Industrywide Issues

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    St. Louis Pipeline to Flow M-U Gas Gets Favorable FERC Review

    In February 2016, MDN told you about Laclede Group, a St. Louis-based natural gas utility, with plans to build a ~60-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline (see New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas). The new pipeline would bring low-cost Marcellus and Utica Shale gas from REX (now-reversed) to the utility–not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. A year later Laclede renamed itself Spire, and the company filed an official application with the Federal Energy Regulatory Commission (FERC) to build the Spire STL Pipeline (see Spire Files Plan with FERC to Flow Marcellus/Utica Gas to St. Louis). In September FERC issued a favorable environmental assessment (EA) for the project (see a copy below). Although the project has been around for the past year and a half, radical anti-fossil fuelers are just now marshaling their efforts to try and block it. Here’s an update on FERC’s approval, and the efforts under way to try and stop the project…
    Read More “St. Louis Pipeline to Flow M-U Gas Gets Favorable FERC Review”

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    Massachusetts Backdoor Pipeline Ban Sailing Thru Legislature

    One of the way pipeline companies afford to invest billions of dollars to build pipelines is via long-term contracts from would-be users of that pipeline. In Massachusetts, Spectra Energy (now a part of Enbridge) brokered deals with utility companies to provide them with cheap, clean-burning Marcellus/Utica natural gas. In order for those utilities to afford it, they would need to pass along some of the cost of building the pipeline to reach them. Wait, what? Electric customers would have to pay for a natural gas pipeline? Well, yes! Because the new, cheaper gas would produce electricity at a lower cost, thereby lowering their monthly electric bills. They benefit, directly, from such a pipeline. However, radical leftists took that arrangement to court and in August 2016 the Massachusetts Supreme Judicial Court ruled utilities could not pass along costs for pipelines to electric customers (see MA Supreme Court Ruling Endangers New England Gas Pipelines). For a variety of reasons, with that decision being one of the biggest, Spectra/Enbridge later decided to mothball plans for their pipeline project, in June of this year (see Enbridge Withdraws $3B Access Northeast Pipeline Application). The Massachusetts legislature is full of lefties, and they don’t want to leave anything to chance–that maybe in the future such a deal will come around again. So a pair of bills are now sailing through the legislature will make it permanently illegal for utilities to pass along the cost of pipelines to electricity customers. In essence, it’s a backdoor move to ban any more pipelines from getting built in the Bay State…
    Read More “Massachusetts Backdoor Pipeline Ban Sailing Thru Legislature”

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    Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work

    Just before the holidays, thousands of workers who were working on the Atlantic Sunrise Pipeline project have been escorted to the unemployment office–courtesy the odious Sierra Club. Yesterday we brought you the sad news that the Sierra Club’s lawsuit has stopped work on the $3 billion pipeline project (see DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work). Companies building closely-vetted and highly regulated projects like Atlantic Sunrise project are jobs creators. The Sierra Club is a jobs destroyer. We asked Williams how many workers have been idled because of the work stoppage from the “temporary” order from the court. Williams spokesman Chris Stockton replied: “The exact number is 2,500.” He also said this: “It is costing about $8 million per day in idle construction costs.” The Clubbers’ frivolous lawsuit is causing real pain and real suffering for thousands of workers…and their families…and their children. Williams issued a press release yesterday to say they have filed a “Motion for Clarification” to determine what the emergency stop work order affects–just construction work in PA? Or the work they’ve already done (and are doing) outside of PA, which would stop new quantities of Marcellus gas already flowing south? Williams says they expect the court will conduct their review “expeditiously” and end this charade (our word) very soon. Antis rejoiced in the news of the stop work order, including one of the “leaders” of the airheaded opposition, who sounded like an 80s Valley Girl when she said: “I can’t believe it, like, does this mean they can’t continue with construction? Like, seriously?” Meanwhile, like some 2,500 people are like tragically out of work–including like 370 in Schuylkill County alone. Merry Christmas from the Sierra Club and from a small group of radicals called Lancaster Against Pipelines…
    Read More “Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work”

