Industrywide Issues

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    NY Appeals Court Denies Constitution Pipe Motion for Rehearing

    The U.S. Court of Appeals for the Second Circuit (in liberal New York) has refused to re-hear the case against New York’s corrupt Dept. of Environmental Conservation (DEC) for its arbitrary and capricious refusal to grant a water crossing permit to Williams’ Constitution Pipeline. In August MDN brought you the sad news that the Second Circuit ruled against the Constitution Pipeline and their lawsuit against the Cuomo-corrupted DEC (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). On Sept. 1st Constitution filed a request for a rehearing at the Second Circuit (see Not Lights Out for Constitution Pipe Just Yet – Rehearing Request). Last week the court responded loud and clear: NO. By our reckoning Constitution has one card left to play, and they played it a few weeks ago: Request the Federal Energy Regulatory Commission (FERC) to overrule NY DEC because the DEC took more than a year to deliver its rejection of the permit (see Constitution Pipeline Asks FERC to Override NY DEC). If FERC does grant Constitution’s request to overrule the DEC, you can expect a legal challenge from the corrupt Cuomo machine. That’s how it works in dictatorships like New York…
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    Empire State Showdown: The NatGas Battle For New York

    Marcellus Drilling News began in early 2009 after editor Jim Willis noticed an article in the Binghamton Press & Sun-Bulletin detailing how a group of farmers in Broome County (near where Jim lives) had become overnight millionaires after signing leases with XTO Energy–to allow shale drilling on and under their land. Jim was stumped. He had never heard of gas drilling in the Southern Tier of New York, nor had he heard of XTO Energy. The issue of shale drilling appeared to be an interesting issue, full of technology, politics and money. Sounds like the makings of a soap opera! And what a soap it has been since that time–at least in New York State. Jim has followed the ups and downs (mostly downs) of attempting to launch shale drilling in the Empire State. When Andrew Cuomo was first elected governor, it appeared that he would (eventually) allow fracking. Now? He won’t even allow the state’s environmental agency to approve major interstate pipelines–projects most residents were unaware of just a few short years ago. Natural Gas Intelligence (NGI) ace reporter Jamison Cocklin recently wrote an in-depth series of articles focusing on New York and what’s happening with the gas industry in the state. It was/is an EXCELLENT series of articles. NGI has assembled the series, along with extra information, into a 16-page Special Report titled, “Empire State Showdown: The NatGas Battle for New York.” Below is a description of the report, with information about how you can download a copy…
    Read More “Empire State Showdown: The NatGas Battle For New York”

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    EQT’s Equitrans Expansion Project Gets PA DEP Water Permit

    EQT’s Equitrans (pipeline) Expansion Project is on track to begin construction by the end of this year–likely sometime in November. We first covered this project in 2015 (see Time to Support EQT Mountain Valley & Equitrans Pipelines @ FERC). The Equitrans Expansion Project will upgrade compressor stations, add approximately eight miles of pipeline connectors to upgrade capacity on the Equitrans Pipeline from southwestern Pennsylvania into West Virginia. The $100 million project, when completed, will expand capacity on the Equitrans pipeline by 600 million cubic feet per day (Mmcf/d). The project when introduced was slated to be done by the end of 2018. Looks like they will keep that schedule. On Friday, October 13, 2017, the Federal Energy Regulatory Commission (FERC) issued a Certificate of Public Convenience and Necessity for both the $100 million Equitrans Expansion Project and $3.5 billion Mountain Valley Pipeline. The two projects are connected. On Saturday, the PA Dept. of Environmental Protection issued, via publication in the Pennsylvania Register, federal water crossing permits for the Equitrans Expansion Project. The bulldozers can’t be far behind…
    Read More “EQT’s Equitrans Expansion Project Gets PA DEP Water Permit”

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    New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio

    Correction: Please note the correction below. Opatho Gas Trans LLC is not owned by EmKey Energy, et al. Our understanding was in error. RH energytrans contacted MDN to correct the record. We appreciate it!

