Industrywide Issues

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    Va. State Senator Suing Forest Service for Blocking Illegal Protests

    There is nothing mysterious or complex about the actions taken by a Virginia State Senator, Chap Petersen (Democrat from the swamp, the D.C. area). Petersen is a lawyer and has just sued the U.S. Forest Service because the Forest Service is blocking a road in the Jefferson National Forest, which is their RIGHT to do (they manage it), because down that gravel road are several ILLEGAL TRESPASSERS who refuse to come down from trees that need to be cut down to make way for the federally-approved Mountain Valley Pipeline. There’s nothing complex in understanding that Petersen (did we mention he’s a Democrat?) supports lawlessness and anarchy. Imagine that, a lawmaker who supports people that break the laws he makes. How idiotic is that? Here’s the story of how Virginia Dems in high places continue to flout the laws of our country in their quest to retain political power (and contributions) by currying favor with radical Big Green supporters…
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    Another Look at “Rule of Capture” Case that Threatens PA Marcellus

    MDN brought you important news in April that the Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see PA Superior Court Overturns “Rule of Capture” for Marcellus Well and PA “Rule of Capture” Case has Power to Limit Marcellus Drilling). The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the “rule of capture” when it comes to shale drilling and fracking. It opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas. Southwestern successfully argued in a lower court that the odd crack here and there that may slip under a neighbor’s property is permissible. The landowner appealed to Superior Court and three judges heard the case. Southwestern, following the decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case (see Southwestern Appeals “Trespass” Case to Entire PA Superior Court). No word yet on whether the Superiors will do it. In the meantime, we spotted an article by the ace lawyers at the Blank Rome law firm discussing the case and its implications. We can’t stress enough just how critical this case is to the future of drilling in Pennsylvania, which is why we bring you the following…
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    Americans Being Duped by Russians into Opposing Pipelines

    This story should make every patriotic American good and angry–at how Russia continues to try to defeat the American shale miracle (for Russia’s own selfish economic reasons). And it should make anti-fossil fuelers ashamed at how easily they’re played (and how stupid they really are), to fall for the propaganda campaigns run by Russia against American shale energy. An article recently appearing on the McClatchy news service exposes how Russian operatives, using false identities on Twitter and other social media platforms, convinced a handful of stupid anti-fossil fuelers in Miami to turn up at a fake rally, and then a Russian television network swooped in to film it, circulating that footage, convincing even more antis to organize and rise up against the Sabal Trail pipeline. It was a resistance movement generated whole cloth from nothing by Russia. All in an effort to get the pipeline shut down. Which may now happen! Bottom line: a bunch of stupid American antis allowed themselves to be played by Russians against their own country. Russian money also pours into groups like the Sierra Club via offshore accounts. The Sierra Club turns around and uses that money to oppose American infrastructure projects in the oil and gas industry. Call Robert Mueller! Somebody needs to investigate!…
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    PTT Buys Another 300+ Acres for Belmont County, OH Cracker

    In yet another very good sign that the proposed PTT Global Chemical ethane cracker plant in Belmont County, OH is headed for a positive final investment decision (FID), PTT has just purchased another 300+ acres to go along with the previous acreage they purchased as the site for the future cracker/petrochemical project. Last July MDN reported PTT had spent $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). That site, the former R.E. Burger power plant property (owned by FirstEnergy Corp.), is the primary location for the proposed cracker. However, more land is needed. A deed filed earlier this week shows that PTT has purchased another 300+ acres for $17.5 million from the Ohio-West Virginia Excavating company. Together, both parcels are roughly 500 acres, which is more than enough land for the facility. Until now numbers like $6.5 billion have been thrown around as the total project cost. The number has now gone up–to as much as $10 billion! Here’s the latest good news that it’s looking better and better for a second ethane cracker in Appalachia…
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    FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29

    Click for larger version

    Last October MDN brought you details about the proposed $86 million 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 installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period, a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). We have an update on the project. On Tuesday, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th. Both the U.S. Army Corps of Engineers and the Pennsylvania Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project…
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    New Bills Limit PA DEP Permit Appeals, Reduce Enviro Judge Terms

