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VA Supreme Court to Hear Atlantic Coast Pipe Survey Case

va-supreme-courtIn the southeastern U.S. much of the Big Green opposition to pipelines has centered on preventing pipeline companies from entering properties to complete required surveys. If you can stop the process before it begins (so they reason), it saves them from having to hop in the VW Microbus and go to (pot smoking) anti-pipeline rallies all over the place. Peace man! Landowners in West Virginia and Virginia have challenged the rights of various pipeline companies to enter their property. It happened with EQT’s Mountain Valley Pipeline (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access), and it happened with Dominion’s Atlantic Coast Pipeline (see Atlantic Coast Pipeline Wins Another Virginia Court Case). Each time these cases have been litigated in Virginia courts, the pipeline companies have won (if not in the first case, then on appeal). However, a high-stakes case has just been accepted by the Virginia Supreme Court in which an 83-year old granny says she doesn’t want surveyors for the Atlantic Coast Pipeline to enter her property. Dominion and other pipeline companies have a lot riding on the case…
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Spectra’s Algonquin Apologizes to FERC for Not Asking “Mother May I?”

Mother-May-I.jpgRunning a bulldozer a few feet into a swamp–without written permission–can land you in a lot of hot water. That’s what Spectra Energy is learning following such an incident. Well, we don’t know if it was actually a bulldozer or not, but here is what we do know. On August 28, 2016, Algonquin Gas Transmission (a Sepctra company) experienced a break in the drill stem while attempting the pullback of a 5,000-foot-long HDD (horizontal directional drill) along the Hudson River in New York. The work being done is for Spectra’s Algonquin Incremental Market (AIM) Project. The Federal Energy Regulatory Commission (FERC) had an on-site Compliance Monitor, and that person WAS informed that Algonquin believed the break was within a wetland (i.e. swamp) adjacent to the drill entry side, and that Algonquin would like to “excavate the wetland” which includes removing a few trees, to access the drill stem. The Compliance Monitor (sort of like the old Soviet political officer) told Algonquin that he needed more information before taking such an action. Then it all gets muddled. Algonquin says it was a misunderstanding, and the FERC Compliance Officer says they ignored him (our interpretation of what’s being said). At any rate, the upshot is if Algonquin had waited for the written permission slip from the political officer, er, a, Compliance Monitor, there wouldn’t be a story. But Algonquin went ahead, encroaching on about 381 square feet of swamp–about the size of an average living room. And because of it, FERC has rained down hell fire on Algonquin…
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THE Dela. Riverkeeper Sends Letter to Congress: Shut Down FERC

investigationMaya van Rossum, who is THE Delaware Riverkeeper (the river’s mamma), got 182 of her friends, whom she calls “organizations” to sign a letter and sent it to the U.S. Senate demanding (she always demands, never politely asks) for hearings into the Federal Energy Regulatory Commission (FERC). Why? Because they’re actually doing their job–and that just can’t stand. Instead, she wants FERC shut down so no new pipeline projects will get approved. That’s the only acceptable outcome for Mamma Maya. She alleges that FERC is misusing its power under the federal Natural Gas Act. One of Mamma Maya’s friends, CORNball Paul Gierosky (cofounder of COalition to Reroute Nexus, or CORN) says: “FERC is corrupt and needs to be reformed.” What hubris…
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Deloitte’s 2016 Survey: O&G has Finally Turned the Corner

Survey saysEach year the consultants at Deloitte conduct a survey of oil and gas industry professionals. What does this year’s 2016 survey find? The survey, titled “2016 Oil and Gas Industry Survey” (full copy below) finds that 24% of industry executives believe the recovery has already begun, while 33% believe it will begin in early 2017, for a combined 57% who say we’ve either already turned the corner, or soon will. The long, dark night appears to be over and we’re just now seeing the crack of dawn again. Here is what the people who eat, sleep and drink oil and gas say about our cherished industry…
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Report: What If America’s Energy Renaissance Never Happened?

Chamber of CommerceThe U.S. Chamber of Commerce recently launched a “What If…?” series to counter the radical “keep it in the ground” movement–a movement that irrationally hates the use of fossil fuels. In August the Chamber released their first such report, titled “What If…Energy Production was Banned on Federal Lands and Waters?” (see Chamber Report Details Why ‘Keep it in the Ground’ a Disaster). Yesterday the Chamber launched the second report in the series, titled “What If…America’s Energy Renaissance Had Not Actually Happened?” (full copy below). The report uses data from 2009 through 2015 to realistically imagine what the American economy would look like had the energy revolution not occurred. It’s not a pretty picture…
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PA Gov Wolf Said He May Ask NY Gov Cuomo to OK Constitution Pipe

