Sunoco Logistics

Accidents | Energy Services | Industrywide Issues | Pennsylvania | Sunoco Logistics | Washington County

Mariner East Pipeline Drilling Spills Mud in Local Creek
September 23, 2014September 23, 2014

Last Thursday, Precision Pipeline of Waynesburg, Pa was drilling under the Little Mingo Creek behind the Mingo Creek Church on behalf of Sunoco Logistics when the drill bit hit something really solid. It stopped the bit and led to drilling mud, often called bentonite, to leak into the the Little Mingo Creek causing a gray “sludge” to travel down the creek in Nottingham and Union townships (Washington County), PA. Bentonite is non-toxic and used in products from shampoo to deodorant and toothpaste. It’s also used to lubricate the drill bit and carry drill cuttings out of the ground. While non-toxic, a whole lot of bentonite in the water can, of course, suffocate fish and cause problems for wildlife that happen to drink it…
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Antero Resources | Energy Companies | Energy Services | Ethane | Exporting | Industrywide Issues | Pipelines | Sunoco Logistics

Antero Signs Deal to Export Marcellus/Utica Ethane to Sweden
August 8, 2014August 8, 2014

Borealis AG, an Austrian petrochemical company (majority-owned by International Petroleum Investment Company (IPIC) of Abu Dhabi) announced yesterday that it has signed a deal with Marcellus and Utica Shale powerhouse driller Antero Resources to buy some of Antero’s Utica/Marcellus ethane. The ethane will be pipelined to the Marcus Hook refinery near Philadelphia via the Sunoco Logistics Mariner East Pipeline. That’s if Sunoco can get the Mariner East Pipeline operating, given the current legal entanglements (see Setback for Mariner East NGL Pipe – Judges Say Not Public Utility). From Philly, the ethane will be loaded on container ships and sent to a Borealis ethane cracker plant in Stenungsund, Sweden…
Read More “Antero Signs Deal to Export Marcellus/Utica Ethane to Sweden”
Energy Services | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco Logistics Update on Mariner East Pipeline
August 8, 2014August 8, 2014

On Wednesday midstream company Sunoco Logistics released their second quarter 2014 update. There’s essentially no discussion or reference to the Mariner East pipeline, which is currently bogged down in litigation and regulation (see Setback for Mariner East NGL Pipe – Judges Say Not Public Utility). However, in the follow up and ubiquitous analyst call that usually accompanies the release of these updates, Sunoco’s top management had quite a bit to say about Mariner East 1 and 2, as well as other projects in the Marcellus/Utica…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Processing Plants | Regulation | Statewide PA | Sunoco Logistics

Setback for Mariner East NGL Pipe – Judges Say Not Public Utility
July 31, 2014July 31, 2014

Two “independent” administrative law judges for the Pennsylvania Public Utility Commission have dealt what could be a major blow to Sunoco Logistics’ request to have the Mariner East NGL (natural gas liquids) pipeline declared a public utility. The two judges–David Salapa and Elizabeth Barnes–handed down a decision yesterday that denies Sunoco’s request to have 18 pump and 17 value stations (in 31 locations) that would need to be built along the 300+ mile pipeline exempt from local zoning ordinances. If the pipeline is considered a public utility it would be exempt from local ordinances. Without that exemption, Sunoco Logistics faces a nearly impossible task of trying to gain permission to build the necessary new stations. Below is a copy of the decision, and MDN’s background on this important pipeline project, along with a “where do we go from here” analysis…
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Energy Services | Enterprise Products Partners | Industrywide Issues | MarkWest Energy | Pipelines | Sunoco Logistics | Williams

Envelope Please: 4 of 5 Top Midstream Companies in Marcellus/Utica
July 8, 2014July 8, 2014

