Industrywide Issues

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    The Facts on Pipelines and Their Impacts on PA Landowners

    Pipelines, and opposition to them from shrill anti-fossil fuel kooks, seems to be the primary battlefield in the ongoing war against fossil energy. If we had a nickle for every time we’ve heard antis talk about pipelines exploding and other scare tactics, we’d be shaleionaires. When it comes to pipelines in Pennsylvania, where a number of projects are on the books, it helps to have the facts. Dave Messersmith, an educator and member of Penn State’s Marcellus Shale Education team, is a man with the facts when it comes to drilling and pipelines. Messersmith recently did a Q&A with the Allentown Morning Call newspaper and he shares important, impartial facts about pipelines and how they impact landowners…
    Read More “The Facts on Pipelines and Their Impacts on PA Landowners”

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    PA Gas Outlook Report 2015 – Electric Plants Changing to Natgas

    Last week the Pennsylvania Public Utility Commission (PUC) released its annual Pennsylvania Gas Outlook Report, which provides insight into trends in the natural gas market, both nationwide and within Pennsylvania (full copy below). The report summarizes the financial and supply data for PA’s natural gas distribution companies (NGDCs) and looks at changes and trends in the natural gas market, including usage, financial status of utilities, and market pricing. The report is prepared to provide data about the regulated gas industry in Pennsylvania and the broader natural gas markets in the region and nationally. There’s lots of good information in the report. In particular we like the EIA list of pipelines due to be “in service” sometime in 2015 in the Marcellus/Utica region, included on page 6 of the report. The big news in the report is the dramatic increase in the change from coal to natgas for electric power generation–a trend that will continue to expand into the foreseeable future…
    Read More “PA Gas Outlook Report 2015 – Electric Plants Changing to Natgas”

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    Binghamton Newspaper Runs Anti-LPG Propaganda as “News”

    A well-known activist and anti-driller flying under the label of “reporter”–Tom Wilber–was actually paid to write six, possibly seven articles for the Binghamton Press & Sun-Bulletin appearing in the print edition on Sunday. The so-called “Watchdog Report” in the P&SB takes aim at an underground liquefied propane storage facility proposed by Crestwood Midstream along the shore of Seneca Lake (in a depleted salt cavern) and is what laughably passes as “news” these days in the People’s Republic of New York–where the only “news” allowed in Democrat rags like the P&SN is bad news when it comes to the shale industry. In most newspapers the entire section appearing in the P&SB, which amounts to free advertising for the virulent anti-drilling group Gas Free Seneca, would properly be labeled as an “Advertisement” or “Advertising Supplement.” But not in the P&SB. Unsuspecting readers of the P&SB are treated to a couple of front page stories about “environmental concerns” about the very safe underground storage facility planned near Seneca Lake. When you look further in, the entire first section of the newspaper is jammed with more stories–six in all–plus a seventh that was almost certainly written by Wilber labeled as an “editorial” from the newspaper itself. Example of the extreme bias: one of the stories is about railroads, tossed in to create FUD–fear, uncertainty and doubt–about the LPG facility by stating that LPG from the Crestwood facility will be hauled by railroad over a creaky old railroad bridge through historic Watkins Glen State Park with its beautiful gorges and waterfalls. The image is what would happen if there was an accident and the train fell into the gorge. Of course Wilber doesn’t bother to report that carloads of really nasty, toxic chemicals traverse that same railroad bridge each week–it’s only LPG (simple propane that would evaporate) that has him concerned. Wilber calls it a potentially “epic hazard.” What a joke…
    Read More “Binghamton Newspaper Runs Anti-LPG Propaganda as “News””

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    BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too

    George Soros smilingAlthough headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller (i.e. “producer”, i.e., E&P company) with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Democrat billionaire corporate raider George Soros, one of the most vile big money investors in the world who has repeatedly damaged not only corporations but entire country’s economies, had taken a 9.1% ownership position in Penn Virginia in order to force it to sell and was doing exactly that (see George Soros Finally Bullies Penn Virginia into Selling Itself). Since March all has been quiet, until yesterday when somebody leaked the rumor that oil and gas giant BP has made an offer to buy Penn Virginia, driving the stock price up over 20% at one point. However, another rumor says Penn Virginia rejected BP’s offer as too low and is holding out for more. In addition to BP, Exxon Mobil and Chevron are also said to be interested in buying Penn Virginia. All of this buyout talk is driving Penn Virginia’s stock price up, putting a big smile on George Soros’ face…
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    PA DEP Fines Sunoco $95K for Mud Spills During Pipeline Drilling

