Industrywide Issues

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    PA DEP Invites Public Comment on Shell 60-Mile Ethane Pipeline

    Falcon Ethane Pipeline proposed route – click for larger version

    The Pennsylvania Dept. of Environmental Protection (DEP) is taking a close look at Shell’s proposal to build an ethane pipeline to feed the $6 billion cracker plant now under construction in Beaver County, PA. In fact, the DEP wants public input on the ethane pipeline–by Feb. 20th. Brief history: In February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 that shed new light on the project–news that Shell is working on an ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell filed an application with the PA DEP for the PA portions of the pipeline (see Shell Files PA Application for Ethane Pipe to Feed Cracker Plant). The DEP is now considering those portions–some 60 miles running through the state. Here’s how you can comment on/support the project…
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    Although Cove Point LNG Not Yet Operational, Gas Flowing to Plant

    Last week MDN brought you news that Dominion’s Cove Point LNG export facility along the shore of Maryland has delayed its official start-up until perhaps as late as April (see Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April). An expert analyst theorized the reason for the delay is to install two flaring systems at the plant (a safety precaution). So if the plant is not yet started up for commercial operations, why is gas still flowing to the facility? Other experts, at BTU Analytics, have been watching pipeline flow data and maintain the Cove Point facility has been receiving a steady flow of Marcellus gas since last September! No doubt some of the gas flowing to Cove Point is used for testing the equipment. But how can gas continuously flow to the plant if it’s not yet being liquefied and shipped out? We suspect some of the gas can be stored. As for the rest? We don’t know. What we do know, based on a post by BTU Analytics, is that even though Cove Point isn’t receiving the volumes it eventually will receive (3.5 billion cubic feet per day once it is fully up and running), Cove Point is getting a smaller, steady flow now–and (the point of this post), that smaller, steady flow is an important new market for Marcellus gas…
    Read More “Although Cove Point LNG Not Yet Operational, Gas Flowing to Plant”

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    NY DEC Asks Court to Toss FERC Order re Millennium Pipe Project

    Millennium Pipeline is building a tiny, 7.8 mile pipeline in Orange County, NY that will connect the main Millennium pipeline to the CPV Valley Energy Center gas-fired electric plant. Both projects are currently under construction. Millennium’s project, called the Valley Lateral Project, was opposed by the corrupt Andrew Cuomo Dept. of Environmental Conservation (DEC). The DEC refused to grant necessary permits for the federal project, so the Federal Energy Regulatory Commission (FERC) voted to overrule DEC and allow it to be built anyway (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC took FERC to court, but in December, the federal Second Circuit Court of Appeals ruled against the DEC’s request to block the beginning of construction (see Fed Court Denies NY DEC Bid to Block Power Plant Pipe Construction). Construction subsequently began immediately. The DEC, no doubt goosed on by the corrupt Cuomo, has just come back to the Second Circuit with a different request. This time the DEC wants the court toss out FERC’s approval of the project, saying if the FERC approval stands, any company could file a half-baked (i.e. “incomplete” according to DEC standards) application for a water crossing permit and that doesn’t give DEC enough time to chase in a completed application. In other words, companies would “run out the clock” by saying DEC took more than a year to approve an application. DEC calls it “sandbagging” by delaying important information. Somehow DEC’s protestations ring particularly hollow, since they themselves are famous for sandbagging…
    Read More “NY DEC Asks Court to Toss FERC Order re Millennium Pipe Project”

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    Ohio EPA Continues Campaign to Stop Rover Pipe, Hounds FERC Again

