Energy Services

Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B
June 22, 2015June 22, 2015

Sunday evening MDN spotted what has to be THE biggest midstream story of 2015: Somebody wants to buy out and take over Williams Companies. The biggest midstream story of 2014 was the buyout of Access Midstream (the former Chesapeake Midstream) by Williams, creating a company that is nearly the size and certainly a worthy rival of the country’s biggest pipeline company Kinder Morgan (see Big News: Williams Partners Buying Access Midstream for $6B). Williams said at the time the “total transaction value” (or TTV) would create a combined company worth nearly $50 billion (see Deal Details for Williams/Access Midstream Merger – TTV of $50B!). Sunday evening Williams said, in a pair of prepared press releases, that somebody (they wouldn’t name who) has made an “unsolicited proposal” (almost sounding like an indecent proposal) to buy Williams for $64 per share, or a total deal worth $48 billion. Williams has rebuffed the offering, hiring some high-powered bankers to help them out of this mess. The guy and company making the offer, it has since been revealed, is none other than Kelcy Warren, CEO of both Energy Transfer Partners and Energy Transfer Equity, the main shareholder of ETP. ETP is very active in the Marcellus/Utica. We have as much as we can gather on Warren, background on ETP/ETE, his indecent proposal to Williams, and what Williams–one of if not THE largest midstream companies in the northeast–is doing in response to Warren’s proposal…
Read More “Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

ETE Says Shareholders Big Winners in Potential Williams Merger
June 22, 2015June 22, 2015

Energy Transfer Equity is offering their side of the story in the proposed merger/takeover of Williams. MDN’s lead story today is about that merger. On Sunday, Williams issued a pair of press releases refusing to name who the suitor is, but essentially said that somebody (ETE) is making an offer to buy them (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). As you know, there’s always two sides to a story. ETE, the main investor in Energy Transfer Partners, is offering their side of the story. ETE’s version is much more lengthy than Williams and includes the claim that the ETE proposal offers a 32.4% premium to Williams stockholders “with a high degree of transaction certainty”…
Read More “ETE Says Shareholders Big Winners in Potential Williams Merger”
Anti-Drilling/Fossil Fuel | Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

FWAP Asks SEC to Investigate GreenHunter for False Statements
June 19, 2015June 19, 2015

The anti-fossil fuelers are getting desperate. They’re concerned that GreenHunter Resources, a fresh water and frack wastewater company operating in the Marcellus/Utica, may actually pull it off and begin to barge frack wastewater (brine, actually) down the Ohio River. MDN was the first to disclose that GreenHunter is going to push back against the ongoing delays coming from the Obama White House in pressuring the U.S. Coast Guard to delay granting permission to GreenHunter to barge brine. We analyzed and told you what’s happening–that GreenHunter is using the Coast Guard’s own regulations from 1987 against them, using the definition of oilfield wastes to apply to brine from shale wells (see GreenHunter/Coast Guard War of Words — MDN Explains It). Essentially GreenHunter is daring the Coast Guard to take them to court to try and stop them (a brilliant move). GreenHunter says they will begin barging in three months’ time (see GreenHunter Says OH River Wastewater Barging to Begin September). Along comes the virulent anti-drilling organization FreshWater Accountability Project (FWAP, which we pronounce “fuh-wop”) with their own twist to try and stop GreenHunter. FWAP has asked the U.S. Securities and Exchange Commission (SEC) to investigate GreenHunter for making false statements to investors about their permission (or lack thereof) to begin barge shipments of brine…
Read More “FWAP Asks SEC to Investigate GreenHunter for False Statements”
Energy Companies | Energy Services | Keystone Clearwater Solutions | Rex Energy

Rex Energy Sells Keystone Water Subsidiary to American Water Works
June 19, 2015June 19, 2015

In April MDN told you that Rex Energy was shopping its 60% ownership of Keystone Clearwater Solutions, the company’s water service subsidiary (see Rex Energy: 1Q15 Production Up 60%; Still Selling Keystone Clearwater). Rex has found a buyer and is selling to American Water Works (AWW). AWW is buying the whole enchilada, not just Rex’s part, for $130 million. Rex’s portion of the sale price will be $66 million, which Rex plans to use to pay down debt and for “general corporate purposes”…
Read More “Rex Energy Sells Keystone Water Subsidiary to American Water Works”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Statewide WV | Virginia | West Virginia

