Williams

Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Transco | Williams

Williams Briefs Luzerne Cty Officials on Transco Atlantic Sunrise
May 7, 2014May 7, 2014

In February Williams announced a $2.1 billion expansion to their Transco natural gas pipeline (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). The name of the expansion project is Atlantic Sunrise and if it stays on schedule it will be built starting 2016 and go live in 2017. It aims to, for the first time ever (for the Transco), flow gas from north to south–delivering Marcellus Shale gas to southern markets. The project will expand the Transco pipeline’s capacity by some 20%–the “largest expansion that we’ve done in the Transco system’s history” according to Williams.

Which is all good news–except right on cue NIMBYs (not in my back yard) have already cropped up to oppose it–at least in Lebanon County, PA (see Lebanon Opposition to Williams Transco Pipeline Sunrise Expansion). Williams briefed a a Luzerne County, PA Council committee meeting last night. Seems the folks in Luzerne are a bit more open-minded about the possibilities. Here’s some great insight into the Atlantic Sunrise project and how it will affect Luzerne along its path to making history…
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Boardwalk Pipeline Partners | Energy Services | Fairfield County | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Williams

Lancaster OH Commissioner Says Bluegrass Pipeline was Trigger-Happy
May 6, 2014May 5, 2014

Lancaster (Fairfield County), OH Commissioner Steve Davis is also an attorney who represents landowners who sign leases to allow pipelines to cross their property. Davis has been around the block a few times and has brokered numerous deals with different pipeline companies–so he’s well qualified to offer an opinion about the now delayed, and possibly cancelled, Bluegrass Pipeline project from Williams and Boardwalk Pipeline Partners. Davis isn’t shy about his opinion, saying Williams didn’t have a good strategy for the way they were buying leases for the Bluegrass–calling them “trigger-happy,” changing strategy every few weeks.

Davis also offered up some numbers as to how high (per acre) some landowners received for Bluegrass signing bonuses–numbers that make the best Utica lease bonuses look like pocket change…
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Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia | Williams

Williams’ Oak Grove, WV De-Ethanizer Operational This Month
May 5, 2014May 5, 2014

Back in February MDN told you about a “superload” or extra-long tractor trailer winding its way through the back roads of West Virginia on it’s way to the Oak Grove process plant (see Williams’ Oak Grove, WV Plant (Slowly) Gets New De-Ethanizer). Two such loads were delivered the plant, taking some three days or more to go 30 miles from the rail yard to the plant. The extra-long loads were de-ethanizers–equipment that will strip ethane from natural gas liquids processed at the plant. The ethane can then be sold via pipeline.

Each ethane superload is some 40 yards–120 feet or about 12 stories–long. Both of them now stand erect in Oak Grove and later this month they will start pumping and separating ethane. Which is good news indeed for drillers in the southwest Marcellus and Ohio Utica areas who can now turn what was an expense (disposing of ethane by burning it or mixing it with other hydrocarbons) to a revenue stream (selling it for some good coin)…
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Energy Services | Williams

Williams NE Operations Turn a Profit in 1Q14, Continued Build-out
May 1, 2014May 1, 2014

Williams is one of the country’s largest midstream (pipeline) companies–and an important midstream presence in the northeast in both the Marcellus and Utica Shale. Yesterday Williams issued their first quarter 2014 operational and financial update. The Marcellus/Utica rated a couple of prominent mentions in the update, which we’ve extracted for you below.

We also have included Williams’ quarter “data book” below, in essence their 1Q14 analyst PowerPoint slide deck. Lots of interesting slides covering northeast pipelines and processing plants…
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Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Williams Avoids Fine in WV for Marshall County Pipeline Explosion
April 30, 2014April 30, 2014

Should drillers (and pipeline companies) be responsible for damage done from their installations if an accident occurs that’s not really the fault of the driller or pipeline operator? It’s a valid question, and one playing out in West Virginia. On Saturday morning, April 5th, a 12-inch Williams pipeline in Marshall County, WV exploded and burst into flames, resulting in damages to two acres of trees and causing the evacuation of nearby residents (see Williams Pipeline Rupture/Fire in Marshall County, WV). It appears, from all accounts, that a landslide put extreme pressure on the pipeline causing a welding joint to break, resulting in a spark, the explosion, and the fire (see Williams Restores Service on Ruptured WV Pipeline, More Details).

The West Virginia Dept. of Environmental Protection investigated and concluded that since there was no contamination of water supplies, it would not fine Williams for the explosion and fire that destroyed two acres of trees. Should Williams be on the hook anyway? Here’s an article detailing the WV DEP’s reasoning:
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Energy Services | Industrywide Issues | Pipelines | Transco | Williams

More Specifics on Deal for Georgia Pipeline Flowing Marcellus Gas
April 30, 2014April 30, 2014

Two weeks ago MDN told you the good news that Marcellus Shale gas will soon be on its way to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). The Williams Transco pipeline expansion to Georgia is called the Dalton Expansion Project and is already 100% spoken for. In the announcement from two weeks ago we learned that Williams’ partner in the expansion is AGL Resources, a natgas distribution, wholesaler and midstreamer with headquarters in Atlanta, GA. The new pipeline expansion in Georgia will be owned 50/50 by Williams and AGL.