    The Ohio Environmental Protection Agency (OEPA) continues to hound the Federal Energy Regulatory Commission (FERC) about a potential spill of drilling mud by Rover Pipeline near the Tuscarawas River. Last week we told you that OEPA, which has ZERO regulatory oversight of the Rover Pipeline project, had been told (by informants) that when Rover restarted underground horizontal directional drilling (HDD) work at the Tuscarawas site, some 146,000 gallons of drilling mud went down the hole but never came back out (see OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River). In April 2017 Rover experienced an inadvertent return (i.e. spill) of some 2 million gallons of drilling mud at the same location (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Last year’s accident shut down all HDD work for months. It wasn’t until December that FERC allowed Rover to restart HDD work at the Tuscarawas site. After OEPA went blabbing to FERC last week, Rover pushed back by saying there has been no spill or inadvertent return (see Rover Refutes Ohio EPA Claim of 146K Gal. Spill @ Tuscarawas River). We theorize that some (maybe even all 146,000 gallons) of the drilling mud did go down the hole and stayed down the hole. So far it hasn’t come back out, which is not a problem in anyone’s book. OEPA was back at FERC on Friday like an ankle-biting Chihuahua, asking FERC to shut down Rover HDD work because of this unsubstantiated rumor of drilling mud gone missing. Enough is enough! When will FERC slap OEPA around and tell them to back off?…
    Read More “Ohio EPA Continues Campaign to Stop Rover Pipe, Hounds FERC Again”

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    New Park Foundation “Study” Targets PA Conventional O&G Wastewater

    For years now the radical Park Park Foundation has been buying its research from a few select professors at a few select universities. One of the scientists for sale is Avner Vengosh, professor of geochemistry and water quality at Duke University’s Nicholas School of the Environment (see Duke Hit Piece on Shale Water Usage from Same Park-Sponsored Prof and Latest Case of Duke U Bought & Paid “Research” by Park Foundation). Here’s how it works: Park funds Dr. Vengosh’s “research,” and he conveniently “discovers” all sorts of nasty things about shale fracking, publishing his “research” in obscure, peer reviewed journals. Mainstream media picks it up and runs it. Readers who only scan headlines get the impression fracking is evil. Mission accomplished for Park (another hit on fracking) and for Vengosh (another buck in his pocket). That’s how it works in the world of bought-and-paid-for fractivism. We though Vengosh had reformed. In October 2016 he published a fracking wastewater study, funded by the National Science Foundation (NOT the Park Foundation) that found there’s really nothing to worry about after all when it comes to Marcellus Shale wastewater (see Duke U Researcher Tries to Repair Reputation with Wastewater Study). But Vengosh has had a relapse–perhaps he needs more money? Vengosh, with funding from the Park Foundation, has just published a new study that blames conventional (not shale) oil and gas development in Pennsylvania for an increase in radioactivity in streams/rivers where conventional (not shale) wastewater has been treated and released by local sewage treatment plants…
    Read More “New Park Foundation “Study” Targets PA Conventional O&G Wastewater”

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    Mountaineer Xpress Pipe Breaks Ground in WV on $100M Compressor

    Earlier this week TransCanada (i.e. Columbia Pipeline) broke ground for a new $100 million compressor station that will flow gas through the Mountaineer XPress Pipeline. MDN previously told you that at the end of December the Federal Energy Regulatory Commission (FERC) issued a final approval for Mountaineer (see Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress). The $2 billion Mountaineer XPress will build ~170 miles of new pipeline to flow 2.7 billion cubic feet (Bcf) per day of natural gas from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). At 2.7 Bcf/d, Mountaineer XPress is the second largest (by volume) new pipeline project for the Marcellus/Utica region–second only to Rover’s 3.25 Bcf/d pipeline. It is a big and important project. On Tuesday, even though the temps were frigid and the snow was flying, Calhoun County commissioners along with reps from TransCanada broke ground on an important new compressor station being built to flow gas through Mountaineer XPress. Calhoun has not seen any shale drilling, although neighboring Ritchie County (to the north) and Gilmer County (to the east) have. Mountaineer XPress and this compressor station are helping Calhoun participate economically in the shale miracle, which Calhoun’s commissioners expressed thanks for…
    Read More “Mountaineer Xpress Pipe Breaks Ground in WV on $100M Compressor”

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    Mercer County, PA Gears Up to Benefit from Shell Cracker

