Industrywide Issues

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    Antis Rally Near Philly to Permanently Shut Down ME1/ME2 Pipes

    PA State Sen. Andy Dinniman

    In May, anti-fossil fuel pipeline opponents finally found a single, liberal administrative judge to shut down the Mariner East 1 (ME1) NGL pipeline–a pipeline that’s been operating without any problems for more than a year (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). Sunoco Logistics Partners, the owner of ME1, and the builder of the Mariner East 2 (ME2) Pipeline project, appealed the judge’s decision to the full Public Utility Commission (PUC). A decision about the shutdown (whether to lift is) is due any time. In an attempt to pressure the PUC and Gov. Tom Wolf to *permanently* shut down ME1 and ME2, a group of 150 or so rallied near Philadelphia on Saturday. Something you should know: A total shutdown of ME1 and ME2 is not going to happen. But that doesn’t stop self-deluding nutters from trying. Inevitably the protesters are disappointed. They talk themselves into the fictional fantasy that a pipeline that has been fully permissioned and 98% done (ME2) will simply stop and not be allowed to finish construction and begin operations. They tell themselves they can get a pipeline with a perfect safety record (running for more than a year) permanently shut down. Ain’t gonna happen. But they tell themselves these things, over and over, convincing themselves. People like PA State Sen. Andy “Tony Soprano” Dinniman, recklessly feeds his kook nutbase these fantasies. Totally irresponsible. So they gather, as they did this past weekend, to protest and “demand” that the PUC shut down these projects. What will happen when the full PUC overturns the liberal judge’s biased decision? How will the protesters handle the defeat?…
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    2 Bills Affecting Utica Shale Head to Gov Kasich for Signature

    OH Gov. John Kasich

    A pair of bills recently passed the Ohio State legislature and have gone to Gov. John Kasich’s desk for his signature. Both bills affect companies in the oil and gas space, in particular those drilling in the Utica Shale. One bill, House Bill (HB) 430, tightens up the tax code, what is and what is not allowed as deductions for drilling companies. Ohio state auditors have taken advantage of unclear language to aggressively go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language. They did so back in 2016, but Kasich and Democrats successfully spun the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. Total lie. But Kasich vetoed that bill and it died (see OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers). The bill is back, in a different form, and sent to Kasich for a signature. Will he sign it this time? The second bill, House Bill (HB) 225, addresses the issue of plugging some of the estimated 600 orphan wells in the Buckeye State. HB 225 triples the amount of money set aside to cap orphan wells (money which comes from Ohio’s severance tax, paid for by oil and gas producers). The bill also “creates a more streamlined and efficient process for identifying and plugging” orphan wells. The amazing thing about HB 225 is that both Big Green groups and the drilling industry support it! We predict a quick signature on this one…
    Read More “2 Bills Affecting Utica Shale Head to Gov Kasich for Signature”

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    Leach Xpress Pipeline Explodes in Marshall County, WV

    Click image for larger version

    This is not the kind of news we like to share–but it’s important. A newly installed pipeline–that went online in January–experienced an explosion and huge fireball, in Marshall County, WV. TransCanada’s Leach XPress project–some 160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name), went online January 1st (see Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress). Leach XPress is part of the Columbia Gas Transmission system. From Leach, KY, the gas hitches a ride on TransCanada’s Rayne XPress pipeline to the South and Gulf Coast. A portion of Leach XPress, this brand new, “best-in-class” pipeline (so said TransCanada’s CEO in January), exploded and caught fire at 4:15 am yesterday in Moundsville (Marshall County), WV, sending flames hundreds of feet into the air. Fortunately no one was injured. Some nearby residents fled their homes. Most of the pipeline is now shut down, curtailing 1.3 Bcf/d (out of the 1.5 Bcf/d) of gas volumes “indefinitely.” Here’s what we know (and don’t know) about the accident…
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    Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov

    In April 2016 MDN told you about the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). Apex Power Group at that time said they want to build a large 1,100 megawatt plant in Valley Township–producing enough electricity to power 1 million homes. Apex said construction is targeted to begin in 2018 and the plant will go online in 2020. At the end of December 2017, Apex and joint venture partner Caithness Energy filed a pre-application for the project–and the application showed they no longer want to build an 1,100 megawatt plant, but instead a whopping 1,650 megawatt plant (see Planned OH Utica-Powered Electric Plant Goes from 1,100 to 1,650 MW). That’s the biggest natgas-fired electric plant we’ve heard of so far–anywhere. A record-holder! We spotted an article in the local Daily Jeffersonian (Cambridge, OH) that says Apex is on track to break ground this coming October/November, which is fabulous news, although that time frame is delayed from a previously announced May start…
    Read More “Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov”