    Although there’s been no publicly published notice, the Pennsylvania Dept. of Environmental Protection (DEP) has fined Sunoco Logistics for spilling non-toxic drilling mud (bentonite) at several locations when they were drilling for the Mariner East I pipeline. One of those instances was last September when Precision Pipeline, hired by Sunoco, was drilling under the Little Mingo Creek (see Mariner East Pipeline Drilling Spills Mud in Local Creek). Bentonite is non-toxic and used in products from shampoo to deodorant and toothpaste. It’s also used to lubricate the drill bit and carry drill cuttings out of the ground. While non-toxic, a whole lot of bentonite in the water can, of course, suffocate fish and cause problems for wildlife that happen to drink it. In March of this year, we noted that the DEP was telegraphing that they were about to assess a “significant” fine for the mud spills at Mingo Creek and a few other locations (see PA DEP: Sunoco Facing “Significant” Fine for Non-Toxic Mud Spills). The fine has been levied. The “significant” fine ended up being $95,000. Clipping Sunoco $95K, compared to the $8.9 million fine the DEP recently slapped on Range Resources for methane leaks, seems somewhat trivial and rather insignificant. Which is perhaps why the DEP hasn’t published, as they usually do, an official notice on their website about the fine…
    Read More “PA DEP Fines Sunoco $95K for Mud Spills During Pipeline Drilling”

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    Downeast Plans to Begin Building ME LNG Export Facility in 2017

    In April MDN told you about a potential second East Coast LNG export terminal project that stands a good chance of getting built–in Maine of all places (see 2nd LNG Export Terminal for Marcellus Gas Advances – in Maine!). Downeast LNG, as the project is called, was originally planned to be an import-only facility. But last year, after getting preliminary approval for the import project from FERC, Downeast amended its application to become both an import AND export LNG terminal. And yes, it is Marcellus Shale gas they have in mind to export. We have progress to report: Downeast LNG has contracted with one of the world’s largest energy engineering and construction companies, CB&I, to design and build the facility when and if they get the necessary approvals. Downeast is hoping construction may begin as early as spring of 2017…
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    Partisan Gov Wolf Says He’ll Veto Any Budget Republicans Send Him

    Earlier this week Pennsylvania Gov. Tom Wolf’s budget and policy secretary, John Hanger, said this with regard to Republicans refusing to go along with Wolf’s Marcellus-killing severance tax: “Frankly, the Republican leadership is saying it’s our way or the highway” (see PA Republicans Say No Severance Tax in Budget Heading to Gov. Wolf). Yet yesterday top Democrat lawmakers let slip that when the Republicans send a budget to Wolf today or tomorrow, Wolf says he will automatically veto it–without having seen or read it. Tell us John, who’s really saying “my way or the highway” when it comes to the budget?…
    Read More “Partisan Gov Wolf Says He’ll Veto Any Budget Republicans Send Him”

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    Medina County, OH Antis Trot Out Home Rule Ballot Measure

    In February the Ohio Supreme Court, once and for all, struck down so-called “home rule” legislation passed by local municipalities where anti-drillers are able to convince enough citizens to vote for it (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). When it comes to creating local laws and zoning ordinances that prohibit or otherwise try to control oil and gas drilling, Ohio state law stipulates only the State regulates it–not towns and villages and cities. That’s the law, and that’s the law the Supreme Court upheld. So along comes Sustainable Medina County, a group of virulent anti-fossil fuelers, with a new petition to put yet another so-called home rule “bill of rights” measure on the ballot in November, this time in an attempt to stop the NEXUS pipeline. What would you call this new initiative in light of the Supreme Court’s decision? We’d call it stark, raving mad…
    Read More “Medina County, OH Antis Trot Out Home Rule Ballot Measure”

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    Northwestern U Prof Proposes Tweaks to Make Fracking Better

