Industrywide Issues

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    China Official Says $83.7B Deal with WV Still On, Some Progress

    Some encouraging words, but also some outright lies, coming from Ling Wen, president of China Energy Investment about China’s planned investment in West Virginia. Wen addressed reporters yesterday in Hong Kong, and some of the conversation turned to China Energy Investment’s 20-year deal to invest $83.7 billion in WV’s shale and petrochemical industries (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). Months ago we speculated that the impending trade war with China might put that investment on hold, a fear that was confirmed in June. Chinese officials were supposed to attend the Northeast U.S. Petrochemical Construction Conference in Pittsburgh to announce the first round of investments in WV. However, Brian Anderson, director of the West Virginia University Energy Institute, said given the trade war with China, the officials elected to stay home instead. Anderson said at that time, “The pending trade war has put this project in jeopardy” (see Trade War Puts $83.7 Billion Chinese Investment in WV on Hold). But a few weeks later Anderson changed his tune. He told a reporter, “In terms of the development process, we continue to move forward…We’re even working on the next potential visits by officials and team members, so it’s not just the high-level executives, but development teams” (see $83.7B Chinese Investment in WV Shale & Petchem Still Alive?). Yesterday Ling Wen said even though there is an ongoing trade war between China and the U.S., the WV deal is still on. That’s good news. Wen also said that media reports that China cancelled trips “was not true.” That’s an outright lie. They did cancel trips in June…
    Read More “China Official Says $83.7B Deal with WV Still On, Some Progress”

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    Fake Study Recommends Quarter-Mile Setbacks for PA Shale Drilling

    More fake “research” on drilling, courtesy the anti-drilling Southwest Pennsylvania Environmental Health Project (EHP). This is the same group of antis who brought us the so-called list of the harmed (in 2013) and last year launched a faux health registry that attempts to link everything from the sniffles to “performance issues” to nearby fracking (see Fake Science: SWPA Enviro Health Registry for Those Near Fracking). Here’s the latest laughable “research” published (yes published) in a pay-for-play journal: Setback distances for unconventional oil and gas development: Delphi study results. The so-called researchers from EHP asked 18 of their anti-drilling friends, who are supposedly experts, for an opinion on how far away a building should be located from a shale well. The current standard in PA is 500 feet. That is, a well being drilled must be at least 500 feet away from an “occupied building.” EHP’s anti-drilling friends (16 of the 18) said that number should be 1,320 feet–a quarter mile. EHP wrote it all up, presenting it as fact, and got it published in the very low-standard PLOS One journal–a journal where you pay them and they’ll publish anything. Totally made-up research. PLOS One is “peer reviewed” so voila, there’s now a “peer reviewed study” that says setbacks in PA should be at least a quarter of a mile away when it comes to shale drilling. Which would eliminate about 90% of all shale drilling in the state (which is the purpose of this “study”). We really don’t know how those from EHP can show their faces in public, pedaling this kind of junk science. More to the point, how can any honest, self-respecting organization spend good money to fund EHP?…
    Read More “Fake Study Recommends Quarter-Mile Setbacks for PA Shale Drilling”

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    FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start

    The Federal Energy Regulatory Commission (FERC) game of hardball with Energy Transfer over the Rover Pipeline has finally paid off. For months FERC has refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals). The reason? ET has not, according to FERC, lived up to its word on restoration work. Things like smoothing over the dirt and replanting grass and other vegetation over top of the buried pipeline. Earlier this month ET assured FERC it would have the majority of restoration work done on two key laterals–the Burgettstown Lateral in southwestern PA, and the Majorsville Lateral in the northern panhandle of WV–by the end of this month (see FERC Continues to Block Rover Laterals Until Restoration Work Done). With recent evidence that ET is indeed living up to its word, last Thursday FERC gave ET permission to start up both the Burgettstown and Majorsville Laterals on Sept. 1. The majority of the restoration work will be done by this Friday, Aug. 31. However, there will still be some odds and ends after that (addressing “ground movement areas) that will go on through December. That leaves two final laterals–the CGT (Columbia Gas Transmission) and Sherwood Laterals, still not online. This is a prime example of FERC playing hardball, contrary to the “rubber stamp” antis claim FERC is for pipeline companies…
    Read More “FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start”

