Corp Raider Supports EQT/Rice Merger, but Lawsuit Still Looms
In something of a good omen ahead of a vote on Nov. 9 by shareholders of EQT and Rice Energy to approve a merger, one of two EQT-shareholding corporate raiders, D.E. Shaw, supports the merger. In point of fact, Shaw has not opposed the merger since it was announced in June. Shaw’s “issue” has been that the merged EQT/Rice should immediately split itself in two–into upstream (drilling) and midstream (pipelines). Shaw’s pressure seems to be one of the (main?) reasons why EQT moved up the timing to consider such a split (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). Last week EQT CEO Steve Schlotterbeck all but confirmed the company will split in two after a special committee formed to explore that option makes its final recommendation (see EQT CEO Signals Company Likely to Split in Two After Rice Merger). Evil corporate raider Jana Partners is still opposed to the merger and is fighting it tooth and nail. Jana may have some help. A flurry of lawsuits have been filed by shareholders opposing the merger–most of them going nowhere. However, one of the lawsuits, filed in Allegheny County Court, will go before a judge three days before the Nov. 9 vote. That lawsuit requests an emergency injunction against the vote. It’s possible the county judge could block the vote, giving Jana more time to whip up opposition…
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Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry and continues to display their hostility in court. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see 
In March MDN reported on a court case decided in Ohio’s Seventh District Court of Appeals that seems to say that at least some landmen in Ohio DO need to be licensed real estate agents, in order to get paid (see 
NEXUS Pipeline has had to use the unpreferred last option and has taken landowners of 42 properties to court using eminent domain in order to secure easements so they can lay pipeline through those properties. NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS received final approval for the project from the Federal Energy Regulatory Commission (FERC) in August, the first major pipeline to get approved following a newly restored quorum at FERC (see 
The Federal Energy Regulatory Commission (FERC) has just escalated a much-needed war with the CORRUPT, Andrew Cuomo-directed Dept. of Environmental Conservation (DEC) in New York. We won’t recount the entire history, but the DEC had arbitrarily, after more than one year of review, ruled against issuing a federal water crossing permit for a tiny 7.8 mile pipeline Millennium needs to build from its main pipeline to an electric generating plant under construction in Orange County. The power plant is due to be completed in early 2018–and needs a fuel supply. In a monumental decision, FERC overruled NY DEC in September (see 
A cabal of three, rabid, radical so-called environmental groups are once again trying to obstruct the legally-permitted Mariner East 2 (ME2) natural gas liquids pipeline project in Pennsylvania. Clean Air Council, THE Delaware Riverkeeper and the Mountain Watershed Association filed a motion with the PA Environmental Hearing Board, a special court set up to hear appeals of decisions made by the Dept. of Environmental Protection, to revoke permits previously issued by the DEP for the ME2 project–WITHOUT holding a trial. The groups are attempting to rush through a decision to block work on the pipeline by claiming there are “facts” in the case “not in dispute” and that the judge can simply take the reigns of justice into his own hands and rule by fiat. The heart of their case is that DEP granted federal water crossing permits for ME2 for “exceptional value” swamps, er, a, wetlands–and ya know, that just ain’t right. Even the attorney for the odious (and odoriferous) Clean Air Council says the judge won’t rule on the motion for at least two months–which is about the time the pipeline will be done anyway. So we’re not quite sure what these rabid groups hope to accomplish with their latest stunt. Perhaps it’s yet another fundraiser? The holidays are fast approaching…
In September, members of the New Jersey Pinelands Commission voted to approve a $130 million, 28-mile natural gas pipeline proposed by New Jersey Natural Gas (NJNG) to connect NJNG’s distribution system serving customers in Ocean, Burlington and Monmouth counties (in NJ) and the interstate pipeline system adjacent to the New Jersey Turnpike (see 
Sunoco Logistics has been slapped down in a ruling by the Pennsylvania Public Utility Service (PUC) with respect to a valve station, part of the Mariner East 2 (ME2) pipeline project. In March, MDN told you about an attempt by liberal anti-pipeliners in West Goshen (Chester County) to block the ME2 project (see 
It seems like since Donald Trump was elected, the far-left loons of the Democrat Party have become unhinged. Nowhere is that more apparent than New York State, with it’s corrupt governor, Andrew Cuomo. When it comes to oversight of the nation’s electric grid, and interstate pipeline infrastructure, the law is clear: The federal government, specifically the Federal Energy Regulatory Commission, is numero uno. Individual states cannot just willy-nilly decide they will horn in on how energy companies are incentivized–and they cannot use regulations to change the nature of power generation within their borders, because of the interconnected nature of electric power. Yet that is precisely what the lawless Cuomo is attempting to do in the Empire State. Via the NY Public Service Commission, Cuomo has set up a program called the Zero Emissions Credits (ZEC) program to subsidize nuclear power at the expense of fossil fuels, like natural gas. He’s trying to make it uncompetitive and expensive for natural gas to generate electricity in the state. An industry group sued to overturn ZEC, but a liberal judge for the US District Court for southern New York stuck up for Cuomo’s cockamamie plan (no surprise there). The case has been appealed and the Natural Gas Supply Association and American Petroleum Institute filed a friend-of-the-court brief supporting the appeal against ZEC. It’s a loooong brief–40 pages. We have it below…
In August Energy Transfer’s Sunoco Logisitics unit struck a deal with the devil–the devil being the Philadelphia-based Clean Air Council, THE Delaware Riverkeeper and Mountain Watershed Association–in a move to lift a ban on underground horizontal directional drilling (HDD) for the Mariner East 2 NGL pipeline project (see 
As we have said for years, ever since the Pennsylvania legislature modernized and updated drilling regulations to account for shale drilling in 2012, known as Act 13, anti-fossil fuel nutters have attempted first to destroy Act 13, and later subvert it. Act 13 originally provided for uniform zoning across the state with respect to siting wells. But seven selfish townships sued and eventually won (at the PA Supreme Court) the right to retain their own zoning regulations with respect to oil and gas wells (see 
The U.S. Court of Appeals for the Second Circuit (in liberal New York) has refused to re-hear the case against New York’s corrupt Dept. of Environmental Conservation (DEC) for its arbitrary and capricious refusal to grant a water crossing permit to Williams’ Constitution Pipeline. In August MDN brought you the sad news that the Second Circuit ruled against the Constitution Pipeline and their lawsuit against the Cuomo-corrupted DEC (see 
The Pennsylvania Supreme Court said last week it will accept a case about strippers–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 drilling law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see 
In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see