    A-OKA researcher at Northwestern University, Dr. Fengqi You, believes he has found a way to make fracking more environmentally friendly by making some tweaks in the way things are done. Dr. You says first you need to remove trucks from the equation and use pipelines to get water to and from fracking sites. Second, You says don’t drill all of the wells at once in the same place–spread it out over time to reduce the impact on the environment. Finally, You says to recycle frack wastewater instead of trucking it to injection wells. Do those things, says Dr. You, and fracking is A-OK. There doesn’t seem to be anything particularly earth-shattering or new in You’s research. Or did we miss something?…
    Read More “Northwestern U Prof Proposes Tweaks to Make Fracking Better”

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    NY Anti-Drillers’ Fracking Jiggery-Pokery Fools Venerable BBC

    In April 2014 MDN told you about a crackpot group of low-level elected officials in New York State calling themselves Elected Officials to Protect New York, formed to spread lies about fracking (see 800 NY Officials Work Against Constituents to Ban Fracking). Most of the “officials” are either former officials, or occupy offices low-level offices, one step above dog catcher. It’s a laughable group of hard-left socialists who feel like they need a cause to justify their pathetic existence. We’d pretty much forgotten about them, they’re so inconsequential. But then this group, which has apparently grown to 850 members, sent a letter signed by 10 of their members to a town in northern England–Lancashire–to extol the dangers of fracking. They warned Lancashire to not allow fracking or it will lead to the end of civilization as they know it. Or something like that. Anyway, the venerable BBC picked up on it and made quite a fuss about this group of “New York City” elected officials warning tiny Lancashire about fracking. As it turns out, the BBC was either hoodwinked or intentionally decided to misrepresent the group in nationally broadcast news about the letter. Breitbart’s UK operation exposed the whole thing and quite frankly, it had us laughing out loud…
    Read More “NY Anti-Drillers’ Fracking Jiggery-Pokery Fools Venerable BBC”

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    Syracuse U Prof to Defend Methane Migration Research (Sun. Night)

    on the airThe Joint Landowners Coalition of New York (JLCNY) and JLC United will air another live session of the Good News Table Talk Radio Show this Sunday, June 28 from 7-8 pm on WNBF Radio 1290 in Binghamton (listen online at: www.wnbf.com). Bob Williams, JLCNY Vice President and an environmental consultant with over 40 years experience, along with JLCNY board member Rob Rano, will interview and chat with acclaimed Syracuse University Earth Science professor, Dr. Donald I. Siegel. Dr. Siegel is the lead author of a Syracuse University study published earlier this year that found, after evaluating data from over 11,000 well water tests (34,000 samples) in Pennsylvania, that a water well’s proximity to fracking operations has no bearing on whether or not methane is found in that water well. In other words, fracking does not cause methane migration into water wells (see Syracuse U Study: Fracking Doesn’t Cause Methane in PA Water Wells). Radicalized environmentalists brook no dissent from their religious-like claims that fracking is the ultimate evil, so they immediately launched a smear campaign and personal attack against Dr. Siegel (see Syracuse Prof Targeted in Effort to Discredit Drilling Research). Tune in Sunday night to learn the truth–about water quality, methane migration, fracking fluids, and (yes) even about Dimock, PA…
    Read More “Syracuse U Prof to Defend Methane Migration Research (Sun. Night)”

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    PA Republicans Say No Severance Tax in Budget Heading to Gov. Wolf

    Good news for Pennsylvanians. The PA legislature is moving forward with passing a budget bill that does not include a Marcellus-killing severance tax. The Gov. Tom Wolf administration has been obstinate and unyielding in their demand for a 17.3% severance tax (often mischaracterized by Wolf and the media as a “5%” severance tax). The Republicans in both the House and Senate have (amazingly) held firm in their position of no new severance tax since Marcellus drillers already pay an impact fee (i.e., a tax) equivalent to a 3.2% severance tax now. Wolf’s claim that his tax is 5% is a flat out, 100% lie. He bases the tax on the assumption that drillers will get $2.97 per thousand cubic feet when selling natural gas. In many places (especially the northeastern part of the state) drillers are getting less than half of that. The difference between what drillers actually get and what Wolf pretends they get, plus the “little extra” 4.7 cents per Mcf added to the “5%” tax, pushes the effective rate, according to the PA Independent Fiscal Office, to 17.3% (see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%). Wolf’s chief budget negotiator, John Hanger, has stooped to a new low, even for him, by saying Republicans have put drillers ahead of PA’s school children. Hanger presumes the money EARNED by companies that risk their own capital somehow belongs to life’s TAKERS–teachers’ unions. The question now is, will Wolf sign the Republican budget that is about to land on his desk without the big increase in “education funding” he demands because he promised it to union members who voted him into office (i.e., political payola)…
    Read More “PA Republicans Say No Severance Tax in Budget Heading to Gov. Wolf”