    As we reported yesterday, Big Green radicals in Pennsylvania are grumpy that the PA House passed five bills meant to fix the dysfunctional PA Dept. of Environmental Protection (see PA House Passes 5 Bills to Fix Broken DEP, Environuts React). Conservative Republicans in the House continue to play offense (which we love). On Monday of this week, PA Sen. Camera Bartolotta (R-Washington) sent around a memo to fellow House members asking them to co-sponsor two new bills she plans introduce. The first bill will narrow the grounds on which a DEP-issued permit may be appealed. Antis love to file endless appeals of permits for drilling and pipelines, dragging out the process in hopes of eventually defeating a given project. The first bill will fix that. The second bill reduces the terms of sitting Environmental Hearing Board judges. If a judge has been on the bench for 10 or more years, their term will expire and they will not get a chance to continue. The second bill is aimed at draining the EHB swamp (pun intended). Both bills are common sense measures, and of course, Big Green radicals are already howling at the moon because of them…
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    Antis Weaponize PA Enviro Rights Amendment in Effort to Kill Shale

    AR-15 rifle

    The Pennsylvania Environmental Rights Amendment (ERA), passed by the good citizens of PA in 1971, is a poorly worded piece of legislation with good intentions, adopted in a hurry in response to a disaster. Like all legislation that’s hurried and adopted in response to disasters (natural or man-made), the ERA is deeply flawed. Antis are now using the ERA as a bludgeon–perhaps a better analogy is more like an AR-15 semi-automatic rifle–in their attempt to assassinate the Marcellus Shale industry. Unfortunately, they are having some success in the PA court system. The ERA laid dormant after its adoption until an awful PA Supreme Court decision in 2013 breathed new life into it for antis (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). Since that time, antis have sued drillers and pipeline companies a number of times, citing the ERA, and in some cases winning (see PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev). Emboldened by these wins, “Article 1, Section 27” as the ERA is known, is being employed in more places, even (especially) outside the court room…
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    Home Rule Chaos Reigns in NY – Towns Vote to Block Wind, Solar

    In June 2014, New York’s highest court, the Court of Appeals, reaffirmed two lower court rulings that empowers townships and municipalities across the state to strip away property owners’ rights to allow drilling and other energy projects (see Shale Drilling in NY is Over – High Court Upholds Town Bans). NY’s high court ruled in the “Middlefield” and “Dryden” cases that local municipalities have the right to regulate energy development within their jurisdictions–where it can and cannot happen. The seeds planted with the “Dryden” and “Middlefield” cases has sprouted and is now in full bloom–like spring daffodils. So-called “renewable” energy projects are now being blocked using the very same decisions meant to block natural gas drilling–delicious irony that puts a big, fat smile on our face. On the other hand, it points out the truly horrific consequences by NY’s highest court in allowing each community to, in effect, regulate energy production. It is utter folly and lunacy. Welcome to New York…
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    Study: The Closer People Live to Fracking, the More They Like It!

    You might think people who are not leased and live close to shale drilling activity, that is, those with the most “impacts” from that activity, would be the ones most opposed to it. However, you would be wrong. That’s according to a new study just published by the ultra liberal Oregon State University. A study appearing in monthly peer reviewed academic journal Risk Analysis titled, “The Effect of Geographic Proximity to Unconventional Oil and Gas Development on Public Support for Hydraulic Fracturing,” finds that the closer you live to shale drilling, even those who are not leased, the more supportive of it they are. Why is that? Because they understand it–they’re more familiar with it. MDN has spoken to residents in Susquehanna County, PA who live close to drilling yet are not, themselves, drilled on/under. Their opinion? Sure they’d like it if they got money. After all, they incur the impacts (trucks, noise, lights, dust), but don’t directly benefit with money in their pockets. Yet, when asked if they had a choice and could wave a magic wand so there never would have been drilling, the answer is swift and universal: NO! They still prefer nearby drilling, because it benefits their neighbors and, to some degree, the community at large via tax revenue and charitable contributions. Here’s news of a study that proves the closer you are to drilling, the more you like it…
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    FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done

