Industrywide Issues

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    Leach XPress Pipe 100% Back Online Following June Explosion

    TransCanada’s Leach XPress is a 160-mile natural gas pipeline (and compression facilities) located in southeastern Ohio and West Virginia’s northern panhandle. Leach XPress flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky–hence the name. The pipeline went online January 1st, and a section of it exploded and burst into flames on June 7 (see Leach Xpress Pipeline Explodes in Marshall County, WV). What caused the explosion? TransCanada (aka Columbia Pipeline) said it was a “slip”–what we call a landslide (see Columbia Says Landslide Caused Leach XPress Explosion/Fire in WV). The good news is that the 1.5 Bcf/d pipeline is now fully fixed and back online, as of Sunday, although it’s not yet flowing at full capacity. According to Genscape, pipeline “nominations” (reservations to move gas) were at 1.15 Bcf yesterday. That will likely increase in the coming days, back to full capacity. One comment about this story caught our eye–something we’d not seen or heard before: Columbia told the Pipeline and Hazardous Materials Safety Administration (PHMSA) there are six other spots along the pipeline that are “areas of concern” based on soil conditions, steep slopes or indications of slips (i.e. landslides)…
    Read More “Leach XPress Pipe 100% Back Online Following June Explosion”

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    WV Gov. Justice Perpetrating an Injustice on NatGas Developer

    Steven B. Hedrick

    In June MDN told you about a controversy swirling around Steven B. Hedrick, CEO of Appalachia Development Group and also CEO of the non-profit Mid-Atlantic Technology, Research and Innovation Center, or MATRIC (see Manufactured Controversy re $10B NGL Storage Hub Proponent). Hedrick, in his role as CEO of Appalachia Development Group, has led an effort to get a $10 billion NGL storage hub established in Appalachia–most likely in West Virginia. It’s a huge amount of money, will take cooperation from multiple states and will require multiple sources of funding to make it all happen. Hedrick has led the effort. Both of WV’s U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat) have worked on behalf of this project and have had words of high praise for Hedrick and his efforts. And then, “out of the blue” last month comes an attack on Hedrick from the Charleston Gazette-Mail. We now know why–the attacks were instigated by WV Gov. Jim Justice. Which makes us scratch our head. What in the world is Justice thinking? Why would he attack the one person who is key to the state attracting a project (and investment) equivalent to two cracker plants? What is Justice smoking?…
    Read More “WV Gov. Justice Perpetrating an Injustice on NatGas Developer”

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    EIA July ’18 Drilling Report: Gas Prod. Jumps Another 1 Bcf/d

    Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. The Marcellus/Utica region (called Appalachia in the report) continues to see production go through the roof. As has been happening for the past 6 months or so, production in the Marcellus/Utica region will grow another 1/3 billion cubic feet (Bcf) in the coming month. It’s simply amazing! Our region adds another 1 Bcf/d every three months now. With no end in sight. If you add up new gas production for all seven major plays, the U.S. will produce an additional 1 Bcf/d in August. That’s 1 Bcf more in August than it produced in July. Mind blowing. No less impressive is U.S. oil production from shale. In last month’s report, EIA said oil production would grow 141,000 barrels. This month? Oil production will grow ANOTHER 143,000 barrels per day! Once again, new records for gas (and oil) will be shattered in August…
    Read More “EIA July ’18 Drilling Report: Gas Prod. Jumps Another 1 Bcf/d”

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    Former Ormet Site in OH Handles 3 Frac Sand Unit Trains at a Time

