Industrywide Issues

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    Fed Court Denies NY DEC Bid to Block Power Plant Pipe Construction

    Yesterday the federal Second Circuit Court of Appeals ruled against the New York Dept. of Environmental Conservation’s request to slap an ongoing block of construction for Millennium Pipeline’s Valley Lateral Project. As a quick reminder, Valley Lateral is a tiny, 7.8 mile pipeline that will connect the main Millennium line to the CPV Valley Energy Center gas-fired electric plant, currently under construction, due to be completed in the first quarter of next year. The DEC doesn’t like the power plant project (approved by the State of New York), and is using the pipeline as a political football to try and keep the plant from opening–no doubt at the direction of our corrupt governor, Andrew Cuomo. The DEC arbitrarily, after more than one year of review, ruled against issuing a federal water crossing permit for the pipeline. In an historic decision, the Federal Energy Regulatory Commission (FERC) overruled the DEC in September (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC, in a snit fit, demanded FERC not OK the beginning of construction until an army of DEC lawyers figures out a way to appeal, delay, obstruct and otherwise stop the project anyway (see NY DEC Appeals FERC Override of Millennium Pipe Decision). FERC didn’t listen to DEC, instead giving Millennium the go-ahead to begin construction (see FERC Humiliates NY DEC, Millennium Can Begin Construction on Pipe). NY sued FERC in federal court requesting an emergency stay of construction activities. The Second Circuit implemented a temporary stay. Yesterday the court dissolved that temporary stay and denied DEC’s request for a long-term stay until the full case against FERC is heard. Bottom line: Construction will likely begin TODAY…
    Read More “Fed Court Denies NY DEC Bid to Block Power Plant Pipe Construction”

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    PA Severance Tax Bill Continues to be Blocked by Republicans

    Did you know there is major news this week about the proposed Pennsylvania severance tax bill, House Bill (HB) 1401? No, you won’t read anything about what has happened with the bill this week, since the return of the PA House, in mainstream media. Why? Because mainstream media refuses to actually report news any more. They only pedal advocacy. HB 1401 continues to be blocked by courageous House Republicans, even though a variety of amendments have been raised and there was more floor debate on the bill–this week. The bill’s failure to garner a vote and the increasing likelihood it won’t, doesn’t fit mainstream media’s “this tax is inevitable” narrative. Go ahead–do a news search. Nothing in the Harrisburg Patriot-News (the “record” of what happens in the state legislature). Nothing in the Pittsburgh Post-Gazette, a reliable anti-drilling screed. Nothing in the Philadelphia Inquirer (is Andrew Maykuth on vacation?). And yet, there IS major news! The only source we could find to inform us of what’s happening is the leftist, Big Green former Secretary of the state Dept. of Environmental Protection, writing on a blog site. Our hat is off to David Hess for his willingness to do the job no one else will do, bringing us the blow by blow of what’s happening with HB 1401…
    Read More “PA Severance Tax Bill Continues to be Blocked by Republicans”

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    Report: PA Natural Gas Production Hits All-Time High in 3Q17

    It continues to be a banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jul-Sep 2017 (full copy below). It shows natgas production rose 4.8% compared to the same period last year. It also shows the number of producing wells is up 9.3% from last year. Total natural gas production volume was 1,326.2 billion cubic feet (Bcf) and the number of producing wells in 3Q17 was 8,073. The biggest news is that 3Q17 saw the highest quarterly production of natural gas in the state–ever. The previous quarterly report had been the highest ever until this report came out (see PA 2Q NatGas Production Report – Another New Record). The #1 county for natgas production in 3Q17 was, as it was was in 2Q17, Susquehanna County. The #1 producing driller in Susquehanna County is Cabot. As we pointed out in our remarks with the last quarterly report, you might say–with some justification–that the success of Cabot’s drilling program in Susquehanna County has translated into huge success for all of Pennsylvania. Let’s dive into the full report…
    Read More “Report: PA Natural Gas Production Hits All-Time High in 3Q17”

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    Ohio Approves 2nd Oregon Utica-Fired Elec Plant (Near Toledo)

    In August, Ohio Gov. John Kasich officiated at a ceremony to launch a new Utica gas-fired electric generating plant in Oregon (Lucas County), near Toledo (see New 870 MW Gas-Fired Electric Plant in NW Ohio Begins Operation). CME Energy’s Oregon Clean Energy Center plant generates 870 megawatts of electricity. The plant cost $900 million to build. What we haven’t focused on, until now, is CME’s proposal to build a second Utica gas-fired electric plant next to the first one. The first plant is called Oregon Clean Energy Center. The second plant project is named Clean Energy Future – Oregon. The second plant is bigger than the first, targeted to generate 955 megawatts of power. Clean Energy Future – Oregon is currently in the permitting process. If all goes well, CME plans to begin commercial operation in 2020. Fluor Corporation is constructing this second project, as they did the first. Construction is scheduled to begin early next year. The reason the project appeared on our radar screen is because yesterday the Ohio Power Siting Board (OPSB) gave Clean Energy Future – Oregon a big, fat, sloppy kiss of approval…
    Read More “Ohio Approves 2nd Oregon Utica-Fired Elec Plant (Near Toledo)”

