Energy Services

Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada’s July 1 Merger with Columbia Pipeline Advances
May 19, 2016May 19, 2016

In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Columbia Pipeline shareholders are due to vote on the deal in June (see Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22). There are numerous regulatory hoops to jump through before the merger/purchase becomes official. TransCanada has announced another such hoop has been successfully jumped through. On Tuesday, TransCanada announced the waiting period under the Hart-Scott-Rodino Anti-Trust Improvements Act (HSR Act) was terminated early by the U.S. Federal Trade Commission. That means the FTC has taken a look and doesn’t object…
Read More “TransCanada’s July 1 Merger with Columbia Pipeline Advances”
Crestwood Midstream | Energy Services | Industrywide Issues | New York | Regulation | Schuyler County

Stalled Seneca Lake Propane Storage Project Gets FERC Extension
May 18, 2016May 11, 2017

Propane storage at Seneca Lake – click for larger version

Some mildly good news for the much-needed propane storage facility proposed for Schuyler County, NY. MDN has extensively covered the fight to get the Seneca Lake Storage Project permissioned. In 2009 Inergy filed a request to convert a depleted salt cavern along the shore of Seneca Lake into a propane/natural gas storage facility. Inergy was later bought by and merged into Crestwood Midstream, and Crestwood Midstream later became Crestwood Equity. The New York Dept. of Environmental Conservation has been sitting on its hands from the beginning, refusing to grant the necessary permits to allow the facility to open. Sound familiar? Same old delay and later deny strategy from Cuomo. Since the DEC is completely dysfunctional at this point, the Federal Energy Regulatory Commission (FERC), which is involved with approving the facility, has granted a two-year extension to Crestwood (and Crestwood subsidiary Arlington Storage Company) to give them more time to woo, cajole, entice and do whatever they can to get the DEC off it’s rear-end. Of course the FERC extension has sent the ~~crazies~~ protesters, like Sandra Steingraber, into orbit…
Read More “Stalled Seneca Lake Propane Storage Project Gets FERC Extension”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Statewide NY | Williams

Williams Sues NY Over Constitution Pipe – DEC May Lose Authority
May 17, 2016May 22, 2016

Three cheers for Williams. Hip hip horray! Williams announced yesterday a two-pronged legal challenge against New York State and its decision to deny stream crossing permits for the federally-approved Constitution Pipeline project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The first prong is a lawsuit filed in the U.S. Circuit Court of Appeals for the Second Circuit–challenging the decision itself as “arbitrary and capricious.” The second prong is a lawsuit filed in the U.S. District Court for the Northern District of New York–seeking recognition by the court that New York doesn’t even have jurisdiction over the project. It is this second case that should have Cuomo, the DEC and the antis VERY worried. If the case goes against them, it means that New York will forever be cut out of decision-making with regard to any FERC-approved projects. Properly so. NY has shown itself to be motivated by politics and not by science and certainly not by common sense. It’s time to remove NY from the equation. Staffers at the state Dept. of Environmental Conservation (DEC) feared this might happen and counseled Cuomo to approve the Constitution project–sage advice he ignored…
Read More “Williams Sues NY Over Constitution Pipe – DEC May Lose Authority”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

NY Attorney General Asks FERC to Investigate Constitution Pipe
May 17, 2016May 17, 2016

NY AG Eric Scheniderman

Apparently the lawless attorney general of New York State, Eric Schneiderman, suspected Williams would sue the state over the Constitution Pipeline (see today’s lead story). In anticipation of such a lawsuit, last Friday Schneiderman sought to provide the corrupt Gov. Cuomo and his corrupt Dept. of Environmental Conservation (DEC) with political cover by demanding a federal investigation into the Constitution Pipeline. Schneiderman petitioned the Federal Energy Regulatory Commission (FERC) accusing Williams of (gasp) cutting down some trees along the pipeline route before New York’s dictatorial governor granted his “Mother, May I?” permission to do so. The petition/request is a not-so-transparent attempt to smear the Constitution project and deflect attention away from the lawless way in which the state has acted in not allowing this federally-approved project from advancing. In this case the feds trump the state–and that very issue will now play out in court…
Read More “NY Attorney General Asks FERC to Investigate Constitution Pipe”
Energy Services | Industrywide Issues | Pipelines | Williams

