Industrywide Issues

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    Constitution Pipe Asks FERC for Speedy Rehearing, 2020 Deadline

    Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see Supreme Court Rejects Constitution Pipe Request to Overrule NY). In January of this year, FERC turned down Constitution’s request to overrule NY (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). But then Constitution (i.e. Williams) asked FERC to reconsider their ruling, to “rehear” the case as it’s called, in Feburary (see Constitution Pipe Files for FERC Rehearing, Then Back to Court). In March, FERC gave themselves a little more time to think about rehearing the decision, but since that time, the agency has been silent. Yesterday Williams/Constitution filed a request with FERC asking them to urgently, speedily, quick-like-a-bunny, pretty-please with a cherry on top hurry up and reconsider/rehear their earlier decision, this time hopefully overruling NY. Could it happen? Sure, it could. Will it? Doubtful, but hey, hope springs eternal! Williams/Constitution also filed an official request yesterday with FERC to extend the deadline to build the Constitution project–from this year to 2020. If FERC grants the extension, then maybe there is a glimmer of hope that FERC will change its mind, or that FERC somehow sees a way that Constitution can still get built…
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    Ohio Approves $900M Harrison County Power Plant in Cadiz, OH

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    In September 2016, MDN reported that EmberClear planned to fund and build a new $900 million, 1,000-megawatt electric generating plant in Harrison County, OH (see $900M Utica Gas-Fired Electric Plant Coming to Harrison County, OH). The new plant will be fed by Utica Shale gas. EmberClear was, until July 2016, a Canadian-based company. But it went bankrupt and after emerging from bankruptcy it changed its name to Ember Partners, now based in Houston, TX. Since 2016 we haven’t heard anything about the project. But things were/are happening. Last week the Ohio Power Siting Board (OPSB) authorized construction of the 1,050 megawatt (MW) natural gas-fired, combined-cycle electric generation facility in Cadiz–called the Harrison Power Plant. Which is good news indeed. The plant will generate 500 temporary construction jobs and 30 permanent jobs and use a huge amount of natural gas to power it (good for Utica drillers!). Construction on the plant is due to begin in October of this year and the plant will be done and online in June 2021. Here’s the details…
    Read More “Ohio Approves $900M Harrison County Power Plant in Cadiz, OH”

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    FERC Issues Favorable Enviro Assessment for Rhode Island LNG Plant

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    In 2016 MDN told you about a plan by utility company National Grid to build a teeny tiny LNG liquefaction plant in Providence, Rhode Island (see Rhode Island Commies Oppose “Fracked Gas” LNG Plant). The Fields Point LNG plant, facing stiff opposition from a small group of RI House and Senate members (who said they hate fossil fuels), would cost $180 million and liquefy 20 million cubic feet (MMcf) of natural gas per day and store it. All of the opposers–socialist Democrats–called on FERC to reject the project. Nearly two years later, FERC just issued a favorable environmental assessment (EA) for the project. No, it’s not a final approval–but it’s the one key step prior to a positive final approval. FERC will almost certainly now approve the project, much to the consternation of the fossil fuel haters…
    Read More “FERC Issues Favorable Enviro Assessment for Rhode Island LNG Plant”

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    EIA Report Shows Low Demand for NGLs in Marcellus/Utica Region