    An order from the Federal Energy Regulatory Commission (FERC) issued yesterday allows Energy Transfer (ET) to begin full operations along the North Market Segment of the Rover Pipeline–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. On April 13 ET asked FERC for permission to start up service along another major chunk of it’s massive Rover Pipeline (see Rover Pipe Asks FERC for OK to Open New Segments in OH, MI). ET eagerly wants to begin service along a 100-mile segment of Rover in northwest Ohio on into Michigan. FERC has been approving ET’s April 13th request in dribs and drabs. With yesterday’s approval, the entire length of the Rover pipeline is now substantially operational. There are still a few places not yet in service, but ET says they are on track to have the project 100% operational by the end of June. When fully operational, Rover will flow 3.25 billion cubic feet per day (Bcf/d) of Marcellus/Utica gas, some it going all the way to the Dawn Hub in Ontario, Canada. Currently Rover is capable of flowing 1.7 Bcf/d. With this new addition, we expect that number will jump considerably…
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    PA House Passes 5 Bills to Fix Broken DEP, Environuts React

    In March the Pennsylvania House State Government Committee debated and voted to approve a slate of five bills aimed at fixing not only the slowmo way the state Dept. of Environmental Protection (DEP) approves shale permits, but also roll back some of the egregious regulatory overreach that now exists in PA (see PA House Committee Approves 5 “Fix DEP” Bills – What’s Next?). The vote to report the bills out of committee was along party lines, with zero liberal Democrats voting in favor of fixing the DEP. In a move that has alarmed and angered Big Green and its supporters, all five bills were voted on by the full House yesterday–and all five passed! Once again, not a single Democrat voted to fix the DEP. What happens now?…
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    WV’s Thrasher Says Tariffs “Shouldn’t” Derail China Shale Investment

    West Virginia Secretary of Commerce, Woody Thrasher, once again addressed the issue of an ongoing trade war with China at yesterday’s West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park. Last November Thrasher signed a memorandum of understanding with the Chinese government, an agreement in which the Chinese pledged to spend $83.7 billion over the next 20 years in WV’s shale and petrochemical sectors (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). So far, six months later, not one red yuan has been invested. And since that time, a trade war has erupted. President Trump told a number of countries, including China, that the U.S. has had enough of being screwed over in trade deals. It’s time to emphasize “fair” instead of “free” when it comes to trade. China (and other countries) have a history of “dumping” steel in our country–selling it at far below the cost of producing it. Such practices result in our steel companies closing their doors, sometimes permanently. Later on, when a country has the market cornered, the price goes up. Trump recently slapped China with a 25% steel tariff and 10% aluminum tariff. China isn’t happy. The question becomes: Will China use their promised $83.7 billion investment in WV as a bargaining chip in the trade war? Will China slow, or even cancel, their investments in WV’s shale industry? Back in April Thrasher, at another industry event, said he doesn’t think so (see WV’s Thrasher “Hopeful” First Chinese Project Announcement Soon). At yesterday’s WVONGA event, Thrasher reiterated that he believes there will be a flurry of announcements “soon” about the first projects China will invest in, and that China will not cancel their promised WV investments…
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    Dominion Energy 1Q18: Important Updates on Key Projects

    Late last week Dominion Energy issued its first quarter 2018 financial and operational update. Dominion is not only a large utility company (electric and gas), but also a huge pipeline company. Dominion has it’s fingers in a lot of Marcellus/Utica pies, so we like to keep track of the company and what it says about various critical projects for our region. Dominion CEO Tom Farrell had a lot of interesting updates, including updates for: Atlantic Coast Pipeline, a $6.5 billion Dominion pipeline from West Virginia through Virginia and into North Carolina; Cove Point, the $4 billion LNG export facility that began commercial operations in April; Greensville County (VA) Power Station, a $1.3 billion natural gas-fired combined cycle power plant; and the proposed merger with SCANA Corporation, the main electric and gas company for much of South Carolina. Buckle up, there’s lots of news here…
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    Congressman Tim Ryan (D-OH) Wants Feds to Regulate Fracking

