Williams

Broome County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Lawrence County | New York | Pennsylvania | Pipelines | Williams

Tackling a Tough Issue: Compressor Stations Near Populated Areas
June 12, 2015June 12, 2015

There’s no denying that compressor stations located in populated neighborhoods create problems. We have two examples to share–one from Lawrence County, PA, and one from Broome County, NY (MDN’s backyard). The usual complaint about compressor stations–required to compress natural gas and send it on its way through a pipeline system–is the noise. Noise seems to be the chief issue with a compressor station in Lawrence County, PA where landowners, many of them (most? all?) have signed leases with Hilcorp, the company that owns the compressor station in Mahoning Township, a township that borders Ohio. Although noise has also been an issue at the compressor station in the Town of Windsor, NY (Windsor borders Pennsylvania)–about five miles from the border of the City of Binghamton–noise at the Williams compressor station is now largely mitigated. In the case of the Williams compressor, the concerns by those who live closest to it are regular releases of mercaptan and constant truck traffic to and from the station…
Read More “Tackling a Tough Issue: Compressor Stations Near Populated Areas”
Accidents | Energy Services | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | Williams

Williams Transco Leidy Pipeline Ruptures in Lycoming County, PA
June 12, 2015June 12, 2015

A Williams Transco Leidy pipeline ruptured in Lycoming County, PA around 9:30 pm Wednesday night. There was no fire–and no one was injured–but families within a 3-mile radius were evacuated as a safety precaution. By 11:45 pm they were allowed to return home. Williams is not yet sure what caused the rupture–they’ve sent off a section of the pipeline to a lab for analysis. No word (yet) on how long before the pipeline is repaired and flowing again…
Read More “Williams Transco Leidy Pipeline Ruptures in Lycoming County, PA”
Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | Momentum | Ohio | Pipelines | Processing Plants | Statewide OH | Williams

Williams Buys Less of Utica East Ohio than Previously Planned
June 11, 2015June 11, 2015

In April MDN told you that Williams would buy out EV Energy Partners 21% share in Utica East Ohio (UEO)–a midstream/pipeline company operating in Ohio (see Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M). The original press releases in April, from both Williams and EVEP, clearly state that Williams would buy the entire 21% EVEP share in UEO. But that didn’t happen. Yesterday Williams announced they have closed on an additional 13% from EVEP (not 21%) and for $357 million (not $575 million). The Williams press release says the other 8% share went to the other partner in the venture. You have to read the EVEP press release to learn that the other partner is M3 Midstream, otherwise known as Momentum. Seems a funny thing happened on the way to the forum…
Read More “Williams Buys Less of Utica East Ohio than Previously Planned”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Kentucky | Kinder Morgan | Litigation | Pipelines | Tennessee Gas Pipeline | Williams

KY Court Decision Goes Against Pipelines re Eminent Domain
May 26, 2015May 26, 2015

In December of 2013, a group of people opposed to the Bluegrass natural gas liquids (NGL) pipeline in Kentucky called KURE (Kentuckians United to Restrain Eminent Domain) sued the Bluegrass, a joint venture of Williams and Boardwalk Pipeline Partners, to prevent them from using eminent domain (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court). The argument was that the NGLs flowing through the pipeline just pass through Kentucky and don’t benefit local Kentuckians, therefore the pipeline has no right to use the state’s eminent domain law to force landowners to accept the pipeline. That is, it’s not a permitted utility under the definition of the law. In March 2014, a circuit court judge agreed with KURE and told Bluegrass they could not use eminent domain (see Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY). That takes a pretty big stick away from the Bluegrass in their fight to lay the pipeline. Not long after the judge’s decision Williams gave up on the project, although Boardwalk didn’t (see Williams Stops Work on Bluegrass Pipeline, Boardwalk Says “It’s Not Dead”). The circuit court judge’s decision was appealed, and last week the Kentucky Court of Appeals upheld the previous no-eminent domain decision. This new decision has implications for the Bluegrass to be sure, but it has even more implications for an active project now under way by Kinder Morgan…
Read More “KY Court Decision Goes Against Pipelines re Eminent Domain”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Williams | Wyoming County (PA)