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    Partial Victory for PA Drillers re DEP Chapter 78a Drilling Regs

    The Pennsylvania Commonwealth Court has handed PA drillers a partial victory in their quest to block onerous new drilling regulations, part of something called Chapter 78a. In October 2016, after five years in the making, PA adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf Administration. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). In December 2016, the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations imposed by the lower Commonwealth Court. Last October the Supremes heard oral arguments in the case, and in June of this year the Supremes ruled to not undo the block on DEP’s onerous regs–but instead bumped the case back down to Commonwealth Court to let the matter play out there (see PA Supreme Court Upholds Block on DEP Chapter 78a Drilling Regs). Last week Commonwealth Court struck down provisions in Chapter 78a (f) and (g) defining “common areas of a school’s property and playgrounds,” and “species of special concern” as public resources under Act 13. While we didn’t get 100% of what we wanted, we got maybe 95%–at least for the two provisions in sections (f) and (g). Other parts of the lawsuit are still under consideration by Commonwealth Court. Here’s the deets on this important victory for Marcellus drillers…
    Read More “Partial Victory for PA Drillers re DEP Chapter 78a Drilling Regs”

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    PTT Decision on Ohio Cracker Announced in Next “Month or So”

    Sometimes you spot an innocent, off-the-cuff remark that’s not really part of the intended story–but has huge meaning. Such was the case when we spotted a story quoting Ohio House of Representatives member Andy Thompson (Republican, 95th District covering Carroll, Harrison and Noble counties, and portions of Washington and Belmont counties). Thompson, who (to his credit) is not running for reelection after four terms [NOTE: a sharp MDN reader emailed to say Mr. Thompson was term-limited out and could not run again], gave a speech at the Ohio Mid-Eastern Governments Association last week in St. Clairsville. In his remarks, Thompson talked about the work of Shale Crescent USA, an economic development organization formed a few years ago to encourage business growth in the Ohio Valley based on low natural gas prices that allow manufacturers to operate more efficiently–with easy access to half the population of the United States and Canada. Although Thompson’s focus was not on the PTT Global Chemical ethane cracker project potentially planned for Belmont County, he had some VERY interesting remarks about that project and others like it…
    Read More “PTT Decision on Ohio Cracker Announced in Next “Month or So””

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    Dominion Buying a Piece of Competitive Mountain Valley Pipeline

    Here’s some dots that we’ve not seen anyone else connect. There are two competing pipeline projects that generally run along the same route to shuttle Marcellus/Utica gas to the southeastern U.S. One project is EQT Midstream’s Mountain Valley Pipeline (MVP), which runs 303 miles from West Virginia into southern Virginia. MVP is facing a court case that’s idled three-fourths of the project, leading to a layoff of “thousands” of workers (see FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’). The other project is Dominion Energy’s Atlantic Coast Pipeline (ACP), a 600+ mile pipeline from West Virginia through Virginia and into North Carolina, almost to the border with South Carolina. ACP is currently idled because of a similar court case (see FERC Shuts Down ALL Work on Atlantic Coast Pipeline). Both EQT and Dominion believe the court order and FERC’s directive is only a temporary setback. Both believe their projects will be completed sometime next year. Here’s where it gets interesting. Although MVP has not officially filed with FERC (yet), they do plan to expand from the current termination point in Pittsylvania County, VA another 70 miles into North Carolina (see Mountain Valley Pipeline Launches Plan to Expand 70 Miles into NC). That new portion of MVP is called the Southgate project. Last week PSNC Energy, based in North Carolina, purchased a 30% share in the MVP Southgate project. PSNC is a subsidiary of South Carolina-based SCANA Corp. Sound familiar? Dominion Energy is right now in the process of closing a deal to buy/merge in SCANA Corp. (see FERC Approves Dominion Energy/SCANA Merger – Deal Still Alive). Ergo, Dominion is buying a 30% stake in its primary competitor to flow Marcellus/Utica gas south…
    Read More “Dominion Buying a Piece of Competitive Mountain Valley Pipeline”

