Industrywide Issues

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    Enviros Oppose U of Michigan Plan to Use Gas-Fired Electricity

    Is there any fixing stupid? We suppose not. So-called environmentalists are opposing a plan by the University of Michigan to update the main campus’ Central Power Plant with a natural-gas fired turbine to produce electricity for the Central and Medical Campus buildings. By doing so, the University will leapfrog to achieving 50% of its goal to reduce so-called greenhouse gas emissions by 25% by 2025 (seven short years from now). Put another way, by building this gas turbine and using the electricity it generates, the University of Michigan will be halfway to their emissions reductions goals. One turbine. Clean natural gas. It’s a win/win all the way around. Yet environuts oppose the plan because it is a “long-term investment in fossil fuels.” Again we ask, is there any fixing stupid?…
    Read More “Enviros Oppose U of Michigan Plan to Use Gas-Fired Electricity”

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    Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed

    Yesterday morning shortly before 5 am, a 24-inch gathering pipeline in Beaver County, PA (about 30 miles from Pittsburgh) caught fire and exploded. Fortunately, nobody was hurt, although a nearby home, barn and two garages were leveled by fire from the blast. The pipeline went online just last week, on Sept. 3. It wasn’t even officially/commercially online–it was still in testing phase. The exploded pipeline is part of Energy Transfer’s 100-mile Revolution Pipeline system. The pipe gathers dry and wet gas from local wells and delivers it to a cryogenic separating plant in Washington County, PA. From there, the separated methane goes into the Burgettstown Lateral of the Rover Pipeline (Burgettstown began service on Sept. 1). Following the explosion around 30 homes within a half mile were evacuated, but returned later in the day. Some 1,500 people in the area were without power for part of the day after six high-tension electric lines were toppled, either by the blast or the ensuring fire. A full investigation is now under way, but early indications are a “ground slip” (i.e. landslide) was the cause. That area has been pounded day after day with torrential rain, saturating the ground and causing multiple landslides in the area. Philadelphia antis (on the other side of the state) have already piled on, rubbing their hands with glee, pointing out Energy Transfer is the same company as Sunoco Logistics Partners–the company building the Mariner East 2 pipeline project. Antis are using a freak accident  and tragedy in the hills outside Pittsburgh to try and stop ME2 in the flat country of Greater Philadelphia…
    Read More “Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed”

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    PA Court Upholds $1.1M Fine on EQT re Wastewater Impoundment

    Yesterday Pennsylvania’s Commonwealth Court upheld a PA Dept. of Environmental Protection (DEP) fine levied on EQT for $1.1 million related to a leaky wastewater impoundment in 2012. The case dates back to 2014 when the PA Dept. of Environmental Protection (DEP) slapped EQT with a $4.53 million fine for a leaky wastewater impoundment in Tioga County, something that happened two years earlier (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). EQT never said there wasn’t a problem with leaks at the site, but they did say the way the DEP calculated the fine was unreasonable and arbitrary. EQT appealed the fine and the case all the way to the PA Supreme Court, and in April of this year, the Supremes ruled in favor of EQT, saying that the DEP’s levied fine was excessive and that the DEP misinterpreted language in the 1937 Clean Streams Law (see PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak). We thought that was the end of the case. But it wasn’t. The Supremes ruled on “water to water” contamination in the case, but not on “ground to water” contamination. PA law allows for companies to be on the hook for each day a contaminant enters the water table. In May the court heard oral arguments over how to prove whether contaminants in the soil have moved into groundwater (see EQT Continues to Fight PA DEP Fine re Wastewater Impoundment). What lawyers argued was whether or not, and how, the DEP can prove contaminants in the ground, there because of EQT’s leak, can be proven to have leached into the water on any given day. DEP claimed to have a formula and calculated a revised $1.1 million fine based on assumptions about how many days the contaminants leaked out of the ground. Yesterday, Commonwealth Court agreed with DEP and upheld the fine…
    Read More “PA Court Upholds $1.1M Fine on EQT re Wastewater Impoundment”