    Long Ridge Energy Terminal

    Back in 2014 MDN told you that the former Ormet aluminum plant in Hannibal (Monroe County), OH had been purchased out of bankruptcy by Niagara Worldwide and turned into the Center Port Transload Facility, with an emphasis on providing services for the Marcellus/Utica industry (see Center Port Transload Facility Already Up & Running in OH). In April 2017, we brought you news about plans to build a 485-megawatt Utica gas-fired electric plant at the Center Port location (see More on Gas-Fired Elec Plant Coming to Center Port Terminal). And in January we told you that most of the facility (not all) had changed hands again, selling to Fortress Transportation and Infrastructure for $30 million, changing the name to Long Ridge Energy Terminal (see Former Ormet Site in SE OH Changes Hands, Gas-Fired Plant Coming). We spotted a new announcement from Long Ridge (née Center Port) that says the facility has just completed a rail construction project that allows the terminal to accept and load/unload three different “unit trains” of frac sand–at the same time. A unit train is a train hauling all the same commodity, in this case frac sand. Typical unit trains are 70-100 cars long. With new loop tracks now in place, Long Ridge can handle way more frac sand than it previously could. And it’s a good thing, because demand for frac sand in the Utica/Marcellus is through the roof. Long Ridge is also a barge terminal, sitting on the Ohio River. In fact, Long Ridge is the only terminal in the M-U region with both unit train and barge transloading capabilities…
    Read More “Former Ormet Site in OH Handles 3 Frac Sand Unit Trains at a Time”

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    THE Delaware Riverkeeper Loses FERC Bias Court Case

    Maya van Rossum

    Maya van Rossum, THE Delaware Riverkeeper (as she calls herself) has struck out once again in federal court. THE van Rossum, with backing by Big Green lawyer Jordan Yeager, asked a federal court to rule that the Federal Energy Regulatory Commission (FERC) is biased in favor of approving pipeline projects (specifically the PennEast Pipeline) because part of the agency’s funding, via permit fees, comes from the companies it regulates. It’s Miss Maya’s attempt at shutting down all approvals for any pipeline anywhere in the United States–including PennEast. Why use a fly swatter when you can use a hammer, right? Fortunately, the judges on the D.C. Circuit Court of Appeals didn’t fall for the ruse. The judges ruled last week that FERC’s decisions about authorizing projects are not tied to, nor influenced by, how the agency is funded. Period. In typical fashion, Riverkeeper complained that the decision didn’t go their way, lying about FERC’s “nearly 100% approval rate.” We’ve explained that approval rate before. FERC project approvals are multi-staged. Pipeline projects either fix issues FERC finds in an initial review, or the sponsors pull the projects from active consideration. The end result is that pipeline projects either meet FERC’s high standards, or they don’t get built…
    Read More “THE Delaware Riverkeeper Loses FERC Bias Court Case”

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    PA Seeks Comments on Boosting Shale Permit Fees 250%

    Pennsylvania Gov. Tom Wolf’s Dept. of Environmental Protection (DEP), the agency charged with overseeing oil and gas drilling in the state, “blindsided” the shale industry in February with a proposal to hike the fee required when submitting an application to drill a new shale well (see PA DEP Plans to Raise Marcellus Well Permit Fee by 250%). The current fee is $5,000. The proposed new fee is $12,500–or 2.5 times (250%) higher. We get it…the DEP has fewer people working there than it once did and needs to hire more help. However, the DEP wants to slap this insanely high fee on shale drillers to (in part) cover the expenses associated with non-shale activities! The shale permit fees will, “fund the broad scope of the [DEP] office’s operations, including its oversight of traditional [i.e. conventional] oil and gas wells, gas storage wells, abandoned wells and earthmoving activities.” How is it, in any sense, fair to hike the fees of shale drillers so DEP agents can better keep an eye on non-shale wells? The DEP plans to steamroller this increase through (see PA DEP Hellbent to Ram Through 250% Hike in Shale Permit Fee). The DEP’s own Environmental Quality Board has already approved the increase. The next step is to publish a notice about the increase in the Pennsylvania Bulletin, which happened on Saturday. Publication triggered a 30-day public comment period. It’s now time for you to make your voice heard…
    Read More “PA Seeks Comments on Boosting Shale Permit Fees 250%”

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    Pipeline Rage: Anti Hits Flagger with Car in Lancaster Co.

    Daniel Forry

    This is “old” news. An old man (77 years old) got so “riled up” against Atlantic Sunrise Pipeline work happening near him in Lancaster County, PA that in three separate incidents he either engaged in violent acts, or threatened to. It’s old news in the sense that two of the incidents happened in March and one in June. However, the three incidents are just now coming to light. In one case, the crotchety old anti inched his car forward and “tapped” a flagger–someone standing on the roadway to prevent cars from passing and hitting workers who were crossing the road. In another incident, the man attempted to drive around a flagger, actually hitting him. The man’s actions are not only threatening and menacing, they are illegal and violent. What’s to say that next time the old man won’t simply run someone down? According to the District Attorney’s office no one was injured during his bouts of “pipeline rage.” The man has been served with papers to appear in court to answer for his illegal actions. Here’s the kicker. The old man, Daniel K. Forry, is a member of the board of education for the Hempfield School District…
    Read More “Pipeline Rage: Anti Hits Flagger with Car in Lancaster Co.”