Who’s the “best of the best” when it comes to the midstream sector–for the entire country? It probably won’t surprise you to learn that the #1 midstream company in the Marcellus, by size of operations in the Marcellus, claimed the top spot in EnergyPoint Research’s 2014 Oil & Gas Midstream Services Customer Satisfaction Survey. That company is, of course, MarkWest Energy. What may surprise you is that Sunoco Logistics, currently under an intense smear campaign by anti-drillers who want to prevent the Mariner East natural gas liquids pipeline from beginning operation, came in at #2. Two other companies with major operations in the northeast are also in the top 5…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Branding Squabble Among Sunoco Siblings over Mariner East Project
July 7, 2014July 7, 2014

For MDN, an interesting story in the Philadelphia Inquirer tackles the tricky issue of branding and the very visible brand of Sunoco. It seems Sunoco that sells you your gasoline at filling stations across the country is often confused with Sunoco Logistics, the company that builds pipelines, like the Mariner East pipeline. Mariner East would repurpose a pipeline that crosses the state of Pennsylvania from west to southeast and would deliver natural gas liquids, including propane, to the Marcus Hook refinery near Philadelphia. Mariner East has faced still opposition (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Anti-drillers are trying to tarnish the Sunoco name and that has Sunoco the filling station company concerned…
Read More “Branding Squabble Among Sunoco Siblings over Mariner East Project”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

StateImpact PA Claims Another Scalp for their Anti-Drilling Wall
May 30, 2014May 30, 2014

Earlier this month MDN told you about the anti-drilling advocacy organization pretending to be a news organization, StateImpact Pennsylvania, and their crowing over their efforts to get a law firm to withdraw from representing Sunoco Logsitics and their Mariner East Pipeline project (see PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case). StateImpact is back with a new scalp to add to their collection. They’ve just cowed the chairman of the PA Public Utilities Commission, Rob Powelson, into resigning from the Greater Philadelphia Energy Action Team–a Chamber of Commerce organization aimed at promoting business and all forms of energy in the state…
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CONSOL Energy | Energy Companies | Energy Services | NiSource | Pennsylvania | Range Resources Corp | Rice Energy | Statewide PA | Sunoco Logistics | XTO

Rice Energy Big Winner of 2014 Energy Leadership Awards in Pitt
May 28, 2014May 28, 2014

Three people won the prize for Top Energy Executive of the year. All three have the same last name. All three work for the same company. And the company also has the same name as the three winners: Rice. Dan Rice IV, president and CEO, Toby Rice, COO, and Derek Rice, VP of exploration and geology won the Pittsburgh Business Times’ top honors at the 2014 Annual Energy Leadership Awards. A ceremony with over 400 people was held in Pittsburgh earlier this month where Derek was on hand to collect the prize for he and his brothers. In addition to big winner Rice Energy there were 20 other categories and award winners…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Builds Stronger Case for Mariner East as Public Utility
May 12, 2014May 12, 2014

Brilliant move or manipulating the system? Your view will depend on your drilling proclivity. Late last week Sunoco Logistics, in a bid to strengthen its case before the PA Public Utility Commission (PUC) that the Mariner East pipeline should be considered a public utility, filed an application to deliver propane from western PA to its Twin Oaks terminal in Delaware County (eastern PA) using the Mariner East. By delivering propane from one end of the state to the other and redistributing it to customers in that area, Sunoco is attempting to prove that it is a public utility under PA’s definition.

MDN has chronicled Sunoco’s fight to use eminent domain against some recalcitrant landowners who refuse to allow the pipeline to cross their property in western PA, and homeowners in eastern PA who don’t want new compressor stations built along the pipeline’s existing route (see Sunoco Logistics Faces Hostile Crowd Over NGL Pipeline Station). Sunoco claims they are a public utility corporation with the right of eminent domain. Anti-drillers (and possibly some pro-drillers) fighting them claim they are not a public utility. The case is before the PA PUC and Sunoco has just hired attorney Michael Krancer and the legal beagles from the Blank Rome law firm to help out (see Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline). Looks like the legal assist is already paying off with this new strategy…
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Energy Services | Industrywide Issues | Litigation | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logsitics CEO Says Legal Issues Won’t Delay Mainer East
May 8, 2014May 8, 2014

Sunoco Logistics held an analyst call yesterday to discuss first quarter 2014 earnings and operations. On the call, Sunoco Logistics’ CEO Michael Hennigan had quite a bit to say about both the Mariner East 1 pipeline, due online starting later this year, and the proposed Mariner East 2 pipeline that would run along side Mariner East 1. MDN has been monitoring the latest legal situation with Mariner East and with Sunoco’s request to be made a public utility corporation (for the latest, see Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline).

