’s Union (Harrisburg) who has already seen 50 of its members hired to work on the project. What about the other half, the “foreigners” who come from other states? They’re brought in because of required specialized skills. But even the out-of-staters are welcomed–they’re adding big bucks to the local economy… Read More “Sunoco LP Hiring 50% Local to Build Mariner East 2 Pipeline”

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    Antis Mad Middletown Won’t Block Mariner East 2 Pipe Near Homes

    Looks like Middletown Township, in Delaware County, PA (Philadelphia suburb), has finally faced reality that the Mariner East 2 Pipeline is coming through town. To be fair, town council came to that conclusion last September when they voted to grant easements to Sunoco Logistics Partners to build Mariner East 2 across four parcels of public land (see SEPA Town Votes to Allow Mariner East 2 Across Town Land). However, Middletown has still officially opposed the pipeline. In January Middletown colluded with other towns to pass a resolution opposing it–a totally empty gesture meant to placate a few disgruntled residents (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). Those disgruntled residents are still not placated. Six residents living near where the pipeline will pass asked town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. At a meeting earlier this week, town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped up and agitated by Big Green groups, is considering a lawsuit against the pipeline to force it to conform with Middletown’s ordinance… Read More “Antis Mad Middletown Won’t Block Mariner East 2 Pipe Near Homes”

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    Williams CEO Alan Armstrong Goes On the Record in PA

    Alan Armstrong

    Williams CEO Alan Armstrong, whom corporate raiders like Keith “Mini-Me” Meister tried to oust (unsuccessfully), recently made a visit to Pennsylvania. As part of that visit, he sat down for an interview in Harrisburg with the Central Penn Business Journal. During the interview, Armstrong talked about shale gas, PA regulation, and the $3 billion Atlantic Sunrise Pipeline project. Here’s a portion of the interview…
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    Atlantic Sunrise Pipeline Spreads $326,800 of Love in 11 PA Counties

    Fire departments, schools, parks and townships are some of the 44 Pennsylvania organizations in 11 counties that will receive $326,800 in funding *this spring* from Williams–through its bi-annual community grant program. Grants up to $10,000 per organization are being awarded by Williams in communities where the proposed Atlantic Sunrise pipeline project will be constructed and operated. This is the fifth round of grants for areas that will host or be affected by the Atlantic Sunrise Pipeline. All together (including this latest round of $326,800), Williams has now given away $1.79 million to communities on behalf of Atlantic Sunrise. Now that’s something worth celebrating! Is your organization eligible? Grant applications are available at www.williams.com/atlanticsunrise. Here’s a list of the organizations that will get grant money this spring…
    Read More “Atlantic Sunrise Pipeline Spreads $326,800 of Love in 11 PA Counties”

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    Nuverra Environmental Files for Chapter 11 Bankrutpcy

    Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In January 2016, the company, going through tough economic times, was de-listed from the New York Stock Exchange (see Nuverra Environmental Delisted from NYSE, Now a Penny Stock). In April they issued a full year 2016 update showing a $169 million loss for the year (see Nuverra Environmental 2016 Update – Red Ink Slows, Some). Although Nuverra says they had previously floated a “prepackaged plan of reorganization”–a euphemism for bankruptcy–we certainly hadn’t seen or heard of it. So we were somewhat (but not totally) surprised to see an announcement from Nuverra that the company has, as of today, filed for Chapter 11 bankruptcy…
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    Dominion CEO Says Atlantic Coast Pipeline is Full Speed Ahead

    Dominion CEO Diane Leopold held a conference call last Thursday to provide an update on progress for the company’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Leopold said on the call that Dominion has procured 85% of the land, materials, and services it needs to build the pipeline. Nearly all of the land surveying is now done (98%)–and the company now has signed agreements with 60% of the landowners along the proposed route. Leopold expects the Federal Energy Regulatory Commission (FERC) will grant a final approval for the project this fall. In other words, it’s full speed ahead for the Atlantic Coast Pipeline, irregardless of opposition from anti-fossil fuel fanatics, a relative few who continue to vociferously oppose the project…
    Read More “Dominion CEO Says Atlantic Coast Pipeline is Full Speed Ahead”

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    PA Town Votes to Oppose PennEast Pipe; Not Even Coming Close

    Talk about a waste of taxpayer time and money. The so-called leaders of Newtown Township in Bucks County (Philadelphia orbit) took time out to compose, debate, and pass a resolution opposing the PennEast Pipeline. Even though the pipeline isn’t coming anywhere near Newtown Township. What the vote reveals is that Newtown is led by far-left anti-fossil fuelers with nothing better to do than get on their soapbox and prance around discussing issues that don’t affect the residents of the town. Typical leftist politicians that believe they know better than you what’s best for you–even if it doesn’t even affect you…
    Read More “PA Town Votes to Oppose PennEast Pipe; Not Even Coming Close”

