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Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution

Last week midstream powerhouse Williams issued their third quarter 2017 update. CEO Alan Armstrong said this about the Transco Pipeline–a key pipeline in the Marcellus/Utica region: “So far in 2017, we’ve placed four of our ‘Big 5’ Transco expansion projects into service including Gulf Trace, Hillabee Phase 1, Dalton Expansion and New York Bay Expansion with the fifth of the ‘Big 5’ expansions – the Virginia Southside II project – expected to be placed in service during fourth-quarter 2017. The incremental capacity from the fully-contracted Transco expansion projects going in service so far this year reflects a 25 percent increase in Transco’s design capacity.” All five of those projects to one degree or another flow Marcellus/Utica Shale gas. Williams is in a multi-year program to reverse the flow of the Transco. Traditionally it has flowed gas from the Gulf to the northeast. The pipeline is in the process of getting turned around, to flow our gas southward, some of it all the way to the Gulf Coast. With respect to the Atlantic Sunrise project–a part of the Transco system–Armstrong reminded listeners on the analyst phone call that some of that project is already up and running: “And on Atlantic Sunrise, we started construction and have already placed a portion of Atlantic Sunrise into early service on September 1 of this year, providing about 400,000 dekatherms a day of firm transportation service on Transco’s existing mainline facilities, and of course that serve delivery points as far south as Choctaw County, Alabama. So we’re really excited to be starting to see the Transco system turn around and be able to deliver volumes to the south. And I can tell you, that’s very much needed as we’re seeing a lot of demand growth occur in the southeast on our system.” As for the stalled Constitution Pipeline in New York State, Armstrong said to “stay tuned” and that there is “plenty of fight left in this dog.” Armstrong sounded encouraged about the prospects of the Constitution. Below is the full 3Q17 update complete with financials, excerpts from the analyst phone call of interest for MDN readers, and the newest slide deck…
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First Atlantic Sunrise Pipe Gets Buried on Nun Property

We find this story amusing. A group of left-leaning Catholic nuns in Lancaster County, PA, whipped up by radical environmentalists with ties to Big Green organizations, got it into their heads to try and block a very-safe natural gas pipeline from crossing their property–the Atlantic Sunrise Pipeline being built by Williams. The Sisters call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn, because they put a couple of wooden park benches in a cornfield on their property (leased to a local farmer), christening it a “chapel” and claiming because the pipeline would run through the middle of their so-called chapel, building a pipeline is a violation of freedom of religion. In September a federal judge tossed the lawsuit (see Fed Judge Tosses Lancaster Nuns’ Freedom of Religion Lawsuit re ASP). However, the Sisters and their bought-and-paid-for-by-Big-Green lawyers have appealed it. The Sisters are hypocrites. They heat an old folks home they operate on the very same property–with natural gas! Talk about chutzpah. Over the past few weeks, mostly non-local Big Green protesters have showed up at the property as work began. So far 29 of the wackier protesters have been arrested trying to block work on the pipeline (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). Williams wisely chose the cornfield site owned by the Sisters as the first place to dig and lay pipeline. Within a few days (perhaps already), that very location will be the first portion of Atlantic Sunrise to be laid in the ground and covered up. Williams isn’t stupid. Get the location with the most resistance done first and the rest is a piece of cake. Meanwhile, Big Green lawyers are screaming for court intervention, even as the pipes are lowered into the trench (we just can’t wipe the smile off our face)…
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Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction

The odious Sierra Club is at it again. Using what appears to be endless supplies of money from people like the Rockefellers, the Sierra Club, along with a mishmash of other radical environmental groups, filed an emergency motion in federal court on Monday, asking the court to stop any further work on the Atlantic Sunrise Pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Williams, the company building/owning the project, broke ground in September (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Since that time 29 radicals in two different protests have been arrested for blocking construction in Lancaster County (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). However, the work continues–at a rapid pace. Williams knows the longer they take, the more likely antis will find a way to slow or stop the construction. On Monday the Sierra Clubbers filed their latest “throw everything against the wall to see if something sticks” frivolous lawsuit to try and stop it–to give their other (numerous) frivolous lawsuits a chance to work their way through the court system, in hopes something, anything will work to stop the project…
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Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested