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    Virginia Water Board Approves Mountain Valley Pipe – Antis Erupt

    Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–scored an important approval yesterday. Virginia’s Water Control Board issued a water permit/certification for the project. MVP, when built, will run through six Virginia counties. Prior to voting to approve the permit yesterday, the Water Control Board held a public hearing on Wednesday, largely so antis could spout off and feel better about themselves. Following yesterday’s vote, antis did what they always do–behaved like petulant, spoiled rotten children. At least one anti “screamed profanities at the board members and vowed to visit them where they live.” Yeah, bullying. Threats of violence. That’s the anti crowd for you. In early November the West Virginia Dept. of Environmental Protection (WVDEP) waived their right to issue a permit for MVP, instead deferring to the just-as-strict version of the permit issued by the US Army Corps of Engineers (see WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline). Here’s what happened yesterday in nutty Virginia…
    Read More “Virginia Water Board Approves Mountain Valley Pipe – Antis Erupt”

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    Atlantic Coast Pipe Gets Key WV Approval; VA Approval Next Week?

    On Wednesday the West Virginia Department of Environmental Protection (WVDEP) “waived” the state’s authority under the federal Clean Water Act to determine if Atlantic Coast Pipeline (ACP) will harm rivers and streams, instead deferring to the US Army Corps of Engineers’ (USACE) Nationwide permit. The USACE Nationwide permit has the same exact standards as found in the WV version–so there’s no need to duplicate the paperwork. This is not the first time WVDEP has deferred to the USACE’s permit. They did the same exact thing with a water crossing permit for the Mountain Valley Pipeline project in November (see WV DEP Secretary Issues Letter Explaining MV Pipeline Decision). It’s pretty easy for antis to demagogue the issue, saying WV has “given up it’s right to regulate the project.” That is manifestly untrue. As WVDEP pointed out in November with Mountain Valley, and again on Wednesday with Atlantic Coast, “Waiving the 401 individual certification does not indicate that there will be fewer environmental requirements to which the ACP must adhere. The special West Virginia conditions that exist in the US Army Corps of Engineers (USACE) Nationwide permit are designed to mirror what would be in a 401 individual certification issued by West Virginia. Under the Nationwide permit, enforcement would be left to federal agencies and would be limited to stream crossings.” WV’s approval of ACP is a major milestone, but not the only one required…
    Read More “Atlantic Coast Pipe Gets Key WV Approval; VA Approval Next Week?”

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    Antis Target PA Gov Wolf Aide as Payback, Husband Works for EQT

    We find this particularly loathsome. A Big Green supporter and far-left radical environmentalist who lives in Chester County, PA, Caroline Hughes, has filed a complaint with the Pennsylvania State Ethics Commission against PA Gov. Tom Wolf’s deputy chief of staff, Yesenia Bane. The complaint is a ginned up allegation that Bane “was regularly involved in meetings and travel related to her husband’s natural gas industry clients.” The so-called evidence comes from a copy of Bane’s travel schedule in 2016. She attended various shale meetings and conferences, on behalf of Gov. Wolf, and because she did so, Ms. Hughes would like to see Ms. Bane lose her job. Nice people those antis. Hughes makes the baseless charge that because Bane attended meetings where Bane’s husband, first a lobbyist for the shale industry and now an employee of EQT, had clients, her mere presence at such meetings constitutes a “conflict of interest.” Why? Because Bane’s presence somehow “benefits” her husband and his business. There’s no allegation of back room dealings or financial benefit from those meetings. No. Just a wild accusation, targeting someone because her husband has the gall to work for the shale industry. But that’s not all. Ms. Bane had the gall to remove a anti-pipeline radical from the Wolf Pipeline Task Force back in 2015. That little episode is mentioned in the same Big Green story as the charge that Bane had a conflict of interest. In other words, the conflict of interest charge is a ruse. This is payback for Bane’s action in removing the anti from the Task Force…
    Read More “Antis Target PA Gov Wolf Aide as Payback, Husband Works for EQT”

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    Kevin McIntyre Sworn in as 5th FERC Commissioner, New Chairman