    “One word: Plastics” (The Graduate) – Mercer County, which is two counties and 50 miles north of Beaver County (located along the border with Ohio) is making plans now for how their county to grab some of the “low hanging fruit” that will appear when the Shell ethane cracker in Beaver County goes online in the early 2020s. You read that right. NOW is the time for counties in the region to make plans and set those plans in motion to attract some of the numerous businesses that will set up shop to be close to the cracker plant. Mercer County officials recently attended a forum where the topic was ancillary development that will happen because of the cracker plant. What is the low hanging fruit that will magically appear with the cracker? Manufacturing–and the jobs that go with it. In particular, manufacturing and jobs in the plastics industry. A regional trade organization–Penn-Northwest Development Corp.–is planning to hit the plastics industry trade shows this year. Penn-Northwest is working with counties like Mercer to help them market themselves to plastics manufacturers…
    Read More “Mercer County, PA Gears Up to Benefit from Shell Cracker”

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    NC Continues to Delay Atlantic Coast Pipe, Rejects Part of Erosion Plan

    North Carolina has a Democrat governor. The state Dept. of Environmental Quality (DEQ) is an executive branch agency. So it’s no surprise to learn that the DEQ is antagonistic toward Dominion Energy’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. In October the DEQ rejected a plan submitted by Dominion for the pipeline project, claiming the erosion and sediment control part of the plan is not up to snuff (see NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?). What’s happened since that time? Dominion resubmitted the plan, and in early January DEQ approved part of the erosion/sediment control plan (for the southern part of the project) but rejected the other part (for the northern part of the project). As we previously pointed out, DEQ is currently playing death by 1,000 questions with Dominion, trying to tie the project up in knots (see NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). DEQ’s poor behavior continues. Here’s an update on where things stand, and what Dominion will need to do to get ACP approved in the Tar Heel State…
    Read More “NC Continues to Delay Atlantic Coast Pipe, Rejects Part of Erosion Plan”

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    Lancaster Against Pipelines to be Featured in Propaganda Movie

    A leftist filmmaker is attempting to get enough money via a Kickstarter campaign to fund a new propaganda film called “The Power of Protest,” which looks at five radical/left “protest” movements, one of which is Lancaster Against Pipelines (LAP). LAP is an anti-fossil fuel group founded to try to stop Williams’ $3 billion Atlantic Sunrise project, a 198-mile natural gas pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. The married couple who started LAP, Mark and Malinda Clatterbuck, are far-left radicals who pretend to be mom and pop, salt-of-the-earth, neighbor-next-door, aw-shucks common folks who would never engage in “violent” protests. Mark Clatterbuck admits to traveling to North Dakota to participate in the mass action against the Dakota Access Pipeline–a “protest” that turned quite violent and destroyed millions of dollars of property. No, we’re not saying nor implying that Clatterbuck himself engaged in illegal actions while there. We are saying the Clatterbucks’ sympathies lie with protest movements that sometimes result in such actions. There is a very fine line for leftists between violent and non-violent protests–and all too often they tip over into the latter. They simply can’t accept the fact other people disagree with their extreme, outside-the-mainstream positions. In advertising the Kickstarter campaign to try and gin up money to fund the movie, the Clatterbucks and LAP are pushed front and center as examples of “mass protests” and their supposed effectiveness. We recall that Malinda Clatterbuck once claimed LAP has “over 1,000 people” willing to show up and engage in “nonviolent” protests against Atlantic Sunrise. So far, a grand total of 45 of their “committed” 1,000+ members have shown up and gotten themselves arrested (see 5 More Protesters Arrested in Lancaster Co. Blocking Pipeline Work). So much for shutting down work on Atlantic Sunrise. Here’s the pitch that attempts to turn two lefties into mom and pop in an attempt to raise money for yet another faux “documentary”…
    Read More “Lancaster Against Pipelines to be Featured in Propaganda Movie”

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    Renewables a “Roadmap to Nowhere” – Sued for Telling the Truth

