Energy Services

Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

ATEX Express Ethane Pipeline Says it’s Tax-Exempt in Ohio
June 11, 2015June 11, 2015

School districts and local governments in 13 Ohio counties along which the ATEX (Appalachia-to-Texas Express) natural gas liquids pipeline runs, are miffed that ATEX doesn’t want to pay property taxes on the pipeline. The 1,230-mile ATEX pipeline originates in Washington County, PA and connects to four fractionators in the Marcellus/Utica Shale region. The pipeline, which crosses 265 miles of Ohio, went online in early 2014 (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon). State law stipulates that only pipelines classified as public utilities are liable for property taxes. Private, non-public utility pipelines are not on the hook for local property taxes. However, ATEX may be liable for Ohio’s commercial activity tax…
Read More “ATEX Express Ethane Pipeline Says it’s Tax-Exempt in Ohio”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

PA Electric Co Spending $6M in Upgrades to Help Mariner East Pipe
June 11, 2015June 11, 2015

Pennsylvania Electric Company (Penelec), a subsidiary of FirstEnergy Corp., is an electric utility that serves 600,000 customers in 31 Pennsylvania counties. Penelec also serves some of the electric needs for the Marcellus/Utica industry in the state. Penelec announced Monday that the company is spending $6 million to construct several new power lines and rebuild several others. Why? To serve natural gas pumping stations being constructed in central Pennsylvania by Sunoco Logistics’ Mariner East pipeline. Penelec is quick to add that the improvements will also “enhance service reliability” for 3,000 customers in the area as well…
Read More “PA Electric Co Spending $6M in Upgrades to Help Mariner East Pipe”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

PennEast Pipeline Hands Out Another $70,000 in “Grants”
June 10, 2015June 10, 2015

Another round of “largesse” has just been served up from the PennEast Pipeline (see PennEast Payola? Buying Support One Community at a Time). Don’t get us wrong–the organizations receiving the latest round of $70,000 in “grants” from PennEast are exceptionally worthy organizations–volunteer fire departments, after school programs, etc. We just a have a problem with the timing of it all (see our thoughts here: Will Companies Continue Making Grants after Pipelines are Built?). Here’s the list of the 14 organizations that each received a $5,000 check from PennEast this week…
Read More “PennEast Pipeline Hands Out Another $70,000 in “Grants””
Butler County | Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants

ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA
June 9, 2015June 9, 2015

An important new project in the Marcellus/Utica was announced by Energy Transfer Partners (ETP) yesterday. The project, dubbed the Revolution Project, includes a new 100-mile gathering pipeline system in Butler County, PA along with a new cryogenic gas processing plant to be constructed “in western Pennsylvania.” The processing plant will be called the Revolution Plant. A pipeline (called the Revolution Pipeline) will be constructed to connect the Revolution Plant to Sunoco Logistics’ Mariner East NGL pipeline to handle NGLs coming from the plant. Another pipeline will be built to connect the plant to ETP’s Rover pipeline to handle natural gas coming from the plant. Also part of the Revolution Project will be a new fractionation facility to be built at the Marcus Hook refinery in the Philadelphia area. Total price tag for the whole shebang: $1.5 billion…
Read More “ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA”
Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY
June 9, 2015June 9, 2015

This one kind of slipped by our radar. Marathon Petroleum, the nation’s fourth largest refiner (headquartered in Findlay, OH), has just brought online a new $170 million condensate splitter at its refinery complex south of Catlettsburg, Kentucky. The purpose of the new splitter, which took two years to build, is to process sweet crude oil being produced in the Utica Shale of Ohio, Pennsylvania and West Virginia. And how, you may ask, is all that Utica crude getting to the facility? By barge, along the Ohio River…
Read More “Utica Crude Oil Barged Down Ohio River to Marathon Plant in KY”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Invokes Eminent Domain Against 2 SWPA Landowners
June 9, 2015June 9, 2015

Another “nobody wins” eminent domain lawsuit has been filed by a pipeline company. This time it’s Sunoco Logistics filing for their Mariner East pipeline against two different families/landowners in Washington County, PA. The landowners don’t want the pipeline but Sunoco insists it’s necessary to have those specific properties. The problem is, will an eminent domain claim hold up in court? Last July, two independent administrative law judges working for the PA Public Utility Commission (PUC) ruled that Mariner East is not, according to the definition, a “public utility” (see Setback for Mariner East NGL Pipe – Judges Say Not Public Utility). But then in October, the full board of Commissioners for the PUC voted to send the case back to those judges with instructions to “reconsider” their decision (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). Sunoco has a lot riding on whether or not their claim to be a public utility will hold up in court. If Mariner East is not a public utility, they have no claim to eminent domain powers…
Read More “Mariner East Invokes Eminent Domain Against 2 SWPA Landowners”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lorain County | NEXUS Pipeline | Ohio | Pipelines | Regulation

CORNy Letter to FERC: NEXUS Pipeline will Contaminate our Creeks
June 9, 2015June 9, 2015

