Industrywide Issues

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    Forced Rolling Blackouts Come to California – Lack of NatGas

    Although this story concerns California, it is a preview of what’s coming to New England. Because of ongoing record-high heat in Cali, the Los Angeles Department of Water and Power (DWP) is telling residents to either “voluntarily” stop using electricity, or DWP is going to cut electricity to different communities on a rolling blackout basis. The cancer of anti-fossil fuel hatred has more fully metastasized in Cali than elsewhere in the country, and therefore Cali is an instructive case study. California, if it were it’s own country (now there’s a thought!), would be the fifth-largest economy in the world–larger than the United Kingdom, India and Brazil. Cali is the third largest consumer of gasoline and diesel on the planet, behind only China and the United States. And yet Cali persists in blocking new gas-fired electric plants, blocking pipelines, and shutting down existing oil and gas drilling. They are, in a word, insane. And now their insanity is on display for the world to see. Because of the heat wave and lack of natural gas supplies, natgas prices in Cali have zoomed to nearly $40/Mcf (thousand cubic feet). Residents now face either “voluntary” reduction in electric use–or forced blackouts. We take no pleasure (well, maybe a little pleasure) in saying Cali is reaping what it has sown…
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    Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August

    Last week MDN brought you the exciting news that Williams says their $3 billion Atlantic Sunrise Pipeline that runs through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County will go online in August (see Williams: Atlantic Sunrise Pipeline Going Online in August). We have no reason to doubt Williams. After all, if they make an announcement like that and then don’t live up to it, there will be PR hell to pay. It’s in their own best interests to tell the truth about these things. Then again, deadlines have been known to slip and companies always like to put the best possible spin on company news–in an effort to boost the stock price for investors. So perhaps it’s good to have an independent, third party come along from time to time to verify claims like those of Williams and Atlantic Sunrise. But how in the world can you verify a claim that a pipeline is almost done and will go online in the next month or so? By using drones and/or airplanes to fly over the entire length of the project, that’s how. And that’s what Genscape, an analytics and real-time data company has done. Their conclusion? Williams is telling the truth–Atlantic Sunrise WILL go online sometime in August…
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    Huge Pieces of Hickory Run Power Plant Arrive in Port of Erie

    Calypso Sal – the ship delivering Hickory Run parts at Port of Erie

    In February 2013 MDN told you about a plan to build the Hickory Run Energy Center–a $750 million electric generating plant at a former manufacturing site in New Castle (Lawrence County), PA (see NW PA Town Approves Site for Marcellus-powered Electric Plant). Original plans called for Hickory Run to be online and operating sometime in 2016. That never happened and the project seemed to have died. But then the project got sold by LS Power, the original owner, to a subsidiary of Japan’s second largest corporation, ITOCHU Corporation. And new life was breathed into the project. The initial design called for a 900 megawatt facility, powered by Marcellus gas. More recent plans indicate the facility will be 1,000 megawatts (or 1 gigawatt), enough electricity to power 1 million homes! Ground was broken for Hickory Run last year (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). Fast forward to this year. A massive load of components for the plant arrived by ship at the Port of Erie on Sunday. It is by far the largest ship to dock at the port in the last five years. Aboard the ship are more than 13 million tons of components and parts destined for the plant. Special permits and trucks will be required to get the equipment on location some 100 miles away in New Castle…
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    Speaker Didn’t Tell Middletown Pipe Antis What They Wanted to Hear

    Anti fossil fuel radicals continue to try and stir up opposition to the Mariner East 2 (ME2) pipeline project near Philadelphia. Local supervisors in Middletown (Delaware County, PA) walk a tightrope between a desire to protect area residents and anti groups fomenting irrational fears. The Board of Supervisors hired a consultant to advise them on potential safety issues with ME1 & 2. Monday night the supervisors held a public meeting to allow residents to hear from and ask questions of the consultant. The consultant, to his credit, maintained his objectivity. He’s not for or against pipelines–he’s looking at safety issues and discussing realistic scenarios. His responses to some of the questions were not what antis in the crowd wanted to hear. They wanted him to feed their fear-mongering (and false) beliefs. The consultant refused to do so. We found one bit of news from the session highly instructive. There is an anti group calling itself Middletown Coalition for Public Safety. The group presents itself as a “nonpartisan grassroots group of parents and residents whose goal is to educate elected officials and the public regarding the risks associated with the proposed Mariner East 2 pipeline.” It is the exact opposite. Rabidly partisan (Democrat). And not composed of residents. The people who belong to the group, at least its leaders, aren’t from Middletown! At the Monday meeting one of their members, Eric Friedman, was not allowed to question the consultant because he doesn’t live in Middletown. What does that tell you about how these “grassroots” groups are operated and funded?…
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    Nelson County, VA Refuses to Sell Water to Atlantic Coast Pipe