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    WV Teachers Get Greedy, Want to Boost Already-High Severance Tax

    We’ve written, forever, about the quest by Pennsylvania’s teacher’s unions (most of them in the Philadelphia area) who want to raid the coffers of Marcellus drillers via a confiscatory severance tax slapped on top of an existing impact tax slapped on top of corporate income taxes. You can never have too many taxes in education-land. That’s the only way they get paid. Neighboring states like Ohio and West Virginia already have a severance tax. It’s hard comparing apples to apples, but essentially PA drillers pay a bit more than OH drillers, but a whole lot less than WV drillers. The severance tax in OH is 1.25%. In WV the severance tax is a whopping 5%. And yet, amazingly, the teacher’s unions in WV are now clamoring to boost the severance tax even more! They want to boost the tax by 2.5% to 7.5%–which would kill the Marcellus/Utica industry in the state. It would be a death sentence. The West Virginia Oil and Natural Gas Association (WVONGA) is on the case, pushing back against this lunacy…
    Read More “WV Teachers Get Greedy, Want to Boost Already-High Severance Tax”

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    EPA Proposes “Affordable Clean Energy” Plan to Replace Obama CPP

    One more piece of the Obama “legacy”–the onerous, wildly unpopular Clean Power Plan (CPP) that assassinates coal powered energy and mortally wounds natural gas in favor of so-called renewable sources of energy–is now history. Well, it will be history after a few more years of legal wrangling. Let’s say the CPP is well on its way to the garbage can of history, where it belongs. The CPP (see The Many Flaws with President Obama’s Clean Power Plan) will be replaced by a new plan released last week by the federal EPA called the Affordable Clean Energy (ACE) Rule. Instead of Big Brother dictating what power sources an individual state can and can’t use, ACE empowers states, promotes energy independence, and facilitates economic growth and job creation. “The ACE Rule would restore the rule of law and empower states to reduce greenhouse gas emissions and provide modern, reliable, and affordable energy for all Americans,” said EPA Acting Administrator Andrew Wheeler. Hmmm, maybe we’re beginning to warm up to swamp-dweller Wheeler after all. If he can pull this off, we’ll feel better about leaving him as head of the agency…
    Read More “EPA Proposes “Affordable Clean Energy” Plan to Replace Obama CPP”

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    DTE Energy’s Michigan Gas-Fired Plant Breaks Ground Today

    Click for larger version

    Last June DTE Energy filed paperwork in Michigan to build a new “state-of-the-art” natural gas-fired power plant in St. Clair County (see DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan). The gas-fired plant will produce 1,150 megawatts of electricity, enough to power 850,000 homes, helping to offset three coal-fired plants set to retire by 2023. Environmental groups launched a campaign to oppose the project (see Michigan Anti Fossil Fuelers Oppose DTE Gas-Fired Plant Proposal), but their efforts were too little too late. In April, the Michigan Public Service Commission approved the project (see List of 6 NatGas-Fired Electric Plants Coming to Michigan). The plant project has a name–the Blue Water Energy Center. Today is the day DTE Energy, the builder, will officially break ground for Blue Water Energy Center. Ahead of schedule! Why our excitement over this project? There is a considerable amount of Utica/Marcellus gas heading into Michigan via the Rover and NEXUS pipelines. Blue Water Energy is a potential (we’d say likely) customer for M-U gas supplies…
    Read More “DTE Energy’s Michigan Gas-Fired Plant Breaks Ground Today”

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    Orange County, NY Gas-Fired Plant Resumes Start-up Tests

