Reliable Buys Athens, OH Injection Well, Plans to Drill 2nd Well
Reliable One Resources, a wastewater treatment company headquartered in Texas, has just purchased an existing/functioning wastewater injection well in Athens, OH. Reliable does not say in their announcement who sold them the well. They do say they intend to drill a second well next to the first one (which is the big news for us), and that they (Reliable) is in the process of buying “multiple trucking companies” that will hauling wastewater from Marcellus/Utica drillers to their facility.
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Williams is expanding its mighty, 10,500-mile Transcontinental Gas Pipe Line Co (Transco), again. Sometime this month Williams will prefile a request with the Federal Energy Regulatory Commission for the Leidy South expansion project. The new project will bump up “compression” (either build new compressors or refit existing compressors) and build new “looping” pipeline in Pennsylvania, in order to increase capacity of Transco in the northeast Marcellus region by another 580 million cubic feet per day (MMcf/d).
Some of the most important, and slowest, permits issued to drill a new shale well in Pennsylvania are “Erosion and Sediment Control” permits. Well pads and the roads built to access them involve such permits. When sediment/erosion permits are delayed, the whole project is delayed. The PA Dept. of Environmental Protection published an updated general permit covering Oil and Gas Development Erosion and Sedimentation Control (ESCGP-3) in the Pennsylvania Bulletin on Saturday, Oct. 6. The new permit is supposed to streamline and make the approval process faster. We’ll see about that.
The actions of political leaders have consequences. Sometimes dire consequences. People like New York Gov. Andrew Cuomo believe they can wave a magic wand and proclaim, “No more fossil fuels, we’ll just use solar and wind instead.” But proclaiming it doesn’t make it so. Proclaiming it doesn’t exempt you from the consequences of your actions. In recent years Cuomo has blocked new natural gas pipeline projects that would deliver Marcellus gas from Pennsylvania, claiming we need to move to so-called renewable energy. Now the chickens have come home to roost.
We’re feeling better and better that President Trump is ready to take action to overrule states like New York that abuse the federal Clean Water Act in order to block interstate pipeline projects. We first picked up on comments by Energy Secretary Rick Perry back in May (see 
Yesterday the Federal Energy Regulatory Commission (FERC) finally (finally!) granted Williams permission to open the taps up and let natural gas flow along the Atlantic Sunrise Pipeline, a 200-mile greenfield pipeline from northeastern to southeastern PA. Startup was delayed two months from Williams’ original estimate (due to Williams, not FERC). But that’s all behind us now. Beginning tomorrow, Marcellus molecules from Cabot Oil & Gas, Chief Oil & Gas, and Seneca Resources will begin flowing along the pipeline, heading out of our region where those molecules will fetch higher prices.
PTT Global Chemical announced in April 2015 they want to build a $6 billion ethane cracker plant complex in Belmont County, OH (see 
Some 200 business and government leaders in West Virginia attended the state’s Economic Outlook Conference in Charleston this past Wednesday. A key focus of the event was a panel discussion on the topic of “downstream” natural gas development–meaning ethane cracker plants and manufacturing plants to take advantage of the coming flood of cheap plastics from cracker plants. The speakers spoke of urgency, to prevent a generational opportunity from slipping away.
We’ve seen this movie before. The U.S. Court of Appeals for the Fourth Circuit (quickly becoming the Fourth Circus) has once again listened to the arguments of anti-fossil fuel groups including the Sierra Club and Chesapeake Climate Action Network and has overturned a recently re-issued permit that allows Mountain Valley Pipeline (MVP) to use certain methods to build the pipeline across streams and rivers in West Virginia. The court action pretty much shuts down all work on MVP in WV.
We’re not quite sure how to tackle this story as there are so many aspects to it. Let’s start here: Two years ago lawsuits filed by some 200 West Virginia residents against Antero Resources were combined into a class action lawsuit. The lawsuits are called “nuisance” lawsuits because, according to the plantiffs, Antero is a nuisance to them (truck traffic, noise, lights at night, etc.). That massive class action lawsuit, filed in early 2016, is about to be heard by the WV Supreme Court–a court in disarray after all of its sitting justices were impeached and removed.
In June, Apex Power Group said that their planned Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH–would break ground this year (see 
We’ve extensively covered the tragic accident and aftermath of Columbia Gas’ natural gas delivery pipelines exploding near Boston in mid-September. The explosions and resulting fires tragically killed one teenager and injured 25 others. It left some 8,600 households and businesses without natural gas–for months. Now anti-fossil fuel advocates say those 8,600 households should just forget about natural gas, forever, and instead convert to sky-high electric for their energy needs. They call it a “green new deal”–meaning make Columbia Gas pay to convert your home to all-electric appliances and heat pumps. We call it a “green raw deal.”
It seems like we’ve been waiting forever for new pipelines to get built to flow Marcellus/Utica gas to new markets where our gas can fetch higher prices. Finally, with projects like Rover, NEXUS, Atlantic Sunrise and others, forever is here. Our gas is now flowing, or soon will, to markets in the Midwest, South, Gulf Coast, and even via exports to other countries. The experts at RBN Energy have an ongoing series that covers M-U pipelines and how our gas is heading to new markets. RBN says in their most recent post in this series, “in some ways the Northeast really is just getting started.” There are plans for another 10 billion cubic feet per day (Bcf/d) to flow out of here and to other markets by 2023. Where and how?
In August MDN told you the rumor mill was in overdrive that Trump has already picked a replacement for outgoing Federal Energy Regulatory Commission member Rob Powelson (see