Williams

Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Board “Unanimously” Committed to Selling to ETE
January 19, 2016January 19, 2016

Apparently somebody has been whispering nasty rumors that Williams isn’t really all that committed to completing a sale of themselves to Energy Transfer Equity (ETE). After six months of wooing Williams, ETE got tired of being rebuffed and went public with their bid to buy out Williams, one of the northeast’s biggest midstream companies (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). In the end Williams caved and decided to sell, but they did it too late. By the time they accepted ETE’s offer in September, the market (and stock prices) in the oil/gas sector had already started a downward spiral, and Williams ended up getting $10 billion less than originally proposed (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). It’s now January and the deal is still not closed. And apparently somebody has either been telling tales out of school, or simply spreading nasty rumors, because the entire board of Williams voted, unanimously, to tell the world they really do want to sell. Really. Williams felt compelled to issue a press release stating as much…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Williams Plans to Start Clearing Trees for Constitution Next Week
January 13, 2016January 13, 2016

Since last October MDN has been calling on Williams, the company planning to build the 124-mile Constitution Pipeline from Susquehanna County, PA to Schoharie County, NY, to take the gloves off and go after New York State, aggressively (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). Earlier this month we re-posted an article from MDN friend Tom Shepstone and his Natural Gas Now website (always excellent, must read) that chronicles where we are at and how we got here with ongoing delays of the Constitution from the NY Dept. of Environmental Conservation (see Time for Williams/FERC to Sue NY & End Constitution Pipe Delays). In short, the DEC is now arbitrarily (for political reasons) intentionally withholding stream crossing permits that are delaying construction of the Constitution. The state is in danger of being sued by, and their authority to grant those permits taken over by, the federal government if they don’t issue those permits forthwith. Williams is attempting to advance the ball, still playing nicey nice, hoping to coax the DEC into issuing the permits. Williams has asked for and received permission (from the DEC) to begin clearing trees along the pipeline’s path, a process that will begin next week. However, rabid anti-drillers have asked NY’s out-of-control Attorney General, Eric Schneiderman, to step in and stop the tree clearing. If Williams doesn’t start the tree clearing now, they risk losing another entire construction season. There is a finite window each year you can clear trees because of nesting Northern long-eared bats, an endangered species…
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Energy Services | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Williams

Time for Williams/FERC to Sue NY & End Constitution Pipe Delays
January 4, 2016January 4, 2016

In October of last year MDN added our name to the effort to pressure Gov. Andrew Cuomo to let his Dept. of Environmental Conservation (DEC) move forward with granting water-crossing permits for the much-needed Constitution Pipeline (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). The corrupt Andrew Cuomo is up to his old tricks–delay and eventually deny. The time has now come to force the issue. A DEC official has admitted his agency is on the precipice. If they don’t issue the permit for the Constitution, New York is in danger of a federal takeover in granting such permits (see DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits). We say that time has now come. It’s time for the Federal Energy Regulatory Commission to use its power to override New York and issue the permit and forever sideline Cuomo’s corrupt administration from playing a role in such issues. It’s also time for Williams to man-up and ue New York and go negative against “the Empire State.” That is the theme and MDN friend Tom Shepstone’s latest excellent article (from Natural Gas Now), which we’re re-posting here on MDN. We’ve seen this movie before with fracking. Cuomo intends to deny this pipeline and now is the time to fight it for all it’s worth, using every legal means possible to move forward with building the Constitution…
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Chenango County | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

NY Econ Dev Grant Signals Constitution Pipeline Approval Imminent
December 17, 2015December 17, 2015

Some very good news for supporters of the long-overdue Constitution Pipeline slated to run from Susquehanna County, PA to Schoharie County, NY. So far, New York has delayed granting stream-crossing permits for the project. We’ve advocated that it’s time for Williams and the Federal Energy Regulatory Commission to take NY to court (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). In fact, a Dept. of Environmental Conservation (DEC) official has said the DEC is in danger of permanently losing control over issuing such permits if they don’t approve the Constitution’s request (see DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits). The good news is that NY has approved funding for a project that will build a $1.5 million, 18-mile feeder pipeline from the Constitution Pipeline to a forklift manufacturing plant in Chenango County. After banning fracking and the multi-billion dollar economic bonanza it would have brought to upstate NY, Andrew Cuomo has stolen $2 billion from taxpayers statewide to fund “economic development” via something called Upstate Revitalization Initiative grants. There are four grants of $500 million. One of those grants was just made to the Southern Tier area, where fracking would have been the strongest had it been allowed. In other words, this is a bribe being paid to upstate voters. But we digress. Tucked into the $500 million “grant” (i.e. bribe) for the Southern Tier is $1.5 million to build a feeder pipeline from the Constitution Pipeline to Raymond Corporation in Greene, NY. Why approve $1.5 million for a feeder pipeline if you’re not going to approve the Constitution Pipeline itself? You wouldn’t–ergo the Constitution is about to get approved…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Looks Like a March 2016 Wedding for ETE & Williams
December 15, 2015December 15, 2015