    Talk about obtuse–about cutting off your nose to spite your face. The dunderheads at the Nelson County Service Authority have just voted to turn down $3.5 million of revenue from Dominion Energy’s Atlantic Coast Pipeline (ACP) over the next two years. ACP wanted to buy water from the authority to use in underground horizontal directional drilling for the pipeline as it passes through the region. ACP would have paid half a million dollars for a hookup fee and a rate of 10 cents a gallon for the water. The five dunderheads on the board–three of them brand new in the past month–offered up all sorts of excuses to cover the fact they simply don’t want the pipeline. They don’t want to be seen “supporting” it. Makes for uncomfortable conversations at the local Five & Dime. Frankly, it doesn’t matter. ACP has said they already have an alternative source for the water and will simply truck it in. Congratulations to the Service Authority Board–you just made your community less safe and poorer. Less safe because now water truck after water truck will clog up the highways (running the risk of accidents), and poorer because you turned down $3.5 million you could have used to give a break in water fees to county residents…
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    Nova Scotia LNG Export Project Signs Agreement with Labor Unions

    MDN has tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, called Bear Head LNG, for the past several years (see our Bear Head LNG stories here). Of all the Canadian LNG export projects, Bear Head appears to have the most momentum. The project has received most of the necessary permits it needs to proceed. An official from the project says it is “shovel-ready” and can begin at any time. However, they aren’t ready to begin just yet. The reason we track the project is because the most probable source of natural gas to feed the plant would come from the Marcellus Shale via the Maritimes & Northeast pipeline, converted to be bidirectional (see FERC Approves Atlantic Bridge Project for New England/Canada). For the first time in nearly a year, we have some new news to report on Bear Head. LNG Limited, the company behind Bear Head, announced this morning it has signed a Memorandum of Agreement (MOA) with two labor union groups to supply skilled workers to build the plant–when it gets built. While a timeline is not given, the announcement says Bear Head will need “several hundred workers” over “the next several years” to build the facility. Which we take as a positive sign that this project is close to starting…
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    FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving

    Our sadness that Federal Energy Regulatory Commission (FERC) Commissioner Rob Powelson is leaving is quickly turning to anger–against Powelson. In June we told you that Powelson will be leaving FERC in mid-August (see Sad News: FERC’s Rob Powelson (from PA) Resigns Effective August). Powelson has been a breath of fresh air and a strong proponent for pipelines. He’s a former utility regulator from Pennsylvania. Smart guy. Nice guy. And now, a selfish guy. It’s predictable and unsurprising that the two Democrats on FERC have sold out to radical elements in their own party and now vote against every new pipeline project that comes along, using mythical man-made global warming as the excuse. With Powleson leaving in August, gridlock will ensue. It’s easy to predict a a string of 2-2 decisions coming, which means important projects will not get approved in a timely manner. Powelson is leaving to further his own career. While we can appreciate that, we think there’s a higher calling for Powelson–to stick around and ensure important projects are not delayed by gridlock. Powelson needs to “take one for the team” and put his own ambitions aside for another year or two. If a string of important pipeline projects are delayed because Powelson leaves, he won’t be remembered fondly. “But,” you may ask, “won’t President Trump just quickly replace him?” “Quickly” is the operative word there. The rumor mill is already in overdrive on who Powelson’s replacement will be. However, most experts who watch this space are predicting the earliest Trump will be able to get someone seated at FERC will be in early 2019. And maybe longer. Meanwhile, important pipeline projects will be in limbo. And that makes us grumpy with Mr. Powelson…
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    Green Groups Push Fossil Fuel Divestment but Invest in Oil & Gas

    If this doesn’t beat all. In an explosive expose from NBC News (yes, NBC News), some of the biggest names in the Big Green movement, including some in the Marcellus/Utica region, are secretly investing in oil and gas companies while at the same time demanding that banks, investment firms, pension funds, state governments and others divest from the same companies they invest in! In one case, the tax-exempt William Penn Foundation, which backs rabid anti-fossil fuel/divestment groups like THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council, actually invests in (yes) oil and gas companies. The profits from William Penn’s fossil fuel investments are then used to fund groups attacking fossil fuel companies. Mind boggling. It’s yet another case of “do what I say, not what I do” when it comes to the left in this country. We’re just amazed that NBC (a big fake news organization) actually reported it…
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    Ohio EPA Takes One More Swipe at Rover Pipe with FERC Notice