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    CNX Resources Fined $250K for PA Pipe Construction Violation

    UPDATE 7/19/18: Aside from stiff fine for letting some muddy water get into a nearby creek, there is a second aspect to this story uncovered by ace reporter Jamison Cocklin at NGI’s Shale Daily: the local gathering pipeline CNX was building (and has now abandoned) in Indiana County was supposed to connect to a test Utica well they are/were drilling there. Abandoning that pipeline puts the future of CNX’s Utica drilling in the area in doubt. See NGI’s story: CNX Cancels Plans for Pipeline to Gather Natural Gas from Deep Utica Test Pad.

    CNX Resources was installing a pipeline in Indiana County, PA and apparently didn’t, according to the PA Dept. of Environmental Protection (DEP), properly construct erosion barriers for the project. It rained, hard, and sediment-laden water went over the erosion barriers and got into an unnamed stream, which empties into Mudlick Run, a “high quality water” creek. In other words, a tiny creek got muddy, and some of that muddy water *may have* entered a slightly bigger creek. And for that violation, CNX is going to pay a whopping $250,000 fine. The DEP says following an inspection in March, the DEP ordered CNX to fix the problem by April 3, but as of May 16 the problem had still not been fixed. CNX disputes that they violated their permits and has told the DEP they’ve quit building that particular pipeline. In order to make it all go away, CNX is paying the DEP a $250K negotiated shakedown, PLUS pay to fix the “problem”…
    Read More “CNX Resources Fined $250K for PA Pipe Construction Violation”

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    Duke Energy Plans 1 Bcf LNG Plant in NC Fed by Marc/Utica Gas

    Robeson LNG facility location – click for larger version

    Some exciting news from Piedmont Natural Gas, a wholly-owned subsidiary of Duke Energy. The company recently announced it plans to spend $250 million to build a 1 billion cubic feet LNG storage facility in southern North Carolina, in Robeson County. Gas is liquefied and stored as backup for residential customers to use during periods of high demand–mainly wintertime. And guess which pipeline (now under construction) will terminate right there, in Robeson County? That’s right, the Atlantic Coast Pipeline–a joint venture between Dominion Energy and Duke Energy. The new LNG facility will also be able to use gas from a second pipeline in the county–Williams’ Transco. The Transco pipeline flows Marcellus gas all the way from northeastern PA. Translation: Marcellus/Utica gas will feed the 1 Bcf LNG plant, an important new (big) customer for our our natural gas…
    Read More “Duke Energy Plans 1 Bcf LNG Plant in NC Fed by Marc/Utica Gas”

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    Misguided Philly Moms Arrested for Illegal ME2 Pipeline Protest

    Last week two young mothers, no doubt radicalized by watching Captain Planet cartoons when they were growing up, sat themselves down in front of construction equipment in Middletown, PA (Delaware County, near Philadelphia) in an attempt to block construction of the Mariner East 2 Pipeline. The two, along with a handful of other mothers (and grandmothers) call themselves the “Mama Bear Brigade.” They held a “Teddy Bear Picnic” at the construction site, and sang children’s songs with new non-children lyrics. The “mama bears” have decided our nation’s laws no longer apply to them if they don’t happen to like the law, so they elected to take the law into their own hands. Frankly, they’re just a handful of misguided and misinformed moms who believe the pipeline will explode and kill everyone living in “the blast zone.” What’s funny about the story are the comments. One commenter said this: “Why do liberal losers always give themselves stupid nicknames…Lock them up and build the pipeline!” There were other comments we can’t repeat here since we’re a family-friendly blog. Here’s the story of some misguided moms who believe they’re protecting their kids by breaking the law…
    Read More “Misguided Philly Moms Arrested for Illegal ME2 Pipeline Protest”

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    $83.7B Chinese Investment in WV Shale & Petchem Still Alive?

