Industrywide Issues

Columbia Pipeline Group | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Washington County

Columbia Withdraws Compressor Plan, Seeks Alternative in SWPA
January 29, 2015January 29, 2015

Columbia Midstream Group, a subsidiary of NiSource, has withdrawn an application to build a compressor station in South Strabane Township (Washington County), PA and has, instead, applied to build two smaller facilities at the same site: a launcher/receiver facility and a metering station (both related to pipelines). The land they intend to build on is a 251-acre plot owned by Range Resources. Nearby residents who attended a public hearing on Tuesday night were still against the plan, even though it’s not nearly as big and noisy and polluting as a compressor station…
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Accidents | Brooke County | Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines | West Virginia

Enterprise Releases 2014 Results – Remains Mum on ATEX Explosion
January 29, 2015January 29, 2015

Enterprise Products Partners, a huge $41 billion midstream company with 51,000 miles of pipelines, and the company that built the Appalachia to Texas (ATEX) Express pipeline, released their 2014 results today. In the update is no mention of the explosion and fire along the ATEX in Brooke County, WV that happened on Monday (see ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV). We’ve looked, and haven’t found a peep about what caused the explosion. The agency charged with investigating the pipeline rupture is the federal Pipeline and Hazardous Materials Safety Administration (PHMSA)…
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Energy Services | EnLink Midstream | Industrywide Issues | Meetings | Pipelines

Marcellus-Utica Midstream Conf: Marcellus is “Best of the Best”
January 29, 2015January 29, 2015

The Hart Energy Marcellus-Utica Midstream Conference kicked off yesterday in Pittsburgh at the David L. Lawrence Convention Center. Unfortunately your humble Marcellus/Utica gadfly was not extended a press pass by Hart Energy (yes, we’re trying to shame them for ignoring our request), so we’re not at the event which is drawing some 2,000 attendees. However, plenty of others are there. Kicking off the first day with the opening keynote was Barry Davis, CEO of EnLink Midstream Partners. Davis had some sobering words, saying he expects shale drilling to contract by 50% nationwide. However, Davis had high praise for the Marcellus/Utica, calling it “the best of the best” that will see less cut-backs than the others…
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Economic Impact | Exporting | Hydraulic Fracturing | Industrywide Issues

World Gone Upside Down? ANGA Video Appears on CS Monitor Website
January 29, 2015January 29, 2015

MDN came across an interesting article/video on the Christian Science Monitor website. The article and video is from Marty Durbin, President and CEO of America’s Natural Gas Alliance (ANGA). In the video, Marty takes a look at the shale revolution–in particular the Marcellus–and how it’s changing America for the better. We had to do a double-take. This kind of article on the CS Monitor? Have the lib editors suddenly gone conservative?? Then we realized–it’s “sponsor content” or contributed content. ANGA paid CS Monitor to post the story, a story (and video) from ANGA themselves. This kind of sponsored content is an expanding trend in publishing. As long as the story is clearly marked as sponsored, it doesn’t “sully” the journalistic reputation and integrity of the editors–or so the theory goes. Aside from the “inside baseball” aspect of being sponsored content, we found ANGA’s post a useful update, and the short video (6 minutes) is well worth spending a few of your minutes to watch…
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Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Federal Defense of Property Rights Act Explained; End of Frack Bans?
January 28, 2015January 28, 2015

MDN has the low-down on proposed new federal legislation we first told you about yesterday, the Defense of Property Rights Act (see Congressman Proposes Bill to Compensate NY’s Jilted Landowners). When we published yesterday’s article, we did not have a copy of the proposed legislation that has been introduced by Congressman Tom Reed (Republican from Corning, NY). We now have a copy of the bill (embedded below), we have comment from Reed’s office, comment from the Joint Landowners Coalition of New York (JLCNY), and we’ve spoken to a top attorney that has elucidated just what is in the bill. Bottom line: it’s a good bill and we need to support it. Here’s why…
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CNG/LNG | Industrywide Issues | New York | Regulation | Statewide NY

Small Victory: NY to Allow LNG Storage Facilities – Again
January 28, 2015January 28, 2015

