Williams

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    Cabot, Seneca, Chief Ramp Up Production for Atlantic Sunrise

    According to a report from BTU Analytics, the top three shippers who will soon flow natural gas along Williams’ Atlantic Sunrise Pipeline (ASP)–Cabot Oil & Gas, Seneca Resources and Chief Oil & Gas–have “nearly doubled” their rig counts over the past few months leading up to the imminent startup of ASP. The pipeline is due to go online any day now–by the end of August (see Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August). Cabot has reserved 1 billion cubic feet per day (Bcf/d) of the 1.7 Bcf/d capacity of the new ASP. One third of Cabot’s 1 Bcf/d (350 million cubic feet per day, MMcf/d) will flow to Dominion’s Cove Point LNG export plant in Maryland–heading for Japan. Another 500 MMcf/d of Cabot’s gas will go to Washington Gas via ASP–meaning northeast PA Marcellus molecules will help heat, cool and power D.C. swamp dwellers. Joy. Here’s the great news that a single pipeline is stirring up a lot more drilling in northeastern PA…
    Read More “Cabot, Seneca, Chief Ramp Up Production for Atlantic Sunrise”

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    FERC Approves Transco Pipeline Expansion in New Jersey

    Click for larger version

    Last Friday, before Federal Energy Regulatory Commission (FERC) Commissioner Rob Powelson left the building for the last time, FERC approved a small but important expansion of the Williams Transco Pipeline in New Jersey, called the Rivervale to South Market project. We first told you about the Rivervale project last year when Williams filed an application for it with FERC (see New Project Seeks to “Uprate” Transco Pipeline in Northern NJ). 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 whackadoodles at the NJ Sierra Club. One of two Democrat FERC commissioners, Richard “Dick” Glick, voted in part against approving the project because he says it will lead to more global warming. Typical lib Dem. Here’s Williams’ good news announcement, and a copy of FERC’s 46-page approval…
    Read More “FERC Approves Transco Pipeline Expansion in New Jersey”

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    Williams Finally, After Years, Buys Out Williams Partners Subsidiary

    Williams, after years of saying it would so, finally bought out and merged in its Williams Partners MLP subsidiary. The on-paper $10.5 billion merger happened last Friday. Williams originally planned to do this in May 2015 in a deal worth $13.8 billion (see Williams is Buying Out Williams Partners Subsidiary for $13.8B). Shortly after Williams’ announcement, Kelsy Warren and his Energy Transfer Equity company pursued Williams, wanting to merge Williams into its own operation. The ETE distraction caused Williams to put a merger with Williams Partners on hold. Williams initially fought ETE, but in the end cut a deal (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Without recounting the all the sordid details, ETE got cold feet and left Williams at the alter, and Williams sued (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). The merger never happened, and near as we can tell, the lawsuits over the aborted attempt to merge still are not fully resolved. In the end, Williams remained a standalone company. Williams CEO Alan Armstrong not only survived the botched ETE attempt to take it over, he also survived an attempted board of directors coup against him not long after the merger went bust (see Half of Williams Board, Including 2 Corporate Raiders, Quit). Armstrong is a survivor and Williams is now doing great. Last Friday’s merger of the MLP Williams Partners into the Williams C Corporation is proof of that. In the end, the deal cost Williams (C Corp) stockholders $10. 5 billion (see FERC Tax Decision Forces Williams to Restructure – No More MLP). Here’s the news that Williams is now, finally, all under one umbrella…
    Read More “Williams Finally, After Years, Buys Out Williams Partners Subsidiary”

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    Antis Oppose Williams Plan to Beef Up Compressor in Essex, NJ

    Gateway Expansion Project – click for larger version

    Last November Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along the Williams mighty Transco Pipeline, in order to flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers (see Williams Files FERC Appl for Transco “Gateway Expansion Project”). The project is called the Transco “Gateway Expansion Project” and will cost roughly $85 million. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. There is a public hearing tonight in Essex County concerning the compressor station. Big Green group Food & Water Watch (one of the worst of the worst) is planning to import protesters to try and disrupt the meeting, stirring up opposition by lying about the project and its safety. Meanwhile, Williams points out they’ve operated five compressor stations, including Station 303 in Essex, for “decades” with no accidents and a stellar safety record…
    Read More “Antis Oppose Williams Plan to Beef Up Compressor in Essex, NJ”

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    Williams 2Q18: Jazzed About Atlantic Sunrise, Hopeful for NESE

