Energy Services

Dominion Energy | Energy Services | Harrison County | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines

Harrison County Landowers Say Dominion Pipeline Offer is Too Low
October 6, 2014October 8, 2014

Dominion wants to widen an existing right-of-way to build a 16.5 mile natural gas pipeline in Harrison County, OH. But according to landowners under whose property the pipeline would sit, Dominion is low-balling them–offering, literally pennies on the dollar. How much is the offer, and what’s the going rate to lease land for a 36″ pipeline in that area of Ohio?…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia

Opposition to Dominion SE Pipeline: Bulldozers & Salamanders
October 6, 2014October 6, 2014

It was just a scant few months ago that Dominion first announced a new pipeline project to carry Marcellus and Utica Shale gas from West Virginia through Virginia and into North Carolina (see Dominion Announces 2 New Pipeline Projects from Marcellus/Utica). Eventually what was a single company building a $2 billion pipeline became four joint venture partners building a 550-mile, $5 billion pipeline with the name Atlantic Coast Pipeline (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). Surveyors are in the field attempting to chart a path for the new pipeline, and some landowners are none too pleased at the prospect. One crotchety old geezer who lives near the fabled Walton’s Mountain area says he’ll lay down under a bulldozer if they show up on his land…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Major Milestone: PA PUC Rules Mariner East IS a Public Utility
October 3, 2014October 3, 2014

Sunoco Logistics is not home free yet–but almost. As MDN readers will know, for some time anti-drillers have attempted to prevent Sunoco Logistics from repurposing their 400+ mile Mariner East pipeline that stretches from western PA to Philadelphia to begin flowing natural gas liquids–ethane and propane. The legal tussle has been over whether or not the pipeline is a “public utility” with the right of eminent domain and the right to be exempt from local zoning ordinances. Bear in mind the Mariner East pipeline has been in the ground for decades, always considered a public utility in years gone by. Local municipalities are now seeking to stop a string of 18 pump and 17 value stations (in 31 locations) that will be needed along the pipeline’s route in order to flow the ethane and propane. So the municipalities launched a legal fight to remove Mariner East’s classification as a public utility. Yesterday the Commissioners of the PA Public Utility Commission put that issue to rest once and for all…
Read More “Major Milestone: PA PUC Rules Mariner East IS a Public Utility”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

MarkWest Wins Court Case to Build Compressor Station in Cecil, PA
October 2, 2014October 2, 2014

Cecil Township in Washington County, PA is one of the original seven selfish townships that sued and eventually had portions of the state’s Act 13 Marcellus drilling law overturned. The portion overturned restored to local municipalities the right to establish their own zoning regulations when it comes to oil and gas related activities. Apparently Cecil thought they had a blank check to deny anything they wanted, but a recent court decision has brought them back to reality. A Commonwealth Court judge has ruled Cecil must and will allow MarkWest to build a compressor station in an area clearly zoned for it under Cecil’s own rules–a station they’ve been trying to build since 2010…
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CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Noble Energy

CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!
October 2, 2014October 2, 2014

A little over a month ago CONSOL Energy and Noble Energy, two otherwise competitors that often cooperate on drilling programs in the northeast, together formed a new pipeline company called CONE Midstream (see CONSOL & Noble Energy Form New Marcellus Midstream Company). A couple of weeks ago CONSOL & Noble announced they would float an initial public offering (IPO) to sell stock in the new venture, hoping to raise $423 million (see CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M). Good news: Mission accomplished. Yesterday CONE issued a press release saying the IPO of 20.1 million shares for $22 per share has successfully closed…
Read More “CONE Midstream’s IPO Takes in $423M, Market Cap Already $1.71B!”
Baker Hughes | Energy Services | Hydraulic Fracturing | Industrywide Issues

Baker Hughes Begins Full Disclosure of All Frack Fluids
October 2, 2014October 2, 2014