Although the anti-fossil fuel group Lancaster Against Pipelines claims “over 1,000 people” have pledged to protest the pipeline in the county, only 26 (or 23, depending on the news source) showed up to get themselves arrested for attempting to stop the pipeline. We’ve previously written about the hypocritical Catholic nuns who operate a retirement home that uses fracked natural gas to heat it, yet oppose a pipeline to flow the same fracked gas under their property. The nuns, called Adorers of the Blood of Christ, have tried several strategies to derail the Williams Atlantic Sunrise Pipeline project. One of stunts they pulled, in league with the radicals from Lancaster Against Pipelines, is to stick a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and call it a “chapel”–which is why MDN dubbed them Sisters of the Corn. The sisters sued to stop the pipeline on religious grounds, claiming it violates a core religious belief in preserving Mom Earth. A judge saw through that sham and threw out the case (see Fed Judge Tosses Lancaster Nuns’ Freedom of Religion Lawsuit re ASP). So Lancaster Against Pipelines pledged to show up and attempt to block machinery when it begins construction on the sisters’ property. That happened yesterday. As they always do, the antis put on a circus freak show–singing the song “Hokey Pokey” as they were arrested and removed. But it wasn’t 1,000 people–it was just 26 (or 23) from the same small, core group of leftists. Everybody sing along: “Put your right wrist in…Put your left wrist in…Put both wrists in as the officer clicks the handcuffs…You do the hokey pokey…And get yourself arrested…That’s what it’s all about!”…
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Atlantic Sunrise Work in NEPA Beginning “Very Soon,” Locals Hired

Williams representatives were on hand earlier this week in Tunhannock, PA (Wyoming County) to present a briefing to local politicians and community leaders on the status of the now-under construction Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Much of the attention has focused on Lancaster County and a small group of antis who oppose the project there. However, Atlantic Sunrise will begin its journey to Lancaster in Susquehanna County, PA–in the northeastern tip of the state. Construction in Susquehanna and adjacent counties is scheduled to begin “very soon,” according to Williams rep Mike Atchie. When it does begin, some of the people working on it will come from the same counties where it’s getting built. Last week the Teamsters held a job fair in Harrisburg (see Harrisburg Job Fair Oct 6-7 Looks to Fill 400 Pipeline Jobs). Of those streaming through, nearly 200 people filled out job applications. Five of the people who showed up have already been hired and are on job sites working–less than a week later! Another 100+ were enrolled in safety training classes and instructional courses. Here’s an update on the advent of Atlantic Sunrise construction in NEPA…
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Transco’s New York Bay Expansion Goes Live, Flows More Gas to NYC

Williams announced yesterday that its New York Bay Expansion pipeline project to flow an extra 115 million cubic feet per day (MMcf/d) of natural gas to New York City is now online and working. In July 2015, Williams filed an application with the Federal Energy Regulatory Commission (FERC) for the $130 million project, which will flow Marcellus gas to 500,000 additional New York City residents by the 2017/2018 heating season (see Williams Announces New Upgrades to Transco Pipeline into NYC). In July 2016, FERC approved the project and construction began (see FERC Approves Transco Expansion Projects in NYC & Virginia). The project expanded capacity on the Transco pipeline by installing new compressor station equipment, replacing a quarter mile of pipeline (in New Jersey), and upgrading meter and regulator stations at several locations in NJ, PA and NY. All the work was done in existing rights-of-way and at existing facilities, with no new building or greenfield construction necessary. That didn’t stop the crazies from protesting, which they did. The good news is that the project is now completed and more yummy, fracked Marcellus gas is now flowing to customers in Brooklyn, Queens, Staten Island and Long Island…
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Small Group of Radicals Blocks Atlantic Sunrise Site in Lancaster County

Environmental radicals from a group called Lancaster Against Pipelines made good on their promise to disrupt work on Williams’ Atlantic Sunrise Pipeline project–a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Lancaster Against Pipelines is headed up by Mark Clatterbuck (who participated in the protests against the Dakota Access Pipeline) and his wife Malinda. The clattering Clatterbucks got 20-35 wackos from Lancaster County to load themselves into 16-18 vehicles (numbers change depending on the news source), which they then drove onto an access road used by Williams, where workers are beginning to clear land. The wackos parked themselves right in the middle of the road and stood in front of machinery, preventing Williams personnel from accessing the site. The only problem, for the wackos, is that it was raining so hard (leftovers from Hurricane Nate moving through), that Williams personnel weren’t working at the site anyway! However, it’s the principle of the thing. So the police were called. The so-called protesters were asked to move (or be arrested)–so they moved. End of story. Nobody hauled away in handcuffs, no striking images of people laying down refusing to move (too wet for that). Just a bunch of wackos with nothing better to do for a few hours, along with a few reporters…
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Harrisburg Job Fair Oct 6-7 Looks to Fill 400 Pipeline Jobs