Williams Announces Open Season for Northeast Supply Enhancement
May 17, 2016May 17, 2016

Transco Northeast Supply Enhanacement Project map – click for larger version

Last week MDN brought you the news that Williams has pre-filed an application with the Federal Energy Regulatory Commission for the the Northeast Supply Enhancement project–a project to expand the Transco pipeline to increase pipeline capacity and flows heading into northeastern markets (see Williams Pre-Files with FERC to Expand Tranco Pipeline in PA, NY). Yesterday Williams announced an official, “binding” open season for the project–to sign customers to long-term contracts to use the expanded capacity…
Read More “Williams Announces Open Season for Northeast Supply Enhancement”
Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Files 3rd Lawsuit Against ETE to Force Merger by June 28
May 16, 2016May 16, 2016

Energy Transfer Equity (ETE) pushed and prodded and poked and cajoled and insisted, and finally with the help of an inside corporate raider, forced Williams to agree to a buyout/merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Then the bottom dropped out of the price of natural gas and drillers scaled back drilling and consequently midstream (i.e. pipeline) companies like ETE and Williams got pinched. And ETE got cold feet (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Williams said “not so fast, you wanted us, you’ll be taking us” and consequently sued ETE to force the merger to happen (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). On Friday, Williams filed their third lawsuit to force ETE to complete the merger. ETE’s CEO Kelsey Warren says Williams is “meritless” and will “lead to delays” in the merger. What in the world is going on?…
Read More “Williams Files 3rd Lawsuit Against ETE to Force Merger by June 28”
Energy Services | Seventy Seven Energy

Seventy Seven Energy Makes Progress in “Pre-Packaged” Bankruptcy
May 16, 2016May 16, 2016

The process of screwing over existing stockholders in favor of debtholders continues at Seventy Seven Energy (SSE). In April, MDN told you that SSE–the old Chesapeake Oilfield Operating unit that was spun into its own company a few years ago–was ordering up one prepackaged bankruptcy to go (see Seventy Seven Energy Filing for Bankruptcy, Converting Debt into Stock). Following the path of other oil and gas-related companies, SSE plans to convert existing debt into equity–turning IOUs into shares of stock. Magnum Hunter Resources just completed the process of doing the same thing and had now emerged from bankruptcy (see Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone). Everybody is sort-of happy under that scenario–except the original stockholders who see the value of their shares of stock turned into toilet paper. They become worthless. (Note to self: Always buy bonds in the future!) SSE continues their march toward renegotiating with existing noteholders, as they announced last Friday…
Read More “Seventy Seven Energy Makes Progress in “Pre-Packaged” Bankruptcy”
Dominion Energy | Energy Services | Industrywide Issues | Litigation | Pipelines | Statewide VA | Virginia

Atlantic Coast Pipeline Wins Another Virginia Court Case
May 16, 2016July 7, 2016

Atlantic Coast Pipeline Route – Virginia (click for larger version)

Last year MDN reported that anti-drilling landowners in Nelson and Augusta counties (Virginia) who don’t want a pipeline to mar their weekend horse farm pastures refused to allow surveyors for the Atlantic Coast Pipeline access to their precious pastures. Dominion, the company building the 550-mile, $5 billion natural gas pipeline that will run from West Virginia, through Virginia and into North Carolina, took the antis to federal court and won (see Fed Judge Tosses VA Landowner Lawsuit to Stop Pipeline Surveys). The same landowners won’t leave it alone and took Dominion back to court (county court in this case) over the surveys. The county judge found that Dominion’s survey notices are “insufficient” because they use imprecise language about when the surveys will take place. But the judge essentially threw out everything else. In other words, this was yet another victory for the Atlantic Coast Pipeline–a pipeline that WILL get built…
Read More “Atlantic Coast Pipeline Wins Another Virginia Court Case”
Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