Fracking to obtain natural gas is potentially too dangerous for public health, according to New York Dept. of Environmental Conservation Commissioner Joe Martens. Or so he said in December when he agreed with a trumped up report by Acting State Health Commissioner Dr. Howard Zucker. (Stay tuned, Zucker won’t be “acting” much longer–he’ll soon be rewarded with the full title for his performance in December–the quid pro quo for prostituting himself for Cuomo.) However, it’s just fine with Joe if fracked gas from other states is liquefied and stored in facilities in NY, available for use by trucking fleets and other customers. Today (Wednesday) Martens will release new rules that allow liquefied natural gas (LNG) storage facilities to operate in the state–facilities that have been banned since the 1970s following an explosion at an LNG facility on Staten Island that tragically killed 40 workers. Anti-drillers have fought the re-introduction of LNG facilities tooth and nail, so we count today’s announcement as a small victory for the good guys in the ongoing fracking wars in NY…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Randolph County | Regulation | Statewide WV | West Virginia

USFS Seeks Comment on Pipeline Survey in Monongahela Natl Forest
January 28, 2015January 28, 2015

Here on Pandora where the forests are sentient and can think and feel…oh wait, that’s in the movie Avatar and the sequel is not due out until the end of 2017 (drats!). We live on Mother Earth, not on Pandora. But you wouldn’t know it by the reaction of anti-drillers at the prospect of running Dominion’s Atlantic Coast Pipeline through 17 miles of the Monongahela National Forest. You’d swear the forest can actually feel it–and would experience a catastrophic wound in its very soul…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Research | Statewide PA

Anti-Drilling Environment America Issues “Report” of Top Violators in PA
January 28, 2015January 30, 2015

Looky here–another new “report” has just been issued by yet another anti-drilling organization. Must be time for a new fundraising campaign. The far-left, anti-fossil fuel Environment America (aka PennEnvironment) has just released a sham “report” titled “Fracking Failures: Oil and Gas Industry Environmental Violations in Pennsylvania and What They Mean for the U.S.” (full copy below). The “report” claims, “Fracking operators in Pennsylvania have committed thousands of violations of oil and gas regulations since 2011. These violations are not ‘paperwork’ violations, but lapses that pose serious risks to workers, the environment and public health.” The “report” was authored by a lawyer and a journalist, both anti-fossil fuelers that use fossil fuels every day of their lives, and funded by the Colcom Foundation–a far-out organization dedicated to removing the “scourge” of humankind from the face of the earth (and no, we’re not making it up). This latest “report,” which will no doubt be reported by sycophants at places like StateImpact Pennsylvania as “news,” claims that Cabot Oil & Gas is the number one violator of the environment in Pennsylvania. The “report” also throws heaps of mud on the Center for Sustainable Shale Development and the four companies that have endorsed the CSSD’s strict operating standards…
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Education | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Report: Marcellus Shale Drilling’s Impact on PA Schools
January 28, 2015January 28, 2015

The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, has just published the third report in a series of studies commissioned on the Marcellus Shale and its impact on the state. Titled “Marcellus Shale Gas Development and Impacts on Pennsylvania Schools and Education” (full copy embedded below), the report looks at whether or not the rapid development of shale drilling in the state has stressed local schools in areas with the most Marcellus Shale drilling. It was feared that with an influx of workers, and potentially families, local schools would see a spike in enrollment. The report says that hasn’t happened. There was also a concern about dropout rates–perhaps kids leaving school early to work in the gas fields. That hasn’t happened either. In fact, if anything, the Marcellus has contributed more money to the coffers of local schools. No negative impacts, lots of positive impacts from northeast shale drilling…
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Anti-Drilling/Fossil Fuel | Guest Post | Industrywide Issues | Pipelines

Guest Post: The Self Delusion of Anti-Pipeliners in New England
January 28, 2015January 28, 2015

Yesterday MDN ran a story from NGI’s Daily Gas Price Index that delves into the motivation behind the intense opposition to pipeline projects in the northeast (see Why Such Intense Opposition to Pipelines in the Northeast?). Rick Groll, a geologist and industrial seismologist living and working in the Boston area, has some of his own observations on the motives of his fellow New Englanders. What makes these anti-pipeliners tick? Rick offers us some insight in this guest post…
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Accidents | Brooke County | Energy Services | Energy Transfer Partners | Ethane | Industrywide Issues | Pipelines | West Virginia