    MDN brought you the exciting news that last week a New York “Supreme Court” judge (Supreme Court in NY is a lower court, one step up from county court) overruled a last-minute dirty trick by the Dept. of Environmental Conservation (DEC) to block a Marcellus-fired electric plant from starting operations (see NY Judge Overrules DEC, Allows Gas-Fired Plant to Start Up). Competitive Power Ventures built and is days away from starting up the Valley Energy Center, a $900 million, 680-megawatt natural gas-fired electric generating plant in Orange County, NY. In a last minute, desperate attempt to block the plant (to boost his gubernatorial reelection campaign), Gov. Andrew Cuomo directed the DEC to deny renewing an air permit previously granted by the DEC. The DEC says the plant will need a different (federal) air permit before it can start up, effectively blocking the project. The judge stepped in and overruled the DEC, allowing Valley Energy to restart its tests and begin operations. Testing restarted Sunday morning. According to CPV, these final round of tests will take “two to three weeks” before the plant is fully operational and online…
    Read More “Orange County, NY Gas-Fired Plant Resumes Start-up Tests”

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    Advisory Panel Pressures Va. Gov. to Block 2 “Racist” Pipelines

    Here we go again. More talk from desperate liberals who irrationally hate fossil fuels, claiming the location of two pipelines in Virginia is “racist.” You didn’t know that an inert metal tube could be racist, did you? Yeah, it’s stupid and silly and beyond words–but there you have it. Our schools are doing such a poor job of educating our citizens, they grow up to believe in wild fairy tales and declare anyone (or anything) that is not their particular skin color must be racist. In Virginia, the Governor’s Advisory Council on Environmental Justice, is recommending to Virginia Gov. Ralph Northam that he should illegally (against federal law) rescind federal Clean Water Act permits that allow both the $6.5 billion Atlantic Coast Pipeline (Dominion Energy) and $3.7 billion Mountain Valley Pipeline (EQT Midstream) from crossing the state. The Advisory Council’s tortured thinking is that the pipeline runs through a few poor/black communities–so it MUST be racist. No mention of the fact that such pipelines actually benefit communities and individuals economically. Pipelines get no credit for economically benefiting nearby communities–they only get dinged for flowing an evil fossil fuel that supposedly causes man-made global warming…
    Read More “Advisory Panel Pressures Va. Gov. to Block 2 “Racist” Pipelines”

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    Sierra Club Forces Thousands of Pipeline Workers Out of Work

    It dawned on us, reading yet another story about how EQT/Mountain Valley Pipeline (MVP) has laid off around half of the MVP workforce, perhaps up to 3,000 people (see FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’), that the headlines/stories have it wrong. We need to view this situation more accurately–for what it is. The Sierra Club and a few other radical Big Green groups who brought the lawsuit against MVP are the ones who bear responsibility for putting ~3,000 pipeline workers out of work. And that’s just for one project! Dads have been forced into the unemployment line. Workers’ children go to bed hungry at night. There is a rise in hopelessness. The Sierra Club is responsible for DESTROYING JOBS. Ever notice that the Sierra Club never actually creates any jobs (except for a handful of high-priced lawyers)? They are a jobs-destroying organization and it’s time for Americans to wake up and understand what’s really going on. Wake up and understand the damage being caused by the Sierra Club–to families, to companies, to entire communities…
    Read More “Sierra Club Forces Thousands of Pipeline Workers Out of Work”

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    Radicals’ New Strategy to Block Pipelines: State’s Rights