    Craig Butler (aka Captain Ahab) has risen up with the Ohio EPA (aka harpoon) one last time to see if he can skewer his great white whale, the Rover Pipeline (aka Moby Dick). According to Energy Transfer Partners, builder of Rover, the Ohio EPA, which Butler heads, has filed a Notice of Violation with the Federal Energy Regulatory Commission as a backdoor attempt to prevent the final segments of the pipeline from going online. ET says the NOV is baseless. An ongoing delay in blocking several Rover lateral segments from going into service is causing economic harm to ET’s customers (and to ET). This isn’t the first, nor even second time Butler and OEPA have gone after Rover. It’s the upteenth time (see our Butler/Rover stories here). What’s the baseless charge this time? OEPA says Rover disposed of “spent” drilling mud containing low levels of the chemical solvent tetrachloroethene (PCE) without approval. Rover has fired back at OEPA in a letter to FERC, accusing OPEA of recycling the PCE issue after it had already been investigated and addressed…
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    FERC Approves Pipeline Under the Potomac River from Md. to WV

    Anti-fossil fuel nutters are on a holy mission to stop a 3.5-mile, 8-inch pipeline from being built under the Potomac River by Columbia Gas, from Maryland to West Virginia (see Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”). The pipeline will be built to feed a larger pipeline project from Mountaineer Gas called the Eastern Panhandle Expansion–a pipeline to deliver Marcellus/Utica natural gas via local distribution channels to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. Mountaineer began building their project in March (see Mountaineer Gas Begins Work on Morgan County, WV Pipeline). We also reported that in March the Maryland Dept. of the Environment had approved the “Potomac pipeline” project, as it’s called by antis. Here’s the inconvenient truth that mainstream news organizations fail to report: This tiny 3.5-mile pipeline will be Columbia’s 13th pipeline under the Potomac! Yet antis insist THIS is the one pipeline that will explode and contaminate the Potomac and make the water flowing down the muddy Potomac undrinkable for millions. Total BS. Here’s the new (and good) news about the Potomac pipeline: Last week the Federal Energy Regulatory Commission (FERC) approved it, so it’s now a done deal and will definitely get built. But FERC was split in its approval, with the Democrats (predictably) citing mythical man-made global warming as a reason to deny it…
    Read More “FERC Approves Pipeline Under the Potomac River from Md. to WV”

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    Do Property Values Along Pipeline Routes Go Down? Not in WV

    One of the oft-repeated canards by antis is that having a drill pad near you, or a pipeline crossing your property, will devalue (lower the value) of your property’s assessment and worth. If you want to sell the property you won’t get as much for it–if you can sell it at all. Who wants to live near a big, ugly drill site, or have an “explosive” pipeline running near the house? Except you can’t even see a drill pad from more than a few hundred feet away after the wells are drilled, and when the pipeline is in the ground and replanted over the top of it–you don’t see or even think about it. Let’s take the later case, of pipelines. Is there evidence that when a pipeline passes through your property, the value goes down? According to property assessors in West Virginia, the answer is “no.” At least not in the short term. Longer term, they say, will have to be watched. IF there are more incidents like the landslide that caused the Leach XPress pipeline to explode, maybe there will be an impact on assessments. But then, if you live in an area where there are frequent landslides, you have bigger valuation problems than a pipeline running through it…
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    Marcellus-Fired Panda Hummel PA Power Plant Now “Complete”

    It takes a long time to build a natural gas-fired electric power plant–especially a big one. We began writing about one of the largest coal-to-gas conversion projects in the country, happening in the heart of PA Marcellus country, back in February 2014 (see Panda Power Building 3rd Marcellus-Fired Electric Plant in PA). Panda Power Funds, a private equity firm located in Dallas, TX announced a partnership with Sunbury Generation to build a whopping 1,124-megawatt Marcellus gas-fired electric plant on the site of a retired coal-fired plant near Shamokin Dam in Snyder County, PA. In early April final testing was underway at the facility, and it was supposed to go online in May (see Marcellus-Fired Panda Hummel Electric Plant Roars to Life in PA). Did it actually go online in May? We don’t know and we don’t spot any stories announcing it as online. However, the main contractor building the project, Bechtel, issued a press release last week to announced that the Hummel Station Power Plant is now “completed.” Done. Finished. We suspect that also means it’s now online. The newly minted plant will provide enough electricity to power more than 1 million homes, using Marcellus gas…
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    Lordstown 2nd Gas-Fired Plant in Jeopardy from Trump Policy