In September Williams finally relented and accepted a buyout/merger offer from Energy Transfer Equity (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Deals like this one, with ETE paying $37.7 billion for Williams, take time to complete. There are lots of regulatory hoops to jump through. The two companies said in their original announcement they expect the deal will be done in “the first half of 2016.” Smart move on their part to not commit to a specific date too early. From an announcement issued yesterday, we now have a much better idea of the timing. The announcement says the two companies are complying with certain regulatory requests and that they won’t get hitched before March 18, 2016. Which means if all goes well in regulatory hell between now and then, we’ll have a March wedding…
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Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Williams

Township in Lebanon County, PA Welcomes Atlantic Sunrise Pipeline
December 14, 2015December 14, 2015

One township in Lebanon County, PA hasn’t caved to the very loud (and very small in number) anti-pipeline ninny nannies–and that has them spinning and sputtering. South Annville Township supervisors decided last Wednesday night that they would NOT pass a resolution expressing opposition to Williams’ Atlantic Sunrise pipeline. Why not? Because (a) its a meaningless gesture–FERC won’t consider it in their decision-making, and (b) there are a lot of people in the town who WANT the pipeline. So kudos to the supervisors of South Annville Twp for doing the right thing…
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Energy Companies | Energy Services | Repsol | Williams

Marcellus Companies Among Winners at Platts Global Energy Awards
December 11, 2015December 10, 2015

Publishing company Platts held their annual Global Energy Outlook Forum yesterday on Wednesday in New York City. MDN editor Jim Willis has gone for the past couple of years–but this year Platts uninvited media, including MDN, to attend. So unfortunately we have no news for you from the Forum. However, Platts holds an evening award ceremony each year, following the Forum. It’s called the Platts Global Energy Awards and Wednesday was the 17th running of the awards. Energy companies from seven countries won 18 awards. One company, a company with a growing presence in the Marcellus/Utica, stole the show by winning three awards. That company was Repsol, the Spanish oil giant with a love affair with American shale. Here’s a recap of the event, and the list of winners…
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Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Williams

PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud
December 10, 2015December 10, 2015

Pennsylvania Attorney General Kathleen Kane, who has been indicted on numerous felony charges and likely to be forced from office any day now, filed a lawsuit yesterday against Chesapeake Energy in Bradford County Court over the issue of shorting landowners out of royalties. What every story we’ve seen (thus far) misses is this: The lawsuit also names Williams as participating in the scheme to defraud landowners out of royalty payments. So this is not just a Chesapeake story, it’s a Williams story too. Landowner groups are “hailing” the decision, jumping up and down with glee. Let us throw a little cold water on your face. Note to landowners and the groups that represent them: When you (metaphorically) crawl into bed with Kathleen Kane, you’re crawling into bed with a rattlesnake. Sooner or later she’s going to turn on you too. Mark it down. It’s in her nature. With that disclaimer in place, we’ll break down the news for you, and show you a copy of the lawsuit Kane’s office filed yesterday…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Sunoco Logistics | Williams

Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All
November 20, 2015November 20, 2015

The demands of anti-drillers in Lebanon County, PA are illustrative of their true motivations. Two different anti groups–Lebanon Pipeline Awareness and Concerned Citizens of Lebanon County–are demanding Lebanon County commissioners have an open public meeting with two pipeline companies. The two pipeline companies are Williams (Atlantic Sunrise Pipeline) and Sunoco Logistics Partners (Mariner East 1 & 2 pipelines). If the meeting is not open and public, so these nutters can pummel representatives of the companies in public and have it broadcast everywhere–they want no meeting at all. Williams and Sunoco had agreed to non-public meetings that INCLUDE members of these two groups–to answer their questions. But the pipeline companies, and the county commissioners, don’t want a circus. That means no cameras/media, and the meeting is not open so it can be packed by large numbers of antis. The companies are willing to sit down and talk like adults and answer questions and address concerns–like adults. But that’s not what Lebanon Pipeline Awareness nor Concerned Citizens of Lebanon County really want. They want to behave like petulant children throwing a temper tantrum for everyone to witness. Evidence: Instead of taking the private meeting, they (the antis) want no meeting at all…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Litigation | Pennsylvania | Pipelines | Transco | Williams

Wrath of Kann: PA Anti’s Disorderly Conduct Conviction Overturned
November 19, 2015November 19, 2015

Kimberly Kann, a resident of Conestoga Township in Lancaster County, PA, decided she would break the rules at a town meeting this past April. The meeting was to discuss so-called home rule and the role it should play in the town with respect to regulating pipelines, like the planned Atlantic Coast Pipeline project from Williams. The ground rules for the meeting were simple: ASK QUESTIONS ONLY. Kann decided she would use it as a public forum to pontificate and rail against pipelines. She wouldn’t ask questions and was repeatedly warned–so when she wouldn’t shut up, they arrested her and threw her out of the meeting (see Wrath of Kann: Lancaster Anti-Driller Arrested/Ejected from Mtg). In July she was found guilty as charged (see Wrath of Kann: Lancaster Anti-Driller Guilty of Disorderly Conduct). Kann should have paid her $325 fine/court costs and ended it–but she kept fighting. It eventually would cost her $3,000 in legal fees, but Kann, like the character played by Ricardo Montalban in Star Trek II, has had the last laugh. In a hollow victory, Kann got her conviction overturned by a Lancaster County judge…
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Energy Services | Williams