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    Lebanon County Judge Rules ME1 is Public Utility, Pump Stn OK

    This story stretches back four years. In November 2014, MDN told you about anti-drillers in Lebanon County, PA who had succumbed to shiny object syndrome and transferred their irrational hatred of fossil fuels from the Williams Atlantic Sunrise pipeline project to the already-in-the-ground but getting repurposed Sunoco Logistics Mariner East 1 pipeline (see New Target for Lebanon, PA Antis: Mariner East Pipeline). As part of converting ME1 from an oil pipeline to flow natural gas liquids, including propane and ethane, from western PA to the Philadelphia area, some 31 pump and valve stations needed to be built–one of them in West Cornwall in Lebanon County. Three local residents and an anti-drilling group called Concerned Citizens of Lebanon County filed an appeal with the zoning board to force the town to rescind permits they granted to allow the pump station. In May 2015, the West Cornwall Township Zoning Hearing Board declared the appeal “moot”–meaning denied (see Antis’ Zoning Appeal re Mariner East Pump Stn in Lebanon “Moot”). The antis decided to throw good money after bad and appealed the matter to Lebanon County Court of Common Pleas (i.e. county court). Finally, after years, the judge in the case backed ME1 over the antis, delivering his decision earlier this week. The judge ruled that ME1 is exempt from certain local zoning restrictions because it is (yes), a “public utility.” Which should not surprise anyone. Just last week the U.S. Supreme Court said the same thing when it refused to hear an eminent domain case for ME2, a different but closely related pipeline (see U.S. Supreme Court Lets Stand Eminent Domain for ME2 Pipeline). Like ME2, ME1 is a public utility. So say all the courts…
    Read More “Lebanon County Judge Rules ME1 is Public Utility, Pump Stn OK”

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    Richmond, VA Police Train to Handle Anti-Pipeline Protests

    A faux religious group calling itself the Interfaith Alliance for Climate Justice (IACJ) is mad that this past Tuesday 27 agencies (many of them police departments) from across the Richmond, VA metro region trained together for a large-scale civil unrest opposing pipelines. Which is totally realistic. The IACJ, a Virginia-based nonprofit 501(c)(3), says it was organized for “supporting resistance to the Mountain Valley Pipeline and Atlantic Coast Pipeline.” Community organizers. Anarchists who refuse to follow the rule of law. That the police in the greater Richmond area are preparing to deal with them is smart. IACJ calls it, “American fascism, state violence, late stage capitalism, state repression.” We call the IACJ not only anti-capitalist, but anti-American. They are the fascists, in the truest sense of the word…
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    Southpointe Event Focuses on M-U NGL Storage Hub

    Yesterday the second annual Appalachian Storage Hub Conference convened at the Hilton Garden Inn Pittsburgh/Southpointe. Topic A (and B and C) was the proposed $10 billion NGL storage hub, which we’ve written about in the past (see our stories here). When you drill for one hydrocarbon, like natural gas (methane), you inevitably get other hydrocarbons coming out of the ground along with it. In southwestern PA, the northern panhandle of WV, and eastern OH, those other hydrocarbons are NGLs–natural gas liquids–including ethane, propane, and butane. NGLs are key to the petrochemical industry. Ethane can be chemically “cracked” to produce ethylene, or raw plastics. Shell is building a $6 billion ethane cracker in Monaca (Beaver County), PA, near Pittsburgh. A second ethane cracker is likely to get built in Belmont County, OH–by PTT Global Chemical. Manufacturing companies then locate near the crackers so they can use the ethylene pellets created by the crackers in their own manufacturing processes. It’s all connected. And right in the center of it, at the nexus, is the ability to store ethane and other NGLs. Without storage, you have to immediately use the NGLs as soon as they are produced. Which doesn’t often happen. There is a mismatch–a delay between the time NGLs are produced and the time they are needed at the plant for cracking/processing. A storage hub addresses that issue and makes everything work. A storage hub is so critical that an entire one-day event was organized to talk about it…
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    Frack Gel Now Made from 4 Grocery Store Products

