Industrywide Issues

Electrical Generation | Industrywide Issues | Michigan | Statewide MI

Lansing, MI to Build New 250 MW Gas-Fired Electric Plant
December 19, 2017December 19, 2017

The Lansing, Michigan Board of Water & Light (BWL) announced yesterday it will build a brand new $500 million natural gas-fired power plant. The new plant will generate 250 megawatts of electricity, create 1,200 construction jobs, and go online in 2021. The plant will be located at the Erickson Power Station facility in Delta Township as part of its Lansing Energy Tomorrow plan, replacing (and retiring) BWL’s coal-fired Eckert plant at that location. Out with old, in with the new. Why report about a new gas-fired power plant in Michigan here on MDN? Because the mighty Rover Pipeline, which is due to be completed and online by the end of March 2018, terminates very close to Lansing (see the map below). While we’ve not spotted any stories indicating where the gas will come from to feed the new Lansing plant, we’d wager a lot of money that at least some–perhaps most/all–of the gas to feed the plant will come from the Utica/Marcellus, gas hitching a ride along the Rover Pipeline. The nuts from the Sierra Club are ecstatic that BWL will close the coal plant, but opposed to building a clean-burning natural gas plant. Some people are never happy…
Read More “Lansing, MI to Build New 250 MW Gas-Fired Electric Plant”
Industrywide Issues | Ohio | Trumbull County | Wastewater

Trumbull Residents Want Extra 60 Days to Fight 3 Injection Wells
December 19, 2017December 19, 2017

Last Friday MDN told you about three proposed new injection wells planned for the Town of Brookfield, in Trumbull County, OH (see 3 More Injection Wells Coming to Trumbull County, OH). Highland Field Services recently brought two new injection wells online in Brookfield, and now wants to build three more wells in close proximity to the existing two. Highland recently published notices in area newspapers eliciting public comments–a step required under law. Public comments will be accepted until Dec. 25. However, some residents in the area (and likely a number of antis) are complaining that’s not enough time. They want the Ohio Dept. of Natural Resources (ODNR) to extend the public comment period by an extra 60 days. They also want at least one public hearing (i.e. circus freak show) in order to get in front of cameras and microphones to make a scene. The update below seems to say the existing two Highland injection wells are still under construction. We believed (perhaps incorrectly) the two were already done and running. Comments by unnamed “opponents” appear to indicate they are still lobbying ODNR to prevent the two already-permitted Highland wells (now under construction) from actually going online–to say nothing of approving another three…
Read More “Trumbull Residents Want Extra 60 Days to Fight 3 Injection Wells”
Economic Impact | Industrywide Issues | Statewide WV | West Virginia

WV Rolls Out the Red Carpet – Welcomes China Trade Delegation
December 19, 2017December 19, 2017

red carpet

Every time we write about the China deal to invest an amazing $83.7 billion (!) in West Virginia, we still shake our head in disbelief. Pinch us–it seems too good to be true! We suppose if half that amount, even a quarter of that amount, ends up getting invested, it’s still an unbelievable bonanza for the Mountain State. We first brought you the news in early November that the Trump Administration, in cooperation with the WV Gov. Jim Justice Administration, had brokered and signed a deal for China to invest $83.7 billion in WV’s shale and petrochemical industries (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). Since that initial deal was signed (in China) delegations of Chinese representatives have been visiting WV, no doubt assessing just where and how much they will spend. Last week such a delegation visited WV on a four-day “relationship building” mission. West Virginians are hospitable people (that’s been our experience)–and they turned on the charm last week. You might say WV rolled out the Red Carpet for the Red Chinese…
Read More “WV Rolls Out the Red Carpet – Welcomes China Trade Delegation”
Anti-Drilling/Fossil Fuel | Crude Oil | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Shafts NY State Yet Again; Bans Oil Barge Storage on Hudson
December 19, 2017December 19, 2017