We now have a few more specifics about the AGL/Williams deal, including the fact that AGL is putting up $210 million to help fund the project…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Williams Stops Work on Bluegrass Pipeline, Boardwalk Says “It’s Not Dead”
April 29, 2014April 29, 2014

Really big news that affects drilling throughout the Marcellus and Utica Shale region: Williams announced yesterday they are suspending work on the Bluegrass Pipeline, a $1.5 billion project that would have piped natural gas liquids (NGLs) from the Utica/Marcellus all the way to Gulf Coast for processing and sale. Looks like we now know who the winner of the “midstream knife fight” is: the Kinder Morgan/MarkWest joint venture UTOPIA pipeline (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). Although Williams says the project is done, their joint venture partner in the Bluegrass, Boardwalk Pipeline Partners, says “it’s not dead.” Really? What does that mean?

Below we have the Williams statement that the Bluegrass is dead, the quote from Boardwalk saying it isn’t dead, and our opinion as to what may have pushed Williams to throw in the towel on this very important project, potentially leaving northeast drillers without options for NGLs…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Boardwalk Talks About Bluegrass: That’s My Story and I’m Sticking to It
April 29, 2014April 29, 2014

Yesterday Boardwalk Pipeline Partners held an analyst call to update investors on their first quarter 2014 performance. As we wrote about a few months ago, Boardwalk’s stock fell off a cliff (down 50%) and is just now beginning to inch it’s way back up the cliff (see Serious Concerns about Boardwalk Pipeline Partners Continue). Yesterday’s analyst call coincided with the release of information that both Williams and Boardwalk, together in a joint venture to build the Bluegrass Pipeline, an important northeast to Gulf Coast NGL pipeline, have decided to suspend work on the pipeline. Williams hints that the project is all but dead, but Boardwalk says it isn’t (see our related story today).

We located the transcript of yesterday’s analyst call with Boardwalk and have extracted out all of the places where the Bluegrass was discussed. It’s interesting reading, providing us with a bit more color and context. For us it evokes Collin Raye’s song, “That’s My Story and I’m Sticking to It” as we read the comments by Boardwalk and the press release by Williams. Both partners have obviously decided to script the announcement–both are singing from the same song sheet, as it were. The stated reason they’ve stopped working on the Bluegrass? Not enough customer interest. Which, as we point out in today’s related story, we think is sort of bogus. Here’s what was said yesterday on the Boardwalk call about the Bluegrass suspension…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Transco | Williams

Lebanon Opposition to Williams Transco Pipeline Sunrise Expansion
April 23, 2014April 23, 2014

Back in February MDN told you that Williams is planning to expand their Transco pipeline to carry an extra 1.7 million dekatherms (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). The new expansion project is called the Atlantic Sunrise Expansion. Williams really wants to spend that money, some of it which will go to the communities where the pipeline will be built.

However, Williams has an uphill battle before they see the Sunrise. A group of anti-drillers in Lebanon County, PA is opposing the project. They’re organizing and planning strategy this week for how they can stop the pipeline–which would deny residents along the eastern seaboard cheaper natural gas. Here’s the lowdown on the latest anti-drilling initiative…
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Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Marcellus Gas Heading to Georgia via Transco Pipeline
April 23, 2014April 23, 2014

Last week Williams announced the open season for their Dalton Expansion Project which will expand the Transco pipeline system with new pipeline in the southeast was a success–100% subscribed for an additional 448,000 dekatherms of natgas per day. The gas will come from the Marcellus and it will go to northwest Georgia. The Dalton Expansion Project will run from New Jersey to as far south as Mississippi. A new 106-mile pipeline will be installed from Transco’s Station 115 to Murray County, GA.

More on the good news that Marcellus Shale gas is heading to Dixie…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

Williams to Lay Pipeline in “Pristine” Lancaster County, PA
April 22, 2014April 22, 2014

The rather boring information/news is this: Williams plans to install a 9.6 mile pipeline in Lancaster County, PA, part of an expansion project for the Transcontinental Gas Pipe Line (or Transco). The new pipeline will run under 7 creeks, two unkept areas overrun with weeds and trees, will involve cutting down a few trees and digging up some dirt–dirt that will be put back so you won’t even know it was ever disturbed.

However, in the hands of a talented propagandist, creeks become “high-quality streams,” unkept, rundown areas become “Natural Heritage Areas,” cutting down a few trees is turned into “clearing” trees–from (gasp) 26 acres! And digging up some dirt is converted into digging up 9 acres of (yes) “farmland.” What utter bilge…
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Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Williams Restores Service on Ruptured WV Pipeline, More Details
April 14, 2014April 14, 2014

Last Friday MDN told you that Gastar had given a helpful update on the Williams 12-inch pipeline that had ruptured after a landslide in Marshall County, WV on April 5th (see Gastar Helpfully Provides Update on Williams WV Pipeline Outage). We gently prodded Williams and told the PR department it needs to get in gear and start talking. Well, they did. Friday afternoon Williams issued a short statement on their Williams in the Northeast website (see it below). According to the statement, full service was restored as of 1:30 pm Friday afternoon.

