Oct 31 Deadline to Send Comments to Ohio EPA re NEXUS Pipeline
Yet another deadline approaches for the NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. The Federal Energy Regulatory Commission (FERC) is charged with evaluating and approving (or not) the project. However, as often happens, various state agencies are also involved in the project. One of those agencies if the Ohio EPA (Environmental Protection Agency). In September the Ohio EPA issued permits to allow NEXUS to build five new compressor stations along the pipeline’s route through OH (see OH EPA Grants Permits for 5 NEXUS Pipeline Compressor Stations). The Ohio EPA is back, this time considering whether (or not) to issue stream crossing permits to NEXUS. The pipeline will cross streams and swamps (i.e. “wetlands”) in these watersheds: Upper Ohio, Tuscarawas, Mahoning, Cedar-Portage, Lower Maumee, Ottawa-Stony, Black-Rocky, Huron-Vermilion and Sandusky. The public (i.e. YOU) have until next Monday, Oct. 31, to file comments on NEXUS’ “401 water quality certification” as it is called. Get writing!…
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We spotted what is, to us, a fascinating story about propane use across the country. There are those, like LP Gas magazine, that closely watch usage trends for propane. As you may know, propane is an NGL, or natural gas liquid. It is one of the hydrocarbons that comes out of a borehole drilled to extract either oil or natural gas. Along with oil and gas other hydrocarbons come out of the hole–NGLs like propane, ethane, butane, etc. One of the places propane is increasingly produced, and consumed, is in the northeast–because of Marcellus/Utica drilling. The sharp editors at LP Gas noticed an historically unusual trend–a spike way up in propane usage in one of the main regions tracked, in the northeast. The explanation for the spike up in usage? Propane is getting exported from the Marcus Hook refinery. Therefore much larger volumes of propane are being “consumed” by those exports. Which we find fascinating. We are producing AND consuming propane within the Marcellus/Utica region. That is, we’re generating wealth by exporting propane. We knew about ethane exports already happening at Marcus Hook (see 
Inspired by the criminal actions of eco-terrorists in North Dakota (see 
Two weeks ago MDN told you that TransCanada is attempting to block Marcellus/Utica gas from entering the eastern Canadian market by lowballing pipeline transportation costs from western Canada (see 
The rogue and out-of-control federal Environmental Protection Agency (EPA) continues its bullying ways when it comes to the oil and gas industry. Just coming to light (for us) is an action last week by the EPA to fine Crestwood Midstream’s Finger Lakes LPG Storage subsidiary $312,000–for not filing the right paperwork for their facility in upstate New York. Note that the fines are NOT for leaking methane or propane, NOT for endangering the public, NOT for actually doing ANY kind of environmental harm. The fines are for not filing the proper paperwork. The EPA is behaving like the mob running a protection money racket. Crestwood has to pay the EPA $154,000 in fines, and then pay $158,000 for new equipment for three local fire departments located near the facility. The antis are already using this paperwork violation as yet another reason to bleat and blat about Crestwood’s proposed underground propane storage facility along the shores of Seneca Lake. The paperwork violation is for a Crestwood/Finger Lakes LPG Storage facility in the next county–nowhere near Seneca Lake where the proposed propane facility is located. Makes no difference. Antis say it’s yet more evidence that Crestwood can’t be trusted to safely operate the propane storage facility…
Schlumberger, the world’s biggest oilfield services company, issued their third quarter update yesterday. It was a mixed bag, with some good news and some not-so-good news. Like Halliburton, their chief rival, Schlumberger turned a profit in 3Q16 (see 
Kinder Morgan, the largest midstream company in the U.S., posted their third quarter 2016 update on Wednesday. The company reports its first financial loss of the year, swinging from making $186 million in 3Q15 to losing $227 million in 3Q16. A lot of that was a paper loss–a writedown on the value of the Midcontinent Express Pipeline, and from expenses incurred from the sale of their part-ownership in the Southern Natural Gas system. As they usually do, Kinder offered updates for their major pipeline projects. The one that caught our eye is news that Kinder plans to begin construction in December of the Broad Run Expansion Project increasing capacity along the Tennessee Gas Pipeline from West Virginia to Mississippi and Louisiana, allowing Antero Resources to ship more Marcellus/Utica gas to the southeast. Here’s the Kinder update…
Some more disappointing news for Williams’ Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. One week ago MDN brought you the news that the Federal Energy Regulatory Commission (FERC) announced it is actively reviewing two alternative routes for the Central Penn Line (an important part of the Sunrise project), accepting public comments on the two alternative routes until Nov. 14 (see 