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    We spotted a blog post from our favorite government agency, the U.S. Energy Information Administration, that made us sit up and take notice. The EIA wrote about the consumption rates of what they call hydrocarbon gas liquids (HGLs). We call it natural gas liquids (NGLs). We typically define NGLs–the “other” hydrocarbons that come out of the hole along with oil and gas–as compounds like ethane, butane, propane, isobutane and pentane. All the “-anes.” EIA goes one step further and includes the “-enes”–ethylene, propylene, butylene and isobutylene. The EIA post talks about what these compounds are used for. The thing that caught our attention was the chart showing “Top ten hydrocarbon gas liquids-consuming states, 2016.” The chart lists which states “consume” or use the most NGLs (HGLs). Put another way, the chart shows where the best markets are for selling NGLs. And frankly, it ain’t around here! Only one M-U state, Pennsylvania, even appears in the list of top 10 states. Both Iowa and Illinois use more NGLs than PA! Why is that? Simple answer: Both of those states, along with Texas, Louisiana, and Kentucky are the only states in the country that possess functioning ethane cracker plants. Cracker plants sop up a LOT of ethane, a lot of NGLs, and it shows in the numbers. PA will no doubt make its up the top 10 list when the Shell cracker goes online. Ohio, should PTT build a cracker there, will begin to appear in the list. And WV, if LyondellBasell buys Braskem and builds a cracker near Parkersburg, will also begin to appear in the list. Until that time, the brutal fact is that there just isn’t much of a market in our region for the abundant volume of NGLs we produce–meaning drillers must export NGLs out of our region, or those NGLs become an expense, costing money to get rid of…
    Read More “EIA Report Shows Low Demand for NGLs in Marcellus/Utica Region”

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    EQT CEO Didn’t Show Up for Annual Mtg – CFO Talks of Wild Ride

    Last Thursday EQT held its annual shareholder’s meeting. By all accounts it was a sleepy affair with few people attending–inside at least. Even the current interim CEO, David Porges, didn’t bother to show up, sending along CFO Rob McNally to be the official face of the company. McNally spoke about the past few years as hectic, going from “one transaction to the next.” McNally said “there’s a light at the end of the tunnel” for things to now settle down–once the company splits in two later this year (into upstream and midstream). However, a handful of Mountain Valley Pipeline (MVP) protesters showed up to mouth off–marching outside EQT HQ where the annual meeting was held. McNally said, in so many words, protests of MVP are no big deal. The company thought there would be protesters, and they even planned for illegal protests in the construction timeline (people chaining themselves to bulldozers, etc.). Just one more day in the life of a fossil fuel company that deals with nutters all the time…
    Read More “EQT CEO Didn’t Show Up for Annual Mtg – CFO Talks of Wild Ride”

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    Sierra Club Succeeds in Delaying MVP Project in WV via Court Order

    The insidious and well-funded Sierra Club has scored another temporary legal victory in stopping Mountain Valley Pipeline (MVP) construction throughout West Virginia. One month ago we reported that the Clubbers had claimed a temporary victory in stopping construction work of MVP at four river crossings in WV. At that time (in May), the Clubbers and a mishmash of other radicalized groups filed a motion asking the Fourth District U.S. Circuit Court of Appeals to suspend a permit issued by the U.S. Army Corps of Engineers that allows MVP to construct the pipeline across streams and rivers in the Mountain State (see Army Corps Engineers Suspends MVP Permit for River Crossings). The Clubbers’ tortured logic was this: When constructing the pipeline across a river, the stated government standard is that construction can take no longer than 72 hours. MVP says it will need longer when constructing the pipeline across four rivers–Elk, Gauley, Greenbrier and Meadow. Therefore (say the Clubbers), MVP is in violation of the general permit issued by the Corps and that means ALL (not just those four rivers) construction should be stopped, immediately. The Corps said they had reviewed the standards and have (for now) rescinded the permit as it applies ONLY to those four rivers, NOT to any other locations. However, the Fourth District Court ruled late last week that construction at all 591 stream crossings the pipeline traverses must now be immediately stopped until the court farts around and considers the full lawsuit brought by the radicalized Clubbers. Enough of this nonsense!…
    Read More “Sierra Club Succeeds in Delaying MVP Project in WV via Court Order”

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    Ithaca Power Plant Tries Once Again to Convert from Coal to Gas