MDN found Hennigan’s comments interesting. When asked by an analyst about the NIMBY pushback their getting in building the 50-mile pipeline in western PA, and the pushback on building new compressor stations in eastern PA and whether that would delay or cost the company more money–Hennigan said “no” and that Sunoco is “very confident that we can work through those issues.” Bluster? Brave face for investors? Calm assurance? Who knows. MDN has extracted all of the comments and Q&A’s from yesterday’s call that touch on either the Mariner East 1 or 2, or Mariner West pipeline. We’ve also embedded (below) a copy of the PowerPoint slides used during the call. Pay attention, in particular, to the slides on pages 9, 10 and 11…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline
May 5, 2014May 5, 2014

An update on Sunoco Logistics’ legal battles to build a 50-mile pipeline in western PA to connect to an older 8-inch pipeline that’s being re-purposed to flow ethane and propane from western PA all the way to the Marcus Hook refinery near Philadelphia along the Delaware River. The problem is push-back from residents along the pipeline’s route–for the new 50 miles of pipeline and for the compressor stations that need to be built along the entire route (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Sunoco feels it has no choice but to be granted state recognition as a public utility corporation (not the same thing as a public utility).

They have a lot riding on their request to be recognized as a public utility corporation, so Sunoco has just hired a couple of big gun energy law firms to give them a hand with their multiple legal battles. One of those firms is Blank Rome, handling Sunoco’s application to be classified as a public utility corporation. The Sunoco case at Blank Rome is being headed by Michael Krancer–former Secretary of the PA Dept. of Environmental Protection, super sharp lawyer and all-around nice guy (MDN has spoken to, and heard Mike speak, a number of times). The other law firm lending a hand is Obermayer, Rebmann, Maxwell & Hippel, who will help out with Sunoco’s problems with new pipeline construction in western PA…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case
May 1, 2014May 1, 2014

Since we’re tracking the progress of Sunoco Logistics’ Mariner East pipeline, and since this (minor) story has a potential impact on it, we’ll bring it to your attention. On Monday the anti-drilling PBS “reporter” Marie Cusick, who never misses a chance to trash-talk the Marcellus Shale industry, published an article on the reliably anti-drilling StateImpact Pennsylvania website highlighting what theoretically could be considered a conflict of interest for the law firm representing Sunoco Logistics. The law firm of McNees, Wallace and Nurick representing Sunoco Logistics is an associate member of the (hated) Marcellus Shale Coalition and they regularly represent (evil) gas industry companies. However, over the past two years McNees has also been used as outside (not inside, but outside) counsel for the state Public Utility Commission (PUC).

The potential conflict is that the Mariner East case requesting Sunoco Logistics be classified as a public utility corporation with right of eminent domain is right now before the PUC and it is the PUC that will make a decision. Although different attorneys work for Sunoco case than for the PUC, the surface appearance of a conflict still exists (it’s the same law firm)–that we have to admit. A day after the story ran McNees filed paperwork removing themselves from the case. Now Marie can do a happy dance and put a feather in her cap. Atta girl, Marie! Not that it will make one fig of a difference in the end…
Read More “PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case”
Energy Services | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Attorney Says Sunoco Should Seek FERC Approval for Mariner East
April 30, 2014April 30, 2014

A Pittsburgh attorney, writing in the Pittsburgh Post-Gazette, weighs in on the complex issue of whether or not Sunoco Logistics is a public utility corporation under Pennsylvania’s definition with the right to use eminent domain to force landowners in Washington and Westmoreland counties to allow Sunoco to lay pipeline under their land. The pipeline in question, as we previously wrote about, is the Mariner East ethane pipeline. Sunoco needs to lay 50 miles of pipeline in western PA. Most of the Mariner East pipeline already exists (being repurposed) and stretches from western PA all the way to Philadelphia and the Marcus Hook refinery. Sunoco still needs to build 31 compressor stations along the pipeline’s route as it crosses PA (see More Pushback from PA Residents on Proposed Mariner East Pipeline).