Listen up job seekers in eastern Pennsylvania: The International Brotherhood of Teamsters is looking for 400 people to work on building Williams’ Atlantic Sunrise Pipeline–a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. The job fair is happening TODAY (Friday) and TOMORROW (Saturday) ath the Harrisburg-Hershey Crown Plaza located at 23 South 2nd Street in Harrisburg (8am-4pm both days). According to the Teamsters, there are “hundreds of jobs to fill” and they are “looking to expand our workforce quickly.” Qualifications? You need to be 21 years old or older, have a driver’s licence, and be willing to travel. Construction experience is a plus, but not required. Here’s the deets…
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Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA

As MDN reported yesterday, construction work on two compressor stations part of the Williams $3 billion Atlantic Sunrise Pipeline project began last Friday, the same day the Federal Energy Regulatory Commission (FERC) gave the project permission to begin construction (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Next up will be digging to lay the pipeline itself. The Lebanon Daily News reports residents in Lebanon County can count on seeing activity there “any day now.” The article names the five townships where the pipeline will cross, and says first up will be staging of equipment, then tree clearing, and finally (perhaps in mid-to-late October) the pipeline itself will get laid in the ground. A few antis in Lebanon have been quite vocal against the project over the past couple of years (see Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All). Interestingly, over the past year or so Lebanon antis have been mum. Will we see any nutjobs chain themselves to bulldozers in Lebanon County? We doubt it, but you never know. Depends on whether or not out-of-town Big Green groups send troublemakers into the area. Here’s the list of five towns fortunate enough to see the Atlantic Sunrise, along with the list of four contractors hired to build the pipeline…
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Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule

Earth moving has begun for a compressor station in Columbia County. (Williams Partners)

Well that didn’t take long! Yesterday MDN brought you the fantastic news that the Federal Energy Regulatory Commission (FERC) had granted Williams a certificate/go-ahead to begin construction on Atlantic Sunrise, a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County (see FERC Greenlights Construction of Atlantic Sunrise Pipeline). FERC issued their permission to begin construction last Friday. Based on a previous Williams statement, we expected construction to begin tomorrow, on Sept. 20th. However, as soon as Williams had the certificate in their hands, they began construction–LAST FRIDAY. Where? Williams fired up bulldozers at two locations–one in Wyoming County, the other in Columbia County (both in northeast PA), to clear land for two new compressor stations they will build as part of the project. Yesterday both Williams AND Cabot Oil & Gas issued the same press release to announce construction has begun. Interesting that Cabot issued the release too, showing just how important this project is to Cabot’s future (and to their stock price)…
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FERC Greenlights Construction of Atlantic Sunrise Pipeline

Bad news for the Sisters of the Corn and the radicals at Lancaster Against Pipelines. On Friday the Federal Energy Regulatory Commission (FERC) granted Williams permission to begin construction on Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Last week the Sierra Club and a mish mash of other nutball groups begged FERC to delay issuing an order that Williams can commence with construction, claiming FERC’s delay in considering a rehearing delayed a lawsuit and the lawsuit hasn’t had enough time to work it’s way through the court system (see Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe). As was expected, Big Green’s begging and pleading fell on deaf ears. Williams previously said they plan to begin construction on Sept. 20th–this Wednesday. Ladies and gentleman, start your (backhoe) engines! Sisters of the Corn (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe), you may want to pick up your wooden park benches and the flower trestle–what you call a “chapel”–in the middle of your corn field. Here comes the Atlantic Sunrise!…
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PA Issues Final Permit for Atlantic Sunrise, Construction Sept 20

