Energy Services

Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | NGLs | Pipelines

Kinder Morgan/MarkWest Proposed NGL Pipeline Gets a Nickname, Map
December 16, 2013December 16, 2013

A month ago MDN told you about a then-unnamed new natural gas liquids (NGL) pipeline being planned by Kinder Morgan and MarkWest that will run from the Utica/Marcellus to the Gulf Coast (see KM & MarkWest Announce Open Season for NE to Gulf NGL Pipeline). At the time Kinder announced an open season for the new pipeline that will end this week, on Dec. 20.

What we didn’t have then but do have now is a name for the pipeline, and a map. The name is the Utica Marcellus Texas Pipeline. We even have a nickname from Kinder. Because the pipeline will transport Y-Grade NGLs from the Utica and Marcellus Shales to the Texas Gulf Coast, they call it “the Y-Grade Pipeline”. Below is a description of the Y-Grade project along with a full-size map showing the proposed route…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
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Bradford County | Energy Services | Eureka Resources | Industrywide Issues | Lycoming County | Pennsylvania | Wastewater

2 NE PA Wastewater Recycling Plants Get Upgrades
December 13, 2013March 7, 2019

The Marcellus Shale wastewater recycling plants in Williamsport and Towanda, PA, operated by Eureka Resources, have been upgraded. A crystallizer and a methanol recovery system have been installed at both plants allowing Eureka to separate out minerals and compounds that they have been trucking to Ohio for disposal in an injection well. The side benefit: They’ll now begin producing and selling oil, methanol and sodium chloride–a new revenue stream for the plants.

The two plants will bring the new upgrades online in January…
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Air Quality | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Washington County

MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space
December 12, 2013December 11, 2013

Two couples with the same last name and who both live near the MarkWest gas processing plant in Chartiers Township (Washington County), PA are suing MarkWest claiming the plant is causing air pollution and is “trespassing” on their air space. MDN has chronicled problems at the plant in the past (see MarkWest Served Violation Notice for Chartiers Processing Plant).

Both couples, with the last name Sethman, report a variety of physical ailments they claim are caused by air pollution from the plant…
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Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Extends Open Season for “Little” Ethane Pipeline
December 11, 2013December 11, 2013

MarkWest conducted an open season for their “little” 30-mile ethane pipeline that will run from Majorsville, PA to Houston, PA (in Washington County) from early November until December 9th. The MarkWest Liberty Ethane Pipeline is a pipeline to other pipelines (see MarkWest Open Season for “Little” Ethane Pipeline). Ethane arriving in Houston, PA will be able to hitch a ride out of the northeast via other pipelines to cracker plants and processing facilities in Canada and the Gulf Coast.

Apparently the open season didn’t garner as much business as MarkWest had hoped, because yesterday they announced “ya got a few more days to sign up.” The new deadline for the open season is this Friday, December 13th at 5:00 pm Eastern. So hurry and sign up, while you still can! Here’s the MarkWest announcement from yesterday extending the open season for the Liberty Ethane Pipeline:
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Handful Protest Mariner East Pipeline at Sunoco HQ in Philly
December 11, 2013December 11, 2013

Something like two dozen paid, professional protesters showed up at Sunoco Logistics headquarters yesterday in downtown Philadelphia to preen before (a few) media cameras and make outrageously false statements about the Mariner East pipeline. These are people with nothing better to do with their time than to desperately try to grab 15 minutes of fame.

Here’s an example of the bilge that flowed from the groups financing the protest:
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Broome County | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pipelines | Williams

Williams Files to Expand Marcellus Pipeline in Broome County, NY
December 10, 2013December 10, 2013

Two years ago the newly completed Laser Northeast Gathering pipeline, a 33-mile pipeline stretching from Susquehanna County, PA across the border into Broome County, NY where it connects to the Millennium Pipeline, was sold by Delphi Midstream Partners to Williams Partners (see Laser Northeast Pipeline Selling to Williams for $750M). There is “new news” to share about the formerly named Laser, now named the “New York Mainline,” courtesy of MDN friend Andy Leahy, writing on his excellent NY Shale Gas Now! blog.

Sifting through a pile of digital paperwork, Andy found that in early December Williams filed a request to expand the Laser/NY Mainline by adding an additional 16″ pipeline loop–right here in the good old Town of Windsor, NY (where MDN is written!). The new pipeline loop will expand the capacity of Marcellus Shale gas flowing out of northeast PA and into the Millennium pipeline. Here’s Andy’s report…
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CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days
December 10, 2013December 10, 2013

In October MDN told you the proposed Bluegrass Pipeline, a natural gas liquids (NGL) pipeline that will be built from the Marcellus/Utica to the Gulf Coast, was far enough along that joint venture partners in building the Bluegrass Williams and Boardwalk Pipeline launched an open season to lock in drillers who want to ship their NGLs out of the northeast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). The open season was due to end next week, Dec. 16.

Late yesterday Williams/Boardwalk extended the open season another month, to Jan. 17, 2014. They say the extension is at the request of shippers who need more time to decide. Is that just blowing smoke? For real? How would you read the tea leaves? Here’s the announcement:
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Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
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Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’
December 9, 2013December 9, 2013

It’s interesting to MDN that when anti-fracking protesters call for boycotts of businesses that either support or (gasp) are part of the shale drilling industry, such a boycott is considered brave and courageous and a-OK. But when someone on the pro-drilling side suggests those who support fracking and the natural gas industry may want to boycott the businesses donating money and time to fight the natural gas industry, that’s “bullying” and mean and evil. Anyone else smell a hypocritical rat? We’re referring to a recent brouhaha over Inergy Midstream’s (now part of Crestwood Midstream) plan to develop a liquid propane storage facility using depleted salt caverns along the edge of Seneca Lake near Watkins Glen, NY. MDN has long covered the fight by Inergy to bring the only new storage facility proposed in the northeast (badly needed), and the people who want to stop it (see NY Protesters Arrested for Blocking NatGas Storage Facility).