Freedom in New York State is all but gone–snuffed out by a corrupt dictator by the name of Andrew Cuomo. Warning to other states: Be careful who you elect in high office. Cuomo is not content to simply destroy the drilling industry in NY–he wants to destroy anything to do with fossil fuels. Crude oil from the Bakken in North Dakota has, for some time, arrived in New York’s capitol city of Albany via rail cars where the oil is loaded on barges at the Port of Albany for a quick trip down the Hudson River. Cuomo went after those rail shipments, trying to slow them down or stop them altogether (see NY’s “Progress” to Control Bakken Crude Trains Passing Through). Somehow those oil trains continue to roll into the Empire State, over the objections of Cuomo & company. The Port of New York/New Jersey, the American Waterways Operators, and the Hudson River Pilots’ Association floated a plan earlier this year to allow up to 43 barges filed with crude oil to temporarily anchor along a 70-mile stretch of the Hudson River, south of Albany, between Kingston and Yonkers NYC. The barges could add capacity and transport more oil down the river to NJ refineries than is currently possible. Yet enviro Nazis rose up and pressured the state legislature into passing a bill to (essentially) prohibit the oil barge plan. Cuomo gleefully signed the bill in October, cutting NY out of yet more commerce it could have had. All because of an irrational hatred of fossil fuels…
Read More “Cuomo Shafts NY State Yet Again; Bans Oil Barge Storage on Hudson”
Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Pipelines | Statewide VA | Virginia

Anarchists Threaten VA Water Board Member at Her Home re Pipe Vote
December 19, 2017December 19, 2017

Last week MDN brought you the news about a vote from the Virginia State Water Control Board that gave Dominion’s Atlantic Coast Pipeline a non-approval approval (see Atlantic Coast Pipeline Delayed in Virginia by Water Board Vote). The Water Control Board voted to delay granting a full approval until certain studies are completed next year–thereby slowing down the entire project. It was a disappointment to be sure. As disappointed as those of us who support fossil fuels and projects like Atlantic Coast are, we don’t tip over into threats of violence. However, the other side does. Just prior to the vote, someone or someones from the anti-pipeline anarchy movement (we’re not exaggerating, they call themselves anarchists–meaning those who don’t obey laws), draped a big, handwritten banner on the front porch of the vice chair of the State Water Control Board which said, “Stop Poisoning Our Community!” It was a threat. It was meant to bully her and make her feel unsafe and threatened in her own home. This is how some (an increasing number) on the other side behave. With threats and intimidation. And if that doesn’t work, with outright violence…
Read More “Anarchists Threaten VA Water Board Member at Her Home re Pipe Vote”
Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

FERC Gives Rover Phase 1B Permission to Begin Service, 1.7 Bcf/d
December 18, 2017December 18, 2017

Energy Transfer Partners (ET) announced on Friday that the Federal Energy Regulatory Commission (FERC) has granted ET permission to bring Rover Pipeline Phase 1B online–as of now. Building the mighty Rover, a $4.2 billion, 713-mile Utica/Marcellus natural gas pipeline that will stretch from PA, WV and eastern OH, through OH, into Michigan, and eventually on to Canada, has always been a two-phase project–Phase 1 and Phase 2. Phase 1 was further broken down into 1A and 1B. Phase 1A, which is the main line through most of Ohio, went online Sept. 1 (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Phase 1B is the completion of several important “laterals” (or offshoot pipelines), along with compressor stations. This new segment will serve to feed more gas to the main Rover pipeline. It was Phase 1B that got approved on Friday, and is presumably now up and running as you read this. With the addition of Phase 1B, Rover now has the capacity to flow 1.7 billion cubic feet per day (Bcf/d) of natural gas. When Phase 2 is done in 1Q18, the pipeline’s full capacity of 3.25 Bcf/d will go online…
Read More “FERC Gives Rover Phase 1B Permission to Begin Service, 1.7 Bcf/d”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH | Statewide WV | TC Energy/TransCanada | West Virginia

Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!
December 18, 2017December 18, 2017