PTT Global Says Belmont, OH Ethane Cracker NOT Delayed
May 13, 2016May 13, 2016

PTT Global Chemical, based in Thailand, announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). From the beginning, PTT let it be known a final decision on whether or not to invest the whole $5 billion would not come until 2016 or 2017. Last week MDN picked up a story from the Bangkok Post which said the decision will definitely come in 2017, calling the decision “delayed” (see PTT Global Says OH Cracker Decision “Delayed” Until 2017). Apparently stung by that story, a local PTT spokesman in Ohio has responded to say the Bangkok story is wrong–the decision is not “delayed” and is, in fact, on track…
Read More “PTT Global Says Belmont, OH Ethane Cracker NOT Delayed”
Energy Services | Industrywide Issues | Lancaster County | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Transco | Williams

Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY
May 13, 2016March 28, 2017

Transco Northeast Supply Enhanacement Project map – click for larger version

Williams’ Transcontinental Gas Pipe Line Company (Transco) has asked the Federal Energy Regulatory Commission for permission to begin the pre-filing process on a new project, called the Northeast Supply Enhancement project. The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. The Northeast Supply Enhancement project would build 10 miles of new pipeline in Lancaster County, PA (laid next to three existing pipelines, in the same corridor). It would also require 22 miles of new offshore pipeline located in New York Bay. A new compressor station would be built in Somerset County, NJ along with other upgrades, including an added compressor unit at a plant in Chester County, PA…
Read More “Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Williams

Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project
May 13, 2016May 13, 2016

It’s time to sue THE Delaware Riverkeeper out of existence. The group is a litigious nuisance and anti-American. It is led by Maya van Rossum and fed by money from the Heinz Endowments and William Penn Foundation. Even with repeated calls the IRS has refused to investigate violations of the group’s non-profit status. The latest outrage from this group of virulent radicals is to launch a lawsuit to try and stop Williams’ Atlantic Sunrise Pipeline project through southeastern PA. Just last week Williams received a favorable Environmental Assessment (EA) from the Federal Energy Regulatory Commission (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). That was all it took. The writing is on the wall that FERC will approve the project and Williams will build it. This is a last-ditch effort by van Rossum and other radicals to shut down the project…
Read More “Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape
May 12, 2016May 12, 2016

Last night representatives from Spectra Energy held a town hall meeting at the Congruity Presbyterian Church in Westmoreland County, PA to discuss the explosion of Spectra’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). Speaking and taking questions from the audience were Devin Hotzel, manager of stakeholder outreach, Tom Wooden, vice president of operations, Andy Drake, vice president of operations, and Randy Putt, local area manager. According to Spectra, they think a tape coating used on the welds of the pipeline is the culprit–having corroded over time. There may be other contributing factors, but right now they are concentrating on the tape coating which they say was only used for a short period of time–in the early 1980s when the pipeline was built. Here’s a report from the meeting…
Read More “Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines

Open Season to Expand 2 Midwest Pipelines for More Marc/Utica Gas
May 12, 2016May 12, 2016