    Kevin McIntyre

    This is how it works in the swamp. President Trump first mentioned Kevin McIntyre, the co-head of the energy practice at the largest law firm in the country (Jones Day), back in March (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC). Due to whatever political machinations go on in Congress, Trump didn’t (couldn’t?) officially nominate McIntyre until July (see Pres. Trump Finally Nominates Kevin McIntyre to FERC, as Chairman). From the beginning McIntyre has been Trump’s pick to run FERC as its chairman. However, Neil Chatterjee as done a stellar job as Acting Chairman (see FERC’s Chatterjee to Actor James Cromwell: ‘Come at me bro!’). Yesterday, exactly nine months later, McIntyre was FINALLY sworn in–the fourth and final person appointed by Trump to the Commission. Perhaps the most contentious issue McIntyre will face initially is a request by Dept. of Energy Secretary Rick Perry to create a new regulation that allows coal and nuclear power generators to make more money than the free market allows for the electricity they produce–in a misguided attempt to save those industries. The so-called notice of proposed rulemaking (NOPR) for the Grid Resiliency Pricing Rule is supposed to be voted on by FERC commissioners next Monday. The first thing McIntyre did after putting a picture of his lovely wife on his desk was to send a letter to Perry asking for a 30-day extension, citing the fact that two new commissioners were added in the last two weeks. The newbies haven’t had the opportunity to debate the plans merits (or lack thereof) with their fellow FERC commissioners…
    Read More “Kevin McIntyre Sworn in as 5th FERC Commissioner, New Chairman”

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    PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm

    In early October MDN told you about a second Marcellus gas-fired electric generating plant being planned for Greene County, PA (see 2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA). Hill Top Energy Center, based in Huntington Bay, N.Y., is planning to build a 620 megawatt plant (original story had it wrong, saying 536 MW) on 41 acres of land off Thomas Road in Cumberland Township. The PA Dept. of Environmental Protection (DEP) held a public hearing in early November about the project. Only 20 people turned up and nobody objected. Last Friday the DEP issued an air quality permit for the project–the last major hurdle before the project can begin. In press coverage of the permit and the project advancing, we discovered one piece of new information: The plant will be built next door to a “medical marijuana operation”–i.e., a pot growing farm. Well now that’s interesting! Workers at the new electric plant can slip out the back door on break and roll a joint for later…
    Read More “PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm”

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    WVU Gets $1.3M Grant to Research Ways to Use More NatGas In-State

    West Virginia University (WVU) is a research powerhouse. They have lots of researchers doing important work in a variety of disciplines. One of those disciplines is natural gas. WVU founded the Center for Innovation in Gas Research and Utilization (CIGRU) to “conduct transformative, fundamental, research directed at innovative pathways for shale gas utilization and upgrading.” CIGRU, along with two other non-shale related research programs, have just collectively received a $3.9 million Research Challenge Grant from the West Virginia Higher Education Policy Commission. The WVU press release doesn’t say how each of the three different recipients (CIGRU being one of them) got, but we figure they likely divided it evenly, hence our assumption that CIGRU got $1.3 million. And what will CIGRU do with the money? Figure out ways to keep more of the Marcellus/Utica gas coming out of West Virginia’s rocks in the state–used by residents and businesses who reside in WV. They want to grow the “downstream” sector of end users of natural gas and other byproducts from shale drilling…
    Read More “WVU Gets $1.3M Grant to Research Ways to Use More NatGas In-State”

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    Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC

    Atlantic Coast Pipeline is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The project will be built by Dominion Energy (lead) and Duke Energy (important partner). Years after the project filed with the Federal Energy Regulatory Commission (FERC), it was finally approved by FERC in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In November, the U.S. Forest Service granted its blessing for the pipeline to traverse small portions of two national forests (see USFS Approves Atlantic Coast Pipeline Thru 2 National Forests). But the project is not without it’s problems. The National Association for the Advancement of Colored People declared the pipeline racist (see NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most). That’s basically a PR stunt by the NAACP to use as a fundraiser. The more important and troublesome development is in North Carolina, where the state Dept. of Environmental Quality is playing a game of delay with questions (see NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). Even with setbacks, the companies building the project appear to be confident it happen. So confident that Duke Energy let leak that once the project is built, it likely won’t end there. Duke says there are “great opportunities” to extend the pipeline into more areas of North Carolina–and even extend it on down into South Carolina…
    Read More “Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC”

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    FERC’s Chatterjee to Actor James Cromwell: ‘Come at me bro!’