    Radical environmentalists who want to “keep it in the ground”–the “it” being fossil fuels–are emboldened by the actions of New York Gov. Andrew Cuomo. Cuomo, you may recall, effectively blocked and stopped in its tracks the federally-approved Constitution Pipeline, in April 2016 (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Radicals who want to block all fossil fuel pipelines are using Cuomo’s example as their “new” strategy to stop shale drilling. If there are no pipelines, there’s no drilling–it’s that simple. We find liberal antis’ embrace of “states rights” to be highly hypocritical. These radicals, many (most) of whom are socialists, LOVE LOVE LOVE big government. The bigger the better. But when big government (i.e. the feds) doesn’t do what the radicals wants it to do, the radicals then embrace small government–decentralizing regulatory authority and pushing it down the state and local level. Radicals are using the Cuomo strategy of denying Clean Water Act water permits to pressure other governors, like Virginia Gov. Ralph Northam and Oregon Gov. Kate Brown–both extreme Democrat liberals. We spotted an National Public Radio column exploring antis’ new-found love of state’s rights. We have a few more thoughts about this issue…
    Read More “Radicals’ New Strategy to Block Pipelines: State’s Rights”

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    Anti-American Sierra Club, NRDC Get Funding from Russia

    “Hey Jim, we’re tired of reading your rants about antis. Get off it, will ya? Focus on the good news of where drilling and pipeline work is actually happening.” We sometimes get those kinds of emails. What those folks don’t seem to realize is that we are in a fight to the (economic) death with people who hold a dangerous philosophy. They are people who are, in part, funded by Russia (as you’ll see below), working against America’s best interests. They are, in a word, anti-American. And we’re outing them for who they really are. Exposing them to the light of day. Yes, it is important to beat the drum, frequently, to bring to your attention just how the fight is going and who’s engaged in this fight–so you know why it takes so long to drill a well or build a pipeline. Why landowners don’t see more drilling sooner. Why natural gas and NGLs and oil can’t get to market, or get to markets that pay more. There is a reason, and it’s because of groups like the NRDC and Sierra Club…
    Read More “Anti-American Sierra Club, NRDC Get Funding from Russia”

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    Waters of US Ruling – Glass Half Full?

    Last week MDN told you about a George H.W. Bush district court judge in South Carolina who reversed EPA Administrator Scott Pruitt’s order ending the tragedy of Obama’s Waters of the United States (WOTUS) rule (see Fed Judge Revives Obama Waters of US Tragedy in 26 States). WOTUS is important, because when you redefine everything down to a mud puddle (we’re not joking) as a “body of water” under the authority of the Clean Water Act, you effectively put all oil and gas drilling (and agriculture activities) under the thumb of the federal government. We were bummed about the judge’s decision. But we were focusing on the 26 states, including New York, Pennsylvania and Ohio, that are now subject to WOTUS overreach. But what if we look at the glass as half-full instead of half-empty? Somehow, due to the vagaries of law, the other 24 states (or 33 states if you are Barack Obama, who once infamously said there are 57 states), are not under the Obama WOTUS rule. In other words, the glass is half-full–in particular for West Virginia which is not under WOTUS. The legal beagles at the Davis Wright Tremaine law firm flip the news around and look at the glass-half-full aspect of WOTUS…
    Read More “Waters of US Ruling – Glass Half Full?”

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    4th Circuit Rejects Sierra Club Request to Block Atlantic Coast Pipe

    In something of a twist, the Fourth Circuit Court of Appeals elected NOT to officially shut down all construction of the 600+ mile Atlantic Coast Pipeline (ACP) project. You may recall the Sierra Club and several other anti-American Big Green groups convinced the Fourth Circuit to overturn permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS) granted to ACP to cross the Blue Ridge Parkway (see Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe). The rolled-back permits affect some 100 miles of work. Shortly after the Fourth Circuit decision, the Federal Energy Regulatory Commission (FERC) told Atlantic Coast to shut down all construction everywhere (see FERC Shuts Down ALL Work on Atlantic Coast Pipeline). FERC’s shut-down is expected to be temporary. Meanwhile, back at the litigation ranch, the Big Green groups asked the Fourth Circuit to shut down all construction on ACP until the lawsuit plays out–over a period of years. It was to that request the court said no…
    Read More “4th Circuit Rejects Sierra Club Request to Block Atlantic Coast Pipe”