Last week Columbia Pipeline Group (now part of TransCanada) filed a request with the Federal Energy Regulatory Commission (FERC) to begin service on their Leach XPress pipeline. This is BIG and important news. In August 2014, MDN told you that Columbia Pipeline Group decided to move forward with investing $1.75 billion dollars for two new projects: Leach XPress and Rayne XPress (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). The Leach XPress project involves building ~160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast, called Rayne. The pipeline is named for the location it flows to: Rayne, Louisiana. The Rayne Xpress project beefs up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. Rayne went online in early November (see FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service). When Leach goes online Jan. 1, 2018 (yes, we expect FERC will approve it), Marcellus/Utica gas will begin flowing along the combined pipelines all the way to the Gulf. That’s big news!…
Read More “Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

IOGA WV Gets it Right on Co-Tenancy & Joint Development
December 18, 2017December 18, 2017

For some time we’ve reported on the effort to pass new legislation in West Virginia on co-tenancy and joint development (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018). These two concepts together somewhat replace what the oil and gas industry once wanted in WV–a forced pooling law. The West Virginia Oil and Natural Gas Association (WVONGA) has been the driving force behind the effort to adopt co-tenancy and joint development. MDN has been right up front about our views: co-tenancy is fair and reasonable, joint development is not. WVONGA continues to push for both. However, WVONGA is not the only oil and gas trade association in the Mountain State. WV also has the Independent Oil & Gas Association of West Virginia (or IOGA WV), which broke off from WVONGA in 1959. We were delighted to spot an article that reports IOGA WV is pushing for co-tenancy, but NOT for joint development. IOGA of WV recognizes joint development for what it is–an attempt to allow drillers to use old leases for shale drilling without having to negotiate new terms (i.e. pay more to rights owners). Kudos to IOGA WV for getting it right. What, precisely, is co-tenancy and joint development? Glad you asked…
Read More “IOGA WV Gets it Right on Co-Tenancy & Joint Development”
Hydraulic Fracturing | Industrywide Issues | New York | Tioga County (NY)

Plan to Frack Shale Well in New York State Using LPG Still Alive
December 18, 2017December 18, 2017

Whatever happened to the idea of fracking a shale well in Tioga County, NY using liquefied petroleum gas (LPG, or propane)? We sometimes get asked that question. In July 2015 a group of landowners flying under the name of The Snyder Farm Group (five families make up the group) contracted with Tioga Energy Partners (based in Texas) to drill a fracked Utica Shale well, and follow it up with drilling a fracked Marcellus Shale well, using LPG and sand (see NY Landowners File to Frack Horizontal Well w/Waterless Tech and NY Heroes: More Details on NY Propane Fracking Proposal). The wells would not use water for fracking–and therefore, according to the landowners, avoid New York’s ban on high volume fracking imposed by NY Gov. Andrew Cuomo. NY’s corrupt Dept. of Environmental Conservation (DEC) does not disagree with the Tioga landowners. It certainly *may* be possible to use LPG fracking and avoid the prohibition on water-based fracking. Yet the DEC continues its standard operating procedure of delay by declaring they don’t have enough information (we’ve seen this movie before). The last time we reported anything about the Tioga project was May 2016, when the DEC began its latest round of death-by-delay tactics (see NY DEC Calls Propane Fracking “Unique Technology”; Wants More Info). So where does the Tioga project stand now? Same. The DEC says they still don’t have all the answers they want about LPG fracking, leaving the project in limbo. But that’s better than declaring it dead–maybe. The good news is that after 2 1/2 years, the Tioga project is still alive because the farming families involved are still pushing for it have not given up. Neither should we…
Read More “Plan to Frack Shale Well in New York State Using LPG Still Alive”
Allegheny County | Energy Companies | Industrywide Issues | Litigation | Olympus/Huntley & Huntley | Pennsylvania | Regulation | Seismic Testing

Monroeville Council Approves Seismic Testing Court Settlement
December 18, 2017December 18, 2017

Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance is meant to hassle Huntley & Huntley (H&H), which wants to conduct seismic testing in two rural areas of the municipality. In October, the contractor hired to do the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance (see Monroeville Seismic Testing Ordinance Challenged in Court). Both sides compromised and in November settled the case (see Monroeville Seismic Testing Ordinance Court Case Settled). Although the court case was settled, there is a final step required before the thumper trucks can begin their work. Monroeville Council must officially vote to accept the court agreement with the revised regulations. That vote happened last week…
Read More “Monroeville Council Approves Seismic Testing Court Settlement”
Coterra Energy (Cabot O&G) | Crime | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Asks Court for Stiffer Fine Against NEPA Lawbreaking Anti
December 18, 2017December 18, 2017