NGPL Chicago Market Expansion Project – click for larger version

In October 2014 MDN told you about plans by Kinder Morgan subsidiary Natural Gas Pipeline Company of America (NGPL) to expand their Gulf Coast mainline pipeline from the Rockies Express Pipeline (REX) interconnection in Moultrie County, Illinois, to points north on NGPL’s pipeline system, called the Chicago Market Expansion Project (see Kinder Morgan Plans Chicago Pipeline Expansion for Marcellus/Utica). In March of this year, the Federal Energy Regulatory Commission (FERC) approved it (see FERC Approves Pipeline to Move More Marcellus/Utica Gas to Chicago). Kinder Morgan is also planning a second project called the Gulf Coast Southbound Expansion Project to send Marcellus/Utica (and other shale locations) gas to the Gulf Coast. Two days ago NGPL announced a non-binding open season–a period of time when drillers and others seeking capacity for each project–can register their interest in each project. NGPL already has customers signed up for the Chicago Market Expansion Project. This new open season is an attempt to see if there’s interest in expanding the Chicago Market Expansion project even more–and to register interest from drillers going the other way–to the south–via the Gulf Coast Southbound Expansion Project. The timing of the announcement is interesting. Observers theorize that Kinder Morgan is trying to make up for recently announced canceled Northeast Energy Direct (NED) pipeline project in New England (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Kinder won’t comment. Here’s the details on the new open season…
Read More “Open Season to Expand 2 Midwest Pipelines for More Marc/Utica Gas”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Westmoreland County

TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident
May 11, 2016June 9, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months (see Preliminary Guess on TETCO Pipeline Explosion Cause: Corrosion). That doesn’t stop antis from engaging in wild speculation and “I told you so” statements, as they are now engaged in. THE Delaware Riverkeeper, which opposed the expansion of horsepower/capacity at a compressor station close to the explosion, is now saying the increased flow rate through the pipeline caused the corrosion. Which all sounds reasonable–until you read the words “I can’t say for certain there is a cause-effect relationship between the increases in [compressor] horsepower and the pipeline explosion, but it is information that should be part of the public discussion about this incident and pipeline safety in general.” Translation: “We won’t let this crisis go to waste. It doesn’t matter what the real cause was, we’ll amp up this explosion in sympathetic anti-drilling news outlets like the Pittsburgh Post-Gazette and spread fear everywhere we can–so we can shut down natural gas in this country.” Below is an update from Spectra Energy that one of the four pipelines is now operating again, along with the latest attempt to demagogue and unfortunate accident with absolutely no evidence…
Read More “TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

Radical NJ Democrats Want to “Constitution” the PennEast Pipeline
May 11, 2016May 11, 2016

Click map for larger version

Anti-drillers (most of them liberal Democrats) haven’t wasted any time in adopting Gov. Andrew Cuomo’s tactic of delay, deny and death. Antis in New Jersey took notice of how Cuomo first delayed, then denied the Constitution Pipeline stream crossing permits, effectively killing the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The leaders of radical Big Green groups in NJ, including the New Jersey Conservation Foundation and the New Jersey Sierra Club, along with several Democrat members of the NJ legislature, want the state Department of Environmental Protection to deny permits for a different pipeline project–the PennEast Pipeline. Hey, if it worked in NY, why wouldn’t it work in NJ? Problem is, NJ has a Republican governor and the DEP is an executive agency. That won’t stop the antis from trying…
Read More “Radical NJ Democrats Want to “Constitution” the PennEast Pipeline”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

PennEast Pipeline Requests NJ’s Help with “Green Acres” Process
May 10, 2016May 10, 2016

The PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, continues to bend over backwards, forwards and into yoga knots in order to accommodate the wishes of various special interest groups. The latest in that effort is PennEast’s invitation to several New Jersey municipalities and non-profit groups to provide feedback on PennEast’s open space initiative. Part of the PennEast route will traverse 15 acres of encumbered “Green Acres” parcels–open spaces meant to stay open and not be developed. PennEast plans to lay their pipe four feet down, cover it up, and the green/open spaces will remain green and open, forever. In fact, according to PennEast, when the pipeline installation is done and dusted, there will be “significantly more open space” than there is today. Look for THE Delaware Riverkeeper (Maya van Rossum) and other radical leftists to demagogue this latest effort by PennEast to be a good neighbor…
Read More “PennEast Pipeline Requests NJ’s Help with “Green Acres” Process”