Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Regulation | Tennessee Gas Pipeline
NJ DEP Approves TGP NatGas Compressor Station to Help NYC
In an effort to flow more natural gas to a starving New York City, Kinder Morgan cut a deal with utility company Consolidated Edison in 2019 to provide more gas by beefing up capacity along its Tennessee Gas Pipeline (TGP) that feeds NYC, allowing Con Ed to avoid cutting customers off from natgas hookups (see Con Ed Deal May End Westchester, NY Gas Moratorium…in 2023). Part of KM’s plan to beef up TGP includes building a super-quiet, zero-emissions electric compressor station in West Milford Township in Passaic County. The West Milford compressor is one big step closer to reality following approval by the state Dept. of Environmental Protection (DEP).
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According to the data experts at Enverus, the U.S. oil and gas rig count ended the year at 407 rigs, down slightly more than 50% from the same point in 2019. The Marcellus play ended the year with 32 active rigs, and the Utica with 6 active rigs (total of 38 active rigs in the M-U). At the end of 2019, there were 840 rigs operating in the U.S.
We have some super-exciting news to share–what we believe is an MDN exclusive. DeepRock Disposal Solutions has secured all of the necessary permits and authorizations it needs (over 30!), including authorization from the U.S. Coast Guard, to begin transporting shale (produced) wastewater via barge on the Ohio River. DeepRock will begin its barge service in first quarter 2021.
What if we gave the University of Pittsburgh (Pitt) a $2.5 million grant to study a link between peanut butter and childhood cancer. Researchers could only use the money to study any potential link between peanut butter and kids getting rare cancers. Sounds absurd, right? What if there is NO link between peanut butter and cancer in kids? What if there IS a link to some other environmental factor like, say, an old uranium dumpsite nearby? But the remit is ONLY to research peanut butter. Sound silly? Sound stupid? Substitute “shale drilling” for “peanut butter” and you can see how absurd it is for Pennsylvania to announce awarding $2.5 million to Pitt to study a single potential cause for rare childhood cancers in southwestern PA.
Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling (drill cuttings). The company has major operations in the Marcellus/Utica region. Yesterday Nuverra announced its board of directors has approved the adoption of a “limited duration stockholder rights plan” (i.e. poison pill provision) to “protect stockholder interests.”
The Ohio Supreme Court just delivered a decision that affects one particular landowner (and former mineral rights owner), but also has implications for all Ohio landowners and rights owners. And by extension, implications for drillers that pay royalty payments. The Supremes found in Gerrity v. Chervenak that the landowners in the case (the Chervenaks) did enough due diligence when searching for the rights owner who had moved out of the area. The Supremes said the landowner performed the proper steps to reclaim ownership of the severed mineral rights under their land.
Anti-fossil fuelers love to protest things. Fine. Let them protest. This is (still) America. But when antis tip over into illegal acts like blocking legal activities of building pipelines or drilling wells, or when antis tip over into acts of vandalism like destroying equipment, that’s NOT okay. Antis call it “protesting.” We call it criminal behavior. A bill just passed in the Ohio legislature calls such activity what it is–crimes. And now (provided Gov. DeWine signs the bill into law, which is expected), such miscreants will pay stiff fines and in some cases do jail time for their crimes.
From the “With friends like this…” department, we have some upsetting news to report. The incoming chair of the American Gas Association (AGA), David Anderson, president and CEO of Northwest Natural Holding Co., says it’s time to “think big and think differently” about the end of natural gas. Anderson likes hydrogen and methane from landfills and the buttholes of animals, instead of natural gas that comes out of the ground. Go figure.
Wood Mackenzie, also known as WoodMac, is a global energy, chemicals, renewables, metals, and mining research and consultancy group. WoodMac writes reports and dishes out expert advice to investors dealing with the energy industry. WoodMac analysts have put their heads together to predict what we should expect in the energy space in the coming year, from oil markets to solar costs and coal exports to electric vehicles.
During the Williams third-quarter 2020 update in early November, CEO Alan Armstrong shared some interesting and relevant (to the Marcellus/Utica) comments (see 
The Pennsylvania Dept. of Environmental Protection (DEP) over the weekend published a final (revised) version of its Waste General Permit which governs how wastewater from shale fracking and produced water can be processed and reused for more drilling and fracking.
It really is frustrating and beyond belief. Republicans in Ohio continue to fiddle around and try to delay overturning House Bill (HB) 6 that gives FirstEnergy a $1.1 billion bailout to keep its economically failing nuclear power plants from closing. The company’s Energy Harbor subsidiary is accused of bribing Ohio House members with $60 million to pass and keep passed HB 6 (see 
Innovex Downhole Solutions ordered 100 jackets for its workers as Christmas gifts from popular outdoor recreation and clothing giant The North Face. But North Face turned its face away and told Innovex because the company is part of the nasty fossil fuel industry, North Face would refuse to fulfill the order. In essence, North Face told Innovex to go screw itself. [Yes, it’s time to boycott The North Face and refuse to buy anything from them, and if you get a Christmas present manufactured or sold by North Face, please return it and let them know why you want a refund.]