    In 2013 so-called environmentalists protested, agitated and lobbied to prevent an electrical generating power plant in Tompkins County, near Ithaca, NY, to switch from burning coal to burning natural gas–because they’re afraid it will mean more fracking (see NY Eco Group Protest to Stop Plant Converting from Coal to NatGas). The owner of the plant, Cayuga Operating Co., ended up selling it two years ago. The new owner, Riesling Power, tried to continue to get approval for converting the coal-fired plant to burn natural gas (not only cleaner, but also cheaper). Ultimately, the Cuomo-controlled Public Service Commission (PSC) turned down the request to convert. So the new owner kept operating it as a coal-fired plant–belching out far more pollution than a natgas plant would. Congratulations idiot fractivists (including obtuse Assemblywoman Barbara Lifton, who wanted the plant closed). They screwed themselves and all of their neighbors too. But what’s this? Riesling Power has just filed another application to close the coal-fired plant, and reopen it as a gas-fired plant. But instead of using pipelines to feed the gas-fired plant, they will use compressed natural gas (CNG), trucked in. Which has set off the local crazies once again, spewing fossil fuel hatred and talking about “bomb trucks” visiting the area. Incredibly, the antis would rather keep a nasty coal-fired plant operating than switch to natural gas. Clinically insane…
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    Rhode Island Gas-Fired Plant Making Money – Before It’s Built!

    At a big ceremony in 2015, none other than Rhode Island Gov. Gina Raimondo joined the CEO of Invenergy to announce the Clear River Energy Center–a 900-1,000 megawatt electric generating plant that runs on natural gas (see New NatGas Powered Electric Plant Coming to…Rhode Island?!). A new gas-fired plant planned for the socialist paradise of Rhode Island, home to old money and people who oppose change of any kind. Who woulda thunk? The new plant will lower RI residents’ electric bills by a collective $280 million and replace aging coal and oil power plants–cleaning the air in the process. With the jobs created, the investment in the facility, and lower electric rates, it’s calculated this single plant will have a $1.3 billion impact on the economy of RI. The plan was to begin construction in summer 2016 and have the plant up and running by 2019. What’s happened since the initial announcement? A lot of bureaucratic bull. The project is under review now and a final decision by the Rhode Island Public Utilities Commission will not happen until January of next year. In the meantime, the plant is making money, even though it’s not yet built! How? By selling its contracts to provide electricity. The plant won’t be running next year, so Invenergy, the builder, has sold the right to provide electricity to the grid (for a time) to different plant…
    Read More “Rhode Island Gas-Fired Plant Making Money – Before It’s Built!”

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    PA Gov. Wolf Signs On-Time Budget with No Severance Tax

    There is nothing “bipartisan” about Tom Wolf, Governor of Pennsylvania. He’s a hard-left partisan all the way. Yet this year, for the first time since taking office, he signed a “bipartisan” budget on time–before the June 30 deadline. Wolf practically genuflected before the Republicans who control both the House and Senate in PA. This is the first budget Wolf has signed at all. The previous three annual budgets adopted during Wolf’s tenure were done so without his signature. So why did Wolf practically fall over himself to sign a budget that does NOT include a new severance tax, as he has requested each year since taking office? Simple: He’s running for reelection and wants to appear as if he’s actually governing. He’s attempting to smear a little lipstick on the pig of his awful tenure in office. Question is, will it work? Do people have the attention spans of gnats? Or will they remember the pain and suffering he inflicted by dragging out previous budgets for months? Pennsylvanians should understand that Wolf’s nicey-nice with the budget this year will completely evaporate next year (if he’s reelected). Back will be the hard-left partisan who lives under the lipstick…
    Read More “PA Gov. Wolf Signs On-Time Budget with No Severance Tax”

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    Fake Duke Study Says Fracking Will Make you Fat

    Yet another wild, totally false “study” has been published by Duke University and University of Missouri researchers that finds when you pump rats full of chemicals, some of which may (or may not) be used in fracking, dosing the rats at many multiples of times more that any human would ever be exposed to, it makes the rats gain weight. And voila, a new meme in mainstream faux media is born: fracking makes you fat. How do “researchers” actually get jobs after publishing this kind of garbage? Who would hire them? Perhaps the Heniz Endowments or William Penn Foundation. This is the same “research” team that tried to connect shale drilling to impaired immune systems, low sperm counts, ovarian follicle problems and pre-cancerous mammary gland lesions, in previous fictional studies. More of the same with this study…
    Read More “Fake Duke Study Says Fracking Will Make you Fat”