In January of this year, the Federal Energy Regulatory Commission (FERC) launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs” (see 
Halliburton kicked off the third quarter earnings season yesterday with some stunning news: the company actually turned a profit during 3Q16! It wasn’t much of a profit–just $7 million. But that comes after losing $3.2 billion during 2Q16. Engineering a turnaround like that is nothing short of miraculous. North America represents 40% of Halliburton’s revenue–the company made $1.7 billion in 3Q16, a 9% increase over 2Q16. The rest of the world (international) represents 60% of Halliburton’s revenue, which was $2.2 billion in 3Q16 (up 6% over 2Q16). The company predicted 4Q16 revenues will be flat. But hey, after billion dollar loses, who cares? CEO Dave Lesar once again reiterated his view that “things are getting better” for the oil and gas industry. A $3.2 billion turnaround in one quarter is a whole lotta proof to back up his assertion. However, company officials also said Halliburton remains in a pricing “barroom brawl” with competitors, and the oil market in particular remains “very challenging.” Here’s the Halli update…
A new group called Protect Our Pennsylvania launched on Tuesday at a rally in Harrisburg–at the State Capitol. The purpose of the group is to oppose and reign in the currently legal right of pipeline companies to use eminent domain to force landowners to accept a pipeline across their land. This is a tough issue for us. We have often stated this philosophy: I won’t tell you that you must allow drilling, or a pipeline, and you don’t tell me I can’t allow it. We think that’s a consistent and fair philosophy. But what do you do with a pipeline when only one or two people are blocking its route? We’ve always said, make it worth their while to allow (pay them). We’ve also said there may be times when eminent domain must (very reluctantly) be used. It is an ongoing “wisdom of Solomon” kind of issue for us, with no clear answer. So is this new group, Protect Our Pennsylvania, a group of landowners honestly concerned about their property rights? Alas, we don’t think so. Their leader, Eric Friedman, has ties to the radical Sierra Club, which means this is just one more organization pretending to be something it is not. It is, we are convinced, populated with anti-fossil fuelers and not just mom and pop landowners…
So often very small, loud-mouthed antis appear to be winning the battle that we sometimes forget about the silent majority. Case in point: In reading the typical mainstream media story about Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–you would assume the project is reviled and opposed by “everyone” and doomed to failure. But reality if far different from the false picture painted by the media. A poll conducted recently by the Tarrance Group for the Virginia Chamber of Commerce of Virginia residents shows that by a nearly 2-to-1 margin, Virginians support the Atlantic Coast Pipeline project. That would be a “landslide victory” if it were an election…
You just can’t get away from the Marcellus/Utica–even at a conference supposedly focused on the Western U.S. Natural gas infrastructure was a key topic at the recent LDC Gas Forum Rockies & West conference held in Denver, CO. ICF International vice president Kevin Petak was one of the speakers. He dropped what is (to us) a bombshell when he said he believes the Marcellus and Utica combined will pump out 40 billion cubic feet per day (Bcf/d) by 2025–just 10 short years from now. The two plays combined today are pumping around 21 Bcf/d–so Petak is predicting our output will double! If that’s so, there will need to be a whole lotta drillin’ goin’ on between now and then. In addition to Petak, Crystal Heter, vice president for commercial operations at the Rockies Express (REX) pipeline, had some VERY interesting things to say about the REX pipeline reversal which sends Marcellus/Utica gas to the Midwest. It looks like even more gas is about to go from our area westward…
The New Jersey Division of the Rate Counsel (NJDRC) is a state government agency responsible for representing the interests of residents, businesses and other rate payers in dealing with regulated public utilities and insurance firms. Apparently the NJDRC filed a so-called analysis with the Federal Energy Regulatory Commission (FERC) in September slamming the need and cost recovery plan for the PennEast Pipeline, a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. PennEast has responded to that analysis with an independent report written by Concentric Energy Advisors (full copy below). The Concentric report refutes (i.e. obliterates) the “incorrect assumptions” made in the NJDRC comments to FERC…
Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system that will carry 342 million cubic feet (MMcf) of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began last year and continues now. Two weeks ago FERC issued an order allowing part of the AIM project–in Putnam County, NY, and Fairfield County, CT–to power up and begin service. However, not all of the project is yet built. Four nutjob protesters criminally locked themselves inside a piece of pipeline in Verplanck (Westchester County), NY last week (see