PA Landowners Beware Antis Wanting to “Help You” w/Pipeline Deal
May 21, 2015May 21, 2015

Landowners in northeast and central Pennsylvania should be wary of (and avoid) a new effort to try and recruit them into a “landowner group” that’s really just an anti-drilling group being formed to fight Williams and their much-needed Atlantic Sunrise Pipeline project. Two anti-drilling kids (or youths, if you prefer) are spearheading the effort. Alex Lotorto is one of them. Alex has been one of the community agitators against the natural gas fired electric generating plant proposed for Jessup, PA (see Serial Protestor Alex Lotorto Seeks New Venue in Jessup). Alex and another twenty-something anti-driller, Allison Petryk (from New Jersey), recently conducted a meeting for unsuspecting landowners at the Tunkhannock Public Library in Wyoming County…
Read More “PA Landowners Beware Antis Wanting to “Help You” w/Pipeline Deal”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | MarkWest Energy | Williams

Former Access Midstream CEO Reappears – on MarkWest Board of Dir
May 19, 2015May 19, 2015

Last June, Williams announced the biggest midstream news of the year–a deal to buy Access Midstream (the old Chesapeake Midstream) and fold it into their own operation (see Big News: Williams Partners Buying Access Midstream for $6B). After clearing all of the regulatory and financial due diligence hurdles, the two companies officially merged on February 2nd (see It’s Official: Williams and Access Midstream Tie the Knot). But before they did, Mike Stice, the CEO of Access and the President and COO of Chesapeake Midstream before it was Access, left Access as of January 1st of this year (see Access Midstream CEO Replaced by COO Under Williams Ownership). We don’t know if Stice’s departure was amicable or not. Stice’s #2 man, Chief Operating Officer Robert Purgason, took over as the head of Williams’ new Access division. Mike Stice has turned up again–this time on the board of directors for Williams’ arch competitor MarkWest Energy…
Read More “Former Access Midstream CEO Reappears – on MarkWest Board of Dir”
Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Transco | Williams

With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC
May 18, 2015May 18, 2015

More Marcellus Shale gas is now flowing to 1.8 million customers in Brooklyn, Queens, Staten Island and Long Island thanks to the completion of the Williams Rockaway Delivery Lateral and Northeast Connector projects. The Rockaway project added 3.2 miles of new Transco pipeline off- and on-shore (and related facilities) in New York (see Williams Files with FERC for New Access Point to NYC from Transco Pipeline). The Northeast Connector project added new compressionion equipment at three existing Transco facilities in New Jersey and Pennsylvania (see Williams Happy with FERC Progress on NE Pipeline Expansions). The two projects fit hand-in-glove. The Northeast Connector now delivers 100,000 dekatherms (or 100 million cubic feet, Mmcf) per day to the Rockaway Delivery Lateral. The Rockaway Lateral is delivering 647,000 dekatherms (or 647 Mmcf) per day to NYC residents of abundant, cheap, clean-burning FRACKED (mostly) Marcellus Shale gas…
Read More “With Williams Pipeline Completed, Fracked Shale Gas Flows to NYC”
Energy Services | Williams

Williams is Buying Out Williams Partners Subsidiary for $13.8B
May 14, 2015May 14, 2015