In a welcome move, yesterday Baker Hughes announced they will now disclose all (100%) of the chemicals they use in their fracking fluids. Baker Hughes’ chief competitor in providing fracking services for drillers is Halliburton–so this move will pressure Halliburton to follow suit. Starting yesterday, October 1, Baker Hughes will not only publish a list of every chemical used on a given well to frack it (on the FracFocus.org website), they will also disclose the maximum concentration used for each chemical. It is total transparency into what they are using and where they are using it–removing any remaining claims by anti-drillers that the industry is trying to “hide” something…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Regulation | Statewide MD

Dominion Accepts FERC 79 Conditions for Cove Point < 24 Hrs
October 2, 2014October 2, 2014

That didn’t take long. On Sept. 29 the Federal Energy Regulatory Commission (FERC) granted Dominion final approval to build an LNG export facility in Cove Point, MD (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). Part of the approval includes a list of 79 “conditions” that must be met by Dominion in accepting FERC’s approval. Dominion said, on the 29th, that they would need to review FERC’s final order with the 79 conditions. It only took 24 hours. On Sept. 30 Dominion accepted all 79 conditions. As part of the press release announcing their acceptance, we also learn who will build the facility for Dominion…
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Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

FWW Bleats About “Sacrificing” Residents Near Cove Point LNG Plant
October 1, 2014October 1, 2014

The odious and misnamed Food & Water Watch, a virulently anti-drilling group, is none-to-pleased with the Federal Energy Regulatory Commission’s approval of the Cove Point, MD LNG export facility (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). The wacko environmentalists at FWW (childlike, really) threw a press release temper tantrum yesterday, declaring FERC has chosen to “sacrifice” the rural residents who live a mile away from the proposed plant in favor of fat corporate profits for Dominion. So predictable…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Regulation | Statewide MD

Dominion Gets Final Fed Approval to Build Cove Point LNG Plant
September 30, 2014September 30, 2014

Blow the horns…cheer and clap and celebrate. Let’s all do a happy dance! Yesterday the Federal Energy Regulatory Commission (FERC) issued a final approval to Dominion for their liquefied natural gas (LNG) export facility in Cove Point, Maryland. And that’s following anti-drillers behaving badly at a recent FERC meeting (see 20 People Crash FERC Meeting, Complain about Cove Point LNG). Looks like the antics of people taking over a FERC meeting didn’t impress the commissioners. Following the FERC announcement Dominion issued their own announcement (both announcements are below) to say as soon as they review FERC’s final “order” on the plant they will seek a “Notice to Proceed” from FERC and then (very soon) construction will begin…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Spectra Energy

Spectra Energy Asks Maine PUC to Support Its Pipeline Project
September 30, 2014September 30, 2014

Two weeks ago MDN told you about Kinder Morgan’s “historic” proposal filed with the Maine Public Utilities Commission offering the State of Maine a long-term contract for natural gas pipeline capacity with the goal of lowering overall energy costs for Maine consumers (see Kinder Morgan Sweet Talks Maine to Support Mass. Pipeline). The catch is that Maine will assess a fee on all of their electric customers to raise the money they would pay to Kinder for Kinder to help build their proposed extension of the Tennessee Gas Pipeline across Massachusetts to deliver cheap, abundant Marcellus Shale gas to New England. Not to be outdone, Spectra Energy yesterday sent their proposal to Maine, to try and get Maine to support their project instead of Kinder’s…
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Energy Services | Ethane | Harrison County | Industrywide Issues | Kinder Morgan | NGLs | NOVA Chemicals | Ohio | Pipelines | Statewide OH | Utica Shale

Canadian NOVA Chemicals to Ship Utica Ethane via UTOPIA
September 30, 2014September 30, 2014

In December, midstream company Kinder Morgan announced they would build a 210-mile, 10-inch natural gas liquids (NGL) pipeline that will carry Utica ethane and propane from Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Earlier this month MDN told you that UTOPIA launched an open season to sign up customers for the pipeline (see UTOPIA Open Season Begins Today – OH to MI NGL Pipeline). Not surprisingly, Kinder has just announced that NOVA Chemicals, owner of the Corunna ethane cracker plant in Ontario, has signed up as one of Kinder’s main customers for UTOPIA. We did, however, notice a few interesting things about this latest announcement…
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Blue Ridge Mtn Res/Magnum Hunter | Deep Well Services | Energy Companies | Energy Services | Tyler County | Utica Shale | West Virginia