Sunoco is facing a plethora of lawsuits and filings to counter their request to be declared a public utility corporation (not to be confused with being a public utility proper). Pittsburgh attorney William P. Bresnahan II says that Sunoco likely is a public utility based on a definition by the Federal Energy Regulatory Commission (FERC). He hints that if Sunoco plays their cards right–by which he means seeking and getting FERC approval for the Mariner East project–Sunoco will put to rest endless local lawsuits. However, getting FERC’s buy-in is not an easy matter…
Read More “Attorney Says Sunoco Should Seek FERC Approval for Mariner East”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

4 Anti Groups File Petition Against Sunoco Logistics with PUC
April 25, 2014April 25, 2014

Last Friday an environmentalist lawyer, on behalf of a group of residents from West Goshen, PA, filed an official request (or petition) with the Pennsylvania Public Utility Commission (PUC) to argue that Sunoco Logistics and its Mariner East natural gas liquids pipeline should not be granted “public utility corporation” status (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Four well-funded anti-drilling groups joined in the chorus and filed their own petitions with the PUC by the deadline on Monday. Those groups include The Delaware Riverkeeper (see Delaware Riverkeeper Gets a French Kiss from Phila. Inquirer), the Clean Air Council, the Pipeline Safety Coalition and the Mountain Watershed Association.

All of the groups filing argue that Sunoco Logistics–actually a subsidiary called Sunoco Pipeline–does not meet “the legal standard” to qualify as a public utility corporation–which is not to be confused with being a public utility proper…
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Chester County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

Sunoco Logistics Faces Hostile Crowd Over NGL Pipeline Station
April 23, 2014April 23, 2014

Yesterday MDN told you about more trouble for Sunoco Logistics and the Mariner East natural gas liquids (NGL) pipeline that will bring NGLs from western PA to southeastern PA and the Marcus Hook refinery (see More Pushback from PA Residents on Proposed Mariner East Pipeline). We told you that residents in Chester County, PA, near Philadelphia, are none too pleased with the plan. Some of them have sued to block Sunoco Logistics from becoming a public utility corporation with the power of eminent domain.

Last night Sunoco Logistics held a meeting at the West Chester East High School. It was a packed house and Sunoco Logistics people were on the hot seat the entire night…
Read More “Sunoco Logistics Faces Hostile Crowd Over NGL Pipeline Station”
Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

More Pushback from PA Residents on Proposed Mariner East Pipeline
April 22, 2014April 22, 2014

As part of the good news story about the “makeover” of the Marcus Hook refinery near Philadelphia, MDN came across more details about Sunoco Logistics’ plans to potentially use eminent domain in order to lay pipeline that will bring natural gas liquids, like ethane, to Marcus Hook. You may recall a few weeks ago we told you Sunoco Logistics had made a request with the Pennsylvania Public Utility Commission (PUC) to exempt the Mariner East pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline (see Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline). A court case in Washington County, PA challenged that right in light of the decision from the PA Supreme Court that grants zoning rights, even for oil and gas development, to local municipalities.

Sunoco Logistics is now being challenged in court in Chester County, questioning their right to become a “public utility corporation” with the right of eminent domain. Just to confuse the issue further, a public utility corporation is not the same thing as being a public utility in PA. However, if Sunoco Logistics is granted public utility corporation status, it means they have the right of eminent domain but are overseen by the Federal Energy Regulatory Commission and not by the PA PUC. In other words, they get the benefits of being a public utility, without the “burdens” of PA state oversight. That has some residents up in arms…
Read More “More Pushback from PA Residents on Proposed Mariner East Pipeline”