Now as for the rupture and explosion itself, we learn from a news story that the West Virginia Department of Environmental Protection continues their investigation. We also learn the explosion created a 10-foot crater and scorched trees for two acres around the blast site. No wonder some of the neighbors down the road hightailed it out of there, even without being told. Here’s the latest on the Williams pipeline explosion in Marshall County…
Read More “Williams Restores Service on Ruptured WV Pipeline, More Details”
Accidents | Energy Companies | Energy Services | Gastar Exploration | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Gastar Helpfully Provides Update on Williams WV Pipeline Outage
April 11, 2014April 11, 2014

Last Saturday a 12-inch natural gas pipeline owned by Williams Partners in Marshall County, WV ruptured and caught fire, likely due to a landslide (see Williams Pipeline Rupture/Fire in Marshall County, WV). Not long after, one of (perhaps the) driller affected by the pipeline outage, Gastar, announced it had shut in their wells in the area–a necessary precaution to warn investors that certain targets may not be met because of the pipeline outage (see Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion).

We continue to get our best information on the pipeline outage from…Gastar! We haven’t spotted a single public statement from Williams about the outage (Williams PR department, get on the ball!). Yesterday Gastar said most of their gas is flowing again, through a different Williams pipeline. Gastar also says Williams told them the ruptured/down pipeline should be repaired and operating again in “approximately three weeks.” Thanks Gastar, for keeping us up to date on the Williams pipeline…
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Accidents | Energy Companies | Energy Services | Gastar Exploration | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion
April 9, 2014April 9, 2014

Last Saturday morning a Williams pipeline in Marshall County, WV ruptured and caught fire (see Williams Pipeline Rupture/Fire in Marshall County, WV). We still don’t know the cause for sure, but it’s looking like there was a small landslide from a hill that triggered the rupture and explosion.

Already that single 12-inch pipeline is having an effect on some Williams customers. Gastar Exploration with wells in Marshall County issued a statement on Monday to say they’ve had “shut-in” their wells in the area because of the pipeline outage. We have the Gastar statement below, along with a first-hand, eyewitness account of the explosion from a nearby neighbor…
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Chenango County | Energy Services | Industrywide Issues | Meetings | New York | Pipelines | Regulation | Statewide NY | Williams

Vicariously Attend FERC Scoping Hearing on Constitution Pipeline
April 7, 2014January 5, 2015

MDN editor Jim Willis attended the Federal Energy Regulatory Commission (FERC) scoping hearing for the Draft Environmental Impact Statement (DEIS) for the Constitution Pipeline last Wednesday night (April 2nd) in Afton, NY. Held at the local Afton High School auditorium, there were 250-300 people in the audience. Some 50 or so signed up to address the three FERC representatives who were there to listen to public testimony about the DEIS and proposed plan to build a 30-inch, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to carry cheap, abundant Marcellus Shale gas to markets that include New York City and New England. The pipeline project is projected to cost $683 million (money pumped mostly into the upstate New York economy), and provide 1,300 temporary jobs while it’s built.

To say it was a lively audience would be an understatement. Jim stuck around for more than two hours to listen and observe. In one sense the hearing was not unlike others Jim has sat through. But in another sense, it was different–even instructive. More than one speaker on the anti-drilling side bemoaned the fact that Williams and the Constitution Pipeline has “split the community” and has “pitted neighbor against neighbor.” Really? What Jim witnessed was a vibrant, healthy, vigorous political discussion not unlike the discussions neighbors have been having with neighbors since the founding of our great country. We gather and engage in a spirited debate–sometimes shouting matches–to avoid killing each other. We are not (yet) a banana republic. We are still (for now) a nation of laws. Loud and boisterous debate is our proud heritage and it should be encouraged–not discouraged. What Jim saw heartened him, instead of the opposite.

And what did Jim see? You could say the speakers broke into two camps–for and against the pipeline. But that would be too simplistic. Come along with Jim as he introduces you to several speakers from that night, representing not a simple for/against mindset, but a continuum of outright support to outright opposition–with many shades in between. We’ll do it through the lens of four archetypes that we think best represent the passion, emotions and arguments presented at the meeting…
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Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Williams Pipeline Rupture/Fire in Marshall County, WV
April 7, 2014April 7, 2014

A 12-inch natural gas pipeline owned by Williams Partners in Marshall County, WV ruptured and caught fire Saturday morning around 8 am. The early reporting says a landslide from a nearby hill caused the rupture, which happened to a section of pipeline between Waymans Ridge and Middle Grave Creek. Some residents living near the pipeline were evacuated as a safety precaution.

We don’t have a lot of details–here is what we know so far:
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