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    OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants

    In January, MDN highlighted a developing issue in Ohio that potentially impacts Utica/Marcellus shale in the region (see OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”). Three large utility companies–FirstEnergy, American Electric Power, and Dayton Power and Light–are behind an effort to re-regulate the electric power generation industry in Ohio. The electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks, and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio, are of the unregulated kind. If Ohio rolls back the clock 18 years to re-regulate, it would likely spell the end of billions of dollars of investments in unregulated/shale-powered electric plants. A disaster. The latest tact companies like FirstEnergy are using to force through a rotten piece of legislation is to claim without it, their nuclear power plants will close down. And precious “diversity” of sources to generate electricity is needed. The legislation proposed (Senate Bill 128 and House Bill 178, same language) is actually a $5.4 billion bailout for FirstEnergy. So says Clean Energy Future CEO Bill Siderwicz. Clean Energy is in the middle of investing $4.5 billion in five new shale-fired electric plants in Ohio. That investment and those plants will disappear if this disastrous “bailout FirstEnergy” bill becomes law…
    Read More “OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants”

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    Sunoco Logistics Partners Ceases to Exist as of Today

    As of today, the nameplate on the door that says “Sunoco Logistics Partners” is getting changed to “Energy Transfer Partners” (ETP). On paper (and for investors) Sunoco LP & ETP have been different companies, but functionally both companies have co-existed under the Energy Transfer Equity (ETE) umbrella for years–essentially as different divisions of the same company. Sunoco LP is (currently) best known for its Mariner East pipeline projects–along with the Marcus Hook refinery/terminal. ETP is (currently) best known for the recently completed Dakota Access Pipeline. Sunoco LP’s headquarters will move from Newtown Square, PA to combine with ETP’s HQ in Dallas, TX. For investors, Sunoco LP will stop trading at close of business today and become part of the ETP ticker symbol as of Monday. Shareholders for both companies approved the paper merger on Wednesday…
    Read More “Sunoco Logistics Partners Ceases to Exist as of Today”

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    NJ DEP Temporarily Rejects PennEast Request for Wetland Permits

    The New Jersey Department of Environmental Protection (NJDEP) has temporarily rejected PennEast Pipeline’s Freshwater Wetlands Individual Permit and Water Quality Certificate application, submitted April 6. NJDEP said in their response that PennEast has not provided enough detail about the project–leaving out key pieces of information for two-thirds of the pipeline’s 37-mile trek through NJ. NJDEP says they want the application refiled within 30 days, and if PennEast doesn’t give them what they want within 60 days, the DEP will consider the application “withdrawn.” The news from NJ comes on the heels of the U.S. Army Corps of Engineers also telling PennEast they need more information too. Radicalized antis are rejoicing and their mouthpieces in mainstream media are painting this as a grim development for PennEast–perhaps the death rattle has begun. PennEast, on the other hand, is treating the news as a minor bump in the road–the application has just a “few outstanding items” that PennEast needs to track down and provide to the DEP, and then all will be just fine. We suppose the next 30-60 days will tell the tale…
    Read More “NJ DEP Temporarily Rejects PennEast Request for Wetland Permits”

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    MarkWest Spending $300M+ This Year in WV Expansion Projects

    Click for larger version

    MarkWest Energy, formerly a standalone company but bought out by MPLX (i.e. Marathon Petroleum) in December 2015, continues its aggressive expansion in the Marcellus/Utica. Particularly in West Virginia. MarkWest owns a number of processing plants in the Mountain State. This year, the company will spend $200 million to expand and upgrade its facilities in Doddridge County (Sherwood facility) to process natural gas and separate out ethane, and $110 million to expand and upgrade facilities in Marshall County (Majorsville facility) to process ethane. Folks, that’s nearly one-third of a BILLION dollars–in just two counties. Talk about economic stimulus! Last year MarkWest spent $120 million on upgrades in Wetzel County. MarkWest’s WV customers include: Antero, EQT, Southwestern, CNX, Chevron, Range Resources, and Eureka Hunter. Here’s more details on what to expect from the mighty MarkWest in WV this year…
    Read More “MarkWest Spending $300M+ This Year in WV Expansion Projects”

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    Rover Pipeline Paying $2.3M for Knocking Down Historic OH House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–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 (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). 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. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s the last we had heard about the “historic” house–until we spotted an article that makes reference to a deal Rover agreed to, to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state.” So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with money going to a PRIVATE nonprofit organization…
    Read More “Rover Pipeline Paying $2.3M for Knocking Down Historic OH House”