Williams to Appoint 3 New Board Members, Replace Raiders Who Quit
The big news in the midstream world over the past year was the attempted merger/takeover of Williams by Energy Transfer Equity. That deal finally fell apart in June (see Dead as a Doornail: ETE Terminates Merger with Williams). The only thing left still going on to do with that botched attempt is lawyers arguing about who owes what to whom (keeps the lawyers gainfully employed). After the deal failed, some Williams board members (namely two corporate raiders) attempted a palace coup. They tried to oust Williams CEO Alan Armstrong. When that effort failed, nearly half of the Williams board–who thought they would get rich quick by a sale to ETE–up and quit (see Half of Williams Board, Including 2 Corporate Raiders, Quit). Since last month Williams has been down 6 out of the original 14 board members. Time to fix that. Yesterday Williams announced it will name three new independent directors to the board in time for the annual meeting in November. No names were floated as potential candidates…
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Chesapeake Energy had some big news on Tuesday. The company is selling off its Barnett Shale assets, and in the process lightening the company’s future debt load considerably. This is a bit complicated, but we’ll try our best to break it down. Chesapeake announced Tuesday they are handing over the keys to 215,000 Barnett Shale acres (some developed, some not), along with 2,800 operational wells–giving it away to Saddle Barnett Resources LLC, a Dallas-based firm backed by First Reserve Corp. In return, Saddle Barnett is taking on renegotiated midstream contracts with Williams. The net result for Chesapeake is that the deal will “incinerate” about $1.9 billion in payments they would have had to make to Williams and others. As we said, it considerably lightens the stress on Chesapeake’s balance sheet. Williams is trying to put a happy face on the fact they will get less money after the deal than before. But then again, a solvent Chesapeake (and/or Saddle Barnett) paying something less is better than a bankrupt Chesapeake paying nothing. Why cover this story on MDN, a Marcellus/Utica focused website? Because if Chesapeake did it in the Barnett in Texas, they (or someone else) may try to do something similar in the Marcellus/Utica…
We have been making the point, loudly, for the past year, that IF New York State blocks the Constitution Pipeline, as they have now done, the state runs the very real risk of having the federal government strip away their right to make such decisions about any federally-approved pipeline project. We’ve previously warned that New York is in grave danger of losing their power by attempting to block the Constitution. We wrote the following in October 2015: When MDN editor Jim Willis attended the Shale Insight conference in Philadelphia in September, he listened to a panel discussion of midstream (pipeline) experts, including a former FERC commissioner. He got to ask a question and the question, roughly, was this: “The NY DEC is currently holding up the FERC-approved Constitution Pipeline. What if the DEC refuses to issue the necessary permits? What happens next?” The answer Jim got was, “It depends.” The bottom line seems to be that it’s likely FERC (and Williams) will need to take the DEC to court. The DEC frankly has no legal right to prevent a federally approved project from being built. That’s the bottom line. It may take a court to force the DEC (and Gov. Cuomo) to act, but in this matter the law is on our side. This is not a question of “if,” it is a question of “when” the pipeline will get built (see 
Time to do a happy dance. THE (arrogant) Delaware Riverkeeper has lost yet another court case–one of many such cases they continuously file to stop any fossil fuel-related project in the northeast. In March MDN told you that THE Delaware Riverkeeper had sued the Federal Energy Regulatory Commission, challenging their decision to approve the Williams Transco Pipeline’s Leidy Southeast Expansion from PA to New York City (see 
Earlier this week Williams announced a deal to sell its Canadian businesses and assets to Inter Pipeline for $1 billion. Williams is wasting no time following the aborted merger attempt by Energy Transfer Equity to buy Williams. Following that aborted attempt, nearly half of the Williams board quit because they couldn’t get their grubby hands on big piles of money (see 
MDN sent an email to our list of daily headline subscribers last week (below). This is a quick reminder that 
In July 2015 Williams filed an application with the Federal Energy Regulatory Commission (FERC) for the $130 million New York Bay Expansion project, which will flow Marcellus gas to 500,000 additional New York City residents by the 2017/2018 heating season (see 
As we reported yesterday, last Friday Williams and the Constitution Pipeline filed a request with the Federal Energy Regulatory Commission (FERC) to extend their application to build the Constitution Pipeline from Susquehanna County, PA to Schoharie County, NY (see 
Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 75,000 acres of leases. Last year Stone quit drilling in the northeast and actually shut-in part of their production due to low prices (see 
The Obamadroids are once again ganging up on the semi-independent Federal Energy Regulatory Commission (FERC). Last week the Obama Environmental Protection Agency (EPA) filed comments with FERC critical of the Williams/Transco Atlantic Sunrise pipeline project (see