The anti-drillers who inhabit Oberlin (Lorain County), OH are nothing if not determined. In November 2013 Oberlin voted to commit economic suicide by passing a so-called Community Bill of Rights law, which is nothing more than a ban on shale drilling (see Economic Suicide Avoided in 2 OH Cities but Oberlin Pulls Trigger). Of course so-called “home rule” laws have since been overturned by the Ohio Supreme Court (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). The NEXUS gas pipeline is planned to run through the Oberlin area, so a group calling themselves CORN–Coalition to Reroute NEXUS–popped up in Oberlin and surrounding counties to oppose the pipeline. Why? Because it will flow nasty, evil fossil fuels. We call it the CORNy opposition. A member of CORN from the Oberlin City Council has written to the Federal Energy Regulatory Commission (FERC)–which is reviewing the NEXUS project–to say if the pipeline is built, it will “result in the contamination of the streams that produce water for the city’s domestic use.” Just one CORNy lie right after another…
Read More “CORNy Letter to FERC: NEXUS Pipeline will Contaminate our Creeks”
Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts Take Another Hit in May, Rapid Decline Continues
June 8, 2015June 8, 2015

We had thought/hoped that the we were near the end of a decline in drilling rig counts. But such is not the case. Baker Hughes released their May rig count report on Friday and it shows a continued slide in the numbers. In April there were 943 active rigs drilling on land in the U.S., down from 1,067 rigs in March (see Rig Counts Continue Big Decline in April, NE May Have Bottomed). In May, the number slide again–to 857 land-based rigs (a loss of another 86 rigs going idle). Double ouch. What about the Marcellus/Utica region? Did those rigs decline in May?…
Read More “Rig Counts Take Another Hit in May, Rapid Decline Continues”
Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East 2 Giving Birth to Twin Pipelines
June 5, 2015June 5, 2015

In November 2014 Sunoco Logistics committed to building the $2.5 billion Mariner East 2 pipeline to increase capacity in moving natural gas liquids like ethane, propane and butane from western Pennsylvania to the Marcus Hook refinery in Philadelphia (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). Yesterday Sunoco said instead of building one Mariner East 2 pipeline, they’re going to build two of them–at the same time, side by side. Sunoco says the plan to add two more Mariner 2s is still tentative–they need to conduct an open season to be sure they can sell contracts for the pipeline before they will fully commit. But as of right now, they’re planning to give birth to “twin” pipelines…
Read More “Mariner East 2 Giving Birth to Twin Pipelines”
Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

Penn East Pipeline to File Formal Application with FERC in Next 2 Mos
June 5, 2015June 5, 2015

Where do things stand with the much-needed Penn East Pipeline from the Scanton, PA area to the Trenton, NJ area? According to a Penn East spokesman who met with a Wilkes-Barre newspaper’s editorial board yesterday, the company will likely file a formal application with the Federal Energy Regulatory Commission (FERC) in the next two months, and if all goes well, construction will begin in late 2017. Along the way look for the Delaware River(keeper) Basin Commission to try and screw it up. The DRBC is increasingly controlled (and emasculated) by the whims and fancies of THE Delaware Riverkeeper, a virulently anti-drilling group. Penn East faced down one objection head-on in yesterday’s meeting: this gas will not be exported–it will all be used domestically (most of it in PA and NJ)…
Read More “Penn East Pipeline to File Formal Application with FERC in Next 2 Mos”
Doddridge County | Energy Services | Harrison County | Industrywide Issues | M3 Midstream | Momentum | Pipelines | West Virginia

Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec
June 4, 2015June 4, 2015

In early April MDN told you that a section of M3 Midstream’s Appalachia Gathering System (AGS) had been spun off into its own company called Stonewall Gathering System (see M3’s New Stonewall Gathering System Extends Existing AGS in WV). At the time plans were under way to build out gathering pipelines in West Virginia’s Harrison and Doddridge counties, running through Lewis and into Braxton County where the pipeline will connect with Columbia Transmission’s interstate pipeline. The plans have come to fruition and the Stonewall Gathering System is now being built. Incidentally, they’re looking for welders and laborers–but only through local unions…
Read More “Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec”
Energy Services | Patterson-UTI

Steep Decline in Rig Count Continues for Patterson-UTI in May
June 4, 2015June 4, 2015

We continue to see mixed signals when it comes to the end of declining rig counts. Yesterday we ran a story highlighting the comments from the largest private oilfield services company in the U.S., Canary, saying we’ve now turned a corner in shale and “the industry is on the way back” (see Largest Private Oilfield Svcs Co Says Shale is Rebounding). Then we look at Patterson-UTI’s average rig count numbers for their company–and the numbers continue to decline rather significantly. Two months ago, in March, Patterson ran an average of 142 U.S. rigs and 4 Canadian rigs. In April, they ran an average of 131 U.S. rigs and 2 Canadian rigs (see Patterson-UTI Active Rig Count Drops Again in April). For May, Patterson just announced they ran an average of 122 U.S. rigs and 1 Canadian rig. Oy vey…
Read More “Steep Decline in Rig Count Continues for Patterson-UTI in May”
Crestwood Midstream | Energy Services