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    Lancaster Nuns Appeal Atlantic Sunrise Pipe Case to US Supreme Court

    The Sisters of the Corn (our name for the a group of nuns in Lancaster County, PA) are not giving up their wildly hypocritical lawsuit against Williams for building the Atlantic Sunrise Pipeline across their property. The good sisters are asking the U.S. Supreme Court to hear the case, claiming infringement of religious freedom. The nuns use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field owned by the nuns (leased to a local farmer) directly in the path of the pipeline, declaring the site a “chapel.” Hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a flimflam lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. In July, the Third District tossed the case too (see Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe). The only legal option left to the sisters is to pray for a miracle–that the U.S. Supreme Court will hear the case, and find in their favor…
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    Risberg Pipe from NW PA to NE OH Plans Construction in October

    Click for larger version

    RH energytrans, which plans to build a 60-mile, $86 million pipeline from Crawford County, PA through Erie County and into Ashtabula County, OH, says they expect to begin digging for the new pipeline soon. RH officials told North Kingsville officials (Ashtabula County) last week that “construction could begin soon.” How soon? Early October, provided they get a final OK from the Federal Energy Regulatory Commission (FERC). Last October MDN brought you details about the proposed Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be built in Pennsylvania and approximately 12 miles of new pipeline will be built in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. In late June, FERC issued a favorable environmental assessment for the project (see 60-Mile Pipeline from NW PA to NE OH Gets Favorable FERC Review). A favorable EA is the penultimate step before FERC gives a final OK. That final OK is due no later than Sept. 27. Clearly RH believes they will get a final OK within the next two weeks, and they’re communicating with communities, alerting them construction is about to begin…
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    Jessup Town Board Grills Invenergy re Tiny Emissions Releases

    Antis on the Jessup (near Scranton, PA) Town Council delight in grilling officials from the Lackawanna Energy Center (LEC) at each monthly board meeting. LEC is a 1,480 megawatt, $1 billion Marcellus gas-fired electric plant still under construction, now 97% complete. When the plant is done it will be Pennsylvania’s largest natural gas-fired electric generating plant. The plant is being built in three trains or units. The first train/unit was done and online producing electricity since June–despite the efforts of a local group of antis who seized power of the local town board last November (see Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant). The second train went online in late July/early August. The third train will go online this month–in September. Cabot Oil & Gas is supplying all of the gas for the plant from neighboring Susquehanna County. At the monthly Jessup Council meeting last night, anti board members needled and smeared an LEC rep, implying LEC is hiding problems at the plant. Since May, when the plant began testing, there have been six releases of nitrogen oxide (NOx) emissions that exceeded state standards. On July 31, the plant exceeded the NOx standard of 2.0 parts-per-million (ppm) by a razor thin 0.1 ppm–for a whole 10 minutes. Which is a nothingburger. And yet the anti board members jumped all over LEC for not phoning up the neighbors the minute it happened…
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    Center for Responsible Shale Development has NOT Folded Its Tent

    Correction: MDN received the following statement on 9/11/18 from CRSD board member Chevron Appalachia to let us know that the organization is still alive and exploring a path forward for the future: “CRSD remains focused on its core mission of collaborating with a diverse group of stakeholders to drive continuous environmental performance improvement in shale gas operations throughout the Appalachian Basin. As was announced in a statement earlier this year, CRSD retained the services of the Meridian Institute to help it develop a long-range strategic plan that would enable the organization to build on the successes achieved in its first five years. The Board of CRSD is continuing its work with Meridian to finalize its long-term plan and will have more to announce once that effort is complete.” – Trip Oliver, Chevron Appalachia