    The fracking revolution continues to revolutionize itself. Last time we checked, the #1 most visited article on MDN (by far) was this one, from 2010: List of 78 Chemicals Used in Hydraulic Fracturing Fluid in Pennsylvania. A LOT has changed since 2010. Fracking chemicals have become more “green” in recent years. Antis claim fracking uses “dangerous” chemicals in large quantities. How about this? Nowadays, fracking gel can be made from four items you can pick up at the local grocery store: guar gum, milk of magnesia, Visine original eye drops, and distilled white vinegar. That’s it! We’ve come a long way since 2010…
    Read More “Frack Gel Now Made from 4 Grocery Store Products”

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    PA Democrats Float Free College – Paid for by Marcellus Tax

    PA State Sen. Vincent Hughes

    Another mind-blowingly dumb Socialist/Communist plan is being floated by Democrats in PA (what’s new?). PA Dem state legislators yesterday announced new bills that would give families living in PA the right to send their kids to one of PA’s 14 state-run colleges for free–lock, stock and barrel. Free tuition. Free room and board. Free condoms. Free everything. IF the family makes less than $48,000 per year. Families making between $48,000-$110,000 per year get free tuition and fees only (they have to pay for Junior and Missy’s room and board). The “free” plan, according to Philadelphia area State Sen. Vincent Hughes, would cost around $800 million–and he thinks the Marcellus Shale industry should pay for it. That’s Hughes’ answer for everything–just tax the Marcellus industry. But Hughes has a little problem–he’s already promised Marcellus severance tax revenue to Philadelphia teachers’ unions–unions from which he has received $635,000 in campaign contributions (see PA Dem Senator from Philly Intros Bill to Steal Marcellus Money). In the unlikely event a severance tax is enacted in PA, it certainly won’t be enough to fund both K-12 education and pay for “free” college. How about this Sen. Hughes: We think the money for free college should come from taxes on government-paid workers instead. People like YOU. Why don’t we use YOUR money to pay for this “wonderful” plan?…
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    PA DEP Releasing Onerous New GP-5 & 5A Methane Regs June 8

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) issued “draft final language” for the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5)–regulations that supposedly will cut down on fugitive methane from escaping from drill pads and pipelines (see PA DEP Signals Onerous New GP-5 & 5A Methane Regs Coming 1Q18). The onerous regulations, which for now only apply to *new* sources (not existing) were originally prompted by bullying from the Obama Environmental Protection Agency. Even though EPA pressure disappeared under President Trump, PA Gov. Wolf is still pushing these onerous new regs. GP-5 applies to pipelines and compressor stations, while GP-5A applies to well pads and drilling. Following a flood of comments, the DEP tweaked the onerous regs yet again (for the third or fourth time), and in late March published yet another revised final final final final final version of the regs (see PA DEP Releases Draft Final GP-5 & 5A Methane Regulations). The DEP just announced they will issue the final final final final version of the revised regs on June 8, and two months later, on August 8, the new rules will officially go into effect–unless they delay it again…
    Read More “PA DEP Releasing Onerous New GP-5 & 5A Methane Regs June 8”

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    Quebec to Ban Utica Shale Drilling, Most Other Drilling Too

    It seems the Canadian province of Quebec has decided to ban pretty much all oil and gas drilling, which is a good news/bad news thing. The good news is that Quebec will have to import their hydrocarbons from other places–namely the Marcellus/Utica. The bad news is for Questerre, a Canadian driller who has patiently waited for years to begin drilling on their extensive Utica acreage in the St. Lawrence Lowlands of Quebec. Questerre thought they would begin drilling this year (see Questerre Plans 8 Initial Well Pads in Canadian Utica 2018-2019). Instead, Questerre is now hosed. In addition to a total frack ban, Quebec is instituting a “no drill zone” for conventional (non-shale) drilling of 1 kilometre (.62 miles) from municipalities, 300 metres (984 feet) from private residences, 550 metres (1,804 feet) from schools, hospitals or public buildings, and 200 metres (656 feet) from “ecotourism” sites. In other words, all drilling of any kind will be pretty much banned pretty much everywhere. Quebec is following in the footsteps of New York, where the hydrocarbon industry has been decimated by Gov. Andrew Cuomo. It’s a sad day for our Canadian cousins in Quebec…
    Read More “Quebec to Ban Utica Shale Drilling, Most Other Drilling Too”

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    NG Advantage’s Virtual Pipe Comes to the Rescue in Downstate NY

