Energy Services

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

ETP Buyout of Regency Energy Has a Date: April 28
March 11, 2015March 11, 2015

In January MDN brought you the big news that Energy Transfer Partners (ETP) is buying/merging with Regency Energy Partners (see Energy Transfer Partners Buys Regency Energy for $25B). Both companies have meaningful operations in the Marcellus/Utica region. These mergers & acquisitions, as you know, take time. Both companies have been busy and Regency reported earlier this week they have a date to make it all final: April 28. On that date, Regency will hold a special meeting at their company headquarters in Dallas, TX to vote on the deal…
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Energy Services | Energy Transfer Partners

ETP Swapping $2.5B of Old Debt for New Debt, Floats Notes
March 11, 2015March 11, 2015

Energy Transfer Partners (ETP) is buying Regency Energy Partners and assuming $6.8 billion worth of debt in the process (see Energy Transfer Partners Buys Regency Energy for $25B). Apparently it’s time to clean up the old debt ETP has on the books, so they’re floating notes (or IOUs) looking to trade $2.5 billion worth of new debt for old debt…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Ohio | Pipelines | Regulation | Statewide OH

OH Law Firm Asks FERC to Stop ET Rover Pipeline Eminent Domain
March 10, 2015March 10, 2015

Columbus, OH law firm has filed a motion with the Federal Energy Regulatory Commission (FERC) challenging Energy Transfer Partners’ ET Rover application before FERC. The issue at the heart of the motion is to prevent ET Rover from invoking eminent domain and steamrollering over landowners, building the pipeline without an agreement in place with each individual landowner first. When pipeline companies have the power of eminent domain, they hold all the cards. They can say, “Here’s the offer–take it or leave it–and if you leave it, we’ll build the pipeline through your land anyway at the price we want.” We’ve never been fans of eminent domain for pipelines. Far better for pipeline companies to work it out with landowners and pay them–or reroute it through someone else’s property who will play ball. We acknowledge it’s a thorny issue and not completely black and white. ET Rover is an 830-mile, $4.4 billion pipeline that will flow Marcellus and Utica Shale gas from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). The bulk of the pipeline will run diagonally from southeast to northwest across Ohio. Just yesterday we told you about ET Rover’s program to help landowners (see ET Rover Pipeline Hires Land Stewards to Protect the Land in OH). The motion filed with FERC, from what we can tell in reading the press release and the motion itself (embedded below) is not an attempt to stop ET Rover–it’s an attempt to give landowners more negotiating power and leave them firmly in control of whether, and how much, they will accept to allow the pipeline through their property…
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Crestwood Midstream | Energy Services

Crestwood Midstream Floats $700M in IOUs
March 10, 2015March 10, 2015

It’s still the season to float “unsecured notes” (i.e. IOUs) for both drillers and pipeline companies. The latest we’ve noticed is Crestwood Midstream. A year and a half ago Crestwood merged with and bought out Inergy, creating a large pipeline and processing plant company with major operations in the northeast (see Crestwood/Inergy Complete Their Merger Today, Worth $8B). Yesterday Crestwood floated notes hoping to score $700 million in cash, to be used to pay down older debt. Here’s their announcement…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco Reconciles Differences with Municipalities re Mariner East
March 9, 2015March 9, 2015

Hats off to Sunoco Logistics. In order to complete the conversion of a decades-old pipeline already in the ground, the Mariner East 1 pipeline, into flowing natural gas liquids (propane and ethane) across the state to the Marcus Hook refinery near Philadelphia, the company needs to build or upgrade 31 pump and valve stations along the existing pipeline. A legal battle ensued with resistance from many of the local municipalities, largely ginned up by scare stories from the usual sources like the Clean Air Council, THE Delaware Riverkeeper, Mountain Watershed Association and their sycophantic buddies in mainstream media outlets like PBS’ StateImpact Pennsylvania. Sunoco felt it had no option but to try and get the pipeline declared a public utility and by extension, use eminent domain to avoid local zoning ordinances. There have been plenty of legal twists and turns along the way (see our list of stories here). Sunoco has worked out their differences with 22 of the 31 townships and they are now hammering out deals with the rest. So they’ve withdrawn their application with the state Public Utility Commission (PUC) to be exempted from local zoning ordinances–no eminent domain. Anti-drillers are feverishly trying to spin this as a loss for Sunoco Logistics–that the company has “backed down” and is beaten. What it is, is a major victory for Sunoco–the pipeline will be completed (very soon) and NGLs will flow all the way to Marcus Hook…
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Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Regulation | Utica Shale | Velocys | Wastewater

OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant
March 9, 2015March 9, 2015