    It appears that the Center for Responsible Shale Development (CRSD) is, for all intents and purposes, no more. CRSD began life as the CSSD, the Center for Sustainable Shale Development, back in March 2013 (see Important: Drillers & Enviros Form New Group, Launch Cert Program). The original CSSD was a closely guarded secret until it was unveiled. The organization was the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. The members worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, they would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe and “responsible” driller. We were somewhat skeptical from the start, but later relaxed our skepticism. One of the participants helping to birth the group was Bobby Vagt, at that time president of the Heniz Endowments. Because of his involvement, Mamma Teresa Heinz Kerry fired him (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). There’s zero tolerance for reaching across the isle for Big Green radicals like Mamma Teresa. Other enviros who dared to participate were blackballed by the radical environmental movement. The CSSD soldiered on, despite several enviros leaving the fold, and awarded its first-ever certification in September 2014 to Chevron (see CSSD Bestows First Certification for Sustainable Drilling: Chevron). In the end, another three companies sought and received certification: Shell, CONSOL Energy (now CNX Resources) and EQT. It looks like you can’t fund a certification program with just four applicants. In April of this year, the renamed CRSD lost its executive director, Susan LeGros. The CRSD website has since removed the staff page and according to an industry source, the organization has folded its tent and is no longer in operation. Which we think is a shame…
    Read More “Center for Responsible Shale Development has NOT Folded Its Tent”

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    Atlantic Sunrise Pipeline Delayed Another Week, Now Sept 17

    Today was the day that the $3 billion expansion of the Transco Pipeline in 10 northeastern Pennsylvania counties known as Atlantic Sunrise was supposed to up and running, following a slight delay from an August start (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). But unfortunately, there’s been a second delay. Williams signaled last Friday that there will be yet another delay, due to weather. The start date, according to a notification on the Williams electronic bulletin board (below) is that Atlantic Sunrise will now be operational on or by September 17th–a week from today. However, we’d like to make an observation. Hurricane Florence is said to be aiming for the coast of North Carolina/Virginia, and on its current track, the remnants of that storm may well affect northeastern PA this coming weekend. So don’t be disappointed if there’s a third delay in the startup of Atlantic Sunrise…
    Read More “Atlantic Sunrise Pipeline Delayed Another Week, Now Sept 17”

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    Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources

    Bet you didn’t know that natural gas can be certified as “premium” and “responsible,” did you? No, we didn’t either. It was quite a surprise when we read that Southwestern Energy has, for the first time anywhere, sold natural gas to a customer (utility company New Jersey Resources) that has been certified as “responsible gas.” The certification comes from Independent Energy Standards Corporation (IES) and they call it their TrustWell™ Responsible Gas Program certification. And what does such a prestigious label certify? It certifies the gas was “responsibly developed.” As opposed to irresponsibly developed gas, which is what everybody sells. “Responsible” gas, according to IES, is gas that doesn’t leak as much methane during the extraction and transportation process, doesn’t spill as much water and chemicals on the ground, sources water from places that are, well, responsible (we suppose), and engages the community–to make them feel good about all this responsible-ness going around. Yes, you may detect a little bit of snark in our comments on this news–because we happen to think the industry at large is already doing a great job of being responsible–without having a label put on it. This is just marketing. Hey, if it floats your boat to have a “responsible” label on your gas (paying to do so), go for it. Such a designation will never impress the eco-nuts. IES says they think “in time” that some 25-50% of all gas sold in the U.S. will have such a certification/label as green-friendly. We think that’s an ambitious number, given the fact there are still only five Marcellus/Utica drillers who have gone through the rigors of receiving a certification from the Center for Sustainable Shale Development, an organization that’s been around since early 2013 and offers something similar to IES’ cert…
    Read More “Southwestern Sells 1st Certified “Responsible Gas” to NJ Resources”

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    Problem at Majorsville Compressor Reduced Flow on Rover Pipe