    NG Advantage, the pioneer in “virtual pipeline” trucked CNG service, majority-owned by Clean Energy Fuels, tried to build a compressor station/trucking hub in a Binghamton, NY suburb, but that effort failed earlier this year due to local opposition (see NG Advantage Virtual Pipeline Project Near Binghamton is Dead). We’re sure the entire situation left a sour taste in NG’s mouth. Even so, this past winter NG didn’t turn its back on New York State, much to their credit. National Grid, one of the largest investor-owned energy companies in the world (covering Massachusetts, New York, Rhode Island and the UK), had a problem in Long Island during the winter months. As temps got super low, National Grid needed more natural gas to meet the spike in demand from customers. NY is pipeline-phobic, so what could National Grid do? They turned to NG Advantage and NG rose to the occasion, trucking CNG (compressed natural gas) from facilities in Massachusetts and Vermont to Long Island, helping supply National Grid customers in the Empire State. Here’s the story of a company that didn’t turn its back on NY…
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    Democrat FERC Commissioner Seeks to Block PennEast Pipe

    FERC Commissioner Richard Glick

    In January, the Federal Energy Regulatory Commission (FERC) voted 4-1 to approve the $1 billion, 120-mile PennEast Pipeline project that will stretch from northeast PA to the Trenton area of New Jersey (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). Democrat FERC Commissioner Richard Glick (wind lobbyist, hand-picked by hyper-partisan NY Sen. Chuck Schumer), voted against approving the project. A number of Big Green groups filed a request for a “rehearing” of FERC’s decision to approve PennEast. FERC used a “tolling order,” which gives them longer than the statutory 30 days to respond, to play out the rehearing request. The use of tolling orders is the only way to get projects built these days. FERC has to play the game–put off saying “no” to these anti groups, because as soon as they tell them “no” to a rehearing request, antis then run to the courts and try to block the project there. Glick is siding with antis. He issued a statement last week once again trash-talking PennEast, and demanding FERC answer the groups rehearing request pronto so they can hurry like a bunny to the nearest Appeals court to try to stop PennEast…
    Read More “Democrat FERC Commissioner Seeks to Block PennEast Pipe”

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    Cove Point LNG Shutting Down for Maintenance This Fall

    Cove Point LNG, built by Dominion Energy, began exporting Marcellus Shale gas in April (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). Even though it’s only been up and running for about two months, there’s already talk of shutting Cove Point down. You may recall that two countries have contracted for all of the exported LNG coming from Cove Point: India and Japan (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). Dominion Energy CEO Tom Farrell is currently visiting Japan to commemorate the first two shipments of Marcellus LNG arriving there. Yesterday Farrell shared that although Cove Point is doing just fine, the plant will undergo “brief maintenance” of “a few weeks” in the autumn. Scheduled downtime. Does that mean LNG will quit flowing out of the facility each day? According to Farrell, it “depends” on how full the storage tanks are ahead of the planned downtime…
    Read More “Cove Point LNG Shutting Down for Maintenance This Fall”

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    WVU to Research Fracking Effects on Cardiovascular Health

    Building and operating a fracking site can emit some airborne particles. But scientists don’t fully understand how many, and how these particles may impact human health. Do drilling operations for unconventional wells emit a lot or a little in the way of particles? And do those particles affect human health? Travis Knuckles, assistant professor at the West Virginia University School of Public Health, has received $450,000 from the National Institutes of Health to investigate these questions. Knuckles will attempt to answer the question, Does fracking impact cardiovascular health–for workers and for those living nearby? We applaud real research efforts like this one…
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    PIOGA Consultant Remarks (Mis)Used to Promote 250% Shale Fee Hike

    We spotted a rather strange story (for us) on a major energy news service (Platts) that says, in so many words, that “the industry” says hiking the permit fee to drill a new Marcellus well in Pennsylvania by 250%–to $12,500–is no big deal. Which made our eyebrows go up. According to a long-time regulatory consultant for the Pennsylvania Independent Oil & Gas Association (PIOGA) quoted by Platts, “I don’t think it’s [the 250% fee hike] going to make or break people’s decisions” as to whether or not to drill. Hmmm. That’s not the feedback we’ve heard others, like the Marcellus Shale Coalition, say on the record. The same article quotes PIOGA President Dan Weaver saying, “We haven’t developed an official statement, but we definitely don’t agree with it [the fee hike]. We feel that we pay enough fees as it is.” So what’s going on here? Does the industry, as represented by PIOGA, think this fee hike is nuts (as we do)? Or does PIOGA think the fee hike is okey dokey? We contacted Dan to ask about the consultant’s comments and got an interesting response…
    Read More “PIOGA Consultant Remarks (Mis)Used to Promote 250% Shale Fee Hike”