In June, a VP for Inergy sent an email to 25 people suggesting they may want to boycott the businesses using their time and money to actively oppose the Inergy facility. Those businesses are part of the “Business Coalition” of the organization called Gas Free Seneca (GFS). The email sent by the Inergy VP–now six months old but but just coming to light–has GFS in a tizzy. GFS has responded with their own email that they are “extremely disturbed” by this “bullying” from Inergy. That is, GFS doesn’t like the shoe being on the other foot for a change (poor babies). We have the story of the email, and the list of the (current) 181 NY businesses that Inergy (and you) may want to consider boycotting…
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Accidents | Delaware County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines

Minor Incident in with Millennium Pipeline NY Compressor Station
December 9, 2013December 9, 2013

The Millennium Pipeline was supposed to have completed a new compressor station near Hancock (Delaware County), NY in November. They’re getting close to being done, but not quite there yet. The new 15,900 horsepower compressor facility will add an additional 107.5 million cubic feet per day of capacity to the Millennium Pipeline, allowing them to pump more Marcellus Shale gas to the Algonquin Gas Transmission interconnect at Ramapo, NY.

Whether it was part of normal work to get the facility ready or there was a “problem” with bringing the compressor online, last Thursday Millennium personnel knocked on the door of the only residence living close to the facility and requested the family either stay inside for the next several hours, or immediately evacuate for a few hours while Millennium vented natural gas from the facility. The family (wisely) decided to evacuate for several hours…
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Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing | Westmoreland County

Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?
December 9, 2013December 9, 2013

It’s certainly not a lot of money, but landowners in the Murrysville (Westmoreland County), PA area may have the opportunity to pick up some pocket change. One method used in seismic testing–finding out what’s down there–is to use “thumper trucks” that pound the ground, sending sound waves into the earth that are recorded with special equipment which allows geologists to draw maps of underground rock structures.

ION Geophysical Corporation of Houston, TX is sending thumper trucks to the Murrysville area in February, and landowners who are selected and agree to allow the trucks access on their land can get a one-time payment of $5 per acre. Depending on how much land you own, it will at least buy a few cups of coffee at Starbucks…
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Crestwood Midstream | Energy Services

Crestwood Midstream’s Plans for 2014 (Hint: Marcellus)
December 9, 2013December 9, 2013

Last week Crestwood Midstream Partners issued an update for their 2014 plans. You may recall that in 3Q13 Crestwood merged with Inergy Midstream (see Crestwood/Inergy Complete Their Merger Today, Worth $8B). At the time, Crestwood said their focus for the remainder of this year would largely be the Marcellus Shale (see Crestwood Midstream 3Q13: Merger Done, Pedal to Marcellus Metal).

According last week’s update, the Marcellus will continue to be one of the primary focuses of the company. Crestwood plans to spend $400 to $425 million on new capital projects in 2014–much of it in the Marcellus, although they also have major projects cooking in the North Dakota Bakken Shale region and the Niobrara Shale of Colorado & Wyoming. The “forward looking” update from Crestwood:
Read More “Crestwood Midstream’s Plans for 2014 (Hint: Marcellus)”
Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon
December 6, 2013December 6, 2013

When it comes to carting away lucrative ethane from the Marcellus/Utica, there’s been a horse race between Sunoco Logsitics and their Mariner West pipeline to Sarnia, Canada, and the Enterprise Products Partners and their ATEX (Appalachia-to-Texas Express) pipeline to the Gulf. Mariner West recently won the race in a photo finish (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). However, Enterprise announced yesterday they are now filling the ATEX pipeline with ethane and testing it. The pipeline should be fully operational by the end of December–months ahead of schedule.

The exciting thing about the ATEX pipeline is it’s connection to four different fractionation (“separating”) plants: two in OH, one each in PA and WV. Why are these two ethane pipelines a big deal? Great question…
Read More “Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court
December 6, 2013December 6, 2013

A small but dedicated group of anti-drillers in Kentucky continue to oppose plans by Williams and Boardwalk Partners to build the Bluegrass natural gas liquids (NGL) pipeline through their state. The Bluegrass will stretch from the Marcellus/Utica all the way to the Gulf Coast. MDN estimates it will cost at least $1.5 billion to build it (see 2013 Marcellus and Utica Shale Databook – Volume 2). We told you about previous efforts to stop the pipeline in, ironically, the Bluegrass state–Kentucky (see Bluegrass NGL Pipeline Encounters Resistance from Some in KY and Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State). We even told you about God getting involved (see Thank God the Bluegrass Pipeline will Bypass Marion County Nuns).

Looks like the anti-drillers have not given up. A new group with the cutsie name KURE (Kentuckians United to Restrain Eminent Domain) has formed to oppose the pipeline. Their strategy is to deny the Bluegrass the right to use eminent domain to lay pipeline under property where landowners don’t want it. KURE filed a lawsuit yesterday in Franklin Circuit Court (Frankfort, KY) questioning the legality of eminent domain for the Bluegrass…
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