    Rover system map – click for larger version

    Near the end of August, the Federal Energy Regulatory Commission (FERC) gave Energy Transfer Partners permission to start up both the Burgettstown and Majorsville Laterals, beginning Sept. 1 (see FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start). The Majorsville lateral is a “feeder pipeline” that connects supplies of natural gas produced in West Virginia (and western PA) to the main trunk of the Rover Pipeline. Rover is a super highway flowing Utica (and Marcellus) gas to the Midwest and Canada. But without smaller laterals (feeders) flowing gas into the main trunk of Rover, there’s no gas to sell to anyone. Majorsville did, indeed, start up on or about Sept. 1st, but part (or all) of the Majorsville lateral went down a few days later, last Thursday, because a piece of equipment in the Majorsville compressor station needed “maintenance.” According to ET, such maintenance is “part of the normal startup” for a compressor station. Whatever the issue/problem was, it was quickly fixed and by Friday (a day later) the full Majorsville lateral was back up and running…
    Read More “Problem at Majorsville Compressor Reduced Flow on Rover Pipe”

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    Ohio Democrats Float Bill to Cap Injection Wells at 23 per County

    Liberal Democrat State Rep. Glenn Holmes (from Girard, Trumbull County, OH) is attempting to use a hammer to kill a fly. That is, he’s floating House Bill 723 to cap the number of injection wells at 23 per county, in an attempt to block a new injection well from getting built in Hubbard Township. Currently Trumbull County has 17 live and functioning wastewater injection wells. Five more are currently under construction. If the bill passes, it would prevent a newly-proposed well in Hubbard from getting built. Come here fly, see this hammer? Instead of debating the merits (or lack thereof) of the single well in Hubbard, how many wells are too many in Trumbull County, Holmes wants to limit injection wells everywhere in the state as his preferred solution. Right now Trumbull and Ashtabula counties are tied for the top spot with 17 active injection wells each. Nearby Portgage and Stark counties both have 16 injection wells. Meigs County, in southeast Ohio, has 14 active injection wells. Here’s the latest Democrat shenanigan aimed at stifling the Utica (and Marcellus) industry in Ohio…
    Read More “Ohio Democrats Float Bill to Cap Injection Wells at 23 per County”

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    Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built

    RINO (Republican In Name Only) Pennsylvania House of Representatives member Chris Quinn, from the Philadelphia area, introduced House Resolution 1034 last Wednesday. The resolution instructs the PA Dept. of Environmental Protection (DEP) and the PA Public Utility Commission (PUC) to prepare a “comprehensive risk assessment of the Mariner East 2 [ME2] Pipeline.” Even though ME2 is 99% built and will soon go online. The resolution, which if passed doesn’t have any practical effect since it’s not a law, is actually an exercise in political derrière covering. What if the DEP and PUC performed such a risk assessment, and what if the report they issued found there are some risks associated with ME2 (as there are will any/all pipeline projects, roads, electric lines, stepping outside your door, etc.)? What then? The pipeline isn’t going away. It’s still going to be used, now that it’s built. Such is how the game is played by political swamp dwellers. Quinn also says he’s about to introduce House Bill (HB) 2609 requiring the state Attorney General to draft a landowner “bill of rights”–issued to landowners who may be subject to eminent domain for pipelines. Can’t wait to see what that bill says…
    Read More “Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built”

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    3 Counties, 5 Drillers Led OH’s 50% Increase in 2Q Gas Production

    The Pareto Principle is alive and well in the Buckeye State. You may know it as the 80/20 rule, or in this case, the 75/25 rule. The rule that states roughly 80% of the results come from 20% of the effort. Last week MDN brought you the latest update from the Ohio Dept. of Natural Resources–their second quarter 2018 report showing all production coming from the Ohio Utica Shale (see Top 25 Producing Gas & Oil Wells in Ohio Utica for 2Q18). While MDN provided you with Top 25 lists showing the best-performing wells (both gas and oil) during 2Q, and while we provided you with a better spreadsheet to view the information than that provided by the ODNR itself, our analysis was basic and high level. Utica natgas production was up a big 42% over the same period last year, and Utica oil production was up 11%–a cumulative 50% increase when you convert it all into equivalents. The experts at S&P Global Platts have done a deep dive into the numbers and have found that three counties represent 75% of all production in 2Q18, and five drillers represent 75% of all production in 2Q18. Which counties and which drillers? Read on…
    Read More “3 Counties, 5 Drillers Led OH’s 50% Increase in 2Q Gas Production”

