Industrywide Issues

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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…
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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…
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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…
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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…
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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…
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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…
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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…
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    Penn Twp Frack Ban Decision Now in Hands of Local Judge

    Last November we updated you on a lawsuit filed by a group of anti-fossil fuelers in Penn Township (Westmoreland County), PA (see Penn Twp Ninny Nannies File Lawsuit to Block Apex, H&H Wells). A group calling themselves Protect PT, backed with money and legal help from Big Green group PennFuture, filed a lawsuit to try and stop Apex Energy and Huntley & Huntley (H&H) from drilling wells in the township. A Westmoreland County judge heard some testimony in the case in April (see Penn Twp Antis Try to Use PA ERA to Block Shale Drilling). The peril with Protect PT’s lawsuit is that it uses Pennsylvania’s so-called Environmental Rights Amendment (ERA), which liberal PA judges have, in recent years, breathed new life into. The argument is that fracking denies those who live near this temporary activity their “right” to enjoy Mom Nature, therefore it should be banished forever. Protect PT is attempting to pull off a total frack ban in the Penn Township. Although the judge heard testimony in April, more was given this week. All testimony is now done and the case rests with the judge. We expect whoever loses will appeal. Below is a recap of the case and the testimony given this week…
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    PA House Passes Bill Exempting Conventional Drillers from Shale Regs

    In March, two identical bills were introduced, one in the PA Senate, the other in the PA House, that would “roll back” (more like “lock in”) regulations that govern conventional PA drilling to the Oil and Gas Act of 1984 (see 2 PA Bills Would Roll Back Conventional Drilling Regs to 1984). The bills are in response to coming changes proposed by leftist Gov. Tom Wolf to over-regulate conventional drillers. Big Green didn’t waste any time opposing the bills, spinning them as a lessening of environmental protections in a letter to legislators (see Big Green Opposes Bill to Relax Regs for PA Conventional Drillers). The big news is that the House’s version of the bill, HB 2154, passed yesterday by a vote of 111-84. The issue now swings to the Senate (SB 1088), where its future is more uncertain. Let’s assume the Senate passes SB 1088 (a really big assumption). Lefty Gov. Tom Wolf is vehemently against it and will veto the bill when it hits his desk–so says one of his top lieutenants. It’s not clear if there would be enough votes in the Senate (or House) to override a Wolf veto. Hey, we’re still hopeful, but in all honesty, this legislation faces an uphill battle…
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    PA House Speaker Turzai Nukes Wolf’s Severance Tax Proposal

    Speaker of the PA House, Mike Turzai – credit: Wikipedia

    A few weeks ago Secretary of the Pennsylvania Dept. of Community and Economic Development (DCED), Dennis Davin, wrote an embarrassing editorial published in the Pittsburgh Post-Gazette (see Once Again Wolf Pushes DCED Sec. to Support Severance Tax). Davin knows that a high severance tax will drive Marcellus drillers out of the state–but (we conclude) he wants to keep his job for another four years, so he goes out as the spear-catcher for his boss, lefty Gov. Tom Wolf. PA House Speaker Mike Turzai is an impressive guy. He’s always stood, steadfast, with the Marcellus industry, against Wolf’s insane plan to tax the industry out of existence. Turzai sent the Post-Gazette a column of his own, to counter the inanities of Davin’s column–and wonder of wonders, they published it! Turzai does a masterful job with his response to Davin. Our favorite part is where Turzai obliterate’s Davin’s claims about the “minimal” revenue raised by PA’s impact fee. In PA, instead of a severance tax, the legislature passed an impact fee (i.e., tax) in 2012, which has raised far more than the severance tax in neighboring states. For example, in 2017, Ohio raised $36.7 million via its severance tax. In 2017, West Virginia raised $69 million from its severance tax. In 2017, PA raised a whopping $173.3 million from its impact fee. Tell us again, Mr. Davin, about the “superiority” of a severance tax!…
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    3 Mass. Kids Arrested for Blocking MVP Work in W.V.

    Click image for larger version

    Three radicalized children from Massachusetts–kids who irrationally hate fossil fuels–chained themselves to construction equipment in Monroe County, WV in an attempt to block work on the Mountain Valley Pipeline (MVP). It’s the latest tactic by the left to overthrow our system of laws and justice in a misguided attempt to stop man-made global warming. The three, one boy and two girls (aged 24, 21 and 18) delayed construction for “a few hours” before police “cut them out” and arrested them. All three were charged with misdemeanors: for trespassing, obstructing justice, and resisting arrest. If convicted, they could spend up to two and a half years in jail. Notice the kids are part of an organized Big Green movement. All three are out-of-staters, sent there to make trouble. We wonder if the glamour will wear off after they sit in a cold, mountain jail cell for a few months? Our only conclusion as to why these kids would behave like this is miseducation. They’re ignorant–of history, the U.S. Constitution, and frankly, of the real world. Too much time with their noses stuck in a cell phone or watching cartoons. No training in rational thinking. Notice (below) how Big Green spins the episode, that the police “threatened violence” against the protesters. Which means the police told the spoiled rotten kids, “stop it now or we’ll (gently) cut you out and take you to police HQ.” That’s how radicals define police “violence.” Here’s the news of the latest Big Green offensive against MVP–an offensive that uses ignorant kids…
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