New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline
June 19, 2015June 19, 2015

A small group of partisan, liberal, left-wing Democrats pretending to be a huge group of “concerned residents” from “Virginia and West Virginia” have formed a self-important group called Allegheny-Blue Ridge Alliance to oppose the 550-mile, $5 billion Dominion Atlantic Coast Pipeline project that will run from West Virginia into Virginia (benefiting the residents of both states) and on into North Carolina. MDN told you earlier this week about a group of RINOs and Democrats working together–wealthy gentry class landowners–working to stop the Atlantic Coast Pipeline from traversing their horse farms (see Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline). That group, called “All Pain No Gain”, is not among the members of Allegheny-Blue Ridge Alliance. This new coalition or group of groups is, in typical fashion, against all proposed routes for the Atlantic Coast Pipeline. It is an unreasonable and irrational fossil fuel-hating position–being “reported” by “news organizations” like the Associated Press as just an ordinary group of concerned citizens with legitimate concerns. It’s NOTHING of the sort…
Read More “New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline”
Energy Services | Industrywide Issues | Kinder Morgan | NGLs | Pipelines | Tennessee Gas Pipeline

KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline
June 18, 2015June 18, 2015

Last summer, in response to a reader’s query, MDN went nosing around to bring you the status of what had been called Kinder Morgan’s Y-Grade NGL pipeline from the Utica/Marcellus to the Gulf Coast. We found, at the time, the project is still very much alive (see Kinder Morgan Y-Grade NGL Pipeline from NE to SW Still Alive). We also learned at that time the name had been changed to be the Utica Marcellus Texas Pipeline (UMTP) Project. Kinder Morgan’s plan is to repurpose nearly 1,000 miles of existing Tennessee Gas Pipeline, reversing the flow to go from north to south, and changing the hydrocarbons in the pipeline to be NGLs. As we pointed out in December, that has some of the anti-pipeline kooks in Kentucky all riled up (see KY Antis Now Opposing Kinder Morgan Y-Grade NGL Pipeline). Yesterday Kinder Morgan announced a binding open season to sign up shippers for UMTP (see the announcement below). But wait a minute! KM ran an binding open season in January/February 2014. Must be they had no (or few) takers then. Will they get enough customers the second time around?…
Read More “KM’s SECOND Binding Open Season for Utica/Marcellus NGL Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route
June 18, 2015June 18, 2015

Last Friday the NEXUS Gas Transmission pipeline, a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada, filed a full set of twelve draft environmental Resource Reports with the Federal Energy Regulatory Commission (FERC). A summary of the filing (included below) shows there are six large customers for the pipeline in Ohio (gas processors, utilities and large industrial companies). In addition to information about who will use the pipeline and the economic benefits that will come from the pipeline, NEXUS also filed information on alternative routes for the pipeline. Of note, one alternative route, proposed by the Coalition to Reroute NEXUS (CORN, which we’ve dubbed CORNy), is flat out rejected by NEXUS. CORNy wants to move the pipeline away from the Canton-Akron area. NEXUS says that’s a bad idea, for lots of reasons…
Read More “NEXUS Pipeline Files Draft Reports w/FERC, Rejects CORNy Re-Route”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline
June 17, 2015June 19, 2015

Here’s the tag line from Navigators Global, a Washington, DC lobbying firm: “From the trenches of political campaigns to the height of corporate crises, we’ve navigated the toughest terrain. Whatever your challenge is, we can guide you to victory.” Looks like they’ll need to consult to themselves since the company is facing its own corporate crisis. The founder and president of Navigators Global is Phil Anderson. Phil is one of the rich, gentry class anti-pipeliners behind a group called “All Pain No Gain” that’s trying to stop the Dominion $5 billion, 550-mile Atlantic Coast Pipeline project from going through Virginia (and through his land). We highlighted a McClatchy article yesterday that talks about the efforts of the All Pain No Gain group in raising big money to oppose the Atlantic Coast Pipeline project (see VA Gentry Class Raising $1M to Oppose Atlantic Coast Pipeline). We’ve since learned that when Phil’s involvement with that anti-drilling group became known, his firm immediately lost a $20,000 contract with NextEra Energy, another pipeline company with a project running through Virginia (see EQT & NextEra Tie the Knot on WV-VA Pipeline Joint Venture). Beginning of a trend? Anderson is a Republican In Name Only, and he’s joined by other RINOs in his opposition to pipelines–rich, white landowners (the gentry class) who don’t want pipelines in their back yards. Another Virginia RINO pouring money into the anti-pipeline effort is Tom Harvey, chairman of the non-profit Global Environment & Technology Foundation…
Read More “Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline”
Energy Services | Industrywide Issues | Sand/Proppant | Unimin | Webster County | West Virginia

Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal
June 17, 2015June 17, 2015

A Texas-based company, Unimin Energy Solutions, has just opened its eleventh frac sand terminal–this one in Jerry Run, WV. The new terminal can store 20,000 tons of frac sand and load up to 25 trucks per hour. Uminim’s operations pretty much blanket the Marcellus and Utica Shale regions (see the map below), from northeast PA to southwest PA, various points in WV and even in eastern OH. There’s even a Uminim frac sand operation in Binghamton, NY, near MDN HQ! Here’s the low down on the newest Unimim facility in Jerry Run, along with a list of their other locations…
Read More “Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions
June 16, 2015June 16, 2015

Cecil Township (Washington County), PA, one of the seven selfish towns that sued to overturn a portion of PA’s Act 13 oil and gas drilling law granting them the right to retain local zoning authority over oil and gas related activities, have found their Act 13 victory to be somewhat hollow. As MDN reported nearly a month ago, Cecil has steadfastly refused to grant a permit to MarkWest Energy to build a compressor station since 2010 (five years ago!). After a lawsuit that worked its way through various levels of courts, and after Cecil exhausted all other options, a judge ordered them to grant the permit no later than May 30. Cecil proceeded to violate that deadline (see Cecil Twp Violates Court Order re MarkWest Compressor Permit). Last night, after intense last minute negotiations with MarkWest, the town finally voted to grant the permit, but not before sneaking in two last minute changes to conditions both sides worked out in advance, changes that will likely mean yet another trip to the judge. Seems Cecil is still intent on stopping the compressor station…
Read More “Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions”
Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

Robinson Twp Delays MarkWest Compressor, Approval Coming Soon
June 16, 2015June 16, 2015

This is a tale of two Pennsylvania townships. Both towns were part of the original seven selfish towns that sued the State of Pennsylvania to overturn portions of the Act 13 oil and gas law (see PA Court Says 7 Towns Can Keep Marcellus Money & Ban Drilling Too). Both towns share a border and both are in Washington County, PA. The residents of one town have clung to their anti-drilling views and continue to obstruct and obfuscate and block anything to do with drilling or pipelines. That town would be Cecil (see today’s story titled Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). The other town, Robinson, has done a complete reversal. The residents of Robinson tossed their anti-drilling supervisors out of office, elected new ones, and have embraced the Marcellus Shale revolution happening around them (see Robinson Twp, PA Offers a Preview into Future of NY Frack Debate). Whereas Cecil is still trying to block a single MarkWest compressor station in their town, Robinson is moving forward with plans for a second MarkWest compressor station…
Read More “Robinson Twp Delays MarkWest Compressor, Approval Coming Soon”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

VA Gentry Class Raising $1M to Oppose Atlantic Coast Pipeline
June 16, 2015June 16, 2015

Wealthy landowners in Virginia are halfway to raising $1 million in their effort to torpedo Dominion’s planned $5 billion, 550-mile Atlantic Coast Pipeline. Just yesterday we told you that a majority of residents in West Virginia, Virginia and North Carolina support the project (see Poll: Majority of Voters in VA, WV, NC Favor Atlantic Coast Pipeline). The pipeline will flow natural gas from the Marcellus/Utica to points across the southeast. That is, unless NIMBY’s raise enough money to run advertising campaigns to convince officials and regulators that this pipeline should not get built. Never underestimate the power of a bribe, er, a, “advertising” money. The new favorite phrase of those who oppose pipelines (watch for it in sycophantic media stories) is that pipelines are a “scar” on Mother Earth. How wicked and despicable to want to scar your mother…
Read More “VA Gentry Class Raising $1M to Oppose Atlantic Coast Pipeline”
Economic Impact | Energy Services | Industrywide Issues | Mahoning County | Ohio | Supply Chain | Vallourec

Youngstown Plant Starts Operations, Selling Pipes to Shale Industry
June 16, 2015June 16, 2015