Crestwood Midstream Reorganizes Company, Promotes Several Execs
June 4, 2015June 4, 2015

Crestwood Midstream is a pipeline company with operations in several shale plays, including the Marcellus and Utica. They are a smaller but meaningful player in the northeast. Crestwood has 65 miles of natural gas gathering pipelines in Harrison and Doddridge counties in WV–along with eight compressor stations. They also own property along the shore of Seneca Lake in New York where there is a depleted salt cavern where they want to turn into an underground storage facility for liquefied propane (see Crestwood Execs on Radio to Promote Propane Storage @ Seneca Lake). That project is making progress after years of delays by the New York Dept. of Environmental Conservation. Crestwood merged with (bought out) Inergy Midstream in 2013 in an $8 billion deal (see Crestwood/Inergy Complete Their Merger Today, Worth $8B). With the dust finally settled from that deal, Crestwood announced on Monday they are reorganizing the merged company into several new units–and along with that reorganization comes several executive promotions…
Read More “Crestwood Midstream Reorganizes Company, Promotes Several Execs”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Processing Plants | Statewide MD

Earthjustice Asks Court to Stop Construction at Cove Point LNG
June 3, 2015June 2, 2015

Three weeks ago MDN told you about the frivolous lawsuit filed by Earth[in]justice attempting to stop the Cove Point, Maryland LNG export plant from being built (see DOE Grants Cove Point LNG Final Approval, Earthjustice Sues). Earth[in]justice sued on behalf of themselves (they are a small group of Washington, DC lawyers backed by Big Green money), and on behalf of Chesapeake Climate Action Network, Patuxent Riverkeeper, and the Sierra Clubbers. Meanwhile, Dominion, the owner of the project, has pushed forward with construction at the site. Dominion is about to begin construction on the foundation of the new facility sometime in June, so Earth[in]justice has just filed another lawsuit–a request for a cease and desist order to stop Dominion from constructing the foundation until after their frivolous lawsuit has a chance to get in front of a sympathetic judge…
Read More “Earthjustice Asks Court to Stop Construction at Cove Point LNG”
Anti-Drilling/Fossil Fuel | Energy Services | Exporting | Industrywide Issues | New York | Pipelines | Spectra Energy | Westchester County

Anti Group “NOPE” Opposes Spectra Energy New England Pipeline
June 3, 2015June 2, 2015

Both Spectra Energy and Kinder Morgan have competing pipeline projects to move Marcellus Shale gas to New England where it’s desperately needed. Spectra Energy’s project is called Access Northeast and has a number of regional utility partners–companies that want to buy cheap, abundant and clean-burning Marcellus Shale gas–to sell to New Englanders. Spectra Energy’s project will expand several existing pipeline systems and join them together, running from New York through Connecticut and into Massachusetts. Kinder Morgan’s project is called Northeast Energy Direct (NED), which builds a new extension of the mighty Tennessee Gas Pipeline system from New York across Massachusetts, into New Hampshire and back into Massachusetts. Both projects face resistance from nutty fossil fuel haters. The reality for both projects is that although they will deliver an abundance of new supplies of natural gas, which is good during the winter, there will be an oversupply in the summer. You don’t just turn the spigot off on a pipeline. So the plan is to put some of that natural gas on the Maritimes & Northeast pipeline and send it on up to Canada where it can be used by Canadians and/or exported. Yes, exported. Export is not a dirty word, nor will it raise the prices here at home–at least not appreciably (by more than a few cents per Mcf). A new group of anti-drillers has sprung up to oppose the Spectra Energy project. They call themselves DOPE…oops, that’s NOPE (No Pipeline Expansion). NOPE is all up in arms because a little bit of natural gas may get exported, and they think they have the smoking gun to prove it…
Read More “Anti Group “NOPE” Opposes Spectra Energy New England Pipeline”
CNG/LNG | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

NYC Conf: Competing Visions to Relieve New England Gas Crunch
June 1, 2015June 1, 2015

SNL Financial reports on the Platts Northeast Power and Gas Markets Conference in New York City, held last week on May 28-29. Among those participating were companies offering vastly different solutions for the ongoing natural gas shortage in New England. On one side was GDF Suez Gas NA LLC (a French company) and Repsol Energy North America (a Spanish company), both hoping to import LNG to Massachusetts. Their pitch is that New England just needs enough natural gas to even out the peaks and valleys of supply–and of course GDF’s LNG terminal is the perfect solution (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). On the other side was Spectra Energy whose stated goal is to move 1/3 of Marcellus Shale gas produced into New England (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). Here’s a summary/wrap-up…
Read More “NYC Conf: Competing Visions to Relieve New England Gas Crunch”