PA Snubbing Company Helped Drill Utica’s #1 Well
September 30, 2014September 30, 2014

Last week MDN told you about the new reigning champion for most-productive Utica well ever, a well drilled in West Virginia by Magnum Hunter Resources (see Magnum Hunter Takes the Prize: Top Producing Utica Well). Two and a half weeks ago MDN told you about Deep Well Services (DWS), a “snubbing” company based in Pennsylvania (see PA “Snubbing” Company DWS Experiences Rapid Expansion). It seems there’s a connection between the two stories. DWS issued a press release yesterday to point out they were involved with working on the Magnum Hunter champion Utica well…
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Columbia Pipeline Group | Energy Services | NiSource

NiSource Splits in Two: Columbia Pipeline Will be Separate Company
September 29, 2014September 29, 2014

NiSource is a very big public utility company (electric & gas) serving 3.8 million customers from the Gulf Coast through the Midwest to New England. Headquartered in Indiana, NiSource is also the parent of Columbia Gas, which owns extensive pipelines and recently announced they would build another two new pipelines in the Marcellus region (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). NiSource has decided and in an unusual move announced yesterday (Sunday) that they are splitting the company in two. NiSource the utility will remain focused on being a utility, and Columbia Gas will be spun off into it’s own company called Columbia Pipeline Group (CPG) under a master limited partnership (MLP) structure. MLPs issue “units” instead of shares of stock–although functionally they are about the same thing. Here’s the details from NiSource…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | Triad Hunter | West Virginia

Magnum Hunter’s Pipeline System Boosts Volumes in OH/WV
September 26, 2014September 26, 2014

A second announcement from Magnum Hunter over the past two days is not nearly as important as the first–but interesting nonetheless. Magnum Hunter announced yesterday that Eureka Hunter–Magnum’s pipeline gathering subsidiary–has bumped up the volume of gas flowing through the system to an average 316,500 million Btus per day, or roughly 307 million cubic feet (Mmcf) per day. Fully one-third of the gas flowing through the system, which is located in West Virginia and Ohio, comes from another Magnum Hunter subsidiary–Triad Hunter. Lot’s of “Hunters” out there. 😉 Here’s the announcement of the increasing volumes flowing through Eureka Hunter’s pipelines these days…
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Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Regulation | Washington County

Fines Total $151K for 2 Incidents at MarkWest Chartiers, PA Plant
September 26, 2014September 26, 2014

MarkWest continues to feel the effects of problems they’ve experienced at the company’s Houston Gas Processing Plant in Chartiers Township (Washington County), PA. MarkWest had expanded the plant–doubling its operations. When new equipment went online in July, things didn’t go as planned and there was emergency flaring–burning of gas–at the plant (see Smoke at MarkWest Chartiers, PA Gas Processing Plant). It wasn’t long before the PA Dept. of Environmental Protection (DEP) started handing out violation notices (see MarkWest Served Violation Notice for Chartiers Processing Plant). The company had a previous $71,000 fine for improper flaring at the plant stemming from incidents in April of this year. With the July incident, another $80,000 fine was assessed, totaling $151,000 in fines for the plant in the past six months…
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Energy Companies | Energy Services | Industrywide Issues | Lycoming County | NFG Midstream | Pennsylvania | Pipelines | Regulation

PA DEP Fines NFG Midstream $250K for Pipeline Violations
September 26, 2014September 26, 2014

The PA Dept. of Environmental Protection (DEP) has just slapped NFG Midstream Trout Run LLC $250,000 for pipeline violations in Lycoming County, PA. NFG Midstream is a subsidiary company of National Fuel Group–the big utility and driller (via their subsidiary Seneca Resources) headquartered in Buffalo, NY. The fine is for “multiple violations” of the Clean Streams Law and DEP regulations during construction of the Trout Run Gathering System pipeline in five Lycoming County municipalities during 2011 and 2012. The DEP documented “continuing violations at multiple locations” over a 7-month period. NFG has already paid the fine…
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