A little-known (outside of northeast Pennsylvania) anti-driller, Vera Scroggins, was fined $1,000 in April 2015 in Susquehanna County court (see PA Anti-Driller Fined $1K for Trespassing on Cabot O&G Site, Jail?). Vera’s biggest claim to fame is her potty mouth treatment of FrackNation filmmaker Phelim McAleer (watch it here). She is a repeat trespasser on Cabot Oil & Gas drilling sites and has been warned, repeatedly, to stay off their land–for her own safety and the safety of others. Scroggins runs so-called tours where she shows New York City celebrities and other urbanites (who don’t know the difference between a cow’s udder and a roof gutter) the gas fields of Susquehanna County, claiming drilling operations somehow harm local residents. In 2015, the judge had enough. He said at the hearing that Vera had 45 days to pay the $1,000 fine for her latest violation and if she didn’t, she was going to jail. Apparently she paid. However, she’s at it again. Cabot says Vera has continued her trespassing ways and is now (allegedly) in contempt of court for disobeying the judge’s orders. Cabot is requesting Vera be find $5,000 and chip in money for their legal fees. Some people never learn…
Read More “Cabot Asks Court for Stiffer Fine Against NEPA Lawbreaking Anti”
Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River
December 15, 2017December 15, 2017

We have been waiting for this day for a LONG time. Yesterday the Federal Energy Regulatory Commission (FERC) issued an order to Rover Pipeline allowing Rover to restart all outstanding underground horizontal directional drilling (HDD) projects, including the location at Tuscarawas River. All Rover HDD projects were stopped back in April following a string of “inadvertent returns” (i.e. leaks) of drilling mud, the most serious being a ~2 million gallon spill at the Tuscarawas River HDD location (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Several months after stopping Rover HDD work, following investigations and corrective action, FERC slowly began to allow Rover to restart HDD work in some (not all) locations. There have been perhaps 4-5 tranches of “go ahead and restart HDD work at these couple of locations.” But until yesterday, Rover could not restart HDD at the location of the worst spill site, near the Tuscarawas River. With yesterday’s order, all sites are cleared. Craig “Captain Ahab” Butler, director of the Ohio EPA, blew a gasket. He’s still trying to harpoon the Rover “Moby Dick” Pipeline as it travels through Ohio. A few weeks ago Butler asked Rover (and FERC) to STOP all HDD work (see Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop). A few days later Rover asked FERC for permission to restart the balance of their HDD work (see Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling). On Monday, Rover sent a letter to Butler (and FERC) saying Ohio EPA “grossly mischaracterizes Rover’s activities.” Yesterday FERC very loudly and clearly ignored Butler and sided with Rover…
Read More “FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River”
CNX Resources | CONE Midstream | Energy Companies | Energy Services | Industrywide Issues | M&A | Noble Energy | Pipelines

CNX to Buy Noble’s 50% Share of CONE Midstream for $305M
December 15, 2017December 31, 2017

On Monday MDN shared news with you that we believe was exclusive news–nobody else picked up on it. The news was that Noble Energy’s original plan to sell its 50% stake in CONE Midstream to Quantum Energy Partners for $765 million, announced back in May, is in trouble (see Noble’s 50% CONE Midstream Sale in Trouble – Shopping Deal to CNX). We told you that according to a recent Securities and Exchange Commission filing Noble had begun negotiations with CNX Resources (formerly CONSOL Energy), which is the other 50% owner of CONE, to sell Noble’s share to them. It seems we were prophetic. This morning CNX issued a press release to announce they have cut a deal to buy Noble’s 50% CONE share–for $305 million. That’s 40% of the deal price Noble previously worked out with Quantum. Must be it’s a buyer’s market for midstream assets…

12/18/17 Update: On Friday, following CNX’s announcement about buying the rest of CONE from Noble Energy, Noble also issued an announcement (below). Noble’s announcement amusingly leaves out the purchase price–less than half of the previously deal they had with Quantum.
Read More “CNX to Buy Noble’s 50% Share of CONE Midstream for $305M”
Industrywide Issues | Ohio | Trumbull County | Wastewater