The Ashtabula (OH) gas-to-liquids, or GTL, plant is ever-so-gradually making progress. In Sept. 2013 MDN first told you about this innovative plant coming to Ashtabula County (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH). The plant will convert Marcellus and Utica Shale gas into diesel fuel, lubricants, solvents and waxes. The technology used for the plant is provided by a UK company called Velocys. In June 2014, Velocys bought out the Astabula operation and took up the reigns of the project (see UK-based Velocys Buys Ashtabula, OH GTL Plant). We didn’t hear anything about it until January of this year when Ashtabula Energy, a division of Velocys, has filed for a permit with the Ohio Environmental Protection Agency (OEPA) that would allow the plant to discharge wastewater into Lake Erie (see New Life for Ashtabula Gas-to-Liquids Plant, Files for Permit). The new news is that the OEPA has issued a draft discharge permit for the plant and has scheduled a public hearing on it…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

ET Rover Pipeline Hires Land Stewards to Protect the Land in OH
March 9, 2015March 9, 2015

As we’ve been reporting for some time, Energy Transfer Partners (ETP) plans to build an 830-mile, $4.4 billion pipeline, called the ET Rover Pipeline, from PA and WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). The pipeline will flow Marcellus and Utica Shale gas to Midwestern US markets and to Canadian markets. The longest stretch of pipeline will cross OH. In an effort to ensure Ohioans have an advocate to ensure their land is impacted as minimally as is possible, ETP is paying for the services of an ombudsman, a representative who will look out for the landowner’s best interest. It is Ohio-based firm Land Stewards–“a team of certified soil scientists, agricultural engineers, agronomists and conservation planners.” Does ETP get thanked taking this extraordinary over-and-above step? No. Instead, they get criticized…
Read More “ET Rover Pipeline Hires Land Stewards to Protect the Land in OH”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Kinder Morgan Fails to Sign Up New NED Customers in Last 8 Mos
March 6, 2015March 6, 2015

Yesterday Kinder Morgan announced they have contracts in hand for “anchor” shippers to use 500,000 dekatherms of capacity on the proposed new Northeast Energy Direct (NED) Project. NED, you may recall, is the project that will extend the Tennessee Gas Pipeline from New York through Massachusetts into New Hampshire and back into Massachusetts delivering much-needed natural gas to New England (see Kinder Morgan Changes Route for Pipeline from MA to NH). The project is bitterly opposed by small pockets of anti-drillers–particularly in Deerfield, MA where they’ve illegally attempted to ban it (see Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban”). The interesting thing about yesterday’s announcement from Kinder Morgan is that there’s really nothing new in it! Other than the fact that they now have the officially signed agreements in hand. MDN brought you the same news about the same shippers signing up in the original open season last August (see Kinder Signs up New Customers for MA Pipeline, 63% of Capacity). Kinder continues, according to the announcement yesterday, to try and sign up more shippers. So the real news–for us–is that since August, Kinder hasn’t signed up any other new shippers, even though they’ve been trying to…
Read More “Kinder Morgan Fails to Sign Up New NED Customers in Last 8 Mos”
Dominion Energy | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY

NY Antis Flood FERC in Fight Against Dominion’s New Market Project
March 5, 2015March 5, 2015

By Andy Leahy

By most measures, Dominion Transmission’s New Market Project is a fairly dull $159 million capacity upgrade to an existing natural gas pipeline which runs across upstate New York from the PA line, west of Horseheads, northeasterly to the state’s Capital Region (see the map below). We are now about a month away from the originally forecast April 2015 date when Dominion thought it might get a green light from FERC, the Federal Energy Regulatory Commission (Docket Number CP14-497). September 2015 was originally forecast for beginning construction (280 jobs, all temporary, as are all construction jobs), while November 2016 was the target in-service date (adding 10 to 12 permanent jobs, running forward)…
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Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues

Bankrupt Waterless Fracking Co GASFRAC Sold to “Third Party”
March 4, 2015March 4, 2015

It’s either a sad ending, or a happy new beginning–we’re not sure which. For some time MDN has chronicled the ups and mostly downs of Canadian company GASFRAC, a pioneer and perhaps best shot (so far) in providing a waterless alternative to fracking shale wells. The company ran an experimental frack job on a Utica Shale well for EV Energy Partners last year (see Details on GASFRAC’s Waterless Frack Test in OH Utica). EV has not released any details about that frack job, good or bad–so far. GASFRAC has been in financial trouble for a few years now and we reported earlier this year the company filed for bankruptcy protection and put themselves and/or any of their assets up for sale (see Fire Sale for GASFRAC Waterless Fracking Co, Interim CEO Resigns). The sale has happened…
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Energy Services | Seventy Seven Energy

Seventy Seven Energy 2014: Revenue Down 5%, Losing Money
March 4, 2015March 4, 2015