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    PA Impact Fee/Tax Hauls in $210M in 2017 – Third Highest Ever

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    Each June, the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax) releases the final numbers of impact fee revenues and disbursements. Yesterday was the appointed day for 2017. The PUC reports impact fees on natural gas producers in 2017 totaled $209,557,300–the third highest yearly amount of revenue generated since the fee/tax was implemented in 2011. That follows the lowest annual revenue generated from the fee to date last year, for 2016 (see PA PUC Impact Fee Report: Revenue Down Again in 2016). However, 2016 was the low point for drillers drilling new wells–the bottom of the valley in the oil and gas industry. Since mid-2016 we’ve been on an upswing in drilling new wells, which is reflected in 2017 impact fee revenues. Below we include the PUC press release, and screenshots for many of the pretty color pie charts showing topline numbers. What was the #1 county receiving impact fee revenue (meaning the #1 county drilled) in 2017? Once again it was Washington County. The driller paying the most in impact fees in 2017? Range Resources. The municipality receiving the most revenue from impact fees (meaning the most drilled municipality)? Center Township, in Greene County. Here’s the 411 on impact fees (i.e. taxes) raised and spent in PA for 2017…
    Read More “PA Impact Fee/Tax Hauls in $210M in 2017 – Third Highest Ever”

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    PUC Says PA Strippers Reduced 2017 Impact Fee by $6.1 Million

    Once again we’re talking about strippers. Uh, stripper *wells* that is. In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells targeting the Marcellus. All 45 of the vertical-only wells were fracked. Initially those wells produced more than 90 thousand cubic feet per day (Mcf/day), but by December of the year in which they were drilled, the wells produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day, arguing the word “any” is not a get-out-tax-jail-free card. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won the case in March 2017, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. So the PUC appealed the case to the PA Supreme Court. The Supremes heard arguments in the case in April (see PA Supreme Court Takes a Close Look at Strippers…as in Wells). The PUC released its full impact fee revenue generated and disbursed report yesterday (see today’s lead story). The PUC reports that not only are the fees from the Snyder wells missing from the total, but fees for some wells from other drillers as well–some 318 wells in all. Those other drillers cite the Snyder Bros. case as evidence they don’t owe money on what they consider to be stripper wells. In fact, when you total it all up, the PUC says the impact fee revenue for 2017 would have been ~$6.1 million higher if the “missing” fees from those 318 wells were part of the mix…
    Read More “PUC Says PA Strippers Reduced 2017 Impact Fee by $6.1 Million”

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    NY Landowner Who Sued for “Takings” re Frack Ban Loses Fed Case

    Is this the sad end to a noble cause? In 2015 MDN told you about an Allegany County, NY attorney/landowner who filed a lawsuit against the New York Dept. of Environmental Conservation (DEC) over their infamous and politically-motivated ban on fracking (see 1st Lawsuit Filed Against NY Cuomo Frack Ban – in Allegany County). The lawsuit was filed in state Supreme Court in Allegany County. Don’t be fooled by the Supreme Court label. In NY, Supreme Court is one level up from county court. The Supreme Court judge tossed the case saying the attorney/landowner didn’t have standing to file the lawsuit in the first place because he never had a permit to drill on his property. The Appellate Division later upheld the decision. The attorney/landowner then filed the same lawsuit in federal court–bypassing Cuomo-appointed state judges–in federal court last December (see NY Resident (& Lawyer) Sues DEC in Federal Court re Frack Ban). On Monday U.S. District Judge Michael Telesca ruled in that case–against the attorney/landowner, on what amounts to a technicality, saying the case violates the 11th Amendment of the U.S. Constitution which protects states from being sued for money in a federal court. Is this now the end? Does our intrepid attorney/landowner, have anything else up his legal sleeve?…
    Read More “NY Landowner Who Sued for “Takings” re Frack Ban Loses Fed Case”

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    Latest EDF Methane “Leakage” Study Picks Numbers Out of the Air