Although drilling activity in the Marcellus/Utica, indeed across all shale plays, has decreased in the past six months, that doesn’t mean all gas and oil related businesses have been adversely affected. Take Vallourec’s VAM USA LLC subsidiary–a pipe manufacturer with a facility in Youngstown, Ohio. In May, VAM began producing the first pipes for commercial sale at its new premium threading plant in Youngstown. More money, more jobs, rolling into eastern Ohio–thanks to the miracle of hydraulic fracturing. Here’s the details on VAM’s startup in producing pipe products for the shale industry…
Read More “Youngstown Plant Starts Operations, Selling Pipes to Shale Industry”
Dominion Energy | Energy Services | Industrywide Issues | North Carolina | Pipelines | Public Opinion | Statewide VA | Statewide WV | Virginia | West Virginia

Poll: Majority of Voters in VA, WV, NC Favor Atlantic Coast Pipeline
June 15, 2015June 15, 2015

The Consumer Energy Alliance, a non-partisan group providing consumers with sound, unbiased information on U.S. and global energy issues, recently published the results of a scientific poll of residents in North Carolina, Virginia and West Virginia that has major implications for pipelines and infrastructure work in the Marcellus/Utica. The poll found majorities of voters in NC, VA and WV have heard about Dominion’s $5 billion, 550-mile Atlantic Coast Pipeline–and they support it. Voters overwhelmingly believe pipelines are the safest means to transport natural gas. More than 80% of the voters surveyed said energy will be a significant factor in how they vote. This is really good news for the shale industry. Seems we’re constantly bludgeoned in the northeast when it comes to pipeline projects (NY, MA, NH, et al). But not in the southeast. Voters there have their heads screwed on straight and can tell the difference between the truth and lie–and they know that pipelines like the Atlantic Coast Pipeline will be good for their region. Of course, voters in the southeast tend to be Republican/Conservative and sure enough, the results show that a large majority of those identifying as Republicans and/or Conservatives support pipelines, whereas a majority of Democrats/Liberals don’t. Pipelines, like drilling, are a partisan issue. It shouldn’t be that way! These issues should be decided on the science–but science was thrown out the window a long time ago. Drilling and pipelines–indeed your attitude on the use of fossil fuels–is largely determined by your political philosophy. Below we have a summary of the poll, along with the details (crosstabs), for those who want to dig into the nitty gritty…
Read More “Poll: Majority of Voters in VA, WV, NC Favor Atlantic Coast Pipeline”
Electrical Generation | Energy Services | Industrywide Issues | Lorain County | NRG Energy | Ohio | Pipelines | Regulation | Utica Shale

OH Agency Greenlights NRG Utica Pipeline to Feed Electric Plant
June 15, 2015June 15, 2015

Utility energy giant NRG, with loads of coal and natural gas electric generating plants scattered across the country, has just received the OK from the Ohio Power Siting Board to build a 20-mile pipeline from rural Lorain County, OH (where it will connect with a Dominion East Ohio pipeline) and connect to an NRG-owned natural gas powered electric generating plant in Avon Lake. The pipeline will flow Utica Shale gas to power the plant. Some landowners along the proposed route fought the plan, but the Ohio Power Siting Board rejected their claims there are better routes, saying NRG looked at all the possible routes. With the Board’s approval, NRG is taking the landowners to court with eminent domain cases…
Read More “OH Agency Greenlights NRG Utica Pipeline to Feed Electric Plant”
Broome County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Lawrence County | New York | Pennsylvania | Pipelines | Williams

Tackling a Tough Issue: Compressor Stations Near Populated Areas
June 12, 2015June 12, 2015

There’s no denying that compressor stations located in populated neighborhoods create problems. We have two examples to share–one from Lawrence County, PA, and one from Broome County, NY (MDN’s backyard). The usual complaint about compressor stations–required to compress natural gas and send it on its way through a pipeline system–is the noise. Noise seems to be the chief issue with a compressor station in Lawrence County, PA where landowners, many of them (most? all?) have signed leases with Hilcorp, the company that owns the compressor station in Mahoning Township, a township that borders Ohio. Although noise has also been an issue at the compressor station in the Town of Windsor, NY (Windsor borders Pennsylvania)–about five miles from the border of the City of Binghamton–noise at the Williams compressor station is now largely mitigated. In the case of the Williams compressor, the concerns by those who live closest to it are regular releases of mercaptan and constant truck traffic to and from the station…
Read More “Tackling a Tough Issue: Compressor Stations Near Populated Areas”