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    DRBC Attorney Faints in Federal Court During Questioning

    Some true courtroom drama from yesterday to report regarding a lawsuit brought by Wayne Land and Mineral Group against the Delaware River Basin Commission’s (DRBC) arbitrary and illegal frack ban. Yesterday we told you Wayne landowners would finally get their day in federal court (see Landowner Fight to Overturn DRBC Frack Ban Goes to Fed Court Today). And so they did. Or at least, began to. The attorney for the Wayne landowner (plaintiff) was questioned by the 3rd Circuit judges about their case. However, when the lead attorney for the DRBC (defendant) took his turn at the podium to be questioned, at one point during what was intense question, the attorney, Kenneth Warren, fainted! In the only account reporting on the incident we could find, Warren was attended to by medics and quickly revived–however both sides agreed to postpone the rest of the session in light of the episode. There was no word on why Warren fainted–his office did not respond to requests from a reporter for an explanation. Perhaps he’s been ill? Perhaps the pressure was too much? We simply don’t know. So here we are again in limbo–with PA landowners having been shafted by the DRBC for 10+ years, now shafted again until the lawyers and the judges can agree on a new date for the rest of oral arguments…
    Read More “DRBC Attorney Faints in Federal Court During Questioning”

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    Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH

    Over the past six months we’ve run a steady string of stories about Mountaineer NGL Storage and its proposed underground NGL (mostly ethane) storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see our Mountaineer NGL Storage stories here). We’ve learned that the Colorado company behind the project plans to spend up to $500 million to build it, that 20 drillers have expressed interest in contracting with the facility to store ethane, and that both the nearby potential PTT Global cracker plant and the under-construction Shell cracker plant are both interested in connections to the facility. We’ve also learned there is a holdup with some of the necessary permits for the project before construction can begin–a situation that has delayed construction until mid-next year. This morning we ran across yet another update. This one goes into more detail about the permit situation, explaining where the holdup is happening (with the Ohio Dept. of Natural Resources’ chief Rick Simmers). The update also introduces us to a new spokesman for the project, a local who will be the project’s feet on the street, meaning we’ll likely hear a lot more about the project in the coming weeks and months…
    Read More “Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH”

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    Plum, PA Officials Hold Hearing on New Restrictions for Fracking

    Nearly a month ago, local officials in Plum, PA (Allegheny County) approved a plan by Huntley & Huntley (H&H) to drill a series of Marcellus wells in their municipality (see Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling). At that time, we told you about H&H plans to begin constructing a well pad in Plum in November (see Huntley & Huntley Starts Shale Drilling in Plum, PA Next Month). Plum’s leaders faced stiff opposition from some residents over their decision to conditionally approve H&H’s request. In Plum, fracking is allowed in any zone if a conditional use is granted. That’s what happened last month–the Plum Council issued a conditional use exception for H&H to drill on 92 acres near Coxcomb Hill Road in Plum. Fearing more requests will come from H&H, Plum officials have floated a proposed change to zoning ordinances (ordinances which haven’t been updated since 1993). The new change would only allow fracking in rural residential and industrial zones. H&H says the change is too restrictive. Some antis think it doesn’t go far enough. Last night Plum held a hearing about the proposed changes, with some 100 people showing up. According to press accounts, the crowd was about evenly split, for and against the proposed zoning changes. Here’s how it went down…
    Read More “Plum, PA Officials Hold Hearing on New Restrictions for Fracking”

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    Shell Taps Brit to Run the $6B Ethane Cracker Project in Monaca