    We spotted an article a month ago that is shocking and disturbing. This is the first time we’ve had a chance in our daily article roundup to bring it to you. A Stanford University professor pedals a “religion” that claims the world can be fueled by 100% renewable energy. That is, renewables can provide everything we need: electricity, heating, transportation, industry, shipping, the works. And renewables can do it so well that we won’t need power plants that run on actual fuel. It’s a bizarre viewpoint, but there you go. Some people believe in Santa Claus too. The Stanford prof published a paper espousing this theory. There were a lot of factual flaws in the paper, so another scientist (actually 22 prominent scientists) published a paper pointing out the problems with the Stanford prof’s paper. That’s how it’s done in academe. You put your research out there, and others can (often do) come along and question it with their own research and rebuttal. That’s how science gets better. So what did the Stanford prof do? He sued one of the 22 authors of the dissenting paper, along with the academic journal that published it! Sued them for libel. The person he chose to sue isn’t affiliated with an institution with a legal team to defend him–so this is selective persecution. An attempt at legal bullying. No longer is science something we debate with published findings. Now it’s a matter of faith–and God help you if you believe on the wrong side of an issue like global warming, or renewables. If you dare to believe the “wrong way”–or worse yet poke holes in a true believer’s theories–you may get hauled into court. An ebook titled “ROADMAP TO NOWHERE: The Myth of Powering the Nation With Renewable Energy” (full copy below) covers this controversy and shines a light on what you thought you knew about so-called renewables. The ebook compares renewables with nuclear energy (we wish it were natgas, but perhaps using nuclear is the better comparison in this case). Take a blood pressure pill before you read the following…
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    Constitution Pipeline Appeals NY Fight Directly to U.S. Supreme Court

    U.S. Supreme Court

    “The reports of my death have been greatly exaggerated” – Mark Twain (and Constitution Pipeline). Last week it was our duty to report the sad news that the Federal Energy Regulatory Commission found they could not override the New York Dept. of Environmental Conservation’s (DEC) decision (under pressure from the corrupt Andrew Cuomo) to block the Constitution Pipeline (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). FERC found, after an exhaustive investigation, that the DEC had suckered Constitution into refiling a second time, restarting the one-year clock under which NY could render a decision about the pipeline. With four days left on the reset clock, DEC issued a denial of Constitution’s request for a federal water crossing permit (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Constitution went to the U.S. Court of Appeals for the Second Circuit to overturn DEC’s decision, but ultimately failed (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). With FERC refusing to act, we asked the question last week, Is this the death of the $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into NY and New England? We reached out to Williams and MDN was first to report that Williams said they would continue to fight. And so they have! In a statement issued Tuesday, Williams (i.e. Constitution Pipeline) said they have appealed the Second Circuit’s decision to the U.S. Supreme Court (full copy of the appeal below). Williams maintains if the Second Circuit’s decision upholding the corrupt DEC is allowed to stand, it sets a dangerous precedent for rogue states like NY who refuse to obey the strict interpretation of the law. That is, it allows states like NY to simply reinterpret the law any old which way they want. And that can’t stand…
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    Mountain Valley Pipe Tweaks Route, Asks VA Judge for Eminent Domain

    Credit: Roanoke Times – click for larger version

    Attorneys for holdout landowners along the path of Mountain Valley Pipeline (MVP) are using MVP’s willingness to tweak the route of the pipeline to avoid certain areas, against it. Yes, try to work WITH folks–and they turn around and use it against you. MVP is a $3.5 billion, 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. In October, the Federal Energy Regulatory Commission (FERC) gave final approval for the project (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In early November, the West Virginia Dept. of Environmental Protection gave the project its approval (see WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline). And in December, the Virginia Water Control Board voted to approve the project (see Virginia Water Board Approves Mountain Valley Pipe – Antis Erupt). So it should be clear sailing for MVP–except for some 15% of holdout landowners along the pipeline’s route who refuse to sign easements. MVP has taken them to court, asking a federal judge for permission to use eminent domain to gain access to those properties. But the holdouts’ lawyers are saying continued tweaks to the pipeline route are evidence MVP doesn’t know what the heck it wants and who to “condemn” with eminent domain–and that’s enough reason for the judge to refuse granting blanket condemnation for eminent domain…
    Read More “Mountain Valley Pipe Tweaks Route, Asks VA Judge for Eminent Domain”

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    Adelphia Gateway Pipeline Near Philly Files with FERC

    Adelphia Gateway Pipeline map – click for larger version

    In November MDN shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, had been purchased by a subsidiary of New Jersey Resources and will get converted to flow Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline is called the Adelphia Gateway. Adelphia ran an open season–a period of time when shippers can reserve capacity along the pipeline–and got requests for twice the amount of capacity the pipeline will hold (see Converted Pipeline Near Philly Gets 2X More Interest than Capacity). That was more than enough for NJ Resources to move forward with the project. Last week they filed an official application with the Federal Energy Regulatory Commission (FERC) to convert the existing pipeline to flow natural gas, and add various facilities (like meter stations) along the way…
    Read More “Adelphia Gateway Pipeline Near Philly Files with FERC”

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    Get Tomorrow’s Marcellus/Utica NatGas Prices Today!