In the oil and gas industry, in both the upstream (drillers) and midstream (pipelines) sectors, companies often split themselves into several different companies on paper. It all has to do with taxes and getting as much money as possible to investors. High finance stuff. The trend lately, however, seems to be going in the reverse direction. Instead of creating subsidiaries on paper, midstream companies are recombining into one larger whole. It happened last November when the stockholders (or unit holders) for four Kinder Morgan companies voted to combine into one mothership company (see Shareholders Approve Kinder Morgan Plan to Merge 4 into 1). A couple of things were notable about that recombination: One thing is that Kinder Morgan is the largest midstream company in the U.S. The second thing is that its founder, Richard Kinder, is the man who pioneered the use of MLPs or Master Limited Partnerships as a way of bumping up profits for shareholders. He reversed himself and knit it all back together, on paper. What is perhaps the country’s second largest midstream company, Williams, is now doing the same thing. Yesterday Williams announced that it is buying out its subsidiary Williams Partners LP in a stock deal valued at $13.8 billion. That is, Williams is buying itself–or rather a piece of itself–and streamlining the corporate structure of the company…
Read More “Williams is Buying Out Williams Partners Subsidiary for $13.8B”
Energy Services | Pennsylvania | Statewide PA | Williams

Williams Says Some Marcellus Drillers Shutting in Production
May 4, 2015May 4, 2015

Last week top management from midstream heavyweight Williams participated in an analyst call to discuss first quarter 2015 results and to talk about what to expect going forward in 2015. The one that that stands out about the call is that Williams is facing lower volumes of gas flowing through their pipelines in some areas of the Marcellus Shale because drillers are “curtailing” or shutting-in some of their wells to wait for natgas prices to go up. Sometimes drillers do that. They have a lot of expenses sunk into a well. If they believe the price will rise in the near or medium term, they sometimes throttle back and wait. How much are drillers shutting in? Williams figures it will be between 300-500 million cubic feet per day (Mmcf/d) of production…
Read More “Williams Says Some Marcellus Drillers Shutting in Production”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide OH | Williams

Constitution Pipeline Re-Files for NY DEC Permit, Clock Resets
May 1, 2015May 1, 2015

Something troubling for MDN. The Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York–to Schoharie County, has been approved by the Federal Energy Regulatory Commission (FERC), a multi-year process. The only thing keeping Williams from starting up the backhoes and beginning to lay pipeline is New York State–specifically the state’s Dept. of Environmental Conservation (DEC). The DEC must grant what’s called a 401 Water Quality Certificate that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. The DEC ran a series of public hearings on it, one of which MDN editor Jim Willis attended in January (see Pro-Drillers Out in Force at Constitution Pipeline Hearing in Binghamton). The DEC was legally due to complete its review and either grant or not grant the certificate by May 8. But they’ve asked for more time, so Williams/Constitution have re-filed their permit request which starts the clock again, giving the DEC and extra two weeks to accept public comment. And therein lies our concern…
Read More “Constitution Pipeline Re-Files for NY DEC Permit, Clock Resets”
Energy Services | Williams

Williams 1Q15: Revenue Up 19%, Net Income Down Big 75%
April 30, 2015April 30, 2015

The midstream behemoth Williams issued an update for first quarter 2015 yesterday. Williams, like other large companies, is split into pieces. There is the mother ship Williams (stock ticker symbol WMB) and Williams Partners (stock ticker symbol WPZ). Since Williams Partners is the active company in the northeast, we’ll limit our focus to the report from that part of the company. Williams merged with (bought out) Access Midstream. Although that process was completed during 1Q15, the numbers reported for Williams Partners are “pre-merger” numbers, excluding the Access Midstream numbers. We expect that will change in 2Q15 when the two will have been joined throughout the entire quarter. The financials show that like drillers, Williams experienced an increase in revenue in 1Q15 compared with a year ago, but a decrease in profit, or net income. Revenue in 1Q15 was $917 million, up 19%. But net income in 1Q15 was $89 million, down a whopping 75%. Here’s the update from Williams Partners, with plenty of references to Access Midstream too…
Read More “Williams 1Q15: Revenue Up 19%, Net Income Down Big 75%”
Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia | Williams

Williams Locates WV Condensate Pipeline Leak, Remediation Begins
April 28, 2015April 28, 2015