    Shell’s $6 billion ethane cracker plant facility in Monaca (Beaver County), PA is about to ramp up construction of the numerous buildings that will house the equipment. Since 2014, Ate Visser, vice president of Appalachia petrochemicals at Shell Chemical, has been the guy in charge of the project (see Shell Exec Shares Inside Story of Why They Chose PA for Cracker). However, beginning now, Hilary Mercer, a native of Manchester, England (has worked at Shell for the past 30 years) is now the woman in charge of the project. Mercer is the new vice president of the cracker plant project. She has an interesting, globe-trotting history. Mercer says she likes to build “big projects.” Prior to landing in her role in PA, Mercer was in South Korea overseeing construction of the largest floating structure ever built. But building the huge cracker facility isn’t the only thing that jazzes Mercer about the project. She’s pumped at the prospect of building the commercial side–building a business from the ground up. Finding customers, branding, everything that comes with creating demand for the output from the mighty cracker facility. Here’s a look at the new leader of the Shell cracker plant project…
    Read More “Shell Taps Brit to Run the $6B Ethane Cracker Project in Monaca”

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    Siemens Providing Turbines, $$ for 1 GW Hickory Run Power Plant

    The picture shows the assembly of the SGT5-8000H at the gas turbine plant in Berlin.

    In February 2013 MDN first told you about a plan to build the Hickory Run Energy Center–a $750 million electric generating plant at a former manufacturing site along the Mahoning River in Lawrence County, PA (see NW PA Town Approves Site for Marcellus-powered Electric Plant). The initial design called for a 900 megawatt facility, powered by Marcellus gas. More recent plans indicate the facility will be 1,000 megawatts (or 1 gigawatt)–enough electricity to power 1 million homes! In August we shared the exciting news that one publication was reporting ground has been broken for the facility (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). Whether bulldozers are pushing dirt or not, activity around the project continues at a brisk pace. German engineering giant Siemens announced on Monday that they have been awarded a contract to provide the guts for the plant–two H-class gas turbines, one steam turbine and three generators–along with a long-term service contract. Siemens also revealed they’ve made an unspecified (large) investment in the project and will own 20% of it. Here’s the good news that the Hickory Run Energy Center will get some Siemens love…
    Read More “Siemens Providing Turbines, $$ for 1 GW Hickory Run Power Plant”

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    Tiny Houses: Answer to Affordable Housing in Active M-U Area?

    We have to confess this story is purely for amusement purposes–ours and yours. In our daily trawl of the news related to “Marcellus Shale” we spotted this headline: “Group hopes to add tiny houses to Wheeling Island.” We thought, What in the world do tiny houses on Wheeling Island (Wheeling, WV) have to do with the Marcellus? So we read the article to find out. Anyone watching HGTV has, at one point or another, watched a program about “tiny houses.” There’s even an HGTV show called Tiny House Hunters. “Tiny houses” are actual stick-built homes that are under 500 square feet of living space. Think really-small efficiency apartment. Except it’s a real house–sort of. The average American home is 1,780 square feet of living space. (If you’re not familiar with the tiny house movement, read this Wikipedia entry.) So what do tiny houses in Wheeling, WV have to do with the Marcellus? A group in Wheeling believes tiny houses on Wheeling Island is a viable solution for affordable housing. You see, the Marcellus/Utica has successfully employed a lot of people in the region–and a lot of new people have moved in, sopping up available apartments, homes, and trailers. There’s a bit of a housing shortage due to an abundance of Marcellus workers. The group in Wheeling thinks they have the solution: sell a bunch of tiny houses on Wheeling Island…
    Read More “Tiny Houses: Answer to Affordable Housing in Active M-U Area?”

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    OPEC Report: US Shale Dominates Until 2025, then OPEC Rises Again

    Even OPEC–the Organization of the Petroleum Exporting Countries–now admits that U.S. shale energy is here to stay. At least for the foreseeable future. For OPEC, the foreseeable future is until 2025. Yesterday OPEC released its annual “World Oil Outlook 2040” (copy below). The massive 364-page report predicts that U.S. shale oil will continue to grow, and dominate the oil markets–until 2025 (eight years from now). At that point OPEC says shale oil will peak and following that, OPEC will once again be in the driver’s seat–ready, willing and able to screw Americans and everyone else who buys their oil. We think OPEC is smoking some good stuff…
    Read More “OPEC Report: US Shale Dominates Until 2025, then OPEC Rises Again”

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    DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work