Williams/Atlantic Sunrise Pipeline Award $375K in Local Grants
November 6, 2015November 6, 2015

MDN brings you updates on pipeline companies that spread around money with very worthy organizations in an attempt to show them they “care” (and to encourage adoption of their pipeline). We previously told you that Williams and their Atlantic Sunrise pipeline project had doled out $2.5 million to 17 conservation organizations in June (see More Pipeline Payola: Williams Doles Out $2.5M in PA Grants). What we had missed was prior to that, the Atlantic Sunrise project had issued $350,000 in grants to 49 first responders and other organizations back in April (list below). What made us go looking was news that Williams made a second round of grants, this time $375,000 to 43 organizations, just this week. Here’s the list of who got what from Williams and the Atlantic Sunrise pipeline project…
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Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits
November 2, 2015November 2, 2015

It was just two weeks ago that MDN posted an article saying the New York Dept. of Environmental Conservation (DEC) has had enough time to approve stream-crossing permits for the much-needed Constitution Pipeline. It’s now time to force their hand (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). As we wrote in that piece, the DEC risks the very real threat that the Federal Energy Regulatory Commission (FERC) may step in and force the DEC to issue the permits. Now a high-ranking official with the DEC has essentially said the same thing we did–on the record…
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Energy Services | Williams

Williams Partners 3Q15: Revenue Up 21%, but Paper Loss of $194M
October 29, 2015October 29, 2015

Williams Partners issued their third quarter 2015 earnings and operating update yesterday. Williams, you may recall, is in the process of being taken over (bought out, merged, whatever you want to call it) by Energy Transfer Equity, the same company that owns Sunoco Logistics and Regency Energy (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Perhaps one reason Williams decided to accept ETE’s offer is that although revenue was up $193 million (21%) in 3Q15 over 3Q14, the company lost $194 million in 3Q15, vs making $233 million in 3Q14. To be fair, the “loss” was a paper loss–mostly due to accounting machinations whereby the value of some assets was lowered. Below are some of the financials, and much of the narrative, which includes a great deal about the Marcellus/Utica were Williams has a huge presence…
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Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Time to Force NY DEC to Issue Permit for Constitution Pipeline
October 22, 2015October 22, 2015

Enough is enough. It’s become quite obvious that NY Gov. Cuomo is up to his old tricks–delay and then deny. The Federal Energy Regulatory Commission (FERC) long ago approved the Williams Constitution Pipeline (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). The Constitution is a desperately needed pipeline that will largely following an existing utility corridor where electric lines are run, going from Susquehanna County, PA into Broome County, NY (very near to MDN HQ), into Chenango County, Delaware County, briefly touching Otsego County, and terminating in Schoharie County where it will connect with the Iroquois and Tennessee Gas pipelines. The pipeline will not only provide northeast PA gas to people in the New York City/New England area, there will be taps along the pipeline to deliver gas locally to communities along the way. The only thing preventing the pipeline from being built is the New York State Dept. of Environmental Conservation. They need to issue what is called a 401 Water Quality Certificate that allows the pipeline to cross streams, swamps and other bodies of water. It is a no-brainer. Yet the DEC is withholding the certificate. MDN received an appeal from the Constitution to show our support–to add our name to a list of people supporting the project (to send a message to Gov. Cuomo). We have, and we’re encouraging you to do the same…
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Columbia Pipeline Group | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Pennant Midstream | Pipelines | Williams

Williams Joins Columbia & Hilcorp in Pennant Midstream JV
October 5, 2015October 19, 2015

It’s been a while since we’ve heard anything about Pennant Midstream, a joint venture between Columbia Pipeline Group and Hilcorp’s midstream subsidiary Harvest Pipeline Company with assets located mostly in the Mahoning Valley area of Ohio. Columbia, the lead jv partner, announced today that Williams (currently being bought out by Energy Transfer Equity) will become the third partner in the jv. Williams will have an initial 5% ownership share, although it’s not clear to us how much they’ve initially invested for that 5%. However, should Williams want to pony up cash for expansions to the system, they can achieve a full one-third ownership in time. Here’s the announcement with the details Columbia has decided to share…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B
September 29, 2015September 29, 2015

In the end, Williams decided that the takeover/merger proposal from Energy Transfer Equities (ETE) wasn’t so indecent after all. In June, ETE’s billionaire CEO Kelsy Warren revealed he had been propositioning Williams for over six months–offering Williams $64 per share to buy the company, totaling $48 billion (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Sometimes life imitates art. Like the movie Indecent Proposal, Williams (Demi Moore’s character) played hard to get but in the end announced, yesterday, they would accept ETE/Warren’s (Robert Redford’s character) offer. The price, however, has changed. The final deal will now be $37.7 billion total, or $43.50 per share. It’s easy to Monday morning armchair quarterback, but obviously Williams should have taken the earlier offer. The question now is, what will investors (Woody Harrelson’s character) think in the morning?…
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