    Anyone with even a passing interest in the natural gas market–either the Marcellus/Utica or elsewhere–knows there is one dominant factor that drives exploration and production: PRICE. The price of natural gas is the tail that wags the entire natgas dog. Low price? Less (or no) drilling, shut-in wells, less leasing–everything is less. High price? Pop the cork on the champagne bottle! When the price goes up and stays up, drillers begin seismic surveys, then leasing, then permits, then drilling. After drilling comes pipelines–both to the well and to market. And businesses tend to gather around points where there is access to natgas (and its byproducts). It’s a virtuous cycle, from upstream (drilling) to midstream (pipelines) to downstream (end users of the gas)–that all starts with price. Who should have an interest in price? Everybody! However, there are some whose jobs and livelihoods depend on price–gas traders, industrial buyers, drillers who need to sell their gas, etc. Those people need a daily update on the price. Who do they turn to? There are several price reporting authorities that monitor trade information for natural gas trading. There is no single price for natural gas–there are hundreds of prices. Gas is traded at trading hubs or points along major pipelines across the country. Each time a trade is done (price requested, price offered or “ask” and “bid”), that valuable information gets recorded and sent to a price recording authority. Each day around 1:30 PM Central Time, NGI gathers up trade information for THAT DAY, trades that have occurred so far at trading points all over the US and Canada, and posts/emails the information to subscribers. It is like getting tomorrow’s prices–the prices everyone else will base their trades on–today! How can you get tomorrow’s prices today? Glad you asked. Request a trial to NGI’s MidDay Price Alert here. Below we have a section of a recent edition showing prices in Appalachia (the Marcellus/Utica), and for the entire northeast…
    Read More “Get Tomorrow’s Marcellus/Utica NatGas Prices Today!”

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    Rig Counts No Longer Reliable Barometer of Production

    Once upon a time, it was pretty easy for commodities traders (and others) to predict oil and gas production. You just watch the Baker Hughes rig count. When the number of rigs actively drilling goes up, production will follow X months later. And when active rigs go down, production goes down too. But that is no longer the case! Why? Shale wells are producing more over a longer period of time. And the technology used when drilling today is radically different than tech from just a few years ago. Drillers now drill wells faster–much faster–meaning they can use fewer rigs. And frackers are using “hellish” amounts of sand to frack wells, producing ever-more quantities of oil and gas. What it all means is this: If you’re a trader, you can no longer depend on rig counts as your main metric to calculate production. You need new metrics, such as…
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    Tellurian Founder Says U.S. Needs $150B in Gas Infrastructure

    Charif Souki

    In December 2015, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) fired Cheniere Energy CEO Charif Souki (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). Souki didn’t let it slow him down. He started a new LNG export company, Tellurian, to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). We kind of had (past tense) a soft spot for Souki, getting tossed from the company he started. But then we read comments he made about Donald Trump in the run-up to the 2016 election. Souki thought (like many) that Trump had no chance of winning, but if he did, Souki said he would “reconsider my nationality.” Souki was born in Egypt but is an American citizen now. After Trump’s victory, Souki forgot about his threat to leave the country and change his citizenship. We didn’t. We’re still waiting. Souki turned up on CNBC again yesterday, this time with faint praise for Trump (but also words of praise for the abysmal failure Obama). Souki had a chat with Jimmy Cramer, telling Cramer the U.S. urgently needs $150 billion worth of infrastructure investment (i.e. pipelines) in order to get our prodigious amounts of natural gas from inland places where’s extracted to the shoreline–so it can be exported…
    Read More “Tellurian Founder Says U.S. Needs $150B in Gas Infrastructure”