    The arrogance of Big Green was on full display yesterday as they rushed to stop the Atlantic Sunrise Pipeline project project and silence lawfully permitted work. In response to a lawsuit filed by the worst of the worst (the Sierra Club) on Oct. 30th, a liberal court in the District of Columbia yesterday slapped the Atlantic Sunrise project with an emergency stop work order–for the entire project. Work had already begun to lay pipe on the property of Catholic nuns in Lancaster County, PA. The nuns call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn (you can read why here). The Sisters have allowed themselves to be used to oppose the Atlantic Sunrise project by a radical professor from Lancaster County, Mark Clatterbuck, someone who engaged in the North Dakota Access Pipeline protests (protests that turned violent). Clatterbuck enlisted the help of his Big Green buddies in the Sierra Club to try and litigate to stop the federally and legally approved project last week (see Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction). Yesterday we told you that Williams, the builder, was building at the site of the Sisters first because of the involvement of Clattberbuck and Big Green interference–get the hard part done first (see First Atlantic Sunrise Pipe Gets Buried on Nun Property). We were grinning that pipeline on the Sisters’ property would be the first to be laid and buried in the ground, likely done this week. Today the grin is wiped off our face, we must confess. It’s so sad to see egregious abuses of our legal system like this. We expect the stop work order for the project will be temporary–perhaps a few weeks. But one never knows. The DC Circuit Court of Appeals is looking at the question of whether the Federal Energy Regulatory Commission was correct in approving the project in the first place last February…
    Read More “DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work”

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    Landowner Fight to Overturn DRBC Frack Ban Goes to Fed Court Today

    The lawsuit filed by a Wayne County, PA landowner against the egregious overreach by the Delaware River Basin Commission (DRBC) to stall/delay/block any shale drilling within the Basin takes a very important step forward today. It’s a step feared by the DRBC and radical groups like THE Delaware Riverkeeper–because this case has the real potential to neuter the DRBC’s claim it can block shale drilling in the watershed. In March, MDN reported that U.S. District Judge Robert Mariani ruled against the Wayne Land and Mineral Group in a lawsuit that challenged the right of the DRBC to stop fracking in the Delaware River Basin (see Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC). At first blush it may seem like a setback for landowners in Wayne and Pike Counties (in PA) who have been denied the right to lease and allow drilling under their land for the past 10+ years. But looks can be deceiving. As we pointed out in our article, if you read the judge’s decision, he harpoons all of the DRBC’s legal arguments, but in the end rules against the landowner. Why? Because the judge wanted to send the case to a higher court for an ultimate decision–the 3rd Circuit Court of Appeals. In June, the Wayne Land and Mineral Group filed their brief with the 3rd Circuit (see Wayne County Landowner Files Brief in Case Against DRBC Frack Ban). Today, oral arguments will be heard in what we sincerely hope is the beginning of the end of the DRBC’s illegal frack ban…
    Read More “Landowner Fight to Overturn DRBC Frack Ban Goes to Fed Court Today”

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    Driller of 1st Illinois Shale Well Says No Thanks, Too Many Regs

    In June, MDN brought you the news that the very first application to drill a shale well in Illinois had been made (see Application Filed to Drill/Frack 1st Shale Well in Illinois). Woolsey Operating Co., headquartered in Kansas, filed a high volume horizontal hydraulic fracturing (HVHHF) application with the Illinois Dept. of Natural Resources (IDNR) to drill a well in the New Albany Shale layer in the state. On August 31st the IDNR issued the permit. Why is fracking in Illinois of interest for MDN readers? A significant portion of our natural gas shale production is already flowing to the Midwest via the Rockies Express (REX) pipeline, Rover Pipeline, and when it gets built, the NEXUS Pipeline. While a single shale well in Illinois is no competitive threat to our region, if the well proves a commercial success and more wells follow, we may get some competition. Hence our interest in this story. However, it looks like there’s no reason to be worried. When IDNR issued their permit for the well, they larded it up with so many regulations and conditions, Woolsey has said (our words), “No thanks, you can keep it.” Last week Woolsey sent a letter to IDNR asking to be “immediately released” and for the permit to be withdrawn…
    Read More “Driller of 1st Illinois Shale Well Says No Thanks, Too Many Regs”