Last Friday Williams finally found the break/leak in a 4-inch condensate pipeline that ruptured nearly two weeks ago (see 2 Williams Pipelines Rupture in Marshall County After Heavy Rains). That’s the good news. The bad news is that testing done of a nearby unnamed stream (that empties into Little Grave Creek) four days after the rupture occurred contained evidence of some nasty chemicals: benzene, toluene, ethylbenzene and xylene. Fortunately none of those chemicals have turned up in Little Grave Creek. Williams is now cleaning up and telling the neighbors that as they dig and remove soil from the area of the rupture, the neighbors may smell some foul odors. The WV Dept. of Environmental Protection (DEP) says they “don’t believe” nearby residents are in any danger…
Read More “Williams Locates WV Condensate Pipeline Leak, Remediation Begins”
Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia | Williams

Williams Still Can’t Find Leak in 4-inch WV Condensate Pipeline
April 23, 2015April 23, 2015

Ten days ago heavy rains in West Virginia led to two Williams pipelines rupturing within hours of each other–both in Marshall County (see 2 Williams Pipelines Rupture in Marshall County After Heavy Rains). One pipeline was a 12-inch gathering line for natural gas. The other was a 4-inch condensate pipeline that ended up spilling around 132 barrels of condensate that ended up in nearby Little Grave Creek (see WV DEP to Fine Williams for Condensate Pipeline Leak in WV). Although the WV DEP has rushed to assess a fine because of the condensate spill, they may be putting the cart before the horse. Williams hasn’t yet located where the leak occurred in the 4-inch condensate pipeline…
Read More “Williams Still Can’t Find Leak in 4-inch WV Condensate Pipeline”
Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia | Williams

WV DEP to Fine Williams for Condensate Pipeline Leak in WV
April 15, 2015April 23, 2015

A follow up to our story from Monday when we told you that Williams experienced two pipeline ruptures in Marshall County, WV following heavy rains (see Williams Pipelines Rupture in Marshall County After Heavy Rains). One of the pipelines that burst was a 4-inch condensate pipeline. West Virginia regulators have signaled they will fine Williams for the condensate pipeline leak because it ended up in the nearby Little Grave Creek–contaminating some six miles of the creek. We now know how much condensate leaked out. According to the WV DEP, 132 barrels of condensate (or roughly 5,500 gallons) leaked out. Cleanup and sampling of the creek is still in progress. But that begs the question, what the heck is condensate?…
Read More “WV DEP to Fine Williams for Condensate Pipeline Leak in WV”
Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

2 Williams Pipelines Rupture in Marshall County After Heavy Rains
April 13, 2015April 23, 2015

Apparently torrential rains in Marshall County, WV last week softened up the earth and led to soil shifting and two Williams pipelines rupturing–within hours of each other. One of the pipelines is a 12-inch gathering line that runs from wells in the area to the nearby Fort Beeler processing plant. The other pipeline is a 4-inch condensate pipeline. Condensate spilled out of a hole and into the nearby Little Grave Creek. Cleanup efforts are ongoing. For a short time, five families who live near the 12-inch gathering line were evacuated as a precautionary measure–but they returned home within a few hours…
Read More “2 Williams Pipelines Rupture in Marshall County After Heavy Rains”
Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M&A | Ohio | Pipelines | Statewide OH | Williams

Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M
April 7, 2015April 7, 2015

In early February, MDN told you that EV Energy Partners, a company with a huge amount of leased acreage in the Ohio Utica Shale region, was looking to sell its 21% interest in Utica East Ohio (UEO)–a midstream/pipeline company operating in Ohio (see EVEP Wants to Sell Interest in Utica East Ohio/More Utica Acreage). Yesterday EV announced they found a buyer–none other than Williams, EV’s partner in UEO. Williams currently owns 49% of UEO and is paying EV $575 million in cash to relieve them of their 21%, for a grand total operating interest of 70% ownership…
Read More “Williams Buys Out EVEP Interest in Utica East Ohio Midstream for $575M”