Seventy Seven Energy, with major operations in the northeast, is the old Chesapeake Oilfield Operating division of Chesapeake–spun off into its own company on July 1, 2014 (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). On Monday the company released their 2014 full year and fourth quarter update. The company’s revenue was down 5% in 2014 compared with 2013, and they lost money ($8 million, or 17 cents per share). Company CEO Jerry Winchester says the company is in a good position to “weather the storm the industry is currently experiencing and take advantage of the opportunities that will arise from it.” Below is the update…
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Energy Services | MarkWest Energy

MarkWest Hauls in $650M Cash from New IOUs, Paying Down Old Debt
March 4, 2015March 4, 2015

Last week MDN highlighted the latest round of debt financing being offered by MarkWest Energy (see MarkWest Floats Notes Seeking $650M…or $500M…or $1.15B – Which?). We noted two announcements about debt financing–one offering $650 million in IOUs (otherwise called notes) and one for $500 million. Seems the $500 million announcement was a restatement or reiteration of a round of financing from 2014. How do we know? MarkWest yesterday said it had successfully completed closed it’s offering of $650 million…
Read More “MarkWest Hauls in $650M Cash from New IOUs, Paying Down Old Debt”
Energy Services | Williams

Williams Hauls in $1B Cash from New IOUs, Paying Down Old Debt
March 4, 2015March 4, 2015

Not to be outdone by MarkWest that just raised $650 million in cash from new IOUs–MDN noted last week that Williams had gone shopping for several multiples of that amount (see Williams Goes Shopping for $3B, Floating Notes to Pay Down Debt). Williams reported yesterday they were successful in raising all $3 billion, some of which they’ll use to pay down older debt…
Read More “Williams Hauls in $1B Cash from New IOUs, Paying Down Old Debt”
Broome County | Energy Services | Industrywide Issues | Leatherstocking Gas | New York | Pipelines

Leatherstocking Moves Forward with Pipeline System in Windsor, NY
March 3, 2015March 3, 2015

By Andy Leahy (see MDN note at end)

New applications filed Feb. 20 and 27 with the New York State Public Service Commission show that built-up areas of Windsor, NY (Broome County) are in line to be the first in a sequence of small town conversions to natural gas previously announced by Leatherstocking Gas Company, LLC. Assuming the Windsor application doesn’t hit any hitches with the state, Leatherstocking’s target date for installation is Fall 2015, according to Town Supervisor Carolyn Price. “It’s one of the most frequently asked questions I get,” Price told MDN Monday morning. “When am I going to get natural gas?” Price also said a number of Windsor residents, while they wait, have needed to replace furnaces, and they’ve been installing propane-fueled burners–because those are reported to be more easily switched over to natural gas, down the road…
Read More “Leatherstocking Moves Forward with Pipeline System in Windsor, NY”
Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Rockies Express Pipeline | Statewide OH

REX Pipeline Zone 3 East-to-West Project Gets FERC Approval
March 3, 2015March 3, 2015

A big announcement yesterday from Tallgrass Energy Partners, owners of the Rockies Express Pipeline (REX). REX has received approval from the Federal Energy Regulatory Commission (FERC) to modify “certain facilities” along the REX pipeline from Monroe County, OH all the way to Moultrie County, IL–something they call the Zone 3 East-to-West Project. When complete, it means REX will flow an additional 1.2 billion cubic feet of natural gas per day from the Utica and Marcellus to Midwest markets. A second important announcement: The Seneca Lateral of the REX (Noble County, OH) is now fully operational. REX upgraded compressor stations along the Seneca Lateral which has boosted available capacity on the pipeline to 600 million cubic feet per day…
Read More “REX Pipeline Zone 3 East-to-West Project Gets FERC Approval”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Williams

Latest Anti-Drilling Attack on Constitution Pipeline: “It’s Illegal”
March 3, 2015March 3, 2015

We’ve noticed a renewed effort on the part of anti-drillers to stop the already FERC-authorized Constitution Pipeline, slated to run from Susquehanna County, PA–where they can actually drill for natural gas–through upstate New York to Schoharie County (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). New York State’s Dept. of Environmental Conservation (DEC) must grant what’s called a 401 Water Quality Certificate that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. The DEC held a series of public hearings on the Constitution (see Pro-Drillers Out in Force at Constitution Pipeline Hearing in Binghamton). Last week the time for public comment closed–which is why we’re now seeing anti-drillers launching a coordinated attack, as a last-ditch effort to stop the Constitution. Their attack includes sympathetic (and sycophantic) media stories and an attempt to re-brand the Constitution as “the Keystone XL pipeline of natural gas.” What a joke! Bobby Kennedy Jr. went on MSNBC (a network virtually no one watches) to make some outrageously false claims about the Constitution pipeline and FERC. It all adds up to a well-coordinated, well-funded attack by Big Environment trust funders…
Read More “Latest Anti-Drilling Attack on Constitution Pipeline: “It’s Illegal””