    Chinese yuan

    Is China’s $83.7 billion investment in West Virginia’s shale and petrochemical industries, announced last November, on hold or not? In early April, when the current “trade war” with China began to heat up, we said this with respect to the deal China signed to invest $83.7 billion in West Virginia shale and petrochemicals: “However, if a trade war does develop, it would be foolish to not think those investments (withholding them) will be used against us.” (see Will Trade War with China Affect $83.7B Investment in WV Shale?) In June at the Northeast U.S. Petrochemical Construction Conference in Pittsburgh, our fears (and prediction) were confirmed. Chinese officials were due to attend the event and announce the first round of investments in WV. However, Brian Anderson, director of the West Virginia University Energy Institute, said given the trade war now on with China, the officials elected to stay home instead. Anderson said, “The pending trade war has put this project in jeopardy” (see Trade War Puts $83.7 Billion Chinese Investment in WV on Hold). But what’s this? Anderson now appears to have changed his tune. He recently 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.” Hmmm. Which is it? Is the deal in jeopardy or moving forward?…
    Read More “$83.7B Chinese Investment in WV Shale & Petchem Still Alive?”

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    Seneca Lake LPG Storage Project is Now Officially Dead

    Basil Seggos, Commissioner of the New York Dept. of Environmental Conservation (and tool of Andrew Cuomo and Big Green radicals) has officially killed the Seneca Lake LPG storage project planned near Seneca Lake. In May, Crestwood, the project’s sponsor, said the depleted salt cavern that would house the LPG (propane) underground may leak in one small area (see Crestwood Testing Proposed LPG Storage Site @ Seneca Lake for Leaks). That was all the Big Green radicals, including Seggos, needed as an excuse to kill the project. Seggos saw his opening and took it. Last Thursday Seggos issued a 31-page ruling denying the project (copy below). It’s obvious from the length of the report and the stated reasons that he uses, that Seggos had already, long ago, decided to deny the project. He talks about cockamamie, airy fairy things like the project is “inconsistent with the character of the local and regional Finger Lakes community.” Really? As if the salt mining operation that used to be there was consistent with the character of the region? It’s all nonsense. This report was written months ago, before the “leak” issue was known. The fact that one small part of the underground storage caverns (plural) is not airtight was the magic bullet Seggos needed to pull the trigger. And he did. While Crestwood has not yet responded and admitted that the project is dead, we see no way it can now move forward. Hey Schuyler County, how does it feel to kiss a $30 million addition to your tax base goodbye? What’s that? Nobody is left who lives in Schuyler County any more? Guess we know why…
    Read More “Seneca Lake LPG Storage Project is Now Officially Dead”

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    Top 25 Producing Gas & Oil Wells in Ohio Utica for 1Q18

    The Ohio Dept. of Natural Resources (ODNR) issued production numbers yesterday for the first quarter of 2018. Natural gas production was up an astounding 43% over the same period last year. In fact, Utica natgas production hit a new all-time high of 531.3 billion cubic feet (Bcf) in 1Q18. However, Utica oil production was down 3.6% over the same period last year. Ohio’s oil production has seesawed over the past few years. It increased last quarter and the quarter before. But prior to 3Q17, oil production was mostly down. Once again Ascent Resources, founded by the late Aubrey McClendon, dominated the top 25 highest-producing gas wells (17 of the top 25). However, Eclipse Resources grabbed the top slot in 1Q18 with a well in Monroe County that produced an amazing 2.9 Bcf all by itself! Eclipse also (as in the previous quarterly report) grabbed a majority of the top 25 most-producing oil wells, with 13 of 25 wells on the list. The top 4 oil wells were Eclipse wells, all located in Guernsey County. Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference. The longer an oil or gas well is online, the less it produces. Newer wells produce more. We show you which wells are not just producing the most quantity overall, but which wells are producing at the fastest (most productive) rates–even if those wells haven’t yet been online a full three months. We also include a link to the complete list (Google Spreadsheet) of 1,949 wells included in the 1Q18 ODNR report, in a more useful format than that provided by ODNR…
    Read More “Top 25 Producing Gas & Oil Wells in Ohio Utica for 1Q18”