    The outspoken Bill Siderewicz, builder of a string of gas-fired electric generating plants in Ohio and elsewhere, is (surprise!) speaking out. Siderewicz, president of Boston-based Clean Energy Future, is the builder of the Lordstown Energy Center in Trumbull County, a project begun in 2016 and now nearing completion (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). The plant will generate 940 megawatts of electricity when it goes online. In addition to the Lordstown plant, Siderewicz has plans to build a second plant right next to the first. Except maybe now it won’t get built. President Trump’s Dept. of Energy, under Secretary Rick Perry, is hellbent on devising a scheme to “protect” coal-fired and nuclear electric generating plants–in the name of grid resiliency and national security. It’s bogus. We’ve previously written that we do not support it. Neither does Siderewicz. He calls Trump’s energy policy “un-American,” and said, “Everyone [who] has an IQ of more than 25 is upset about this.” Ouch. Tell us what you really think, Bill! The reason he’s upset: If you make the electricity market noncompetitive by favoring certain types of energy sources, there are consequences. Plants like the second Lordstown Energy Center, and the close-to-one billion dollars it takes to build it (and the tax revenues that flow from it) won’t materialize. If you favor coal and nukes, making their more expensive form of electricity artificially cheaper (by using government subsidies), then those who compete freely, like Siderewicz, can no longer compete. The markets are not truly free. And people like Siderewicz decide to not build these important projects…
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    WV Driller Northeast Natural Energy Grows – Fracking Petri Dish

    Northeast Natural Energy (NNE) is a small-to-midsized driller headquartered in Morgantown, WV. It’s a young company, drilling its first shale well in 2013. In April 2017 MDN reported that NNE had obtained $300 million of investment from two investment firms (see WV Driller Northeast Natural Energy Gets $300M Investment). They’ve put the money to good use. NNE owns 56,000 acres of leases “in the heart of the Marcellus Fairway,” with 44,000 acres in WV and 12,000 acres in southwestern PA. The company has drilled and brought online 57 shale wells. By this time next year the company expects that number to be nearly 100. One of the most interesting things about NNE is its involvement with government and university researchers. NNE drilled several test shale wells near Morgantown. The wells are part of an ongoing laboratory experiment that measures and pokes and prods everything, in an effort to learn more about shale drilling and its impacts. NNE’s test wells are a sort of living fracking petri dish. Reams of data pour in and get analyzed. Our friends at Kallanish Energy have done a deep dive into NNE. Here is a portion of their insightful report on this young and growing driller…
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    PA’s Largest Gas-Fired Electric Plant near Scranton Partially Online

    Lackawanna Energy Center – click for larger version

    It’s been some time since we’ve checked in on Invenergy’s massive Lackawanna Energy Center, a 1,480 megawatt plant under construction in Jessup, PA (near Scranton). The project will cost “well over $1 billion” according to an exclusive MDN source working on the project. 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 good news is that the first train/unit is done and has been 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). Cabot Oil & Gas is supplying all of the gas for the plant from neighboring Susquehanna County. The second unit is in the process of going online now, and the third will be online in September. According to Invenergy, the plant is on time and under budget. Here’s more on this exciting new customer for a huge quantity of northeastern PA Marcellus gas…
    Read More “PA’s Largest Gas-Fired Electric Plant near Scranton Partially Online”

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    PA DEP Quietly Releases Air Quality Study, No Impacts from Fracking

    In July 2012, the PA Department of Environmental Protection (DEP) announced a one-year study that will look at impacts on air quality from Marcellus drilling and the infrastructure (pipelines and compressor plants) that comes with shale gas drilling (see PA DEP Announces 1 Year Study on Air Quality in Marcellus). The study focued on Washington County in western PA, primarily in and around Chartiers Township, home of a gas processing plant. Exactly six years later the results of that “one-year” study were released by the DEP–with no comment or fanfare. With no nothing. A reporter with the Pittsburgh Post-Gazette noticed the unannounced release on the DEP website. We have a copy of the study/results below. What did it find? In a word–nothing. According to the Post-Gazette, the study found “limited impacts to the air quality around the sites it examined and little risk of healthy residents getting sick from breathing the air nearby.” Which explains why there’s been no fanfare, no calling attention to it. You would think the DEP would want to blow the trumpet about the results of an activity that thousands of state residents are located near. But it’s an election year, and Tom Wolf doesn’t want to rile up his fruitcake environmental base. Here’s more on the report nobody is talking about…
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