    We continue to be really impressed with the current Acting Chairman of the Federal Energy Regulatory Commission (FERC), Neil Chatterjee, and his willingness to take the fight right back to radical antis. Chatterjee is not unlike President Trump, who appointed him to the post. Frankly, it’s a surprise for us, since Chatterjee has worked for years for Senate Majority Leader Mitch McConnell (a swamp dweller). We figured Chatterjee was a swamp dweller too–but perhaps we misjudged him. Chatterjee recently turned up the heat with Facebook posts aimed at nutty Hollywood actor James Cromwell (he of Babe and Star Trek: First Contact fame). Cromwell recently attended a FERC meeting chaired by Chaterjee and proceed to make a king-sized @$$ of himself in the meeting room, requiring security to escort him from the room (see Old Hippie/Actor James Cromwell “Escorted Out” of FERC Meeting). Chatterjee fired off some choice words at Cromwell, including a comment that invites Cromwell to “Come at me bro!” What’s obvious when you read Chatterjee’s comments is that it’s done in a lighthearted way–not mean or nasty. He’s tweaking Cromwell and other antis, using humor to do it. And they are a humorless bunch. Chatterjee’s lighthearted humor in tweaking Cromwell went right over the heads of mainstream media and the inside-the-Beltway swamp dwellers, who are all aghast, criticizing Chatterjee as not acting like a regulator should act. We wish more government officials acted like Chatterjee–and Trump…
    Read More “FERC’s Chatterjee to Actor James Cromwell: ‘Come at me bro!’”

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    The World’s First Zero-Emissions Natgas-Fired Power Plant

    We spotted an article that intrigued us with the headline, “A radical startup has invented the world’s first zero-emissions fossil-fuel power plant.” Most of the article–the first two-thirds of it–is obsequious genuflecting before the man-causes-global-warming gods. Whatever. Believe in fairy stories if you want to. The final one-third of the article is the real meat, which we highlight below. It seems a group of smart people at a company called Net Power, located in Texas, have figured out a way to capture all, as in 100%, of the carbon dioxide that comes from burning natural gas to produce heat to turn a turbine. There are no CO2 emissions that escape into the atmosphere. We bring you details of this new technology because it’s neat and may one day change how electricity is generated in this country. What if (gasp!) natural gas became as “green” as solar or wind? That just doesn’t fit the narrow worldview of radical environmentalists…
    Read More “The World’s First Zero-Emissions Natgas-Fired Power Plant”

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    Research Breakthrough in Methane to Methanol – Holy Grail?

    Researchers at Tufts University say they have found a better, cheaper way to convert methane (i.e. natural gas) directly into methanol. “The direct oxidation of methane—found in natural gas—into methanol at low temperatures has long been a holy grail,” so says the Tufts announcement. A group of chemical engineers say they have found a way to do it. What’s the big deal about methanol? Methanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze, plastic bottles–even LED and LCD screens. In August 2016 MDN was the first to share the news that US Methanol is building at least two, rumored up to five, methanol plants in West Virginia (see Rumor: US Methanol Building 5 Methanol Plants in WV). Methanol has the potential to be a big market in the Marcellus/Utica region–and a big source of demand for our plentiful gas. If Tufts has figured out a better way to convert natgas into methanol, we’re all ears…
    Read More “Research Breakthrough in Methane to Methanol – Holy Grail?”

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    Dominion Cove Point LNG Export – Dress Rehearsal Begins

    Dominion announced yesterday it has introduced “feed gas” into it’s new $4 billion LNG export plant in Cove Point, Maryland. Feed gas is used for testing purposes and is the final step before the plant goes online into full production later this month. Dominion said the feed gas will come from Shell, and Shell will take delivery of the LNG that results. Following the test, Marcellus/Utica gas will begin flowing to the plant and the LNG produced will begin shipping to Japan and India. We are on the cusp of something we’ve waited for, cheered for, and agonized over for more than three years. Think of the Shell’s feed gas as the dress rehearsal the night before a play opens…
    Read More “Dominion Cove Point LNG Export – Dress Rehearsal Begins”

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    Transco Pipeline Update: 5th Expansion Done, More Coming 2018

    Transco System Map – click for larger version

    Williams issued a press release yesterday to (deservedly) crow about completing it’s fifth (of five) expansion projects for the mighty Transco Pipeline–a pipeline that stretches from the Gulf Coast to New York. Transo just completed a pipeline segment in Virginia that will feed Virginia’s largest natural gas-fired electric plant, currently under construction by Dominion Energy (see Dominion Begins Building Virginia’s Biggest NatGas Power Station). Williams will provide the gas required by the plant via its Virginia Southside II project, which started service on Dec. 1. But wait–the Dominion plant isn’t done yet, so where will the extra gas go? We expect either (a) even though the pipeline segment/expansion is done, they won’t begin flowing extra gas through it just yet, or (b) extra gas will flow through the expansion, but someone else will buy it, for now. Regardless, the important news is that this is the fifth of five major expansion projects for Transco completed by Williams this year, joining the Gulf Trace, Hillabee Phase 1, Dalton, and New York Bay projects. As part of Williams’ update, they also project Atlantic Sunrise, another major expansion of the Transco system, will be done in “mid-2018.” Good news indeed! Here’s the full update from Williams, with lots of exciting news…
    Read More “Transco Pipeline Update: 5th Expansion Done, More Coming 2018”