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    Accident: CNG “Virtual Pipeline” Truck Rolls Over in Upstate NY

    One of the arguments/concerns used to defeat a facility near Binghamton, NY that would fill trucks transporting CNG to large customers not lucky enough to be located close to a natgas pipeline is that the trucks used to haul the CNG are “bomb trucks.” Just waiting to explode if they should be in an accident. And you know that sooner or later there will be an accident. NG Advantage had big plans to build a virtual pipeline (gas compression & trucking facility) on the outskirts of Binghamton, in the Town of Fenton. The facility would use gas from the Millennium Pipeline to fill trailers outfitted with a series of CNG canisters. We sat through several information sessions where the safety of those trailers was explained. We looked at one of the rigs, up close and personal. We recall one woman from Hillcrest screeching “It’s so BIG!” upon seeing the tractor trailer–which is much shorter than a standard tractor trailer rig. We heard NG explain that if a truck should be so unfortunate to be in an accident, the safety design would automatically release the gas, which dissipates into the atmosphere immediately–making an explosion or fire extremely unlikely. But facts make no difference in a heated, emotional debate. NG isn’t the only company attempting to service businesses in Upstate with CNG, to compensate for Cuomo’s ban on safe pipelines. Another company, Xpress Natural Gas (XNG), has a virtual pipeline operation based just south of Binghamton in Susquehanna County, PA. Things are so much easier in PA (sigh). An XNG truck was traveling through Otsego County, NY, when the truck overturned on a rural roadway. We thought, this is it. Major explosion, right? Scorched earth everywhere. Ball of fire. Driver burned to a cinder. But no, none of that happened. In fact, NOTHING HAPPENED. The truck overturned, and there it sat until it was pulled back upright again. Perfectly safe, as designed. Which illustrates and exposes the lies so often spread about virtual pipeline operations…
    Read More “Accident: CNG “Virtual Pipeline” Truck Rolls Over in Upstate NY”

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    Columbia Says Landslide Caused Leach XPress Explosion/Fire in WV

    TransCanada’s Leach XPress is a 160-mile natural gas pipeline (and compression facilities) located in southeastern Ohio and West Virginia’s northern panhandle. Leach XPress flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky–hence the name. The pipeline went online January 1st, and a section of it exploded and burst into flames on June 7 (see Leach Xpress Pipeline Explodes in Marshall County, WV). TransCanada (their Columbia Gas Transmission subsidiary) is working hard to get the pipeline back online by “mid-July” (see Exploded Leach XPress Pipe Won’t be Online Until Mid-July). What caused the explosion? That’s been the burning question (no pun intended) since it happened. A stray comment we spotted seemed to indicate it may have been a faulty welding job. But apparently such is not the case. Columbia has told federal regulators that a landslide is the cause of the leak and explosion…
    Read More “Columbia Says Landslide Caused Leach XPress Explosion/Fire in WV”

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    Crestwood’s Seneca Lake, NY LPG Storage Facility Effectively Dead

    How LPG storage works – click for larger version

    One by one the nails have been driven into the coffin of a much-needed project in Upstate New York to store LPG–liquefied petroleum gas (i.e. propane). In 2009 Inergy filed a request to convert a depleted salt cavern along the shore of Seneca Lake (in Schuyler County, NY, near Watkins Glen) into a propane/natural gas storage facility. Inergy was later bought by and merged into Crestwood Midstream, and Crestwood Midstream later renamed to Crestwood Equity Partners. The New York Dept. of Environmental Conservation (DEC) has been sitting on its hands from the beginning, refusing to grant the necessary permits to allow the facility to open. We won’t recount all of the ins and outs, ups and downs, of this project (most of them legal). You can read our previous stories here. The one thing the Seneca Lake LGP project has always had going for it, the spark and glimmer of hope, is strong local support from the Schuyler County Legislature. That is, until now. In a unanimous vote Monday night, the legislature voted to rescind its support for the project. It’s not the final nail in the coffin, but we’d call it the next-to-final nail…
    Read More “Crestwood’s Seneca Lake, NY LPG Storage Facility Effectively Dead”