    A new 60-mile pipeline is being proposed by a new pipeline company, to connect shale production in northwest Pennsylvania to markets in northeast Ohio. Last week RH energytrans filed an application with the Federal Energy Regulatory Commission to build the Risberg Line Project. The route will begin in the Meadville, PA area (Crawford County) and extend in a northwest direction to Ashtabula County, OH. The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio. According to RH energytrans, there is a need for additional natural gas supplies in the Ashtabula area to enhance future commercial business development and as a backup for residential customers. The pipeline will provide 55 million cubic feet per day (MMcf/d) of natural gas to Ashtabula. RH energytrans, with offices in Erie, PA, is owned by Opatho Gas Trans LLC. In a case of Russian matryoshka (nesting) dolls, Opatho is owned by EmKey Energy, Viking Energy Broker and Nucomer Energy. EmKey has pipeline operations in both PA and NY, so you might say (with some justification) that this is a project of EmKey. Corrected: Opatho is owned by three Norwegian companies: Solodden AS, Vicsund AS, and Hellberg Eiendom AS. Opatho has some owners in common with EmKey, Viking Energy Broker and Nucomer Energy. However, it would be incorrect to say that Opatho is owned by EmKey or that the Risberg Line Project is an EmKey project. Below is the official 449-page FERC filing with all the details, along with a summary of the project. We have a handy timeline, and a map of the pipeline route…
    Read More “New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio”

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    6 More Arrested for Blocking Pipe Work at Lancaster Nun Property

    Last Monday 23 radicalized protesters tried to block access to equipment being used to construct the Atlantic Sunrise Pipeline in Lancaster County, PA–on property owned by a sect of Catholic nuns whom we call Sisters of the Corn (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested). The protesters began singing the Hokey Pokey as they waited their turn for the handcuffs–including the arrest of a child. Such is the psychological abuse these people perpetrate on children. Over the weekend, on Saturday, another six protesters at the same location were arrested and carted away. One of them was a priest from New York, showing solidarity with the radical Sisters of the Corn. We have the names of the six arrested on Saturday, and a report of their arrest. What remains interesting to MDN is the low, low numbers of protesters who have been arrested. The people in charge of the protest movement, Mark and Malinda Clatterbuck (from Lancaster County) claim to have more than 1,000 people signed up to protest against the pipeline–to engage in illegal actions to block it. Yet so far 29 have been arrested. So much for the big boasts of the Clatterbucks…
    Read More “6 More Arrested for Blocking Pipe Work at Lancaster Nun Property”

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    Ohio EPA Tries to Repair Recent Bad Blood with Open House

    Last week the Ohio Environmental Protection Agency (OEPA) held a “first-of-its-kind” oil and gas open house to discuss communication between the agency and the oil and gas industry. Which is kind of interesting considering Craig Bulter, the head of OEPA, is no glittering example of communication. He’s been talking with Rover Pipeline people, saying one thing in private, and another in public (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). But Butler wanted to paper over his actions-that-speak-louder-than-words, and the industry played along, participating in last week’s meeting. After all, what can they do? OEPA has the power to really screw with the Utica industry. Best to keep the emperor happy. Fortunately OEPA is more than just one man. There are, by accounts from a report coming from the meeting, good people who work in OEPA–people who are actually interested in good communication between regulators and regulatees…
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    PA Strippers Back in News, Supremes to Hear Synder Bros Case

    The Pennsylvania Supreme Court said last week it will accept a case about strippers–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 drilling law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. The PUC is not letting it alone. They conscripted a sympathetic ally in the PA legislature to introduce a bill to “fix” the “loophole” (see PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All). At the same time the PUC kept pushing on the legal front, and last week the PA Supremes agreed to hear an appeal of the case. Looks like those strippers just won’t go away…
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    FERC Allows Rover to Restart HDD Work in 2 More OH Locations

    Permission granted grunge rubber stamp on white, vector illustration

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada–began flowing natural gas through a large portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 1.2 billion cubic feet per day (Bcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH (see Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor). However, it could flow more, if the Federal Energy Regulatory Commission (FERC) would lift its considerable boot off Rover’s neck and let them finish Phase 1B pipeline work in eastern Ohio to feed more gas to the main part of the pipeline. The problem is that Rover had early missteps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp (i.e. “wetland”) near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all. Rover believes sabotage may have been the cause. From April until mid-September, FERC blocked all new underground HDD work for the Rover project. That changed when FERC allowed Rover to restart HDD work at nine locations in September (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). Late last week FERC issued permission for another two Rover HDD locations to restart work. No, the Tuscarawas River site is not one of them. That investigation continues…
    Read More “FERC Allows Rover to Restart HDD Work in 2 More OH Locations”