Atlantic Sunrise Pipeline is primed and ready to begin construction after receiving its very last required permit from Pennsylvania–an Air Quality Plan Approval for air emissions related to construction activities in Lancaster County. The PA Dept. of Environmental Protection (DEP) issued the Air Quality permit last Friday. You may recall Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, received water crossing permits from the DEP and U.S. Army Corps of Engineers a few weeks ago (see Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP). In August the DEP held a public hearing in Lancaster to accept public comment on the air permit. A small group of anti-pipeline protesters acted like petulant 5-year olds and walked out of the hearing (see Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing). No matter. Their antics didn’t affect the DEP. According to Williams, the builder of the pipeline, they now await an order from the Federal Energy Regulatory Commission (FERC) to begin construction. They expect to receive that order any day now. They hope (and expect) to begin construction next Wednesday, Sept. 20th…
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New Project Seeks to “Uprate” Transco Pipeline in Northern NJ

On Friday Williams announced a new pipeline project sure to spur controversy in nutty New Jersey. On Friday Williams filed an application with the Federal Energy Regulatory Commission (FERC) for the Rivervale South to Market project. The Rivervale project will expand the mighty Transco pipeline in northern New Jersey to deliver an extra 190 million cubic feet per day (MMcf/d) of low-carbon, clean-burning Marcellus Shale gas to markets in northern NJ and New York City. The project calls for “uprating” a little over 10 miles of pipeline (same pipeline with more pressure and more gas), and adding a half mile of new looping pipeline–which is more than enough to set off the environmental whackadoodles at the NJ Sierra Club. Here’s the good news that more fracked shale gas will be on the way to the NYC metro area in time for the 2019/2020 winter heating season…
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Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP

The red lines show the Atlantic Sunrise Pipeline expansion. The light blue lines are the existing Transco system.

Great news to report! Both the U.S. Army Corps of Engineers (ACE) and the Pennsylvania Dept. of Environmental Protection (DEP) have now issued federal Clean Water Act stream crossing permits for the Atlantic Sunrise Pipeline–a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. In addition, portions of the project that don’t include laying new pipeline (the “brownfield” part of the project) running from Lancaster County, PA all the way to Choctaw County, Alabama go online today–reversing the mighty Transco and increasing its flow rate by 400 million cubic feet per day (MMcf/d). One permit remains to be issued–an air permit–by the PA DEP. Williams expects to begin construction on the new pipeline (“greenfield” part) later this month…
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FERC Fights NJ Town Effort to Decertify Garden State Expansion

Two New Jersey towns have sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project. MDN brought you the happy news in April 2016 that three Obama-appointed FERC commissioners had approved the $116 million project (see FERC Approves NJ Pipeline – More Marcellus Gas on the Way!). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline” (see NGI’s Shale Daily). Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the U.S. Court of Appeals for the Third Circuit to overturn FERC’s previous decision to allow the project. FERC has just responded (copy below) arguing they carefully considered the project, crossing all “T”s and dotting all “I”s before they authorized the project. Phase 1 of the project will likely go online next week. Phase 2 is due to be online by next summer, provided the 3rd Circuit doesn’t screw it up…
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Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1

Atlantic Sunrise Pipeline – click for larger version

An important piece of Williams’ $3 billion Atlantic Sunrise Pipeline project, meant to flow Marcellus gas to new markets in the Mid-Atlantic and southeast, is about to go online in the next few days. You read that right. Most of the coverage here on MDN with respect to the Atlantic Sunrise project has been about the most controversial part of the project–183 miles of new “greenfield” (brand new) pipeline construction that will happen in Pennsylvania–a project referred to as the Central Penn Line. Small groups of antis in places like Lebanon and Lancaster counties have vigorously opposed the new pipeline portion of the project in their communities. However, upgrades to several compressor stations and fixes to the existing Transco pipeline as it runs through states like Maryland and Virginia are also needed in order to make Transco bi-directional–able to continue flowing gas from the Gulf to the northeast, but now, also able to reverse and flow gas from the Marcellus/Utica in the other direction. Although the greenfield portion of the project has not yet begun (should in the next few weeks), the “brownfield” or tweaks to the existing pipeline/compressor stations has been underway, since February, and is now ready. The Federal Energy Regulatory Commission (FERC) has just granted Williams permission to bring the new tweaks online, which will allow Transco to reverse and flow an extra 400 million cubic feet per day (MMcf/d) of natural gas from Lancaster County, PA all the way to Choctaw County, Alabama…
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