    Yesterday Williams issued its second quarter 2018 update. Williams is one of the biggest midstream (pipeline) companies in the Marcellus/Utica region. They’re also a big player in many other shale plays. The update focused on a number of those other plays and some recently cut deals to expand in other plays. Williams knows how to walk and chew gum at the same time–they have a lot happening. Of course we’re interested in what was said about the Marcellus/Utica region, including the Atlantic Sunrise Pipeline and other projects, like the Northeast Supply Enhancement (NESE) project, that impact our ability to move gas from here to other parts of the country. Below are excerpts lifted from various sources issued by Williams yesterday that focus on our region…
    Read More “Williams 2Q18: Jazzed About Atlantic Sunrise, Hopeful for NESE”

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    Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe

    It’s the end of the road for a highly hypocritical order of nuns in Lancaster, the Adorers of the Blood of Christ, who use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. The nuns appear to be radical environmentalists. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. Only in the mind of a leftist. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field they own (leased to a local farmer), declaring it a “chapel”–hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a sham lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. Yesterday that court tossed the case too. The nuns now say they are “exploring their options” for what to do next. We’d say they’ve run out of options. Upon hearing of the court’s ruling, the radicals at Lancaster Against Pipelines encouraged fellow wackos to continue breaking the law (i.e. “civil” disobedience) in order to protest the pipeline…
    Read More “Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe”

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    Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August

    Last week MDN brought you the exciting news that Williams says their $3 billion Atlantic Sunrise Pipeline that runs through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County will go online in August (see Williams: Atlantic Sunrise Pipeline Going Online in August). We have no reason to doubt Williams. After all, if they make an announcement like that and then don’t live up to it, there will be PR hell to pay. It’s in their own best interests to tell the truth about these things. Then again, deadlines have been known to slip and companies always like to put the best possible spin on company news–in an effort to boost the stock price for investors. So perhaps it’s good to have an independent, third party come along from time to time to verify claims like those of Williams and Atlantic Sunrise. But how in the world can you verify a claim that a pipeline is almost done and will go online in the next month or so? By using drones and/or airplanes to fly over the entire length of the project, that’s how. And that’s what Genscape, an analytics and real-time data company has done. Their conclusion? Williams is telling the truth–Atlantic Sunrise WILL go online sometime in August…
    Read More “Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August”

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    Williams to Appeal FERC’s Constitution Pipe Decision to Fed Court

    Last Friday MDN brought you the sad news that the Federal Energy Regulatory Commission (FERC) rejected Williams’ request to rehear an earlier decision to not overrule the New York Dept. of Environmental Conservation’s (DEC) decision to block the Constitution Pipeline (see FERC Declines to Overrule NY DEC re Constitution Pipe 2nd Time). We personally don’t see many (really any) pathways where the Constitution now gets built. But to their credit, Williams is not giving up. After FERC’s decision last week, the company announced it will appeal that decision to the D.C. Circuit Court of Appeals, asking the judges to overrule the DEC (bypassing FERC). Williams has filed in various courts, including the Supreme Court, to hear the Constitution case. Why not try the D.C. Circuit Court? There’s really nothing to lose. The project is currently as dead as a doornail anyway. So, hats off to Williams for giving it one last try…
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    FERC Declines to Overrule NY DEC re Constitution Pipe 2nd Time

    One more thread has broken that holds together hope that Williams’ Constitution Pipeline will ever get built. Perhaps the final thread. Yesterday the Federal Energy Regulatory Commission (FERC) issued a ruling denying a rehearing request on the project–the second time they have done so. The Andrew Cuomo-corrupted NY Dept. of Environmental Conservation (DEC) refused to grant the pipeline project necessary federal stream crossing permits, blocking construction, in April 2016 (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Williams asked the Federal Regulatory Commission (FERC) to overrule DEC and allow construction to begin. In January of this year, FERC denied that request (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). In February of this year, Williams asked FERC to reconsider their denial. FERC’s response yesterday: No. Meanwhile, Williams had filed a lawsuit in federal court that eventually was appealed to the U.S. Supreme Court. In April, the Supremes refused to hear the case, shutting down that avenue (see Supreme Court Rejects Constitution Pipe Request to Overrule NY). As we’ve previously written, we now see only two remaining threads of hope–and they are very thin threads at that: (1) NY elects Cuomo’s Republican rival as governor and he reverses course and permits the project (about a snowball’s chance in Hades that Republican Marc Molinaro will win), and (2) President Trump signs an executive order overruling NY. That second thread is about the best chance Constitution now has. And even if Trump were to issue an executive order, we expect NY would go to court to try and stop it, dragging it out for years. As sad as we are to say this, for all intents and purposes, Constitution is dead…
    Read More “FERC Declines to Overrule NY DEC re Constitution Pipe 2nd Time”