manoamanoOne of the interesting tidbits to come out of yesterday’s first day of the Shale Insight conference in Pittsburgh was an off-the-cuff remark from Pennsylvania Gov. Tom Wolf’s special assistant for infrastructure, Yesenia Bane, who said that Gov. Wolf is “willing to talk” with New York Gov. Andrew Cuomo to ask him to approve the Williams Constitution Pipeline project in the Empire State. Bane said Wolf has met with Williams and other stakeholders in the Constitution project, and apparently Wolf was impressed enough that he’s willing to add his own voice to those calling for an approval of the Constitution. Democrat on Democrat. Mano a mano. Should be interesting, if Wolf ever gets up the nerve to do it…
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Gov. Wolf Nominates Pat McDonnell to Head PA DEP, Finally

Patrick McDonnell Acting Secretary, DEP
Patrick McDonnell Acting Secretary, DEP

In May 2016, Pennsylvania Dept. of Environmental Protection (DEP) Secretary John Quigley was fired for using a PRIVATE email account to collude with his Big Green friends to try and bully PA’s legislators into supporting his onerous proposed regulations (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Richly deserved. The man who took his place as Acting Secretary is Patrick McDonnell, a 19-year veteran of the DEP. Although Pat made it clear he’d like to move from “acting” to full Secretary, as of a few weeks ago Wolf still hadn’t put forth McDonnell–nor anyone else’s–name for the permanent position (see PA Gov Wolf Searching for New DEP Sec 3 Mo After Firing Quigley). As we stated at the time, McDonnell, while not without his faults (he believes in man-made global warming flummery, but so do a lot of otherwise rational adults), he seems to be a “get it done without generating controversy” kind of guy and not nearly as extreme as Quigley was. Radical environmental groups didn’t seem overly thrilled with McDonnell as Secretary (see PA’s New Acting Sec DEP: What Do We Know? Will He Be Permanent?). However, the radicals are moderating their words, because yesterday Wolf went ahead nominated Pat for the position…
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Dominion Signs Contract with Builder for Atlantic Coast Pipeline

atlantic-coast-pipeline-july-2016
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In August MDN reported that Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–had received the very good news that the Federal Energy Regulatory Commission (FERC) finally released timing for when they will approve the project (see Atlantic Coast Pipeline Makes Progress, FERC Timing Announced). FERC set June 30, 2017 as the date by which the agency will issue their final environmental impact statement for the project. Yesterday Dominion announced another major milestone for the project–the naming of Spring Ridge Constructors as the entity that will actually build the pipeline. Spring Ridge is a consortium of five major natural gas pipeline companies…
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TransCanada’s Plan to Lowball Marcellus/Utica Gas Delayed

delayedYou may recall that TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price by 42% to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. But all is not butterflies and unicorns with the TransCanada plan. Drillers are balking at having to sign a 10-year agreement in order to get the favorable pricing. Their reticence is leading to a delay in TransCanada’s master plan to conquer the Mighty Marcellus…
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Dispelling the Notion that PennEast Pipe Gas Will Get Exported

penneastFor the gazillionth time, PennEast Pipeline is addressing the lie spread by opponents that “most a that thar gas will get exported overseas.” Virulent anti-drillers try to whip up opposition to the pipeline any way they can, including spreading the lie that PennEast gas will not stay local and benefit local residents. The single counter-argument that utterly destroys that lie is this: In order to export gas, PennEast would first have to apply for and receive permission from the U.S. Dept. of Energy. Guess what? PennEast has not (nor is going to) apply to the DOE for export permission, as they indicate in the following Letter to the Editor…
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Saudi War on American Frackers Led to More Productive U.S. Wells

harder_better_faster_stronger1The Saudis sure didn’t see this one coming. Back in 2014 Saudi Arabia and their toadies in OPEC declared open war on the American shale industry. The aim was to bankrupt our shale drillers by pumping so much oil for so cheap, that our small potatoes drillers would go out of business. The thinking was that the Kingdom could outlast our private companies–for years if necessary. And sure enough, some of our o&g companies have gone bankrupt–nearly 100 of them since 2015. But here’s what happened along the way–the unintended consequence. Good old American ingenuity kicked in and our companies innovated–figured out how to drill for less money and get even more oil (and gas) out of the ground while doing it. That is, the Saudis’ action in trying to bury us was to make us better and stronger. One of the major ways we became better and stronger was through the lowly grain of silicon–as in sand. Can anyone say, “mega-frack”?…
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Maryland Will Miss Important Fracking Deadline on Oct 1