ATEX Ethane Pipeline Explodes, Burns in Brooke County, WV
January 27, 2015January 27, 2015

Yesterday morning a section of the 20-inch ATEX (Appalachia to Texas) ethane pipeline ruptured and caught fire in Follansbee (Brooke County), WV. No one was injured but two families living nearby were evacuated as a precaution. The first calls of an explosion and fire came around 10:40 am yesterday. The cause of the rupture is not yet known…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation | Washington County

The Tax Man Returneth — for PA Landowners with Royalties
January 27, 2015January 27, 2015

Landowners who get royalty checks in Pennsylvania beware: the PA tax man may be coming for you. It’s a shame, but landowners who get royalty checks have to employ a bevy of accountants and tax experts in order to file a tax return. Such is life. One of the deductions landowners take from their royalty checks are for production costs. On paper, a landowner may be paid 14% in royalties, but in actuality it works out to be much less. Landowners have to navigate sometimes confusing statements from drillers to put the right numbers in the right boxes. What’s happening now is that the PA Dept. of Revenue is telling some landowners the numbers in the boxes don’t add up–according to their convoluted calculations anyway. And PA wants some of that money back they say should have been paid to them all along. It’s a confusing mess…
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Industrywide Issues | New York | Regulation | Statewide NY

Congressman Proposes Bill to Compensate NY’s Jilted Landowners
January 27, 2015January 27, 2015

Congressman Tom Reed (Republican, Conservative) from the Southern Tier/Twin Tiers area of New York (Corning region) is “leading the charge” in Washington by proposing new legislation that would require states, like New York, to compensate residents when it causes them harm by action or inaction–like the recent Gov. Andrew Cuomo decision to ban fracking in the state. Under Reed’s proposal, called the “Defense of Property Rights Act,” landowners would be entitled to receive $20,000 or 20% of the value of their land. Below is the press release from Reed’s office, a few extra details we’ve gleaned from news accounts, and our own opinion of this strategy…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

Why Such Intense Opposition to Pipelines in the Northeast?
January 27, 2015January 27, 2015

An excellent article from the Natural Gas Intelligence’s (NGI) Daily Gas Price Index publication, sister to the excellent Shale Daily, delves into the reasons behind the widespread and ongoing opposition to pipeline projects in the northeast. Pipelines like PennEast from Wilkes-Barre, PA to Trenton, NJ, and the expansion of the mighty Tennessee Gas Pipeline across Massachusetts and New Hampshire, have raised the ire of anti-drillers. The Daily Gas Price Index article delves into the reasons why folks in the northeast are resisting new pipeline projects…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684
January 27, 2015January 27, 2015

MDN has written plenty about Pennsylvania’s HB 1684–the Guaranteed Minimum Royalty Act (see these MDN articles). In essence, some companies (cough *Chesapeake Energy* cough) have gotten creative with deducting post-production costs from royalty checks. According to the PA Guaranteed Minimum Royalty Act of 1979, royalty owners (landowners) must receive no less than 1/8, or 12.5%, by law. But when Chessy and others start deducting this and that, never spelled out in the original lease agreement, landowners are getting the shaft–way lower than 12.5%. In some cases they get royalty checks for a few dollars! Bradford County landowner John Williams is concerned, both about HB 1684 and newly elected Gov. Tom Wolf’s stand on that bill, and about Wolf’s proposed 5% severance tax. Will the severance tax be the next deduction gas companies take, further reducing royalty checks? Is the severance tax Tom Wolf proposes a tax that will be paid, in essence, by landowners? We thank John for his guest post…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Regency Energy Partners

Energy Transfer Partners Buys Regency Energy for $25B
January 26, 2015January 26, 2015

Big news in the midstream (pipelines and processing plants) world. Today, Energy Transfer Partners (ETP) announced they are merging with and buying Regency Energy Partners in a deal with a total value of $24.8 billion–$18 billion in stock and cash, and $6.8 billion in assumed Regency debts. You may recognize both names, as both companies are active in the Marcellus and Utica Shale…
Read More “Energy Transfer Partners Buys Regency Energy for $25B”