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    Enervest Pushes for Co-Tenancy in West Virginia

    In August MDN told you the West Virginia Oil & Natural Gas Association (WVONGA) plans to push, once again, for what MDN calls forced pooling lite in the next session of the legislature scheduled for early 2018 (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018). Forced pooling legislation in West Virginia has been put forward five times in the past seven years–and each time it has failed to win enough votes in the WV legislature. This year, WVONGA changed tactics and renamed forced pooling as co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). The West Virginia Surface Owners Rights Organization refers to co-tenancy as “majority rules” and joint development as “invisible ink” (see Another Look at WV’s Co-tenancy & Joint Development Proposals). EnerVest, a shale (and conventional) driller with considerable acreage in West Virginia recently contributed a editorial to the Charleston Gazette-Mail which unsurprisingly supports WVONGA’s push–at least for co-tenancy. The article doesn’t mention joint development, but since the two are tied together in a single bill, we assume they also want to see joint development. Below is (once again) a brief explanation of the two concepts, along with EnerVest’s editorial/reasons for why the Mountain State needs them…
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    Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution

    Last week midstream powerhouse Williams issued their third quarter 2017 update. CEO Alan Armstrong said this about the Transco Pipeline–a key pipeline in the Marcellus/Utica region: “So far in 2017, we’ve placed four of our ‘Big 5’ Transco expansion projects into service including Gulf Trace, Hillabee Phase 1, Dalton Expansion and New York Bay Expansion with the fifth of the ‘Big 5’ expansions – the Virginia Southside II project – expected to be placed in service during fourth-quarter 2017. The incremental capacity from the fully-contracted Transco expansion projects going in service so far this year reflects a 25 percent increase in Transco’s design capacity.” All five of those projects to one degree or another flow Marcellus/Utica Shale gas. Williams is in a multi-year program to reverse the flow of the Transco. Traditionally it has flowed gas from the Gulf to the northeast. The pipeline is in the process of getting turned around, to flow our gas southward, some of it all the way to the Gulf Coast. With respect to the Atlantic Sunrise project–a part of the Transco system–Armstrong reminded listeners on the analyst phone call that some of that project is already up and running: “And on Atlantic Sunrise, we started construction and have already placed a portion of Atlantic Sunrise into early service on September 1 of this year, providing about 400,000 dekatherms a day of firm transportation service on Transco’s existing mainline facilities, and of course that serve delivery points as far south as Choctaw County, Alabama. So we’re really excited to be starting to see the Transco system turn around and be able to deliver volumes to the south. And I can tell you, that’s very much needed as we’re seeing a lot of demand growth occur in the southeast on our system.” As for the stalled Constitution Pipeline in New York State, Armstrong said to “stay tuned” and that there is “plenty of fight left in this dog.” Armstrong sounded encouraged about the prospects of the Constitution. Below is the full 3Q17 update complete with financials, excerpts from the analyst phone call of interest for MDN readers, and the newest slide deck…
    Read More “Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution”

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    PA’s Inept Government is Holding Back the Marcellus Shale

    MDN is pleased to bring you another guest post from our very good friend Chris Acker. Chris is MDN editor Jim Willis’ right arm when it comes to scanning for stories, something Jim is profoundly grateful for. Chris is a geological engineer with an MBA. He grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos (see www.PianoGrands.com). A few years ago, it was found that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He leased with Cabot Oil & Gas and has a well sitting off his front porch not more than 200 yards away. Chris is now happily engaged once again in energy economics, with an emphasis, naturally, on gas. He splits his time between Montrose, PA and Savannah, GA. Chris’ two “home states” of Pennsylvania and Georgia recently got him thinking–comparing and contrasting what he sees in both locations–which led him to pen the following guest post that takes aim at PA’s inept (Chris’ word) state government and how it is mismanaging the biggest gift it has received in generations: the Marcellus Shale…
    Read More “PA’s Inept Government is Holding Back the Marcellus Shale”