deadlineMaryland is supposedly working on revisions to revisions of revisions of fracking regulations that will allow the state to begin fracking on or about October 1, 2017. At least, that’s the theory. There has been some evidence that work is actually getting done to revise the revisions already released by former Gov. Martin O’Malley. In June the Maryland Dept. of the Environment held public hearings where anti-drilling nutjobs paraded around spreading lies about how fracking will kill ya (see Maryland Holds Hearings on Fracking, Crazies Turn Out to Complain). In order to meet the deadline of Oct. 1, 2017 (the date when the current two-year moratorium expires), newly revised regulations need to be published a year in advance–by Oct. 1, 2016. According to “officials” who spoke to the very liberal Baltimore Sun, that isn’t going to happen. So what now? If the two-year moratorium runs out, can drillers begin drilling–without the revised revisions of the revisions of the regulations? Theoretically, yes they could. The better question is: Will anyone try to drill even if they could?…
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Landowners Go to Harrisburg to Pressure Lawmakers on Royalty Bill

Mr. Smith Goes to Washington
Mr. Smith Goes to Washington

Pennsylvania landowners are, as we recently pointed out, in a civil war with the Marcellus industry over the issue of royalties (see Deep Dive: PA Royalties Civil War Between Landowners & Drillers). Landowners want House Bill (HB) 1391 passed–a bill guaranteeing landowners will receive a minimum 12.5% royalty payment regardless of post-production costs. Drillers, being represented by the Marcellus Shale Coalition, are pushing back by saying landowners must live under the contracts they’ve signed. It’s complicated–read our previous articles about it here. With a short time left in this legislative session, landowners continue to press their case with lawmakers. The latest in the skirmish is that landowners have set up a table in the Capitol Rotunda in Harrisburg to lobby (i.e. pressure) lawmakers into taking action on the bill…
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NatGas Trades Above $3/Mcf 1st Time in > 1 Yr, Still Low in M-U

natgas-priceWe’ve just hit a milestone worth mentioning. Yesterday the price of natural gas as traded at the benchmark Henry Hub delivery point (in southern Louisiana) closed at over $3 per thousand cubic feet (Mcf). It’s an important psychological barrier that gives traders (and drillers) hope for higher prices. However, before we begin popping the champagne corks here in the Marcellus/Utica, you should understand that there is no “the price” in natural gas. Gas is traded at hundreds of locations along major gas pipelines. The venerable Henry Hub is important because it is the benchmark, setting prices that many gas contracts are tied to. But the reality of natural gas prices for the Marcellus and Utica is one of low prices due to lack of pipeline capacity to move our oversupply to other markets. So while the price of gas trading at the Henry Hub yesterday closed at $3.08/Mcf (according to price experts Natural Gas Intelligence), the price of gas trading at the Tennessee Gas Pipeline Zone 5 300L in northeastern PA closed yesterday at $1.26/Mcf (NGI). Here’s more on yesterday’s important Henry Hub breaking through $3 story, and why the price is going higher right now…
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Cheniere Energy Upsizes IOU Offering from $1B to $1.5B

friskyCheniere Energy operates the only liquefied natural gas (LNG) export facility in the United States–currently. There are others planned, like the Cove Point, Maryland facility currently under construction. We keep tabs on Cheniere, even though it’s located in Louisiana, because the pipelines that serve it either are or soon will have Marcellus/Utica natural gas flowing through them–to the Cheniere plant. It’s potentially a very important market for our natural gas. We’ve had plenty of Cheniere news lately. Earlier this week we told you about a major restructuring at the top of the company, and the news that Train 2 at the plant is about ready to rock and roll (see Cheniere Restructures Management Team, Finishes Train 2). We have more news. The company had planned to float a big $1 billion of new “notes”–what we call IOUs. The news is that Cheniere is feeling frisky and has upsized the note offering. They’re now floating $1.5 billion of new senior notes…
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IPAA Launches Campaign to Defeat EPA Methane Regs

Yesterday MDN reported on the scorching remarks by two U.S. Congressman with regard to the federal Environmental Protection Agency’s rogue actions to try and regulate oil and gas drilling by imposing new methane emissions regulations (see Congressmen Blast EPA Over New Methane Regulations). Let’s keep the heat on. The premier organization representing independent oil and gas drillers is the Independent Petroleum Association of America (IPAA). The IPAA is at the forefront in fighting the EPA to defeat these draconian new regulations. According to the IPAA (quoting the EIA), these new regulations would make marginal oil and gas wells unprofitable to operate. Those so-called marginal wells represent 15% of all the natgas produced in the U.S., and 20% of the oil produced. Can you imagine what would happen to prices if you suddenly shut down that much production? No, the Obama EPA doesn’t think of things like that–and that’s the problem. Or if they do think about it, they certainly don’t give a fig. The IPAA sent around a letter outlining their game plan for fighting the EPA’s draconian methane emissions regs. Huddle up–here’s the plan…
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