3 More Injection Wells Coming to Trumbull County, OH
December 15, 2017December 19, 2017

Back in June MDN shared some good news for Utica (and Marcellus) drillers: The Ohio Dept. of Natural Resources (ODNR) had approved permits for two new frack wastewater injection wells in Trumbull County, OH (see ODNR Approves Plans for 2 New Trumbull County Injection Wells). The injection wells are located in the town of Brookfield. ODNR attached a myriad of conditions and required all sorts of testing before the wells could go live ~~but go live they did~~ (we do not have confirmation those two wells are finished). Highland Field Services, the company that built (is building) those two wells, now wants to add another three to mix. Highland recently published notices in area newspapers eliciting public comments (required under law). Comments will be accepted until Dec. 25. Area residents are not happy about three more injection wells on top of the existing two…
Read More “3 More Injection Wells Coming to Trumbull County, OH”
Industrywide Issues | Lackawanna County | Pennsylvania | Statewide PA | Taxation

PA Dems Turn on One of Their Own for Missing Severance Tax Vote
December 15, 2017December 15, 2017

Yesterday MDN brought you the news that on Tuesday the latest effort to keep debating (and potentially pass) a horrible severance tax bill had failed by a single vote in the PA House (see 1 Vote Saves the Day – PA Severance Tax Vote Delayed to Next Year). Momentum is everything in these kinds of fights, and the severance tax bill has lost its momentum. It now will not be considered until at least Jan. 22 of next year. Democrats are fuming at the loss–a single vote! So they began scouring the list of those who voted for extending debate (and potentially voting to pass the bill), and found one of their own missed the vote. State Rep. Kevin Haggerty, Democrat from Scranton, didn’t show up for the vote–and he’s a reliable Big Left/Democrat voter. He assuredly would have voted to approve continuing the debate. Thing is, Haggerty has now missed 23 straight voting sessions and 300 roll call votes. So the long knives have come out for Haggerty. He blew it. And the Dems are fuming mad. Why has Haggerty missed so many days and so many votes? Because he’s going through a divorce and he needs to stay home with his two young children. If Haggerty were a woman–or a transgender–and made the same excuse for missing votes, Democrats would have been silent. Not a peep. But because Haggerty is a white male (the worst of the worst of the WORST), his fellow lefty Democrats are willing to boil him in political oil…
Read More “PA Dems Turn on One of Their Own for Missing Severance Tax Vote”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

DEP Will Use Fed Standards as Back Door to Control Methane Leaks
December 15, 2017December 15, 2017

We’re now learning more about how the Pennsylvania Dept. of Environmental Protection (DEP) plans to implement Gov. Tom Wolf’s onerous regulations that supposedly will cut down on fugitive methane from escaping from drill pads and pipelines. In December 2016, the DEP unveiled new methane regulations (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). According to the DEP, the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5), will “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) in February (see PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns). The Marcellus Shale Coalition, among others, strongly pushed back on these unnecessary and costly regulations (see MSC Tells PA DEP What it Thinks of Onerous New Methane Regs). Following the pushback, there was a lull in activity. The lull ended two weeks ago when the DEP issued reworked regs, yet again (see PA DEP Signals Onerous New GP-5 & 5A Methane Regs Coming 1Q18). At an advisory meeting yesterday the DEP outlined a subtle change in strategy. They now will adopt and use federal guidelines for cutting smog-causing pollutants (VOCs, or volatile organic compounds) that will, as a side benefit, supposedly reduce fugitive methane from existing well pads and pipelines. That is, the DEP intends to use the back door to try and control methane leaks coming from the shale industry. Here’s the thing: a recent Penn State study found very little methane actually leaks from shale operations–less than one-half of one percent (see Penn State Study Finds Very Little Methane Leaks from Shale Op). In typical government fashion, the DEP is trying to fix a problem that doesn’t exist!…
Read More “DEP Will Use Fed Standards as Back Door to Control Methane Leaks”