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    Williams: Atlantic Sunrise Pipeline Going Online in August

    Atlantic Sunrise – click for larger version

    The sun is rising on 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. When first announced, radical anti-drillers claimed they had a thousand people ready to protest and block work on the pipeline. In the end, something under 50 people were arrested for illegal activities in blocking work on the project. The most recent kerfuffle, from earlier this month, included one of the original founders of Lancaster Against Pipelines, Mark Clatterbuck, who used a “sleeping dragon” technique to block work for a few hours (see 2 Lancaster Radicals Arrested Stopping Atlantic Sunrise Pipe Work). Along the journey to building Atlantic Sunrise we’ve faced down radicalized nuns (“Sisters of the Corn”) who tried to block the pipeline from passing across their property–a property with an old folks home that uses natural gas–using a faux “chapel” in a corn field and by filing federal lawsuits (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). Antis tried building a couple of sheds on stilts, hoping to block construction (see PA Antis Build 2nd Magic Tree House to Stop Atlantic Sunrise Pipe). Antis protested at Williams’ regional office, showed up at various construction sites, got a local tribe of Indians involved–and in the end, all of their machinations were for nothing. Williams issued a press release yesterday to say the pipeline is almost done and will go online–flowing 1.7 billion cubic feet per day of mostly Cabot Oil & Gas Marcellus Shale gas extracted in Susquehanna County–sometime in August…
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    M-U Companies Collaborate with Eco Group on Pipeline Report

    Over the years the Nature Conservancy, whose mission is “to conserve the lands and waters on which all life depends,” has put its support behind restrictive, anti-drilling measures. However, they’re not typically one of the Big Green groups that actively goes out of its way to block all fossil fuel extraction. They’re not as bad as the Sierra Club, or NRDC, or Earthworks. In what is perhaps a new chapter in cooperation with the industry (sure to get them tossed off the Christmas card list by other Big Green groups), the Nature Conservancy worked with eight of the largest pipeline companies in the U.S. (all but one with operations in the Marcellus/Utica) to produce a report titled, “Improving Steep-Slope Pipeline Construction to Reduce Impacts to Natural Resources” (full copy below). The report’s aim is to provide a list of best practice aimed at reducing the environmental impacts of natural gas pipeline construction. Particularly in areas prone to landslides. Working with Nature Conservancy on the report was Dominion Energy, Enbridge, EQT Midstream Partners, Kinder Morgan, NiSource, Southern Company Gas, UGI Energy Services and Williams–all of which have committed to adopting the guidelines put forth in the report. Notice that Nature Conservancy’s approach is not “never build another pipeline again”–as it is for most Big Green groups (including the ones we listed above). Instead, Nature Conservancy worked with pipeline companies to develop standards and practices that will protect the environment, while still allowing for pipeline construction. That is, they are being reasonable. Hats off to the Nature Conservancy for their efforts and reasonableness. Unfortunately for them, they are now sure to be ostracized by their Big Green brethren…
    Read More “M-U Companies Collaborate with Eco Group on Pipeline Report”

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    Pipeline Rage: Anti Hits Flagger with Car in Lancaster Co.

    Daniel Forry

    This is “old” news. An old man (77 years old) got so “riled up” against Atlantic Sunrise Pipeline work happening near him in Lancaster County, PA that in three separate incidents he either engaged in violent acts, or threatened to. It’s old news in the sense that two of the incidents happened in March and one in June. However, the three incidents are just now coming to light. In one case, the crotchety old anti inched his car forward and “tapped” a flagger–someone standing on the roadway to prevent cars from passing and hitting workers who were crossing the road. In another incident, the man attempted to drive around a flagger, actually hitting him. The man’s actions are not only threatening and menacing, they are illegal and violent. What’s to say that next time the old man won’t simply run someone down? According to the District Attorney’s office no one was injured during his bouts of “pipeline rage.” The man has been served with papers to appear in court to answer for his illegal actions. Here’s the kicker. The old man, Daniel K. Forry, is a member of the board of education for the Hempfield School District…
    Read More “Pipeline Rage: Anti Hits Flagger with Car in Lancaster Co.”