    Another fake study is leading to a plethora of fake news stories–from the usual sources. The Environmental Defense Fund (EDF) used to be, once upon a time, at least somewhat reasonable. Out of the crop of environmentalist wackos, they were the best. People you could have a rational conversation with about fossil fuels. People you could carry on a civil debate with. No more. For the past few years the organization has taken a hard left turn and never looked back. Their latest annual “methane is leaking/the sky is falling” report is proof of that. Over the past six years the EDF has published study after study estimating methane leakage from gas drilling/pipelines/delivery systems somewhere between 1.2% and 1.5%. We all know that some methane leaks out–it’s inevitable. Gas companies are in the business of ensuring it doesn’t happen–it’s the commodity they sell! But sometimes it leaks–out of valves, or pipeline connections, etc. Methane is, as the false-but-popular meme goes, a “far more potent greenhouse gas” than carbon dioxide. Warmists say it so often to themselves, it’s like a mantra. “Methane is worse that CO2.” But the newest EDF “study,” which isn’t really new, pulls new numbers out of the air and now claims 2.3% of methane leaks out of the system. The EDF study is published in the so-called journal Science (which should be renamed Political Science), giving mainstream leftist news sources like the New York Times, Bloomberg and others permission to trumpet headlines that “methane leaks are far worse than the EPA, and we all, thought.” Even if we accept EDF’s new, much higher number of 2.3% leaking (which we don’t accept, but let’s pretend), even at that “high” number, EDF’s own warmist kindred admit extracting and burning natgas to generate electricity is STILL more beneficial for the climate than burning coal (Princeton University says the threshold is 3.2% leakage where natgas is no longer “good” for the climate). So while this is a big story in the leftist media echo chamber, it’s really no story at all…
    Read More “Latest EDF Methane “Leakage” Study Picks Numbers Out of the Air”

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    IHS Report: Shale Gale Turns 10, Looking Back & What’s Ahead

    Here’s a bold prediction: The Age of Natural Gas will replace the Age of Oil–within our lifetimes. That’s the thought running through our head as we read a new report from analytics/consulting powerhouse IHS Markit titled, “The Shale Gale Turns 10: A Powerful Wind at America’s Back.” IHS Markit expects natural gas production to rise by almost 8 billion cubic feet per day (Bcf/d), more than 10%, in 2018 alone. Altogether, U.S. production is expected to grow by another 60% over the next 20 years, according to the report. Additionally, IHS Markit now estimates that approximately 1,250 trillion cubic feet (Tcf) of U.S. supply is economic below $4 per thousand cubic feet (Mcf). That’s up from a previous estimate of 900 Tcf in 2010. “To say that the ‘Shale Gale’–as IHS Markit originally coined it in 2010–has been anything but a veritable revolution would be an understatement,” says Daniel Yergin, vice chairman, IHS Markit and co-author of the report. “It represents a dramatic and largely unanticipated turnaround that dramatically changed both markets and long-term thinking about energy.” Indeed. Here’s more about the report…
    Read More “IHS Report: Shale Gale Turns 10, Looking Back & What’s Ahead”

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    CNX Signs Deal with Evolution to Use 100% Electric Fracking Fleet

    CNX Resources announced Tuesday that the company has signed a long-term contract with Evolution Well Services to use Evolution’s 100% natural gas-fueled electric pressure pumping equipment. That is, CNX will use electric fracking equipment, with the electricity generated by burning natural gas (instead of diesel). According to Evolution, their “next generation” equipment saves drillers “up to 95 percent on fuel costs.” Whoa! If that claim is true (we have no reason to disbelieve it), it certainly changes the economics of fracking. Using natgas to generate the electricity, instead of diesel, also has the benefit of cleaner air. And here’s the coolest part: The natural gas used to power the electric generator comes from other other CNX wells in the area, i.e. “field gas.” Look ma, no more endless truck deliveries of diesel fuel! Here’s the exciting news that CNX is a “first-mover” on this new technology…
    Read More “CNX Signs Deal with Evolution to Use 100% Electric Fracking Fleet”