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    New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties

    Last week MDN told you that a new royalty bill would be introduced in the Pennsylvania legislature to guarantee landowners get a minimum 12.5% royalty (see New Bill Pushes 12.5% Guaranteed Minimum Royalty for PA Landowners). The new bill, House Bill (HB) 1391 is, according to the bill’s main sponsor State Rep. Garth Everett, more narrowly focused than the previous bill introduced in 2013 (HB 1684). Gareth and a group of supporters from the PA chapter of the National Association of Royalty Owners gathered in the Capitol Rotunda in Harrisburg on Tuesday in a bill launch rally. We don’t (yet) have the language of the new bill, but we do have Everett’s description of what’s in the bill, a brief video interview of Everett from Tuesday’s launch rally, and a newspaper write-up from the event…
    Read More “New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties”

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    Blue Racer Brings OH Processing Plant Online, Continues to Expand

    Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion, shared the good news yesterday that a second 200 million cubic feet per day (MMcf/d) cryogenic processing plant at its Berne Natural Gas Processing Complex in Monroe County, OH (known as Berne II, yes, they name these things) is now online and operating. Berne II doubles the processing capacity at the plant. Blue Racer also operates a processing AND fractionation complex in Natrium, WV. A 30-mile Y-grade (NGL) pipeline connects the two facilities so that Berne can send along its NGLs to Natrium for further processing. Fractionaters like those in Natrium separate NGLs into their component hydrocarbons, including ethane, butane, propane, etc. In addition to Berne II going online, Blue Racer gave us a general update on the expanding health of their operation: They have 14 long-term major Marcellus/Utica drilling customers; 650 miles of gathering pipelines in OH and WV with another 200 miles of new gathering lines under construction; and gathered volumes have doubled, and processed volumes have tripled in just the last year…
    Read More “Blue Racer Brings OH Processing Plant Online, Continues to Expand”

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    Columbia Pipeline Board Approves 2 Projects from NE to Gulf Coast

    In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. We commented on the funny name “Leach” for a pipeline. Looks like the marketers at Columbia thought twice about it because the name has changed–for both projects. At least we think so. Yesterday Columbia issued a press release to announce the board of directors has signed off on $2.7 billion worth of investment in two projects: Moutaineer XPress and Gulf XPress. Descriptions for the two projects are almost identical to the descriptions for the Leach and Rayne XPress projects. About the only difference is that the price tag went up for the pair of projects by a billion bucks. The key takeaway from the announcement for us? The capacity to move another 2.7 Bcf/d of Marcellus and Utica Shale gas out of the northeast is on the way in the next couple of years…
    Read More “Columbia Pipeline Board Approves 2 Projects from NE to Gulf Coast”

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    Carnival Orders LNG-Powered Cruise Ships + Jim’s Cruise from Hell

    Hurricane Irene
    Hurricane Irene

    We have mixed emotions about this story. We spotted a story a few days ago that a major cruise ship line has ordered up four new megaship cruise liners that will be powered by liquefied natural gas (LNG)–a first for cruise ships. The new ships will be the “greenest” cruise ships yet, cutting down significantly on air pollution by changing from diesel to LNG. Each of the four ships will have the capacity to haul 6,600 passengers (mammoth!). The first of the four ships will be delivered in 2019. So far so good–we find it really cool that cruise ships are converting to LNG, some of which will no doubt use natural gas from the Marcellus/Utica. The mixed emotions we have came when learning that the cruise line the new LNG ships are being delivered to is Carnival. Thunk. MDN editor Jim Willis took his bride of 25 years on a Silver Anniversary cruise (our first cruise ever) on a Carnival Cruise “fun ship” in 2011. It was the worst vacation we’ve ever had. Read the sad (and funny) story below…
    Read More “Carnival Orders LNG-Powered Cruise Ships + Jim’s Cruise from Hell”