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    2 Lancaster Radicals Arrested Stopping Atlantic Sunrise Pipe Work

    The married couple who started Lancaster Against Pipelines (LAP), Mark and Malinda Clatterbuck, are far-left radicals who pretend to be mom and pop, salt-of-the-earth, neighbor-next-door, aw-shucks common folks who would never engage in “violent” protests. Mark Clatterbuck admits to traveling to North Dakota to participate in the mass action against the Dakota Access Pipeline–a “protest” that turned quite violent and destroyed millions of dollars of property. No, we’re not saying nor implying that Clatterbuck himself engaged in illegal actions while there. We are saying the Clatterbucks’ sympathies lie with protest movements that sometimes result in such actions. The Clatterbucks made some big boasts–that some 1,000 people had pledged to protest and get themselves arrested to stop 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. Something under 50 people have actually been arrested for illegal actions in trying to stop construction. As the Atlantic Sunrise project nears completion in all locations, including Lancaster County, apparently LAP is feeling neglected. Nobody talks about them anymore. They didn’t/couldn’t stop the pipeline, as they had boasted they would. So in an attempt to grab one more headline, Mark and another LAP protester, Elliot Martin, connected themselves together at a pipeline construction site using a “sleeping dragon”…
    Read More “2 Lancaster Radicals Arrested Stopping Atlantic Sunrise Pipe Work”

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    PA DEP Grants Williams NE Supply Enhancement Pipe Key Permit

    NESE map – click for larger version

    The Northeast Supply Enhancement (NESE) is a Williams Transco Pipeline project meant to increase pipeline capacity and flows heading into northeastern markets (see Time to Support Transco’s Northeast Supply Enhancement Project). Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Long Island, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. After an initial rejection by the New York Dept. of Environmental Conservation (DEC), Williams refiled an application for the project in May with the DEC (see Williams Refiles Application with NY DEC for Transco NESE Project). Meanwhile, there are portions of the project in Pennsylvania that have already been approved by the PA’s Dept. of Environmental Protection. In a notice published in the June 16 Pennsylvania Bulletin, the DEP issued the project a Section 401 Water Quality Certification for work being done in Lancaster and Chester counties. According to the PA Environment Digest Blog: “The Project facilities consist of approximately 10.17 miles of new 42-inch diameter natural gas pipeline in Drumore, East Drumore, and Eden Townships, Lancaster County and the addition of one 21,902 horsepower motor-driven compressor at the existing Compressor Station 200 in East Whiteland Twp., Chester County.” Too bad the dysfunctional NY DEC couldn’t be more like the mostly-functional PA DEP…
    Read More “PA DEP Grants Williams NE Supply Enhancement Pipe Key Permit”

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    Constitution Pipe Asks FERC for Speedy Rehearing, 2020 Deadline

    Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see Supreme Court Rejects Constitution Pipe Request to Overrule NY). In January of this year, FERC turned down Constitution’s request to overrule NY (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). But then Constitution (i.e. Williams) asked FERC to reconsider their ruling, to “rehear” the case as it’s called, in Feburary (see Constitution Pipe Files for FERC Rehearing, Then Back to Court). In March, FERC gave themselves a little more time to think about rehearing the decision, but since that time, the agency has been silent. Yesterday Williams/Constitution filed a request with FERC asking them to urgently, speedily, quick-like-a-bunny, pretty-please with a cherry on top hurry up and reconsider/rehear their earlier decision, this time hopefully overruling NY. Could it happen? Sure, it could. Will it? Doubtful, but hey, hope springs eternal! Williams/Constitution also filed an official request yesterday with FERC to extend the deadline to build the Constitution project–from this year to 2020. If FERC grants the extension, then maybe there is a glimmer of hope that FERC will change its mind, or that FERC somehow sees a way that Constitution can still get built…
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    FERC Tax Decision Forces Williams to Restructure – No More MLP

    It appears a decision by the Federal Energy Regulatory Commission (FERC) earlier this year that strips away the main advantages of the tax-advantaged master limited partnerships (MLP) structure is causing the MLP to go the way of the dodo bird. Because of the Trump tax cut, in March FERC reversed a previous policy and will no longer allowed MLP interstate oil and gas pipelines to include an income tax allowance in their cost-of-service rates (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). Not long after, Tallgrass Energy, owner of the Rockies Express Pipeline, announced they would phase out their MLP structure (see Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?). As we predicted, it was the first of many to do so. Williams is now the latest midstream company to dump its MLP. Williams is essentially two companies–Williams (the corporation) and Williams Partners (the MLP). The MLP owns most of the assets. Williams Partners will be no more and instead, all of the assets will now live under the Williams (corporation) umbrella. Which shouldn’t surprise anyone. Once upon a time Williams had plans to merge the two together–but that all got mothballed when they ended up first fighting against, then trying to merge with Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). FERC’s action in March provided the motivation for Williams to move forward with phasing out the Williams Partners MLP, which will cost Williams (the corporation) $10.5 billion to do…
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