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    FERC Report Says Warm Winter Ahead, Gas Prod to Grow 5 Bcf/d

    Last week the Federal Energy Regulatory Commission’s (FERC) Office of Enforcement (OE) released their 2017-18 Winter Energy Market Assessment, an annual look ahead to the coming winter. OE shares their thoughts and expectations about market preparedness, including an assessment of risks. What does the report show? OE says production is going up (increasing another 5 billion cubic feet per day by next April), natural gas in storage is “robust” (meaning high), and the upcoming winter weather looks to be warmer than normal in most of the country, including the northeast. Translation: Don’t expect the price of natural gas to spike this winter. Prices will remain relatively low. Here’s the full OE report (interesting reading, pretty charts)…
    Read More “FERC Report Says Warm Winter Ahead, Gas Prod to Grow 5 Bcf/d”

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    Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe

    In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the 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 (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations (Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network) filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, the WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they will “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” On Tuesday, the 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project. Which means the process begins all over again–a temporary victory for antis. It’s temporary because while all of this nonsense was going on, the Federal Energy Regulatory Commission approved the project–so it will get built…
    Read More “Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe”

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    Court Considers if PA Towns Can Regulate ME2 Pipeline Location

    In May six anti-pipeline residents living near where the Mariner East 2 pipeline will pass asked the Middletown (Delaware County, PA) town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. The town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped-up, agitated and funded by Big Green groups filed a lawsuit against the pipeline, to force it to conform with Middletown’s ordinance (see 6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe). The lawsuit was filed in the the Delaware County Court of Common Pleas. The judge dismissed the case in June, so the antis, again funded by Big Green groups, appealed the case to the next higher court, Commonwealth Court. On Wednesday, an “en banc” panel of Commonwealth Court heard arguments in the case (“en banc” meaning all of the judges heard the case, indicating its high importance). One report of the session indicates the judges expressed skepticism that Sunoco Logstics Partners, the builder, does not have to follow local town ordinances because the pipeline is overseen by the the state and state regulations preempt local ordinances. Needless to say if the case goes against ME2/Sunoco, it will make it harder (but not impossible) to finish work on time…
    Read More “Court Considers if PA Towns Can Regulate ME2 Pipeline Location”

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    Clean Energy Breaks Ground on CNG Fueling Station in the Bronx

    Andrew J. Littlefair, president and CEO of Clean Energy Fuels; Mark Riley, vice president, Clean Energy; Spiro Kattan, DSNY; and Steve Tufo, Baldor Food Transportation Manager, participate in the groundbreaking of Clean Energy’s Bronx, NY. CNG station.

    Yesterday Clean Energy Fuels, the City of New York and various community leaders (i.e. politicians) held a ground-breaking ceremony to launch work on what will be the very first compressed natural gas (CNG) station in the Bronx. According to the Clean Energy press release: “The use of natural gas fuel, produced domestically in North America, reduces greenhouse gas emissions (GHG) by up to 21 percent versus diesel and gasoline. Using natural gas is one of the ways New York City can meet its goal of reducing greenhouse gas emissions by 80 percent the next few decades.” The New York City Department of Transportation said it is “proud to be part of this unique groundbreaking, which will benefit the Hunts Point community and all of New York City.” So why does New York’s corrupt governor, Andrew Cuomo, continue to block pipelines that will bring greenhouse gas-reducing natural gas that benefits all communities to MDN’s beloved home state? Yesterday we told you about an upcoming hearing to discuss two natural gas-fired electric microgrids coming to Albany (see Public Hearing Next Wk on Albany, NY Fracked Gas-Fired Electric Plant). Now we read of this CNG fueling station coming in the Bronx. Where will all of the gas come from to feed these projects without new pipelines? Here’s the good news from Clean Energy about the Bronx CNG station…
    Read More “Clean Energy Breaks Ground on CNG Fueling Station in the Bronx”

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    Locals Pumped About OH Cracker; WV Cracker Still Not Dead