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    Weird: NC Republicans Target Dem Gov for Supporting M-U Pipeline

    It doesn’t typically happen this way, which makes us feel like we’re Alice that’s just fallen through the looking glass. Normally (not always) Republicans support fracking and pipelines and fossil fuels in general, and Democrats (increasingly) do not. But in North Carolina, the roles are reversed. Republicans in the NC legislature have launched an investigation into Democrat Gov. Roy Cooper over his support of Dominion Energy’s Atlantic Coast Pipeline project. The lawmakers claim a $57.8 million discretionary fund set up by Cooper was, in fact, a “pay to play” slush fund, funded by ACP partners (including Dominion) to help them obtain a permit from the NC Department of Environmental Quality. The allegation is that Cooper got the companies to commit to giving the state $57.8 million, and a day later voila, they had their permit. Quid pro quo. Cooper says the money will be used to repair so-called environmental damage from constructing the pipeline. Republicans say it stinks to high heaven and he needs to “let go” of the money. Seems to us like this is just the latest skirmish in a long-running war between the two sides, and the Atlantic Coast Pipeline project is collateral damage, caught in the middle…
    Read More “Weird: NC Republicans Target Dem Gov for Supporting M-U Pipeline”

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    CEC Interview: 6-9 Mo Delays for New Drilling Permits in PA

    Civil & Environmental Consultants (CEC) is a large engineering firm with offices scattered across the country. We’re not sure which office is “headquarters,” but we know they have a sizable office in Pittsburgh. While CEC provides services to a number of industries, they have been a big part of the Marcellus/Utica since its birth in the 2000s. As the Farmer’s Insurance commercials say, “They know a thing or two because they’ve seen a thing or two.” Which is, of course, an understatement. They know a lot because they’ve seen (and done) a lot–when it comes to the Marcellus. Another large company, law firm Buchanan Ingersoll & Rooney (headquartered in Pittsburgh), recently interviewed CEC Founding Principal and Strategic Development Officer Greg Quatchak for their “Energy Insider” series of interviews. Quatchak talks about CEC and it’s important role (as he should), but woven into the responses to BIR’s questions we learn some important information, like this: It still takes 6-9 months on average for Pennsylvania Dept. of Environmental Protection to issue Marcellus Shale drilling permits. In Texas it takes their counterpart (the Texas Railroad Commission) about a week to issue the same type of permit. Yes, there are important differences between Texas and PA–geography, wetlands, threatened/endangered species, archaeology. And yes, the time to get a permit in PA has improved over the past year or two. But come on, 6-9 months! Here’s an interesting interview of one of the principals in an employee-owned company…
    Read More “CEC Interview: 6-9 Mo Delays for New Drilling Permits in PA”

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    6 Charged with Bypassing Emissions Controls on Marcellus Trucks

    We may not always agree with certain rules and regulations, but skirting or ignoring them is not an option. Especially not in the Marcellus industry. A small group of men (six so far) in Williamsport (Lycoming County), PA are accused of conspiring to illegally alter emission systems on 30+ trucks with heavy-duty diesel engines. The trucks belong to Rockwater Northeast of Canonsburg, a subsidiary of Rockwater Energy Solutions Inc. of Houston, Texas, used to haul fresh water and wastewater to/from Marcellus Shale wells being drilled. The men “tampered with and removed emission monitoring devices on trucks to reduce repair costs and maintenance down time.” Five of the six have already plead guilty, and a sixth was recently charged in the scheme. They all face jail time and stiff fines. Folks, this is not acceptable behavior for our industry…
    Read More “6 Charged with Bypassing Emissions Controls on Marcellus Trucks”