    U.S. Rep. Tim Ryan, Democrat from Ohio

    U.S. Rep. Tim Ryan, Democrat from the 13th District in Ohio, signed up last week to co-sponsor a new bill called the Fracturing Responsibility and Awareness of Chemicals, or FRAC, Act. In fact, all 61 co-sponsors of the bill were Democrat–no Republicans–which is a big, fat, red flag. A totally partisan bill. Democrats have been trying this trick since 2009. It’s nothing new. Supposedly the FRAC Act will require “transparency,” forcing frackers to disclose which chemicals are used in hydraulic fracturing. The thing is, drillers already disclose that information! What the FRAC Act is REALLY all about is federal regulation of the oil and gas industry by doing something that has never been done before: subjecting oil and gas drilling to the federal Safe Drinking Water Act. We’re tired of revisiting this topic, but feel compelled to set the record straight because of this renewed attack on the industry. Fact: There is no “exemption” from the Safe Drinking Water Act for drillers–they never were under the Act to begin with! The U.S. Constitution vests the power to regulate oil and gas activity with the individual states–NOT with the federal government. What Ryan and his fellow libs are trying to do in forcing oil and gas under federal regulation is a bastardization of the Constitution–an erosion of states’ rights. Which is why Ryan needs to be voted out of office. Shame on him. He’s from one of the biggest stars in the shale firmament–the Ohio Utica. And yet he’s pushing to kill it. There’s nothing “common sense” about the FRAC Act, as Ryan claims. It’s all “nonsense.” Here’s the latest attack by Dems at the federal level, a group that wants to kill the shale miracle in this country…
    Read More “Congressman Tim Ryan (D-OH) Wants Feds to Regulate Fracking”

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    Unholy Alliance Between Greens & Landowners Harming Environment

    Different people oppose fossil fuel projects for different reasons. It’s easy to simply paint everyone who opposes fossil fuel projects with the broad brushstroke of calling them “antis.” Yes, they are “anti” something–pipelines, shale drilling, compressor station, etc. However, many who are “anti” are really just “not in my back yard” (NIMBY), not driven by a particular ideology beyond a perceived threat to their own property. Then there are those we call antis who *are* driven by ideology–an irrational ideology that says all fossil fuels are evil and we must convert to so-called renewables now, before it’s “too late.” The problem is when NIMBYs (i.e. landowners) form alliances with agenda-driven, anti-fossil fuelers. Landowners figure, like the old Arab proverb, that “the enemy of my enemy is my friend.” Landowners who oppose pipelines, drilling, etc. are striking a bargain with the devil when they form these alliances in opposing their pet projects. When a particular battle is over, landowners may be surprised to learn that they themselves are the next target for groups like the Sierra Club, Environmental Defense Fund, Riverkeeper, Food & Water Watch, etc.–the very groups they thought were their friends. We spotted a column in the Houston Chronicle that does a great job of exploring this issue, well worth the couple of minutes it takes to read it. Landowners who adopt the NIMBY mindset, and the radical green groups they align themselves with, are actually harming the environment by their actions–not saving it. Here’s how…
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    Supreme Court Rejects Constitution Pipe Request to Overrule NY

    In January 2018, Williams, builder of the proposed Constitution Pipeline–124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into NY and New England–took their last, best shot at overturning a politically-based decision by the corrupt New York Dept. of Environmental Conservation (DEC) to deny the Constitution necessary water permits to build (see Constitution Pipeline Appeals NY Fight Directly to U.S. Supreme Court). Williams appealed an appeals court decision to the U.S. Supreme Court, hoping against hope that the high court would hear the case–and overturn the appeals court decision, thereby forcing NY to allow pipeline construction. Sadly, the attempt has failed. Yesterday the U.S. Supreme Court denied the petition to hear the case. Let’s be honest, it was a long shot to begin with–the Supremes only hear a handful of cases each year. But still, the decision is disappointing. Unlike antis, when our side loses a court case like this, we acknowledge and accept it. If it had gone the other way, antis would have claimed the court decision was illegitimate and launched illegal actions to block construction–like sitting in the tops of trees. They resort to anarchy, mob rule and bullying when they don’t win. We accept the rule of law and pledge to soldier on and fight another day. That’s the difference between unmoored radicals and people with their heads screwed on straight. So what happens now? Is this truly the end of the line for the Constitution? The project has one, possibly two very slim chances left…
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