    Belmont County Port Authority Director Larry Merry says he “can’t think of a single reason” why PTT Global Chemical won’t build a promised $6 billion ethane cracker facility in Dilles Bottom. Mike Jacoby, VP of business development for the Appalachian Partnership for Economic Growth concurs, saying he is “optimistic” and sees “no problems” ahead for the PTT cracker. In addition to locals in Ohio pumped about the PTT cracker and the promised final investment decision by the end of this year, there is still hope for a cracker plant in West Virginia too. WV officials say Braskem is still expressing interest in a cracker project in the Parkersburg area. Here’s some of the chitter-chatter among pumped-up officials attending a forum last month in Wheeling, WV…
    Read More “Locals Pumped About OH Cracker; WV Cracker Still Not Dead”

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    Will New Pipes Coming Online Lift Marc/Utica Prices This Year?

    With new pipelines coming online in the Marcellus/Utica, will the price of natural gas bought and sold at regional trading points, like Dominion South and TGP (Tennessee Gas Pipeline) Zone 4 go higher? It certainly makes sense that with more of our gas flowing out of the area, there will be less gas left in the area and therefore will fetch a higher price. In fact, just after Energy Transfer’s Rover Pipeline, now in partial service, began to flow, the price of gas at the Dominion South hub jumped 31% (see Rover Pipeline Triples Volume of Gas Flowing, Prices Go Up). However, the analysts at BTU Analytics are not convinced. BTU is running a complimentary webinar on Nov. 2 titled, “Northeast Pipes Have Arrived. Now What?” Ahead of that webinar they’ve posted a blog teasing some of their thinking. The bottom line from that post: “Will Rover or this year’s takeaway projects help uplift weak prices in the Northeast? We don’t think so.” Hmmmm. Looks like we’ll have to attend the webinar to find out all the reasons why they that so. In the meantime, BTU provides some helpful background in their blog…
    Read More “Will New Pipes Coming Online Lift Marc/Utica Prices This Year?”

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    Alogonquin Defends AIM Pipe Project Against Radicals in DC Court

    Last year a group of radical environmental groups including Riverkeeper Inc., Sierra Club and Food & Water Watch (Big Green groups) joined a federal appeal (i.e. sued) to stop Spectra Energy from building their Alogonquin Incremental Market (AIM) Project, a project to expand the capacity of the Algonquin Gas Transmission system to flow more Marcellus/Utica gas to markets in the northeast, including New England (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Most of the project is 20 miles of new pipeline in the Hudson Valley area of New York. In March 2016, New York’s spineless Gov. Andrew Cuomo asked the Federal Energy Regulatory Commission (FERC) to stop work on AIM near a nuclear power plant (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). Within a few days FERC said NO (see FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant). That didn’t make the anti-fossil fuel nutters happy at all. They thought they had a real winner by painting nightmare scenarios of the AIM pipeline blowing up and taking a nuclear plant with it. Their scare tactics didn’t work–so they fell back to the tried and true: gang up and ask a liberal judge to stop it. This week briefs were filed with the D.C. Circuit Court of Appeals. Algonquin argued yesterday in court that parties to the lawsuit, including the Mayor of Boston, don’t have standing to bring a challenge to FERC’s approval of the project…
    Read More “Alogonquin Defends AIM Pipe Project Against Radicals in DC Court”

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    US DOJ Demands Payments from GE re Unsold Water Biz

    In July, GE Oil & Gas completed its merger/buyout of oilfield services giant Baker Hughes (see Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.). As is typical in these kinds of megamergers, governmental agencies that review the deal make the deal contingent on certain requirements. In the case of GE/Baker Hughes, the U.S. Dept. of Justice demanded GE sell its Water & Process Technologies business. GE agreed, and lined up a buyer (Suez, a French waste and water group). However, the deal has not happened (yet), and because there is a delay in making it happen due to “various administrative challenges,” the DOJ is demanding GE make DAILY payments–to the DOJ–as an “incentive” to get the deal done. The amount of the payments is unspecified. Where will all that money go? We don’t know, but we can certainly imagine. What do swamp-dwellers do with free money?…
    Read More “US DOJ Demands Payments from GE re Unsold Water Biz”